|
|
|
|
Delaware
|
|
001-37429
|
|
20-2705720
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
Identification No.)
|
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
|
|
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading symbol(s)
|
Name of each exchange on which registered
|
Common stock, $0.0001 par value
|
EXPE
|
The Nasdaq Global Select Market
|
Expedia Group, Inc. 2.500% Senior Notes due 2022
|
EXPE22
|
New York Stock Exchange
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
|
|
|
|
Emerging growth company
|
☐
|
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
|
☐
|
|
Exhibit
Number
|
|
Description
|
|
|
EXPEDIA GROUP, INC.
|
|
|
|
|
|
By:
|
/s/ Alan Pickerill
|
|
|
Alan Pickerill
|
|
|
Chief Financial Officer
|
•
|
Gross bookings increased $2.3 billion or 9% to $26.9 billion. Revenue increased 9% to $3.6 billion.
|
•
|
Total stayed lodging room nights increased 11%.
|
•
|
Expedia Group's net income declined 22% and Adjusted EBITDA was flat in the third quarter.
|
•
|
Expedia Group exceeded 1.4 million properties available on its core lodging platform as of September 30, 2019, including over 650,000 integrated Vrbo listings.
|
•
|
Year-to-date, Expedia Group repurchased 3.2 million shares for $418 million. Including the Liberty Expedia Holdings, Inc. transaction, Expedia Group has retired a total of 6.3 million shares.
|
•
|
Year-to-date net cash provided by operating activities and free cash flow grew 14% and 5%, respectively. Excluding capital expenditures related to our Seattle headquarters, year-to-date free cash flow grew 15%.
|
|
Expedia Group (excluding trivago)(3)
|
Expedia Group, Inc.
|
||||
Metric
|
Q3 2019
|
Q3 2018
|
Δ Y/Y
|
Q3 2019
|
Q3 2018
|
Δ Y/Y
|
Room night growth
|
11%
|
13%
|
(189) bps
|
11%
|
13%
|
(189) bps
|
Gross bookings
|
$26,927
|
$24,676
|
9%
|
$26,927
|
$24,676
|
9%
|
Revenue
|
3,368
|
3,076
|
9%
|
3,558
|
3,276
|
9%
|
Operating income
|
606
|
651
|
(7)%
|
609
|
672
|
(9)%
|
Net income attributable to Expedia Group
|
|
|
|
409
|
525
|
(22)%
|
Diluted earnings per share
|
|
|
|
$2.71
|
$3.43
|
(21)%
|
Adjusted EBITDA(2)
|
900
|
881
|
2%
|
912
|
912
|
—%
|
Adjusted net income(2)
|
518
|
553
|
(6)%
|
520
|
567
|
(8)%
|
Adjusted EPS(2)
|
$3.37
|
$3.56
|
(5)%
|
$3.38
|
$3.65
|
(7)%
|
Free cash flow(2)
|
|
|
|
(1,152)
|
(594)
|
94%
|
|
Gross Bookings
|
|
|
Revenue
|
||||||||||||||||
|
Third Quarter
|
|
|
Third Quarter
|
||||||||||||||||
|
2019
|
|
2018
|
|
Δ%
|
|
|
2019
|
|
2018
|
|
Δ%
|
||||||||
Core OTA
|
$
|
22,234
|
|
|
$
|
20,217
|
|
|
10%
|
|
|
$
|
2,732
|
|
|
$
|
2,527
|
|
|
8%
|
Vrbo
|
2,633
|
|
|
2,496
|
|
|
5%
|
|
|
467
|
|
|
410
|
|
|
14%
|
||||
Egencia
|
2,060
|
|
|
1,963
|
|
|
5%
|
|
|
145
|
|
|
139
|
|
|
4%
|
||||
Corporate (Bodybuilding.com)
|
—
|
|
|
—
|
|
|
—%
|
|
|
24
|
|
|
—
|
|
|
NM
|
||||
Expedia Group (excluding trivago)
|
$
|
26,927
|
|
|
$
|
24,676
|
|
|
9%
|
|
|
$
|
3,368
|
|
|
$
|
3,076
|
|
|
9%
|
trivago
|
—
|
|
|
—
|
|
|
—%
|
|
|
279
|
|
|
295
|
|
|
(6)%
|
||||
Intercompany eliminations
|
—
|
|
|
—
|
|
|
—%
|
|
|
(89
|
)
|
|
(95
|
)
|
|
(7)%
|
||||
Total
|
$
|
26,927
|
|
|
$
|
24,676
|
|
|
9%
|
|
|
$
|
3,558
|
|
|
$
|
3,276
|
|
|
9%
|
|
Costs and Expenses
|
|
|
As a % of Revenue
|
||||||||||||||||
|
Third Quarter
|
|
|
Third Quarter
|
||||||||||||||||
|
2019
|
|
2018
|
|
Δ%
|
|
|
2019
|
|
2018
|
|
Δ (bps)
|
||||||||
Generally Accepted Accounting Principles (GAAP) Expenses - Expedia Group
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue
|
$
|
569
|
|
|
$
|
504
|
|
|
13
|
%
|
|
|
16.0
|
%
|
|
15.4
|
%
|
|
58
|
|
Selling and marketing
|
1,660
|
|
|
1,501
|
|
|
11
|
%
|
|
|
46.7
|
%
|
|
45.8
|
%
|
|
85
|
|
||
Technology and content
|
440
|
|
|
404
|
|
|
9
|
%
|
|
|
12.4
|
%
|
|
12.3
|
%
|
|
3
|
|
||
General and administrative
|
217
|
|
|
202
|
|
|
7
|
%
|
|
|
6.1
|
%
|
|
6.1
|
%
|
|
(6
|
)
|
||
Total GAAP costs and expenses
|
$
|
2,886
|
|
|
$
|
2,611
|
|
|
10
|
%
|
|
|
81.1
|
%
|
|
79.7
|
%
|
|
140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Expenses - Expedia Group
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue*
|
$
|
545
|
|
|
$
|
477
|
|
|
14
|
%
|
|
|
15.3
|
%
|
|
14.5
|
%
|
|
75
|
|
Selling and marketing*
|
1,635
|
|
|
1,478
|
|
|
11
|
%
|
|
|
46.0
|
%
|
|
45.1
|
%
|
|
84
|
|
||
Technology and content
|
286
|
|
|
262
|
|
|
9
|
%
|
|
|
8.0
|
%
|
|
8.0
|
%
|
|
5
|
|
||
General and administrative*
|
182
|
|
|
169
|
|
|
8
|
%
|
|
|
5.1
|
%
|
|
5.1
|
%
|
|
(3
|
)
|
||
Total adjusted costs and expenses
|
$
|
2,648
|
|
|
$
|
2,386
|
|
|
11
|
%
|
|
|
74.4
|
%
|
|
72.8
|
%
|
|
161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Expenses - Expedia Group (excluding trivago)**
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue*
|
$
|
541
|
|
|
$
|
475
|
|
|
14
|
%
|
|
|
16.1
|
%
|
|
15.4
|
%
|
|
62
|
|
Selling and marketing*
|
1,489
|
|
|
1,337
|
|
|
11
|
%
|
|
|
44.2
|
%
|
|
43.5
|
%
|
|
74
|
|
||
Technology and content
|
270
|
|
|
246
|
|
|
10
|
%
|
|
|
8.0
|
%
|
|
8.0
|
%
|
|
2
|
|
||
General and administrative*
|
170
|
|
|
158
|
|
|
8
|
%
|
|
|
5.1
|
%
|
|
5.1
|
%
|
|
(9
|
)
|
||
Total adjusted costs and expenses excluding trivago
|
$
|
2,470
|
|
|
$
|
2,216
|
|
|
11
|
%
|
|
|
73.3
|
%
|
|
72.0
|
%
|
|
129
|
|
•
|
For the third quarter of 2019, total GAAP and adjusted cost of revenue increased 13% and 14%, respectively, compared to the third quarter of 2018, primarily due to an increase in cloud expense, inorganic impact related to an acquisition and the newly enacted French digital services tax, a portion of which relates to retroactive expenses for the first and second quarters of 2019. Cloud expense in cost of revenue was $46 million during the third quarter of 2019 compared to $22 million in the third quarter of 2018.
