EXPE Q2 2021 Earnings

Call Details

• Call Title: Expedia Group, Inc. Q2 2021 Earnings Call
• Date: August 5, 2021 at 8:30 PM UTC
• Management Team:
  • Patrick Thompson (SVP and CFO Retail)
  • Peter Kern (Chief Executive Officer)
  • Eric Hart (Chief Financial Officer)

Call Summary

Financial Performance

• Total revenue was down approximately 33% versus Q2 2019, which was an improvement from Q1 when revenue was down approximately 52% versus Q1 2019.
• Adjusted EBITDA was $201M for Q2 2021, representing approximately $260M of sequential improvement versus the prior quarter.
• Reported free cash flow totaled approximately $2.3B in Q2 on a reported basis, and approximately $1.8B excluding the change in restricted cash.
• Overhead costs were approximately $544M in Q2, which increased by approximately $40M sequentially versus Q1 2021.
• Revenue trends improved in LATAM and APAC on a revenue basis, and ADRs were effectively up across the board from last quarter.
• Vrbo contributed materially to deferred merchant bookings growth, and the company emphasized that Vrbo performance and consumer engagement remained strong.

Guidance

• The company now anticipates closing the AMEX GBT transaction during 2021 after receiving the relevant clearances and completing employee consultations.
• The firm expects to realize largely all of its fixed and variable cost savings targets by the end of this year.
• For Q3 the company plans to continue investing in recovery marketing with a bias toward brand building while noting recent softening trends observed in July.
• Total marketing spend will further close the gap versus pre-pandemic levels but will remain well below Q3 2019 spend levels.
• The company retains the right to pay off the remaining preferred stock balance at any time and is monitoring the timing prudently.
• There was no updated numeric revenue or EPS guidance for upcoming quarters disclosed on the call.