Expedia Group Reports Second Quarter 2021 Results
Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the second quarter ended June 30, 2021.
"The second quarter saw continued improvement in many global travel segments with North America in particular showing strength. Expedia Group benefited from strong vacation rental performance and improved conventional lodging, offset by continued softness in international travel, corporate travel, and relatively high consumer interest in smaller markets and lower-end accommodations. While that strength has continued into Q3, recent Covid variant news around the world continues to create uncertainty in the travel industry," said Vice Chairman and CEO, Peter Kern. "Unfortunately, the road to full travel recovery remains bumpy until more of the world is vaccinated. For our part, we just launched our Give the World a Shot program in partnership with UNICEF to help support global Covid-19 vaccine distribution. We invite other companies to join this effort so we can all get the world back on its feet again."
Financial Summary & Operating Metrics ($ millions except per share amounts)(1)
|
|
Expedia Group, Inc. |
||
|
Metric |
Q2 2021 |
Q2 2020 |
Δ Y/Y |
|
Stayed room night growth |
196% |
(81)% |
NM |
|
Gross bookings |
$20,815 |
$2,713 |
667% |
|
Revenue |
2,111 |
566 |
273% |
|
Operating income (loss) |
(132) |
(849) |
(84)% |
|
Net income (loss) attributable to Expedia Group common stockholders |
(301) |
(753) |
(60)% |
|
Diluted earnings (loss) per share |
$(2.02) |
$(5.34) |
(62)% |
|
Adjusted EBITDA(2) |
201 |
(436) |
NM |
|
Adjusted net income (loss)(2) |
(169) |
(577) |
(71)% |
|
Adjusted EPS(2) |
$(1.13) |
$(4.09) |
(72)% |
|
Free cash flow(2) |
2,331 |
(2,052) |
NM |
(1)All comparisons are against comparable period of 2020 unless otherwise noted.
(2)"Adjusted EBITDA" (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization), "Adjusted net income (loss)," "Adjusted EPS" and "Free cash flow" are non-GAAP measures as defined by the Securities and Exchange Commission (the "SEC"). See "Definitions of Non-GAAP Measures" and "Tabular Reconciliations for Non-GAAP Measures" on pages 10-16 herein for an explanation and reconciliations of non-GAAP measures used throughout this release. Expedia Group does not calculate or report net income by segment.
Please refer to the "Glossary of Business Terms," located in the Quarterly Results section on Expedia Group's investor relations website, for business and financial statement definitions used throughout this release
Discussion of Results
The results for Expedia Group, Inc. ("Expedia Group" or "the Company") include Brand Expedia®, Hotels.com®, Expedia® Partner Solutions, Vrbo®, Egencia®, trivago®, HomeAway®, Orbitz®, Travelocity®, Hotwire®, Wotif®, ebookers®, CheapTickets®, Expedia Group™ Media Solutions, CarRentals.com™, Expedia® Cruises™, Traveldoo® and VacationRentals.com. Results include the related international points of sale for all brands and the immaterial impact of Bodybuilding.com since the Liberty Expedia Holdings, Inc. transaction on July 26, 2019. In May 2020, Expedia Group completed the sale of Bodybuilding.com. In October 2020, we completed the sale of SilverRail™, and in April 2021, we completed the sale of Classic Vacations®. All amounts shown are in U.S. dollars.
Gross Bookings & Revenue
|
Revenue by Segment ($ millions) |
|||||||||
|
|
Revenue |
||||||||
|
|
Second Quarter |
||||||||
|
|
2021 |
|
2020 |
|
Δ% |
||||
|
Retail |
$ |
1,715 |
|
|
$ |
463 |
|
|
270% |
|
B2B |
305 |
|
|
68 |
|
|
348% |
||
|
Corporate (Bodybuilding.com) |
- |
|
|
20 |
|
|
NM |
||
|
Expedia Group (excluding trivago) |
$ |
2,020 |
|
|
$ |
551 |
|
|
266% |
|
trivago |
115 |
|
|
18 |
|
|
551% |
||
|
Intercompany eliminations |
(24) |
|
|
(3) |
|
|
781% |
||
|
Total |
$ |
2,111 |
|
|
$ |
566 |
|
|
273% |
For the second quarter of 2021, total gross bookings and total revenue both increased significantly compared to the second quarter of 2020. Booking trends for lodging, air, and other travel products all improved sequentially from the first quarter of 2021.
Both Retail and B2B segment revenue increased compared to the second quarter of 2020. The growth in gross bookings and revenue largely reflect continued improvement in leisure travel trends during the quarter.
Product & Services Detail - Second Quarter 2021
As a percentage of total worldwide revenue in the second quarter of 2021, lodging accounted for 73%, advertising and media accounted for 8%, air accounted for 4% and all other revenues accounted for the remaining 15%.
Lodging revenue increased in the second quarter of 2021 driven by a significant increase in room nights stayed and growth in revenue per room night. Revenue per room night benefited from higher average daily rates ("ADRs") driven by an increase in regional rates and a higher mix of U.S. hotels compared to the second quarter of 2020.
Air revenue increased in the second quarter of 2021 driven largely by an increase in tickets sold as air travel demand improved.
Advertising and media revenue increased in the second quarter of 2021 due to increases at both trivago and Expedia Group Media Solutions. Other revenue increased in the second quarter of 2021 driven by growth from both car and travel insurance products. Other revenue included revenue related to Bodybuilding.com for the second quarter of 2020, but not for the second quarter of 2021 as the Bodybuilding.com business was disposed of in May 2020.