|
•
|
For the third quarter of 2019, both GAAP and adjusted total selling and marketing expense increased 11% compared to the third quarter of 2018, primarily due to a $169 million increase in direct costs partly offset by a decrease in indirect costs. The higher direct costs reflect increases at Expedia Partner Solutions, as well as at Hotels.com and Vrbo, in part due to a mix shift to high cost marketing channels. Indirect costs represented 16% of total GAAP selling and marketing costs and 15% of total adjusted selling and marketing expense in the third quarter of 2019 compared to 18% and 17%, respectively, in the third quarter of 2018.
|
•
|
For the third quarter of 2019, both total GAAP and adjusted technology and content expense increased 9% compared to the third quarter of 2018, primarily due to investments in product and technology initiatives and higher cloud expenses. Cloud expense in technology and content expense was $18 million during the third quarter of 2019, compared to $11 million during the third quarter of 2018.
|
•
|
For the third quarter of 2019, total GAAP and adjusted general and administrative expense increased 7% and 8%, respectively, compared to the third quarter of 2018, primarily due to higher professional fees, in addition to inorganic impact related to an acquisition.
|
|
Third Quarter
|
||||||||
|
2019
|
|
2018
|
|
Δ%
|
||||
Core OTA
|
$
|
865
|
|
|
$
|
837
|
|
|
3%
|
Vrbo
|
215
|
|
|
209
|
|
|
3%
|
||
Egencia
|
19
|
|
|
19
|
|
|
(1)%
|
||
Unallocated overhead costs
|
(199
|
)
|
|
(184
|
)
|
|
8%
|
||
Expedia Group (excluding trivago)
|
$
|
900
|
|
|
$
|
881
|
|
|
2%
|
trivago(1)
|
12
|
|
|
31
|
|
|
(60)%
|
||
Total Adjusted EBITDA
|
$
|
912
|
|
|
$
|
912
|
|
|
—%
|
|
|
|
|
|
|
||||
Net income attributable to Expedia Group(2)
|
$
|
409
|
|
|
$
|
525
|
|
|
(22)%
|
•
|
Expedia Group exceeded 1.4 million properties available on its core lodging platform as of September 30, 2019, including over 650,000 integrated Vrbo listings. Vrbo now offers over 2.1 million online bookable listings, including 1.4 million that are instantly bookable.
|
•
|
Expedia Group signed a new, multi-year agreement with United Airlines. This new, expanded agreement continues Expedia Group's leisure distribution with United, expands United's relationship with Expedia Partner Solutions, and builds on United's relationship with Egencia, Expedia Group's corporate travel business. The companies will continue work to expand cooperation into other areas.
|
•
|
Moody's upgraded Expedia Group's credit to "Baa3" from "Ba1" following the closing of Expedia Group's Liberty Expedia Holdings, Inc. transaction. Expedia Group credit ratings are now investment grade across all three major ratings agencies.
|
•
|
Expedia Group announced a deal to become the exclusive global optimized distributor of Marriott’s wholesale rates and availability. This single gateway solution provided by Expedia Partner Solutions, leverages the Expedia Group technology platform to eliminate the complexity and inefficiency of the wholesale redistribution model for Marriott hotels, providing travelers a consistent and reliable shopping experience.
|
•
|
Brand Expedia and Vrbo launched capabilities for customers to use Expedia credentials to login to Vrbo U.S. points of sale across web, iOS and Android, making it easier for travelers to authenticate.
|
•
|
Brand Expedia launched Out Travel The System, a podcast designed to help travelers by providing the latest travel tips and trends.
|
•
|
The Hotels.com Rewards loyalty program exceeded 50 million members and the Orbitz Rewards loyalty program surpassed 10 million members in the quarter.
|
•
|
Expedia Group was awarded the inaugural Gold illumi award from UserTesting.com, a leading on-demand Human Insight Platform. The awards recognize companies seeking to inspire the world to think about human insights as a key ingredient for customer experience excellence, product and marketing innovation and team success.
|
•
|
Expedia Group Media Solutions won four Travel Weekly Magellan Awards for campaigns with Brand USA, Hawaiian Airlines, Kenya Tourism Board and Palace Resorts, as well as won two W3 Awards for campaigns with Brand USA and Kenya Tourism Board.
|
•
|
Expedia Group Global Cruise received five awards at the World’s Leading Cruise Lines “Excellence Awards”, including the top award for both Carnival Cruise Line and Holland America Line.
|
•
|
Expedia Group acquired all outstanding shares of CanadaStays™, solidifying its position in the Canadian alternative accommodations market. The company plans to integrate CanadaStays with Vrbo, enabling a better experience for travelers, owners and property managers in Canada.
|
•
|
Vrbo announced new features and more customer support for its property management software, Escapia®. Moving forward, Vrbo will consolidate its three property management software offerings to Escapia.
|
•
|
Vrbo introduced a new group chat feature in the mobile app as part of its trip planning and collaboration tool, Trip Boards.
|
•
|
trivago continues its integration of alternative accommodation listings, expanding to over 2.3 million available on the platform as of the end of the quarter.
|
•
|
Egencia has been appointed by BP to modernize, simplify and expand its global travel program to support their business travel around the world.
|
•
|
Egencia announced Villa Tours, one of Mexico's top travel management companies, has joined the Egencia Global Alliance. With this collaboration, Egencia further strengthens its position in Latin America and enhances its ability to serve global customers from Mexico.
