EXPE Q4 2024 Earnings

Call Details

• Call Title: Expedia Group, Inc. Q4 2024 Earnings Call
• Date: February 6, 2025 at 9:30 PM UTC
• Management Team:
  • Harshit Vaish (SVP, Corporate Development Strategy and Investor Relations)
  • Ariane Gorin (Chief Executive Officer)
  • Scott Schenkel (Chief Financial Officer)

Call Summary

Financial Performance

• Total gross bookings were $24.4B in Q4, up 13% year over year.
• Revenue was $3.2B in Q4, up 10% year over year.
• Lodging gross bookings grew 12% in Q4, with hotel gross bookings up 14% and continued acceleration at Vrbo.
• Gross margin was nearly 90% in Q4, up 125 basis points year over year.
• Direct sales and marketing expense was $1.5B in Q4, up 13% year over year, and resulted in flat leverage as a percent of gross bookings.
• Overhead expenses were $643M in Q4, down 1% year over year, delivering nearly 250 basis points of overhead leverage.
• Q4 EBITDA was $643M, up 21% year over year, with an EBITDA margin of 20.2% that expanded 175 basis points.
• Full-year 2024 gross bookings were $111B, up 7%, and full-year revenue was nearly $14B, up 7%, with free cash flow of $2.3B, up 26% year over year.

Guidance

• Q1 2025 gross bookings growth is guided to 4% to 6% year over year.
• Q1 2025 revenue growth is guided to 3% to 5% year over year, reflecting approximately two points of foreign exchange headwind and calendar shifts including leap year and Easter timing.
• Q1 2025 EBITDA margins are expected to be flat to slightly better year over year, with the company noting Q1 is the lowest EBITDA quarter and margins are highly sensitive.
• For full-year 2025, gross bookings and revenue growth are expected in the 4% to 6% range, factoring in roughly two points of negative FX impact.
• The company expects year-over-year EBITDA margin expansion of 50 basis points for 2025.
• Guidance factors include a moderation from Q4 strength, potential January pull-forwards from holiday promotions, and FX-driven headwinds.