Costs and Expenses ($ millions)
|
|
Costs and Expenses |
|
|
As a % of Revenue |
||||||||||||||||
|
|
Second Quarter |
|
|
Second Quarter |
||||||||||||||||
|
|
2021 |
|
2020 |
|
Δ% |
|
|
2021 |
|
2020 |
|
Δ (bps) |
||||||||
|
Generally Accepted Accounting Principles (GAAP) Expenses - Expedia Group |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Cost of revenue |
$ |
374 |
|
|
$ |
381 |
|
|
(2) |
% |
|
|
17.7 |
% |
|
67.2 |
% |
|
(4,951) |
|
|
Selling and marketing - direct |
1,002 |
|
|
90 |
|
|
1,019 |
% |
|
|
47.5 |
% |
|
15.8 |
% |
|
3,164 |
|
||
|
Selling and marketing - indirect |
197 |
|
|
201 |
|
|
(2) |
% |
|
|
9.4 |
% |
|
35.5 |
% |
|
(2,613) |
|
||
|
Selling and marketing |
1,199 |
|
|
291 |
|
|
313 |
% |
|
|
56.8 |
% |
|
51.3 |
% |
|
550 |
|
||
|
Technology and content |
276 |
|
|
271 |
|
|
2 |
% |
|
|
13.1 |
% |
|
48.0 |
% |
|
(3,488) |
|
||
|
General and administrative |
184 |
|
|
149 |
|
|
23 |
% |
|
|
8.7 |
% |
|
26.5 |
% |
|
(1,776) |
|
||
|
Total GAAP costs and expenses |
$ |
2,033 |
|
|
$ |
1,092 |
|
|
86 |
% |
|
|
96.3 |
% |
|
193.0 |
% |
|
(9,664) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted Expenses - Expedia Group |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Cost of revenue* |
$ |
368 |
|
|
$ |
378 |
|
|
(3) |
% |
|
|
17.4 |
% |
|
66.7 |
% |
|
(4,925) |
|
|
Selling and marketing - direct |
1,002 |
|
|
90 |
|
|
1,019 |
% |
|
|
47.5 |
% |
|
15.8 |
% |
|
3,164 |
|
||
|
Selling and marketing - indirect* |
165 |
|
|
188 |
|
|
(12) |
% |
|
|
7.8 |
% |
|
33.2 |
% |
|
(2,539) |
|
||
|
Selling and marketing* |
1,167 |
|
|
278 |
|
|
320 |
% |
|
|
55.3 |
% |
|
49.0 |
% |
|
625 |
|
||
|
Technology and content* |
244 |
|
|
253 |
|
|
(4) |
% |
|
|
11.6 |
% |
|
44.8 |
% |
|
(3,326) |
|
||
|
General and administrative* |
134 |
|
|
129 |
|
|
4 |
% |
|
|
6.4 |
% |
|
22.9 |
% |
|
(1,648) |
|
||
|
Total adjusted costs and expenses |
$ |
1,913 |
|
|
$ |
1,038 |
|
|
84 |
% |
|
|
90.7 |
% |
|
183.4 |
% |
|
(9,274) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted Expenses - Expedia Group (excluding trivago)** |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Cost of revenue* |
$ |
364 |
|
|
$ |
378 |
|
|
(4) |
% |
|
|
18.0 |
% |
|
68.4 |
% |
|
(5,042) |
|
|
Selling and marketing* |
1,107 |
|
|
270 |
|
|
312 |
% |
|
|
54.8 |
% |
|
48.8 |
% |
|
601 |
|
||
|
Technology and content* |
231 |
|
|
240 |
|
|
(4) |
% |
|
|
11.4 |
% |
|
43.6 |
% |
|
(3,220) |
|
||
|
General and administrative* |
126 |
|
|
121 |
|
|
4 |
% |
|
|
6.3 |
% |
|
22.0 |
% |
|
(1,575) |
|
||
|
Total adjusted costs and expenses excluding trivago |
$ |
1,828 |
|
|
$ |
1,009 |
|
|
81 |
% |
|
|
90.5 |
% |
|
182.9 |
% |
|
(9,236) |
|
Note: Expedia Group reclassified certain prior period information to conform to the current period presentation primarily related to the classification of licensing and maintenance costs within operating expenses. Some numbers may not add due to rounding. *Adjusted expenses are non-GAAP measures. See pages 10-16 herein for a description and reconciliation to the corresponding GAAP measures.
**Expedia Group (excluding trivago) figures exclude both trivago costs and expenses and trivago revenue when calculating 'As a % of Revenue.'
Cost of Revenue
- For the second quarter of 2021, total GAAP and adjusted cost of revenue decreased 2% and 3%, respectively, compared to the second quarter of 2020, primarily due to decreased customer service and personnel costs, lower bad debt expense, and the absence of expenses related to Bodybuilding.com which was disposed of in May 2020.
Selling and Marketing
- For the second quarter of 2021, total GAAP and adjusted total selling and marketing expense increased 313% and 320%, respectively, compared to the second quarter of 2020, primarily due to a $912 million increase in direct costs as marketing spend increased in anticipation of a further recovery in travel demand. Indirect costs, which represented 16% of total GAAP selling and marketing costs in the second quarter of 2021, compared to 69% in the second quarter of 2020, and 14% of total adjusted selling and marketing expense in the second quarter of 2021, compared to 68% in the second quarter of 2020, decreased 2% and 12%, respectively, due to lower personnel costs in connection with previously announced cost savings initiatives.
Technology and Content
- For the second quarter of 2021, total GAAP technology and content expense increased 2%, and total adjusted technology and content expense decreased 4%, compared to the second quarter of 2020, due to lower personnel and related costs in connection with previously announced cost savings initiatives. The year-over-year benefit for GAAP technology and content expense was offset by higher stock-based compensation.
General and Administrative
- For the second quarter of 2021, total GAAP and adjusted general and administrative expense increased 23% and 4%, respectively, compared to the second quarter of 2020, mainly due to a shift in personnel costs from bonus to salary. The year-over-year increase in GAAP general and administrative expense was driven by higher stock-based compensation.
Net Loss Attributable to Expedia Group and Adjusted EBITDA*
|
Adjusted EBITDA by Segment ($ millions) |
|||||||||
|
|
Second Quarter |
||||||||
|
|
2021 |
|
2020 |
|
Δ% |
||||
|
Retail |
$ |
303 |
|
|
$ |
(203) |
|
|
NM |
|
B2B |
(8) |
|
|
(128) |
|
|
(93)% |
||
|
Unallocated overhead costs |
(99) |
|
|
(89) |
|
|
11% |
||
|
Expedia Group (excluding trivago) |
$ |
196 |
|
|
$ |
(420) |
|
|
NM |
|
trivago(1) |
5 |
|
|
(16) |
|
|
NM |
||
|
Total Adjusted EBITDA |
$ |
201 |
|
|
$ |
(436) |
|
|
NM |
|
|
|
|
|
|
|
||||
|
Net income (loss) attributable to Expedia Group common stockholders(2) |
$ |
(301) |
|
|
$ |
(753) |
|
|
(60)% |
(1) trivago is a separately listed company on the Nasdaq Global Select Market and, therefore, is subject to its own reporting and filing requirements which could result in possible differences that are not expected to be material to Expedia Group. (2) Expedia Group does not calculate or report net income (loss) by segment.