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
3,558
|
|
|
$
|
3,276
|
|
|
$
|
9,320
|
|
|
$
|
8,664
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenue (1) (2)
|
569
|
|
|
504
|
|
|
1,604
|
|
|
1,489
|
|
||||
Selling and marketing (1) (2)
|
1,660
|
|
|
1,501
|
|
|
4,852
|
|
|
4,558
|
|
||||
Technology and content (1) (2)
|
440
|
|
|
404
|
|
|
1,304
|
|
|
1,200
|
|
||||
General and administrative (1) (2)
|
217
|
|
|
202
|
|
|
622
|
|
|
597
|
|
||||
Amortization of intangible assets
|
50
|
|
|
71
|
|
|
154
|
|
|
215
|
|
||||
Impairment of goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
||||
Legal reserves, occupancy tax and other
|
11
|
|
|
(78
|
)
|
|
25
|
|
|
(74
|
)
|
||||
Restructuring and related reorganization charges
|
2
|
|
|
—
|
|
|
16
|
|
|
—
|
|
||||
Operating income
|
609
|
|
|
672
|
|
|
743
|
|
|
618
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest income
|
17
|
|
|
34
|
|
|
45
|
|
|
61
|
|
||||
Interest expense
|
(40
|
)
|
|
(47
|
)
|
|
(120
|
)
|
|
(149
|
)
|
||||
Other, net
|
(25
|
)
|
|
(47
|
)
|
|
(13
|
)
|
|
(101
|
)
|
||||
Total other expense, net
|
(48
|
)
|
|
(60
|
)
|
|
(88
|
)
|
|
(189
|
)
|
||||
Income before income taxes
|
561
|
|
|
612
|
|
|
655
|
|
|
429
|
|
||||
Provision for income taxes
|
(154
|
)
|
|
(81
|
)
|
|
(161
|
)
|
|
(56
|
)
|
||||
Net income
|
407
|
|
|
531
|
|
|
494
|
|
|
373
|
|
||||
Net (income) loss attributable to non-controlling interests
|
2
|
|
|
(6
|
)
|
|
(5
|
)
|
|
16
|
|
||||
Net income attributable to Expedia Group, Inc.
|
$
|
409
|
|
|
$
|
525
|
|
|
$
|
489
|
|
|
$
|
389
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share attributable to Expedia Group, Inc. available to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
2.77
|
|
|
$
|
3.51
|
|
|
$
|
3.30
|
|
|
$
|
2.59
|
|
Diluted
|
2.71
|
|
|
3.43
|
|
|
3.24
|
|
|
2.54
|
|
||||
Shares used in computing earnings per share (000's):
|
|
|
|
|
|
|
|
||||||||
Basic
|
147,232
|
|
|
149,482
|
|
|
148,052
|
|
|
150,450
|
|
||||
Diluted
|
150,635
|
|
|
153,153
|
|
|
150,912
|
|
|
153,404
|
|
||||
|
|
|
|
|
|
|
|
||||||||
(1) Includes stock-based compensation as follows:
|
|
|
|
|
|
|
|
||||||||
Cost of revenue
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
9
|
|
|
$
|
8
|
|
Selling and marketing
|
11
|
|
|
11
|
|
|
34
|
|
|
34
|
|
||||
Technology and content
|
18
|
|
|
15
|
|
|
56
|
|
|
46
|
|
||||
General and administrative
|
28
|
|
|
25
|
|
|
76
|
|
|
66
|
|
||||
|
|
|
|
|
|
|
|
||||||||
(2) Includes depreciation as follows:
|
|
|
|
|
|
|
|
||||||||
Cost of revenue
|
$
|
21
|
|
|
$
|
24
|
|
|
$
|
66
|
|
|
$
|
77
|
|
Selling and marketing
|
14
|
|
|
12
|
|
|
42
|
|
|
34
|
|
||||
Technology and content
|
136
|
|
|
127
|
|
|
399
|
|
|
370
|
|
||||
General and administrative
|
7
|
|
|
8
|
|
|
23
|
|
|
26
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
(unaudited)
|
|
|
||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3,797
|
|
|
$
|
2,443
|
|
Restricted cash and cash equivalents
|
447
|
|
|
259
|
|
||
Short-term investments
|
658
|
|
|
28
|
|
||
Accounts receivable, net of allowance of $43 and $34
|
2,684
|
|
|
2,151
|
|
||
Income taxes receivable
|
62
|
|
|
24
|
|
||
Prepaid expenses and other current assets
|
321
|
|
|
292
|
|
||
Total current assets
|
7,969
|
|
|
5,197
|
|
||
Property and equipment, net
|
2,090
|
|
|
1,877
|
|
||
Operating lease right-of-use assets
|
495
|
|
|
—
|
|
||
Long-term investments and other assets
|
770
|
|
|
778
|
|
||
Deferred income taxes
|
110
|
|
|
69
|
|
||
Intangible assets, net
|
1,843
|
|
|
1,992
|
|
||
Goodwill
|
8,104
|
|
|
8,120
|
|
||
TOTAL ASSETS
|
$
|
21,381
|
|
|
$
|
18,033
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable, merchant
|
$
|
1,813
|
|
|
$
|
1,699
|
|
Accounts payable, other
|
965
|
|
|
788
|
|
||
Deferred merchant bookings
|
5,642
|
|
|
4,327
|
|
||
Deferred revenue
|
381
|
|
|
364
|
|
||
Income taxes payable
|
100
|
|
|
74
|
|
||
Accrued expenses and other current liabilities
|
932
|
|
|
808
|
|
||
Current maturities of long-term debt
|
749
|
|
|
—
|
|
||
Total current liabilities
|
10,582
|
|
|
8,060
|
|
||
