EXPE Q1 2023 Earnings

Call Details

• Call Title: Expedia Group, Inc. Q1 2023 Earnings Call
• Date: May 4, 2023 at 8:30 PM UTC
• Management Team:
  • Harshit Vaish (SVP, Corporate Development Strategy)
  • Peter Kern (Chief Executive Officer)
  • Julie Whalen (Chief Financial Officer)
  • Emily Reuter (Chief Financial Officer)

Call Summary

Financial Performance

• Total gross bookings were $29.4 billion, up 20% year over year versus Q1 2022.
• Total revenue was $2.7 billion, up 18% year over year and the highest first quarter on record.
• Lodging gross bookings reached a record $21.1 billion, up 19% year over year.
• EBITDA was $185 million, up $12 million or 7% year over year, with FX creating a 1600 basis point headwind to EBITDA growth.
• Free cash flow was a record $2.9 billion, up 3% year over year.
• Unrestricted cash was over $5.9 billion and undrawn revolver was $2.5 billion, providing total liquidity of $8.4 billion.

Bookings Growth & Mix

• Lodging drove the quarter with record lodging gross bookings and Hotels.com recovering to nearly 20% year-over-year bookings growth post-migration.
• Brand Expedia achieved nearly 30% year-over-year bookings growth, as referenced for comparison.
• Air bookings showed strong growth, driven mainly by international travel, with international air recovering close to 2019 levels.
• Vrbo experienced pressure from shorter length-of-stay and urban demand shift, and its migration to the Expedia stack caused short-term conversion degradation.
• Car rental average daily rates declined due to larger inventories enabling volume at lower prices.
• B2B revenue grew approximately 55% year over year, contributing materially to lodging and hotel growth in EMEA and APAC.