* Adjusted EBITDA is a non-GAAP measure. See pages 10-16 herein for a description and reconciliation to the corresponding GAAP measure.
Note: Some numbers may not add due to rounding.
Depreciation and Amortization
Depreciation and amortization decreased 12% in the second quarter of 2021, compared to the second quarter of 2020, primarily due to the completion of amortization related to certain intangible assets as well as the impact of definite-lived intangible impairments in the prior year.
Impairment of Goodwill & Intangible Assets
There was no impairment of goodwill or intangible assets recorded in the second quarter of 2021. Impairment charges of goodwill and intangible assets totaled $30 million in the second quarter of 2020 due to business simplification efforts in our Retail segment.
Restructuring and Related Reorganization Charges
In connection with the restructuring actions announced in late February 2020 to simplify our businesses and improve operational efficiencies, as well as the acceleration of further actions to adapt our business to the current environment, we recognized $13 million in restructuring and related reorganization charges in the second quarter of 2021. Restructuring and related reorganization charges were $53 million in the second quarter of 2020.
Interest and Other
Consolidated interest income decreased $2 million in the second quarter of 2021, compared to the second quarter of 2020. Consolidated interest expense decreased $12 million in the second quarter of 2021, compared to the second quarter of 2020, primarily as a result of interest related to our prior year draw on our revolving credit facility, which we fully repaid in December 2020.
Consolidated other, net was a loss of $10 million in the second quarter of 2021, compared to a loss of $12 million in the second quarter of 2020. The loss in the second quarter of 2021 was primarily due to foreign exchange losses and mark-to-market losses on minority equity investments. The loss in the second quarter of 2020 included an impairment charge on a minority equity investment partially offset by mark-to-market gains on minority equity investments.
Income Taxes
The GAAP effective tax rate was 21%, compared to 22% in the second quarter of 2020.
The effective tax rate on pretax adjusted net loss was (114)%, compared to 23% in the second quarter of 2020. The change in the effective tax rate was primarily due to a change in the forecast between first quarter of 2021 and second quarter of 2021.
Preferred Stock
The preferred stock dividend related to the preferred equity issued in May of 2020 was $22 million in the second quarter of 2021.
In May 2021, Expedia Group prepaid 50% of the outstanding Series A Preferred Stock at a price equal to 103% of the Preference Amount, plus accrued and unpaid distributions as to the redemption date using cash on-hand of $640 million.
Balance Sheet, Cash Flows and Capitalization
For the three months ended June 30, 2021, consolidated net cash provided by operating activities was $2.5 billion.
Consolidated free cash flow totaled $2.3 billion, an improvement of $4.4 billion, compared to the prior year, primarily due to a cash benefit from working capital and an improvement in Adjusted EBITDA. The impact from COVID-19 resulted in a significant use of cash for working capital in the prior year.
Cash, cash equivalents and short-term investments totaled $5.5 billion at June 30, 2021 compared to $4.3 billion at March 31, 2021. The increase was primarily driven by an improvement in free cash flow. Restricted cash and cash equivalents, which primarily relates to traveler deposits for bookings made through Vrbo, was $2.5 billion at June 30, 2021 compared to $2.0 billion at March 31, 2021. Prepaid expenses and other current assets was $1.3 billion at June 30, 2021 compared to $1.2 billion at March 31, 2021. Deferred merchant bookings totaled approximately $8.2 billion at June 30, 2021, including approximately $760 million in deferred loyalty rewards compared to $6.0 billion at March 31, 2021, including approximately $750 million in deferred loyalty rewards. The increase in deferred merchant bookings reflects the typical seasonality of our business with higher stayed room nights occurring during the summer months.
|
EXPEDIA GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share data) (Unaudited) |
|||||||||||||||
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Revenue |
$ |
2,111 |
|
|
$ |
566 |
|
|
$ |
3,357 |
|
|
$ |
2,775 |
|
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
|
Cost of revenue (exclusive of depreciation and amortization shown separately below) (1) |
374 |
|
|
381 |
|
|
685 |
|
|
1,010 |
|
||||
|
Selling and marketing (1) |
1,199 |
|
|
291 |
|
|
1,863 |
|
|
1,496 |
|
||||
|
Technology and content (1) |
276 |
|
|
271 |
|
|
523 |
|
|
586 |
|
||||
|
General and administrative (1) |
184 |
|
|
149 |
|
|
340 |
|
|
334 |
|
||||
|
Depreciation and amortization |
205 |
|
|
232 |
|
|
414 |
|
|
461 |
|
||||
|