Long-term debt, excluding current maturities
|
4,170
|
|
|
3,717
|
|
||
Deferred income taxes
|
60
|
|
|
69
|
|
||
Operating lease liabilities
|
443
|
|
|
—
|
|
||
Other long-term liabilities
|
354
|
|
|
506
|
|
||
Redeemable non-controlling interests
|
33
|
|
|
30
|
|
||
Commitments and contingencies
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock $.0001 par value
|
—
|
|
|
—
|
|
||
Authorized shares: 1,600,000
|
|
|
|
||||
Shares issued: 256,276 and 231,493; Shares outstanding: 139,967 and 134,334
|
|
|
|
||||
Class B common stock $.0001 par value
|
—
|
|
|
—
|
|
||
Authorized shares: 400,000
|
|
|
|
||||
Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 12,800
|
|
|
|
||||
Additional paid-in capital
|
12,882
|
|
|
9,549
|
|
||
Treasury stock - Common stock and Class B, at cost
|
(9,290
|
)
|
|
(5,742
|
)
|
||
Shares: 123,586 and 97,159
|
|
|
|
||||
Retained earnings
|
850
|
|
|
517
|
|
||
Accumulated other comprehensive income (loss)
|
(258
|
)
|
|
(220
|
)
|
||
Total Expedia Group, Inc. stockholders’ equity
|
4,184
|
|
|
4,104
|
|
||
Non-redeemable non-controlling interests
|
1,555
|
|
|
1,547
|
|
||
Total stockholders’ equity
|
5,739
|
|
|
5,651
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
21,381
|
|
|
$
|
18,033
|
|
|
Nine months ended
September 30, |
||||||
|
2019
|
|
2018
|
||||
Operating activities:
|
|
|
|
||||
Net income
|
$
|
494
|
|
|
$
|
373
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation of property and equipment, including internal-use software and website development
|
530
|
|
|
507
|
|
||
Amortization of stock-based compensation
|
175
|
|
|
154
|
|
||
Amortization of intangible assets
|
154
|
|
|
215
|
|
||
Impairment of goodwill
|
—
|
|
|
61
|
|
||
Deferred income taxes
|
(58
|
)
|
|
(281
|
)
|
||
Foreign exchange loss on cash, restricted cash and short-term investments, net
|
40
|
|
|
94
|
|
||
Realized gain on foreign currency forwards
|
(4
|
)
|
|
(34
|
)
|
||
Loss on minority equity investments, net
|
13
|
|
|
100
|
|
||
Other
|
(16
|
)
|
|
27
|
|
||
Changes in operating assets and liabilities, net of effects from acquisitions:
|
|
|
|
||||
Accounts receivable
|
(543
|
)
|
|
(416
|
)
|
||
Prepaid expenses and other assets
|
—
|
|
|
(12
|
)
|
||
Accounts payable, merchant
|
119
|
|
|
42
|
|
||
Accounts payable, other, accrued expenses and other liabilities
|
207
|
|
|
171
|
|
||
Tax payable/receivable, net
|
(6
|
)
|
|
141
|
|
||
Deferred merchant bookings
|
1,305
|
|
|
957
|
|
||
Deferred revenue
|
16
|
|
|
21
|
|
||
Net cash provided by operating activities
|
2,426
|
|
|
2,120
|
|
||
Investing activities:
|
|
|
|
||||
Capital expenditures, including internal-use software and website development
|
(864
|
)
|
|
(634
|
)
|
||
Purchases of investments
|
(1,283
|
)
|
|
(1,714
|
)
|
||
Sales and maturities of investments
|
635
|
|
|
1,692
|
|
||
Acquisitions, net of cash and restricted cash acquired
|
80
|
|
|
(40
|
)
|
||
Other, net
|
3
|
|
|
41
|
|
||
Net cash used in investing activities
|
(1,429
|
)
|
|
(655
|
)
|
||
Financing activities:
|
|
|
|
||||
Proceeds from issuance of long-term debt, net of issuance costs
|
1,235
|
|
|
—
|
|
||
Payment of long-term debt
|
—
|
|
|
(500
|
)
|
||
Payment of Liberty Expedia Exchangeable Debentures
|
(400
|
)
|
|
—
|
|
||
Purchases of treasury stock
|
(352
|
)
|
|
(620
|
)
|
||
Proceeds from issuance of treasury stock
|
—
|
|
|
31
|
|
||
Payment of dividends to stockholders
|
(145
|
)
|
|
(138
|
)
|
||
Proceeds from exercise of equity awards and employee stock purchase plan
|
277
|
|
|
138
|
|
||
Other, net
|
(8
|
)
|
|
(65
|
)
|
||
Net cash provided by (used in) financing activities
|
607
|
|
|
(1,154
|
)
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents
|
(62
|
)
|
|
(119
|
)
|
||
Net increase in cash, cash equivalents and restricted cash and cash equivalents
|
1,542
|
|
|
192
|
|
||
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period
|
2,705
|
|
|
2,917
|
|
||
Cash, cash equivalents and restricted cash and cash equivalents at end of period
|
$
|
4,247
|
|
|
$
|
3,109
|
|
Supplemental cash flow information
|
|
|
|
||||
Cash paid for interest
|