Impairment of goodwill |
- |
|
|
20 |
|
|
- |
|
|
785 |
|
||||
|
Impairment of intangible assets |
- |
|
|
10 |
|
|
- |
|
|
131 |
|
||||
|
Legal reserves, occupancy tax and other |
(8) |
|
|
8 |
|
|
(9) |
|
|
(13) |
|
||||
|
Restructuring and related reorganization charges |
13 |
|
|
53 |
|
|
42 |
|
|
128 |
|
||||
|
Operating loss |
(132) |
|
|
(849) |
|
|
(501) |
|
|
(2,143) |
|
||||
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
|
Interest income |
1 |
|
|
3 |
|
|
3 |
|
|
13 |
|
||||
|
Interest expense |
(83) |
|
|
(95) |
|
|
(181) |
|
|
(145) |
|
||||
|
Loss on debt extinguishment |
- |
|
|
- |
|
|
(280) |
|
|
- |
|
||||
|
Other, net |
(10) |
|
|
(12) |
|
|
(15) |
|
|
(157) |
|
||||
|
Total other expense, net |
(92) |
|
|
(104) |
|
|
(473) |
|
|
(289) |
|
||||
|
Loss before income taxes |
(224) |
|
|
(953) |
|
|
(974) |
|
|
(2,432) |
|
||||
|
Provision for income taxes |
47 |
|
|
213 |
|
|
216 |
|
|
295 |
|
||||
|
Net loss |
(177) |
|
|
(740) |
|
|
(758) |
|
|
(2,137) |
|
||||
|
Net loss attributable to non-controlling interests |
5 |
|
|
4 |
|
|
8 |
|
|
100 |
|
||||
|
Net loss attributable to Expedia Group, Inc. |
(172) |
|
|
(736) |
|
|
(750) |
|
|
(2,037) |
|
||||
|
Preferred stock dividend |
(22) |
|
|
(17) |
|
|
(50) |
|
|
(17) |
|
||||
|
Loss on redemption of preferred stock |
(107) |
|
|
- |
|
|
(107) |
|
|
- |
|
||||
|
Net loss attributable to Expedia Group, Inc. common stockholders |
$ |
(301) |
|
|
$ |
(753) |
|
|
$ |
(907) |
|
|
$ |
(2,054) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Loss per share attributable to Expedia Group, Inc. available to common stockholders: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
(2.02) |
|
|
$ |
(5.34) |
|
|
$ |
(6.16) |
|
|
$ |
(14.57) |
|
|
Diluted |
(2.02) |
|
|
(5.34) |
|
|
(6.16) |
|
|
(14.57) |
|
||||
|
Shares used in computing earnings (loss) per share (000's): |
|
|
|
|
|
|
|
||||||||
|
Basic |
149,093 |
|
|
141,072 |
|
|
147,148 |
|
|
140,947 |
|
||||
|
Diluted |
149,093 |
|
|
141,072 |
|
|
147,148 |
|
|
140,947 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
(1) Includes stock-based compensation as follows: |
|
|
|
|
|
|
|
||||||||
|
Cost of revenue |
$ |
6 |
|
|
$ |
3 |
|
|
$ |
11 |
|
|
$ |
6 |
|
|
Selling and marketing |
32 |
|
|
13 |
|
|
49 |
|
|
25 |
|
||||
|
Technology and content |
32 |
|
|
18 |
|
|
59 |
|
|
38 |
|
||||
|
General and administrative |
50 |
|
|
20 |
|
|
84 |
|
|
40 |
|
||||
|
EXPEDIA GROUP, INC. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) |
|||||||
|
|
June 30, 2021 |
|
December 31, 2020 |
||||
|
|
(Unaudited) |
|
|
||||
|
ASSETS |
|||||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
5,464 |
|
|
$ |
3,363 |
|
|
Restricted cash and cash equivalents |
2,541 |
|
|
772 |
|
||
|
Short-term investments |
11 |
|
|
24 |
|
||
|
Accounts receivable, net of allowance of $86 and $101 |
1,440 |
|
|
701 |
|
||
|
Income taxes receivable |
399 |
|
|
120 |
|
||
|
Prepaid expenses and other current assets |
1,258 |
|
|
654 |
|
||
|
Total current assets |
11,113 |
|
|
5,634 |
|
||
|
Property and equipment, net |
2,261 |
|
|
2,257 |
|
||
|
Operating lease right-of-use assets |
467 |
|
|
574 |
|
||
|
Long-term investments and other assets |
663 |
|
|
671 |
|
||
|
Deferred income taxes |
850 |
|
|
659 |
|
||
|
Intangible assets, net |
1,457 |
|
|
1,515 |
|
||
|
Goodwill |
7,370 |
|
|
7,380 |
|
||
|
TOTAL ASSETS |
$ |
24,181 |
|
|
$ |
18,690 |
|
|
|
|
|
|
||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable, merchant |
$ |
1,157 |
|
|
$ |
602 |
|
|
Accounts payable, other |
778 |
|
|
496 |
|
||
|
Deferred merchant bookings |
8,240 |
|
|
3,107 |
|
||
|
Deferred revenue |
172 |
|
|
172 |
|
||
|
Income taxes payable |
328 |
|
|
50 |
|
||
|
Accrued expenses and other current liabilities |
1,038 |
|
|
979 |
|
||
|
Total current liabilities |
11,713 |
|
|
5,406 |
|
||
|
Long-term debt |
8,480 |
|
|
8,216 |
|
||
|
Deferred income taxes |
22 |
|
|
67 |
|
||
|
Operating lease liabilities |
408 |
|
|
513 |
|
||
|
Other long-term liabilities |
465 |
|
|
462 |
|
||
|
Commitments and contingencies |
|
|
|
||||
|
Series A Preferred Stock: $.001 par value, Authorized shares: 100,000; Shares issued and outstanding: 600 and 1,200 |
511 |
|
|
1,022 |
|
||
|
Stockholders' equity: |
|
|
|
||||
|
Common stock: $.0001 par value; Authorized shares: 1,600,000 |
- |
|
|
- |
|
||
|
Shares issued: 269,239 and 261,564; Shares outstanding: 145,197 and 138,074 |
|
|
|
||||
|
Class B common stock: $.0001 par value; Authorized shares: 400,000 |
- |
|
|
- |
|
||
|
Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 5,523 |
|
|
|
||||
|
Additional paid-in capital |
13,995 |
|
|
13,566 |
|
||
|
Treasury stock - Common stock and Class B, at cost; Shares 131,318 and 130,767 |
(10,182) |
|
|
(10,097) |
|
||
|
Retained earnings (deficit) |
(2,531) |
|
|
(1,781) |
|
||
|
Accumulated other comprehensive income (loss) |
(186) |
|
|
(178) |
|
||
|
Total Expedia Group, Inc. stockholders' equity |
1,096 |
|
|
1,510 |
|
||
|
Non-redeemable non-controlling interests |
1,486 |
|
|
1,494 |
|
||
|
Total stockholders' equity |
2,582 |
|
|
3,004 |
|
||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
24,181 |
|
|
$ |
18,690 |
|
|
EXPEDIA GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
|||||||
|
|
Six months ended June 30, |
||||||
|
|
2021 |
|
2020 |
||||
|
Operating activities: |
|
|
|
||||
|
Net loss |
$ |
(758) |
|
|
$ |
(2,137) |
|
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
||||
|
Depreciation of property and equipment, including internal-use software and website development |
361 |
|
|
376 |
|
||
|
Amortization of intangible assets |
53 |
|
|
85 |
|
||
|
Impairment of goodwill and intangible assets |
- |
|
|
916 |
|
||
|
Amortization of stock-based compensation |
203 |
|
|
109 |
|
||
|
Deferred income taxes |
(241) |
|
|
(279) |
|
||
|
Foreign exchange loss on cash, restricted cash and short-term investments, net |
20 |
|
|
65 |
|
||
|
Realized (gain) loss on foreign currency forwards |
12 |
|
|
(79) |
|
||
|
(Gain) loss on minority equity investments, net |
(4) |
|
|
195 |
|
||
|
Loss on debt extinguishment |
280 |
|
|
- |
|
||
|
Provision for credit losses and other, net |
6 |
|
|
119 |
|
||
|
Changes in operating assets and liabilities: |
|
|
|
||||
|
Accounts receivable |
(729) |
|
|
1,479 |
|
||
|
Prepaid expenses and other assets |
(614) |
|
|
(585) |
|
||
|
Accounts payable, merchant |
556 |
|
|
(1,389) |
|
||
|
Accounts payable, other, accrued expenses and other liabilities |
353 |
|
|
(244) |
|
||
|
Tax payable/receivable, net |
2 |
|
|
(82) |
|
||
|
Deferred merchant bookings |
5,184 |
|
|
(1,058) |
|
||
|
Deferred revenue |
- |
|
|
(121) |
|
||
|
Net cash provided by (used in) operating activities |
4,684 |
|
|
(2,630) |
|
||
|
Investing activities: |
|
|
|
||||
|
Capital expenditures, including internal-use software and website development |
(351) |
|
|
(493) |
|
||
|
Purchases of investments |
(1) |
|
|
(685) |
|
||
|
Sales and maturities of investments |
12 |
|
|
761 |
|
||
|
Other, net |
(73) |
|
|
76 |
|
||
|
Net cash used in investing activities |
(413) |
|
|
(341) |
|
||
|
Financing activities: |
|
|
|
||||
|
Revolving credit facility borrowings |
- |
|
|
1,900 |
|
||
|
Proceeds from issuance of long-term debt, net of issuance costs |
1,964 |
|
|
2,714 |
|
||
|
Payment of long-term debt |
(1,706) |
|
|
- |
|
||
|
Debt extinguishment costs |
(258) |
|
|
- |
|
||
|
Net proceeds from issuance of preferred stock and warrants |
- |
|
|
1,132 |
|
||
|
Redemption of preferred stock |
(618) |
|
|
- |
|
||
|
Purchases of treasury stock |
(85) |
|
|
(414) |
|
||
|
Payment of dividends to common stockholders |
- |
|
|
(48) |
|
||
|
Payment of preferred stock dividends |
(50) |
|
|
(17) |
|
||
|
Proceeds from exercise of equity awards and employee stock purchase plan |
379 |
|
|
96 |
|
||
|
Other, net |
(4) |
|
|
(30) |
|
||
|
Net cash provided by (used in) financing activities |
(378) |
|
|
5,333 |
|
||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents |
(26) |
|
|
(93) |
|
||
|
Net increase in cash, cash equivalents and restricted cash and cash equivalents |
3,867 |
|
|
2,269 |
|
||
|
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period |
4,138 |
|
|
4,097 |
|
||
|
Cash, cash equivalents and restricted cash and cash equivalents at end of period |
$ |
8,005 |
|
|
$ |
6,366 |
|
|
Supplemental cash flow information |
|
|
|
||||
|
Cash paid for interest |
$ |
192 |
|
|
$ |
118 |
|
|
Income tax payments, net |
16 |
|
|
63 |
|
||
Expedia Group, Inc.
Trended Metrics
(All figures in millions)
The supplemental metrics below are intended to supplement the financial statements in this release and in our filings with the SEC, and do not include adjustments for one-time items, acquisitions, foreign exchange or other adjustments. The definition, methodology and appropriateness of any of our supplemental metrics are subject to removal and/or change, and such changes could be material. In the event of any discrepancy between any supplemental metric and our historical financial statements, you should rely on the information filed with the SEC and the financial statements in our most recent earnings release.
|
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
Y/Y |
|
|
|||||||||||||||||||||
|
|
|
|
Q3 |
Q4 |
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
|
|
Q1 |
Q2 |
|
|
|
Growth |
|
|
||||||||||||||||
|
Gross bookings by business model |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Agency |
|
|
$ |
14,585 |
|
$ |
11,956 |
|
|
|
|
$ |
9,823 |
|
$ |
1,363 |
|
$ |
3,530 |
|
$ |
3,405 |
|
|
|
|
$ |
6,737 |
|
$ |
10,362 |
|
|
|
|
661% |
|
|
|
Merchant |
|
|
12,342 |
|
11,289 |
|
|
|
|
8,062 |
|
1,350 |
|
5,101 |
|
4,162 |
|
|
|
|
8,685 |
|
10,453 |
|
|
|
|
674% |
|
|
||||||||
|
Total |
|
|
$ |
26,927 |
|
$ |
23,245 |
|
|
|
|
$ |
17,885 |
|
$ |
2,713 |
|
$ |
8,631 |
|
$ |
7,567 |
|
|
|
|
$ |
15,422 |
|
$ |
20,815 |
|
|
|
|
667% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Revenue by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Retail |