$
|
156
|
|
|
$
|
196
|
|
Income tax payments, net
|
216
|
|
|
188
|
|
|
|
|
2017
|
|
|
|
2018
|
|
|
|
2019
|
|
|
|
Y / Y
|
|
|
|||||||||||||||||||||
|
|
|
Q4
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
Q1
|
Q2
|
Q3
|
|
|
|
Growth
|
|
|
||||||||||||||||
Gross bookings by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Core OTA
|
|
|
$
|
16,182
|
|
|
|
|
$
|
21,171
|
|
$
|
21,011
|
|
$
|
20,217
|
|
$
|
17,921
|
|
|
|
|
$
|
23,029
|
|
$
|
23,305
|
|
$
|
22,234
|
|
|
|
|
10%
|
|
|
Vrbo
|
|
|
1,913
|
|
|
|
|
3,947
|
|
2,814
|
|
2,496
|
|
2,192
|
|
|
|
|
4,163
|
|
2,862
|
|
2,633
|
|
|
|
|
5%
|
|
|
||||||||
Egencia
|
|
|
1,670
|
|
|
|
|
2,078
|
|
2,073
|
|
1,963
|
|
1,844
|
|
|
|
|
2,217
|
|
2,125
|
|
2,060
|
|
|
|
|
5%
|
|
|
||||||||
Total
|
|
|
$
|
19,766
|
|
|
|
|
$
|
27,196
|
|
$
|
25,898
|
|
$
|
24,676
|
|
$
|
21,957
|
|
|
|
|
$
|
29,409
|
|
$
|
28,292
|
|
$
|
26,927
|
|
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross bookings by geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Domestic
|
|
|
$
|
11,800
|
|
|
|
|
$
|
16,582
|
|
$
|
16,213
|
|
$
|
15,232
|
|
$
|
13,362
|
|
|
|
|
$
|
18,363
|
|
$
|
17,962
|
|
$
|
16,793
|
|
|
|
|
10%
|
|
|
International
|
|
|
7,966
|
|
|
|
|
10,614
|
|
9,685
|
|
9,444
|
|
8,595
|
|
|
|
|
11,046
|
|
10,330
|
|
10,134
|
|
|
|
|
7%
|
|
|
||||||||
Total
|
|
|
$
|
19,766
|
|
|
|
|
$
|
27,196
|
|
$
|
25,898
|
|
$
|
24,676
|
|
$
|
21,957
|
|
|
|
|
$
|
29,409
|
|
$
|
28,292
|
|
$
|
26,927
|
|
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gross bookings by business model
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
|
$
|
9,493
|
|
|
|
|
$
|
12,445
|
|
$
|
12,290
|
|
$
|
11,442
|
|
$
|
10,688
|
|
|
|
|
$
|
13,727
|
|
$
|
13,680
|
|
$
|
12,588
|
|
|
|
|
10%
|
|
|
Merchant
|
|
|
8,360
|
|
|
|
|
10,803
|
|
10,794
|
|
10,739
|
|
9,077
|
|
|
|
|
11,519
|
|
11,750
|
|
11,707
|
|
|
|
|
9%
|
|
|
||||||||
Vrbo
|
|
|
1,913
|
|
|
|
|
3,947
|
|
2,814
|
|
2,496
|
|
2,192
|
|
|
|
|
4,163
|
|
2,862
|
|
2,633
|
|
|
|
|
5%
|
|
|
||||||||
Total
|
|
|
$
|
19,766
|
|
|
|
|
$
|
27,196
|
|
$
|
25,898
|
|
$
|
24,676
|
|
$
|
21,957
|
|
|
|
|
$
|
29,409
|
|
$
|
28,292
|
|
$
|
26,927
|
|
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Core OTA
|
|
|
$
|
1,857
|
|
|
|
|
$
|
1,926
|
|
$
|
2,253
|
|
$
|
2,527
|
|
$
|
2,054
|
|
|
|
|
$
|
2,037
|
|
$
|
2,480
|
|
$
|
2,732
|
|
|
|
|
8%
|
|
|
Vrbo
|
|
|
193
|
|
|
|
|
234
|
|
297
|
|
410
|
|
230
|
|
|
|
|
267
|
|
347
|
|
467
|
|
|
|
|
14%
|
|
|
||||||||
Egencia
|
|
|
137
|
|
|
|
|
151
|
|
156
|
|
139
|
|
155
|
|
|
|
|
153
|
|
163
|
|
145
|
|
|
|
|
4%
|
|
|
||||||||
Corporate (Bodybuilding.com)
|
|
|
—
|
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
—
|
|
—
|
|
24
|
|
|
|
|
NM
|
|
|
||||||||
Expedia Group (excluding trivago)
|
|
|
$
|
2,187
|
|
|
|
|
$
|
2,311
|
|
$
|
2,706
|
|
$
|
3,076
|
|
$
|
2,439
|
|
|
|
|
$
|
2,457
|
|
$
|
2,990
|
|
$
|
3,368
|
|
|
|
|
9%
|
|
|
trivago
|
|
|
215
|
|
|
|
|
319
|
|
280
|
|
295
|
|
190
|
|
|
|
|
237
|
|
251
|
|
279
|
|
|
|
|
(6)%
|
|
|
||||||||
Intercompany eliminations
|
|
|
(83
|
)
|
|
|
|
(122
|
)
|
(106
|
)
|
(95
|
)
|
(70
|
)
|
|
|
|
(85
|
)
|
(88
|
)
|
(89
|
)
|
|
|
|
(7)%
|
|
|
||||||||
Total
|
|
|
$
|
2,319
|
|
|
|
|
$
|
2,508
|
|
$
|
2,880
|
|
$
|
3,276
|
|
$
|
2,559
|
|
|
|
|
$
|
2,609
|
|
$
|
3,153
|
|
$
|
3,558
|
|
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue by geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Domestic
|
|
|
$
|
1,255
|
|
|
|
|
$
|
1,351
|
|
$
|
1,632
|
|
$
|
1,792
|
|
$
|
1,426
|
|
|
|
|
$
|
1,476
|
|
$
|
1,838
|
|
$
|
1,982
|
|
|
|
|
11%
|
|
|
International
|
|
|
1,065
|
|
|
|
|
1,157
|
|
1,248
|
|
1,484
|
|
1,133
|
|
|
|
|
1,133
|
|
1,315
|
|
1,576
|
|
|
|
|
6%
|
|
|
||||||||
Total
|
|
|
$
|
2,319
|
|
|
|
|
$
|
2,508
|
|
$
|
2,880
|
|
$
|
3,276
|
|
$
|
2,559
|
|
|
|
|
$
|
2,609
|
|
$
|
3,153
|
|
$
|
3,558
|
|
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue by business model
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
|
|
$
|
629
|
|
|
|
|
$
|
658
|
|
$
|
777
|
|
$
|
876
|
|
$
|
699
|
|
|
|
|
$
|
686
|
|
$
|
841
|
|
$
|
917
|
|
|
|
|
5%
|
|
|