|
|
$ |
2,613 |
|
$ |
1,961 |
|
|
|
|
$ |
1,582 |
|
$ |
463 |
|
$ |
1,246 |
|
$ |
702 |
|
|
|
|
$ |
1,025 |
|
$ |
1,715 |
|
|
|
|
270% |
|
|
|
B2B |
|
|
731 |
|
635 |
|
|
|
|
485 |
|
68 |
|
203 |
|
186 |
|
|
|
|
184 |
|
305 |
|
|
|
|
348% |
|
|
||||||||
|
Corporate (Bodybuilding.com) |
|
|
24 |
|
34 |
|
|
|
|
39 |
|
20 |
|
- |
|
- |
|
|
|
|
- |
|
- |
|
|
|
|
NM |
|
|
||||||||
|
Expedia Group (excluding trivago) |
|
|
$ |
3,368 |
|
$ |
2,630 |
|
|
|
|
$ |
2,106 |
|
$ |
551 |
|
$ |
1,449 |
|
$ |
888 |
|
|
|
|
$ |
1,209 |
|
$ |
2,020 |
|
|
|
|
266% |
|
|
|
trivago |
|
|
279 |
|
171 |
|
|
|
|
154 |
|
18 |
|
70 |
|
38 |
|
|
|
|
46 |
|
115 |
|
|
|
|
551% |
|
|
||||||||
|
Intercompany eliminations |
|
|
(89) |
|
(54) |
|
|
|
|
(51) |
|
(3) |
|
(15) |
|
(6) |
|
|
|
|
(9) |
|
(24) |
|
|
|
|
781% |
|
|
||||||||
|
Total |
|
|
$ |
3,558 |
|
$ |
2,747 |
|
|
|
|
$ |
2,209 |
|
$ |
566 |
|
$ |
1,504 |
|
$ |
920 |
|
|
|
|
$ |
1,246 |
|
$ |
2,111 |
|
|
|
|
273% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Revenue by geography |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Domestic |
|
|
$ |
1,982 |
|
$ |
1,573 |
|
|
|
|
$ |
1,317 |
|
$ |
463 |
|
$ |
1,033 |
|
$ |
698 |
|
|
|
|
$ |
1,001 |
|
$ |
1,736 |
|
|
|
|
275% |
|
|
|
International |
|
|
1,576 |
|
1,174 |
|
|
|
|
892 |
|
103 |
|
471 |
|
222 |
|
|
|
|
245 |
|
375 |
|
|
|
|
264% |
|
|
||||||||
|
Total |
|
|
$ |
3,558 |
|
$ |
2,747 |
|
|
|
|
$ |
2,209 |
|
$ |
566 |
|
$ |
1,504 |
|
$ |
920 |
|
|
|
|
$ |
1,246 |
|
$ |
2,111 |
|
|
|
|
273% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Revenue by business model |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Agency |
|
|
$ |
1,177 |
|
$ |
816 |
|
|
|
|
$ |
562 |
|
$ |
105 |
|
$ |
329 |
|
$ |
271 |
|
|
|
|
$ |
323 |
|
$ |
573 |
|
|
|
|
442% |
|
|
|
Merchant |
|
|
1,980 |
|
1,590 |
|
|
|
|
1,340 |
|
368 |
|
1,032 |
|
521 |
|
|
|
|
796 |
|
1,338 |
|
|
|
|
264% |
|
|
||||||||
|
Advertising & media and other |
|
|
401 |
|
341 |
|
|
|
|
307 |
|
93 |
|
143 |
|
128 |
|
|
|
|
127 |
|
200 |
|
|
|
|
115% |
|
|
||||||||
|
Total |
|
|
$ |
3,558 |
|
$ |
2,747 |
|
|
|
|
$ |
2,209 |
|
$ |
566 |
|
$ |
1,504 |
|
$ |
920 |
|
|
|
|
$ |
1,246 |
|
$ |
2,111 |
|
|
|
|
273% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Adjusted EBITDA by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Retail |
|
|
$ |
876 |
|
$ |
502 |
|
|
|
|
$ |
22 |
|
$ |
(203) |
|
$ |
429 |
|
$ |
6 |
|
|
|
|
$ |
94 |
|
$ |
303 |
|
|
|
|
NM |
|
|
|
B2B |
|
|
149 |
|
96 |
|
|
|
|
26 |
|
(128) |
|
(52) |
|
(54) |
|
|
|
|
(60) |
|
(8) |
|
|
|
|
(93)% |
|
|
||||||||
|
Unallocated overhead costs |
|
|
(125) |
|
(149) |
|
|
|
|
(123) |
|
(89) |
|
(80) |
|
(108) |
|
|
|
|
(88) |
|
(99) |
|
|
|
|
11% |
|
|
||||||||
|
Expedia Group (excluding trivago) |
|
|
$ |
900 |
|
$ |
449 |
|
|
|
|
$ |
(75) |
|
$ |
(420) |
|
$ |
297 |
|
$ |
(156) |
|
|
|
|
$ |
(54) |
|
$ |
196 |
|
|
|
|
NM |
|
|
|
trivago |
|
|
12 |
|
29 |
|
|
|
|
(1) |
|
(16) |
|
7 |
|
(4) |
|
|
|
|
(4) |
|
5 |
|
|
|
|
NM |
|
|
||||||||
|
Total |
|
|
$ |
912 |
|
$ |
478 |
|
|
|
|
$ |
(76) |
|
$ |
(436) |
|
$ |
304 |
|
$ |
(160) |
|
|
|
|
$ |
(58) |
|
$ |
201 |
|
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Net income (loss) attributable to Expedia Group common stockholders |
|
|
$ |
409 |
|
$ |
76 |
|
|
|
|
$ |
(1,301) |
|
(753) |
|
(221) |
|
(412) |
|
|
|
|
(606) |
|
(301) |
|
|
|
|
(60)% |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Worldwide lodging (merchant & agency) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Stayed room nights |
|
|
116.5 |
|
91.6 |
|
|
|
|
69.4 |
|
19.2 |
48.8 |
36.1 |
|
|
|
37.1 |
56.6 |
|
|
|
|
|
|
|||||||||||||
|
Stayed room night growth |
|
|
11 |
% |
11 |
% |
|
|
|
(14) |
% |
(81) |
% |
(58) |
% |
(61) |
% |
|
|
|
(47) |
% |
196 |
% |
|
|
|
|
|
|
||||||||
|
ADR growth |
|
|
(1) |
% |
- |
% |
|
|
|
2 |
% |
1 |
% |
8 |
% |
2 |
% |
|
|
|
8 |
% |
21 |
% |
|
|
|
|
|
|
||||||||
|
Revenue per night growth |
|
|
- |
% |
(1) |
% |
|
|
|
6 |
% |
15 |
% |
14 |
% |
6 |
% |
|
|
|
10 |
% |
7 |
% |
|
|
|
|
|
|
||||||||
|
Lodging revenue growth |
|
|
11 |
% |
9 |
% |
|
|
|
(9) |
% |
(78) |
% |
(52) |
% |
(58) |
% |
|
|
|
(41) |
% |
215 |
% |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Worldwide air (merchant & agency) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Tickets sold growth |
|
|
8 |
% |
- |
% |
|
|
|
(26) |
% |
(85) |
% |
(74) |
% |
(69) |
% |
|
|
|
(50) |
% |
299 |
% |
|
|
|
|
|
|
||||||||
|
Airfare growth |
|
|
- |
% |
1 |
% |
|
|
|
(5) |
% |
(35) |
% |
(36) |
% |
(31) |
% |
|
|
|
(26) |
% |
30 |
% |
|
|
|
|
|
|
||||||||
|
Revenue per ticket growth |
|
|
(10) |
% |
(9) |
% |
|
|
|
(41) |
% |
NM |
(48) |
% |
(35) |
% |
|
|
|
(10) |
% |
NM |
|
|
|
|
|
|
||||||||||
|
Air revenue growth |
|
|
(3) |
% |
(8) |
% |
|
|
|
(56) |
% |
NM |
(87) |
% |
(80) |
% |
|
|
|
(55) |
% |
NM |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Notes:
- Advertising & Media Revenue includes third party revenue from trivago. All trivago revenue is classified as international.