Merchant
|
|
|
1,283
|
|
|
|
|
1,334
|
|
1,532
|
|
1,688
|
|
1,396
|
|
|
|
|
1,392
|
|
1,680
|
|
1,863
|
|
|
|
|
10%
|
|
|
||||||||
Advertising & media
|
|
|
214
|
|
|
|
|
282
|
|
274
|
|
302
|
|
233
|
|
|
|
|
264
|
|
285
|
|
311
|
|
|
|
|
3%
|
|
|
||||||||
Vrbo
|
|
|
193
|
|
|
|
|
234
|
|
297
|
|
410
|
|
230
|
|
|
|
|
267
|
|
347
|
|
467
|
|
|
|
|
14%
|
|
|
||||||||
Total
|
|
|
$
|
2,319
|
|
|
|
|
$
|
2,508
|
|
$
|
2,880
|
|
$
|
3,276
|
|
$
|
2,559
|
|
|
|
|
$
|
2,609
|
|
$
|
3,153
|
|
$
|
3,558
|
|
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted EBITDA by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Core OTA
|
|
|
$
|
534
|
|
|
|
|
$
|
323
|
|
$
|
561
|
|
$
|
837
|
|
$
|
584
|
|
|
|
|
$
|
344
|
|
$
|
623
|
|
$
|
865
|
|
|
|
|
3%
|
|
|
Vrbo
|
|
|
31
|
|
|
|
|
(21
|
)
|
78
|
|
209
|
|
22
|
|
|
|
|
(40
|
)
|
84
|
|
215
|
|
|
|
|
3%
|
|
|
||||||||
Egencia
|
|
|
19
|
|
|
|
|
27
|
|
30
|
|
19
|
|
31
|
|
|
|
|
29
|
|
37
|
|
19
|
|
|
|
|
(1)%
|
|
|
||||||||
Unallocated overhead costs
|
|
|
(173
|
)
|
|
|
|
(177
|
)
|
(186
|
)
|
(184
|
)
|
(199
|
)
|
|
|
|
(181
|
)
|
(196
|
)
|
(199
|
)
|
|
|
|
8%
|
|
|
||||||||
Expedia Group (excluding trivago)
|
|
|
$
|
411
|
|
|
|
|
$
|
152
|
|
$
|
483
|
|
$
|
881
|
|
$
|
438
|
|
|
|
|
$
|
152
|
|
$
|
548
|
|
$
|
900
|
|
|
|
|
2%
|
|
|
trivago
|
|
|
(9
|
)
|
|
|
|
(28
|
)
|
(20
|
)
|
31
|
|
33
|
|
|
|
|
24
|
|
20
|
|
12
|
|
|
|
|
(60)%
|
|
|
||||||||
Total
|
|
|
$
|
402
|
|
|
|
|
$
|
124
|
|
$
|
463
|
|
$
|
912
|
|
$
|
471
|
|
|
|
|
$
|
176
|
|
$
|
568
|
|
$
|
912
|
|
|
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income (loss) attributable to Expedia Group
|
|
|
$
|
55
|
|
|
|
|
$
|
(137
|
)
|
$
|
1
|
|
$
|
525
|
|
$
|
17
|
|
|
|
|
$
|
(103
|
)
|
$
|
183
|
|
$
|
409
|
|
|
|
|
(22)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
2018
|
|
|
|
2019
|
|
|
|||||||||||||
|
|
|
Q4
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
Q1
|
Q2
|
Q3
|
|
|
||||||||
Worldwide lodging (merchant, agency & Vrbo)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Room nights
|
|
|
74.8
|
|
|
|
|
73.9
|
|
89.6
|
|
105.3
|
|
82.8
|
|
|
|
|
80.8
|
|
100.1
|
|
116.5
|
|
|
|
Room night growth
|
|
|
15
|
%
|
|
|
|
15
|
%
|
12
|
%
|
13
|
%
|
11
|
%
|
|
|
|
9
|
%
|
12
|
%
|
11
|
%
|
|
|
Domestic room night growth
|
|
|
10
|
%
|
|
|
|
10
|
%
|
8
|
%
|
9
|
%
|
9
|
%
|
|
|
|
8
|
%
|
8
|
%
|
8
|
%
|
|
|
International room night growth
|
|
|
21
|
%
|
|
|
|
21
|
%
|
17
|
%
|
16
|
%
|
12
|
%
|
|
|
|
11
|
%
|
15
|
%
|
13
|
%
|
|
|
ADR growth
|
|
|
4
|
%
|
|
|
|
7
|
%
|
6
|
%
|
4
|
%
|
2
|
%
|
|
|
|
(1
|
)%
|
—
|
%
|
(1
|
)%
|
|
|
Revenue per night growth
|
|
|
(4
|
)%
|
|
|
|
—
|
%
|
2
|
%
|
(1
|
)%
|
(1
|
)%
|
|
|
|
(2
|
)%
|
—
|
%
|
—
|
%
|
|
|
Lodging revenue
|
|
|
$1,606
|
|
|
|
$1,612
|
$1,992
|
$2,347
|
$1,761
|
|
|
|
$1,725
|
$2,231
|
$2,599
|
|
|
||||||||
Lodging revenue growth
|
|
|
11
|
%
|
|
|
|
15
|
%
|
14
|
%
|
12
|
%
|
10
|
%
|
|
|
|
7
|
%
|
12
|
%
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Worldwide air (merchant & agency)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tickets sold growth
|
|
|
3
|
%
|
|
|
|
1
|
%
|
6
|
%
|
4
|
%
|
10
|
%
|
|
|
|
11
|
%
|
10
|
%
|
8
|
%
|
|
|
Airfare growth
|
|
|
1
|
%
|
|
|
|
3
|
%
|
1
|
%
|
4
|
%
|
2
|
%
|
|
|
|
(1
|
)%
|
1
|
%
|
—
|
%
|
|
|
Revenue per ticket growth
|
|
|
(3
|
)%
|
|
|
|
10
|
%
|
4
|
%
|
6
|
%
|
7
|
%
|
|
|
|
(7
|
)%
|
(7
|
)%
|
(10
|
)%
|
|
|
Air revenue
|
|
|
$176
|
|
|
|
$242
|
$223
|
$209
|
$207
|
|
|
|
$248
|
$228
|
$202
|
|
|
||||||||
Air revenue growth
|
|
|
—%
|
|
|
|
|
11
|
%
|
10
|
%
|
11
|
%
|
18
|
%
|
|
|
|
3
|
%
|
2
|
%
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Advertising & Media Revenue includes 3rd party revenue from trivago. All trivago revenue is classified as international.
|
•
|
During the first quarter of 2018, we updated our allocations methodology and recast the historical domestic and international revenue and Adjusted EBITDA by segment information presented to be on a comparable basis.
|
•
|
Corporate includes product revenue subsequent to our acquisition of Bodybuilding.com on July 26, 2019.
|
•
|
Some numbers may not add due to rounding. All percentages above and throughout this release are calculated on precise, unrounded numbers
|
|
Three months ended September 30, 2019
|
||||||||||||||||||||||
|
Core OTA
|
|
trivago
|
|
Vrbo
|
|
Egencia
|
|
Corporate &
Eliminations |
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Operating income (loss)
|
$
|
769
|
|
|
$
|
9
|
|
|
$
|
188
|
|
|
$
|
7
|
|
|
$
|
(364
|
)
|
|
$
|
609
|
|
Realized gain (loss) on revenue hedges
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Restructuring and related reorganization charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||
Legal reserves, occupancy tax and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
60
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
50
|
|
||||||
Depreciation
|
95
|
|
|
3
|
|
|
26
|
|
|
12
|
|
|
42
|
|
|
178
|
|
||||||
Adjusted EBITDA(1)
|
$
|
865
|
|
|
$
|
12
|
|
|
$
|
215
|
|
|
$
|
19
|
|
|
$
|
(199
|
)
|
|
$
|
912
|
|
|
Three months ended September 30, 2018
|
||||||||||||||||||||||
|
Core OTA
|
|
trivago
|
|
Vrbo
|
|
Egencia
|
|
Corporate &
Eliminations |
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Operating income (loss)
|
$
|
728
|
|
|
$
|
27
|
|
|
$
|
191
|
|
|
$
|
7
|
|
|
$
|
(281
|
)
|
|
$
|
672
|
|
Realized gain (loss) on revenue hedges
|
21
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
22
|
|
||||||
Legal reserves, occupancy tax and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
|
(78
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
54
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|
71
|
|
||||||
Depreciation
|
88
|
|
|
4
|
|
|
17
|
|
|
12
|
|
|
50
|
|
|
171
|
|
||||||
Adjusted EBITDA(1)
|
$
|
837
|
|
|
$
|
31
|
|
|
$
|
209
|
|
|
$
|
19
|
|
|
$
|
(184
|
)
|
|
$
|
912
|
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In millions)
|
||||||||||||||
Operating income
|
|
$
|
609
|
|
|
$
|
672
|
|
|
$
|
743
|
|
|
$
|
618
|
|
Less: trivago operating income (loss)(1)
|
|
3
|
|
|
21
|
|
|
29
|
|
|
(46
|
)
|
||||
Operating income excluding trivago
|
|
$
|
606
|
|
|
$
|
651
|
|
|
$
|
714
|
|
|
$
|
664
|
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net income attributable to Expedia Group, Inc.
|
|
$
|
409
|
|
|
$
|
525
|
|
|
$
|
489
|
|
|
$
|
389
|
|
Net income (loss) attributable to non-controlling interests
|
|
(2
|
)
|
|
6
|
|
|
5
|
|
|
(16
|
)
|
||||
Provision for income taxes
|
|
154
|
|
|
81
|
|
|
161
|
|
|
56
|
|
||||
Total other expense, net
|
|
48
|
|
|
60
|
|
|
88
|
|
|
189
|
|
||||
Operating income
|
|
609
|
|
|
672
|
|
|
743
|
|
|
618
|
|
||||
Gain (loss) on revenue hedges related to revenue recognized
|
|
2
|
|
|
22
|
|
|
13
|
|
|
18
|
|
||||
Restructuring and related reorganization charges
|
|
2
|
|
|
—
|
|
|
16
|
|
|
—
|
|
||||
Legal reserves, occupancy tax and other
|
|
11
|
|
|
(78
|
)
|
|
25
|
|
|
(74
|
)
|
||||
Stock-based compensation
|
|
60
|
|
|
54
|
|
|
175
|
|
|
154
|
|
||||
Amortization of intangible assets
|
|
50
|
|
|
71
|
|
|
154
|
|
|
215
|
|
||||
Impairment of goodwill
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
||||
Depreciation
|
|
178
|
|
|
171
|
|
|
530
|
|
|
507
|
|
||||
Adjusted EBITDA
|
|
$
|
912
|
|
|
$
|
912
|
|
|
$
|
1,656
|
|
|
$
|
1,499
|
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In millions, except share and per share data)
|
||||||||||||||
Net income attributable to Expedia Group, Inc.
|
|
$
|
409
|
|
|
$
|
525
|
|
|
$
|
489
|
|
|
$
|
389
|
|
Less: Net (income) loss attributable to non-controlling interests
|
|
2
|
|
|
(6
|
)
|
|
(5
|
)
|
|
16
|
|
||||
Less: Provision for income taxes
|
|
(154
|
)
|
|
(81
|
)
|
|
(161
|
)
|
|
(56
|
)
|
||||
Income before income taxes
|
|
561
|
|
|
612
|
|
|
655
|
|
|
429
|
|
||||
Amortization of intangible assets
|
|
50
|
|
|
71
|
|
|
154
|
|
|
215
|
|
||||
Stock-based compensation
|
|
60
|
|
|
54
|
|
|
175
|
|
|
154
|
|
||||
Legal reserves, occupancy tax and other
|
|
11
|
|
|
(78
|
)
|
|
25
|
|
|
(74
|
)
|
||||
Restructuring and related reorganization charges
|
|
2
|
|
|
—
|
|
|
16
|
|
|
—
|
|
||||
Impairment of goodwill
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
||||
Unrealized (gain) loss on revenue hedges
|
|
(9
|
)
|
|
16
|
|
|
—
|
|
|
(13
|
)
|
||||
Gain (loss) on minority equity investments, net
|
|
25
|
|
|
40
|
|
|
13
|
|
|
101
|
|
||||
Release of a non-operating liability
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
||||
Interest recognized on occupancy tax pay-to-play refund
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
||||
Adjusted income before income taxes
|
|
700
|
|
|
696
|
|
|
1,026
|
|
|
854
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
GAAP Provision for income taxes
|
|
(154
|
)
|
|
(81
|
)
|
|
(161
|
)
|
|
(56
|
)
|
||||
Provision for income taxes for adjustments
|
|
(23
|
)
|
|
(38
|
)
|
|
(95
|
)
|
|
(91
|
)
|
||||
Total Adjusted provision for income taxes
|
|
(177
|
)
|
|
(119
|
)
|
|
(256
|
)
|
|
(147
|
)
|
||||
Total Adjusted income tax rate
|
|
25.2
|
%
|
|
17.1
|
%
|
|
24.9
|
%
|
|
17.2
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Non-controlling interests
|
|
(3
|
)
|
|
(10
|
)
|
|
(14
|
)
|
|
4
|
|
||||
Adjusted net income attributable to Expedia Group, Inc.
|
|
$
|
520
|
|
|
$
|
567
|
|
|
$
|
756
|
|
|
$
|
711
|
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted weighted average shares outstanding (000's)
|
|
150,635
|
|
|
153,153
|
|
|
150,912
|
|
|
153,404
|
|
||||
Additional dilutive securities (000's)
|
|
3,203
|
|
|
1,951
|
|
|
3,230
|
|
|
2,070
|
|
||||
Adjusted weighted average shares outstanding (000's)
|
|
153,838
|
|
|
155,104
|
|
|
154,142
|
|
|
155,474
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share
|
|
$
|
2.71
|
|
|
$
|
3.43
|
|
|
$
|
3.24
|
|
|
$
|
2.54
|
|
Adjusted earnings per share attributable to Expedia Group, Inc.
|
|
$
|
3.38
|
|
|
$
|
3.65
|
|
|
$
|
4.91
|
|
|
$
|
4.57
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ex-trivago Adjusted Net Income and Adjusted EPS
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net income attributable to Expedia Group, Inc.
|
|
$
|
520
|
|
|
$
|
567
|
|
|
$
|
756
|
|
|
$
|
711
|
|
Less: Adjusted net income (loss) attributable to trivago
|
|
2
|
|
|
14
|
|
|
16
|
|
|
(12
|
)
|
||||
Adjusted net income excluding trivago
|
|
$
|
518
|
|
|
$
|
553
|
|
|
$
|
740
|
|
|
$
|
723
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings per share attributable to Expedia Group, Inc.
|
|
$
|
3.38
|
|
|
$
|
3.65
|
|
|
$
|
4.91
|
|
|
$
|
4.57
|
|
Less: Adjusted earnings (loss) per share attributable to trivago
|
|
0.01
|
|
|
0.09
|
|
|
0.10
|
|
|
(0.08
|
)
|
||||
Adjusted earnings per share excluding trivago
|
|
$
|
3.37
|
|
|
$
|
3.56
|
|
|
$
|
4.80
|
|
|
$
|
4.65
|
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net cash provided by (used in) operating activities
|
|
$
|
(861
|
)
|
|
$
|
(371
|
)
|
|
$
|
2,426
|
|
|
$
|
2,120
|
|
|
|
|
|
|
|
|
|
|
||||||||
Headquarters capital expenditures
|
|
(98
|
)
|
|
(49
|
)
|
|
(287
|
)
|
|
(119
|
)
|
||||
Non-headquarters capital expenditures
|
|
(193
|
)
|
|
(174
|
)
|
|
(577
|
)
|
|
(515
|
)
|
||||
Less: Total capital expenditures
|
|
(291
|
)
|
|
(223
|
)
|
|
(864
|
)
|
|
(634
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Free cash flow
|
|
$
|
(1,152
|
)
|
|
$
|
(594
|
)
|
|
$
|
1,562
|
|
|
$
|
1,486
|
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In millions)
|
||||||||||||||
Cost of revenue
|
|
$
|
569
|
|
|
$
|
504
|
|
|
$
|
1,604
|
|
|
$
|
1,489
|
|
Less: stock-based compensation
|
|
3
|
|
|
3
|
|
|
9
|
|
|
8
|
|
||||
Less: depreciation
|
|
21
|
|
|
24
|
|
|
66
|
|
|
77
|
|
||||
Adjusted cost of revenue
|
|
$
|
545
|
|
|
$
|
477
|
|
|
$
|
1,529
|
|
|
$
|
1,404
|
|
Less: trivago cost of revenue(1)
|
|
4
|
|
|
2
|
|
|
8
|
|
|
5
|
|
||||
Adjusted cost of revenue excluding trivago
|
|
$
|
541
|
|
|
$
|
475
|
|
|
$
|
1,521
|
|
|
$
|
1,399
|
|
|
|
|
|
|
|
|
|
|
||||||||
Selling and marketing expense
|
|
$
|
1,660
|
|
|
$
|
1,501
|
|
|
$
|
4,852
|
|
|
$
|
4,558
|
|
Less: stock-based compensation
|
|
11
|
|
|
11
|
|
|
34
|
|
|
34
|
|
||||
Less: depreciation
|
|
14
|
|
|
12
|
|
|
42
|
|
|
34
|
|
||||
Adjusted selling and marketing expense
|
|
$
|
1,635
|
|
|
$
|
1,478
|
|
|
$
|
4,776
|
|
|
$
|
4,490
|
|
Less: trivago selling and marketing expense(1)(2)
|
|
146
|
|
|
141
|
|
|
359
|
|
|
497
|
|
||||
Adjusted selling and marketing expense excluding trivago
|
|
$
|
1,489
|
|
|
$
|
1,337
|
|
|
$
|
4,417
|
|
|
$
|
3,993
|
|
|
|
|
|
|
|
|
|
|
||||||||
Technology and content expense
|
|
$
|
440
|
|
|
$
|
404
|
|
|
$
|
1,304
|
|
|
$
|
1,200
|
|
Less: stock-based compensation
|
|
18
|
|
|
15
|
|
|
56
|
|
|
46
|
|
||||
Less: depreciation
|
|
136
|
|
|
127
|
|
|
399
|
|
|
370
|
|
||||
Adjusted technology and content expense
|
|
$
|
286
|
|
|
$
|
262
|
|
|
$
|
849
|
|
|
$
|
784
|
|
Less: trivago technology and content expense(1)
|
|
16
|
|
|
16
|
|
|
49
|
|
|
49
|
|
||||
Adjusted technology and content expense excluding trivago
|
|
$
|
270
|
|
|
$
|
246
|
|
|
$
|
800
|
|
|
$
|
735
|
|
|
|
|
|
|
|
|
|
|
||||||||
General and administrative expense
|
|
$
|
217
|
|
|
$
|
202
|
|
|
$
|
622
|
|
|
$
|
597
|
|
Less: stock-based compensation
|
|
28
|
|
|
25
|
|
|
76
|
|
|
66
|
|
||||
Less: depreciation
|
|
7
|
|
|
8
|
|
|
23
|
|
|
26
|
|
||||
Adjusted general and administrative expense
|
|
$
|
182
|
|
|
$
|
169
|
|
|
$
|
523
|
|
|
$
|
505
|
|
Less: trivago general and administrative expense(1)
|
|
12
|
|
|
11
|
|
|
32
|
|
|
38
|
|
||||
Adjusted general and administrative expense excluding trivago
|
|
$
|
170
|
|
|
$
|
158
|
|
|
$
|
491
|
|
|
$
|
467
|
|