- Corporate includes product revenue subsequent to our acquisition of Bodybuilding.com on July 26, 2019 through its sale in May 2020.
- Some numbers may not add due to rounding. All percentages above and throughout this release are calculated on precise, unrounded numbers
Tabular Reconciliations for Non-GAAP Measures
Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization) by Segment(1)
|
|
Three months ended June 30, 2021 |
||||||||||||||||||
|
|
Retail |
|
B2B |
|
trivago |
|
Corporate & Eliminations |
|
Total |
||||||||||
|
|
(In millions) |
||||||||||||||||||
|
Operating income (loss) |
$ |
167 |
|
|
$ |
(34) |
|
|
$ |
3 |
|
|
$ |
(268) |
|
|
$ |
(132) |
|
|
Realized gain (loss) on revenue hedges |
3 |
|
|
- |
|
|
- |
|
|
- |
|
|
3 |
|
|||||
|
Restructuring and related reorganization charges |
- |
|
|
- |
|
|
- |
|
|
13 |
|
|
13 |
|
|||||
|
Legal reserves, occupancy tax and other |
- |
|
|
- |
|
|
- |
|
|
(8) |
|
|
(8) |
|
|||||
|
Stock-based compensation |
- |
|
|
- |
|
|
- |
|
|
120 |
|
|
120 |
|
|||||
|
Amortization of intangible assets |
- |
|
|
- |
|
|
- |
|
|
26 |
|
|
26 |
|
|||||
|
Depreciation |
133 |
|
|
26 |
|
|
2 |
|
|
18 |
|
|
179 |
|
|||||
|
Adjusted EBITDA(1) |
$ |
303 |
|
|
$ |
(8) |
|
|
$ |
5 |
|
|
$ |
(99) |
|
|
$ |
201 |
|
|
|
Three months ended June 30, 2020 |
||||||||||||||||||
|
|
Retail |
|
B2B |
|
trivago |
|
Corporate & Eliminations |
|
Total |
||||||||||
|
|
(In millions) |
||||||||||||||||||
|
Operating loss |
$ |
(375) |
|
|
$ |
(162) |
|
|
$ |
(19) |
|
|
$ |
(293) |
|
|
$ |
(849) |
|
|
Realized gain (loss) on revenue hedges |
36 |
|
|
- |
|
|
- |
|
|
- |
|
|
36 |
|
|||||
|
Restructuring and related reorganization charges |
- |
|
|
- |
|
|
- |
|
|
53 |
|
|
53 |
|
|||||
|
Legal reserves, occupancy tax and other |
- |
|
|
- |
|
|
- |
|
|
8 |
|
|
8 |
|
|||||
|
Stock-based compensation |
- |
|
|
- |
|
|
- |
|
|
54 |
|
|
54 |
|
|||||
|
Impairment of goodwill |
- |
|
|
- |
|
|
- |
|
|
20 |
|
|
20 |
|
|||||
|
Impairment of intangible assets |
- |
|
|
- |
|
|
- |
|
|
10 |
|
|
10 |
|
|||||
|
Amortization of intangible assets |
- |
|
|
- |
|
|
- |
|
|
41 |
|
|
41 |
|
|||||
|
Depreciation |
136 |
|
|
34 |
|
|
3 |
|
|
18 |
|
|
191 |
|
|||||
|
Adjusted EBITDA(1) |
$ |
(203) |
|
|
$ |
(128) |
|
|
$ |
(16) |
|
|
$ |
(89) |
|
|
$ |
(436) |
|
(1) Adjusted EBITDA for our Retail and B2B segments includes allocations of certain expenses, primarily cost of revenue and facilities, the total costs of our global travel supply organizations, the majority of platform and marketplace technology costs, and the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue. We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such as accounting, human resources, certain information technology and legal to our reportable segments. We include these expenses in Corporate and Eliminations. Our allocation methodology is periodically evaluated and may change.
Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization)
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
(In millions) |
||||||||||||||
|
Net loss attributable to Expedia Group, Inc. |
|
$ |
(172) |
|
|
$ |
(736) |
|
|
$ |
(750) |
|
|
$ |
(2,037) |
|
|
Net loss attributable to non-controlling interests |
|
(5) |
|
|
(4) |
|
|
(8) |
|
|
(100) |
|
||||
|
Provision for income taxes |
|
(47) |
|
|
(213) |
|
|
(216) |
|
|
(295) |
|
||||
|
Total other expense, net |
|
92 |
|
|
104 |
|
|
473 |
|
|
289 |
|
||||
|
Operating loss |
|
(132) |
|
|
(849) |
|
|
(501) |
|
|
(2,143) |
|
||||
|
Gain (loss) on revenue hedges related to revenue recognized |
|
3 |
|
|
36 |
|
|
(6) |
|
|
30 |
|
||||
|
Restructuring and related reorganization charges |
|
13 |
|
|
53 |
|
|
42 |
|
|
128 |
|
||||
|
Legal reserves, occupancy tax and other |
|
(8) |
|
|
8 |
|
|
(9) |
|
|
(13) |
|
||||
|
Stock-based compensation |
|
120 |
|
|
54 |
|
|
203 |
|
|
109 |
|
||||
|
Depreciation and amortization |
|
205 |
|
|
232 |
|
|
414 |
|
|
461 |
|
||||
|
Impairment of goodwill |
|
- |
|
|
20 |
|
|
- |
|
|
785 |
|
||||
|
Impairment of intangible assets |
|
- |
|
|
10 |
|
|
- |
|
|
131 |
|
||||
|
Adjusted EBITDA |
|
$ |
201 |
|
|
$ |
(436) |
|
|
$ |
143 |
|
|
$ |
(512) |
|
Adjusted Net Income (Loss) & Adjusted EPS
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
(In millions, except share and per share data) |
||||||||||||||
|
Net loss attributable to Expedia Group, Inc. |
|
$ |
(172) |
|
|
$ |
(736) |
|
|
$ |
(750) |
|
|
$ |
(2,037) |
|
|
Less: Net loss attributable to non-controlling interests |
|
5 |
|
|
4 |
|
|
8 |
|
|
100 |
|
||||
|
Less: Provision for income taxes |
|
47 |
|
|
213 |
|
|
216 |
|
|
295 |
|
||||
|
Loss before income taxes |
|
(224) |
|
|
(953) |
|
|
(974) |
|
|
(2,432) |
|
||||
|
Amortization of intangible assets |
|
26 |
|
|
41 |
|
|
53 |
|
|
85 |
|
||||
|
Stock-based compensation |
|
120 |
|
|
54 |
|
|
203 |
|
|
109 |
|
||||
|
Legal reserves, occupancy tax and other |
|
(8) |
|
|
8 |
|
|
(9) |
|
|
(13) |
|
||||
|
Restructuring and related reorganization charges |
|
13 |
|
|
53 |
|
|
42 |
|
|
128 |
|
||||
|
Impairment of goodwill |
|
- |
|
|
20 |
|
|
- |
|
|
785 |
|
||||
|
Impairment of intangible assets |
|
- |
|
|
10 |
|
|
- |
|
|
131 |
|
||||
|
Unrealized (gain) loss on revenue hedges |
|
- |
|
|
35 |
|
|
(2) |
|
|
(23) |
|
||||
|
(Gain) loss on minority equity investments, net |
|
4 |
|
|
7 |
|
|
(4) |
|
|
195 |
|
||||
|
Loss on debt extinguishment |
|
- |
|
|
- |
|
|
280 |
|
|
- |
|
||||
|
(Gain) loss on sale of business |
|
(1) |
|
|
1 |
|
|
(1) |
|
|
1 |
|
||||
|
Adjusted loss before income taxes |
|
(70) |
|
|
(724) |
|
|
(412) |
|
|
(1,034) |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP Provision for income taxes |
|
47 |
|
|
213 |
|
|
216 |
|
|
295 |
|
||||
|
Provision for income taxes for adjustments |
|
(127) |
|
|
(48) |
|
|
(222) |
|
|
(80) |
|
||||
|
Total Adjusted provision for income taxes |
|
(80) |
|
|
165 |
|
|
(6) |
|
|
215 |
|
||||
|
Total Adjusted income tax rate |
|
(113.6) |
% |
|
22.8 |
% |
|
(1.5) |
% |
|
20.8 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Non-controlling interests |
|
3 |
|
|
(1) |
|
|
5 |
|
|
1 |
|
||||
|
Preferred stock dividend |
|
(22) |
|
|
(17) |
|
|
(50) |
|
|
(17) |
|
||||
|
Adjusted net loss attributable to Expedia Group, Inc. |
|
$ |
(169) |
|
|
$ |
(577) |
|
|
$ |
(463) |
|
|
$ |
(835) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP diluted weighted average shares outstanding (000's) |
|
149,093 |
|
|
141,072 |
|
|
147,148 |
|
|
140,947 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted loss per share |
|
$ |
(2.02) |
|
|
$ |
(5.34) |
|
|
$ |
(6.16) |
|
|
$ |
(14.57) |
|
|
Adjusted loss per share attributable to Expedia Group, Inc. |
|
$ |
(1.13) |
|
|
$ |
(4.09) |
|
|
$ |
(3.15) |
|
|
$ |
(5.92) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Ex-trivago Adjusted Net Loss and Adjusted EPS |
|
|
|
|
|
|
|
|
||||||||
|
Adjusted net loss attributable to Expedia Group, Inc. |
|
$ |
(169) |
|
|
$ |
(577) |
|
|
$ |
(463) |
|
|
$ |
(835) |
|
|
Less: Adjusted net income (loss) attributable to trivago |
|
9 |
|
|
(13) |
|
|
7 |
|
|
(20) |
|
||||
|
Adjusted net loss excluding trivago |
|
$ |
(178) |
|
|
$ |
(564) |
|
|
$ |
(470) |
|
|
$ |
(815) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted loss per share attributable to Expedia Group, Inc. |
|
$ |
(1.13) |
|
|
$ |
(4.09) |
|
|
$ |
(3.15) |
|
|
$ |
(5.92) |
|
|
Less: Adjusted earnings (loss) per share attributable to trivago |
|
0.06 |
|
|
(0.09) |
|
|
0.05 |
|
|
(0.14) |
|
||||
|
Adjusted loss per share excluding trivago |
|
$ |
(1.19) |
|
|
$ |
(4.00) |
|
|
$ |
(3.19) |
|
|
$ |
(5.79) |
|
Free Cash Flow
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
(In millions) |
||||||||||||||
|
Net cash provided by (used in) operating activities |
|
$ |
2,514 |
|
|
$ |
(1,846) |
|
|
$ |
4,684 |
|
|
$ |
(2,630) |
|
|
Headquarters capital expenditures |
|
(10) |
|
|
(34) |
|
|
(23) |
|
|
(113) |
|
||||
|
Non-headquarters capital expenditures |
|
(173) |
|
|
(172) |
|
|
(328) |
|
|
(380) |
|
||||
|
Less: Total capital expenditures |
|
(183) |
|
|
(206) |
|
|
(351) |
|
|
(493) |
|
||||
|
Free cash flow |
|
$ |
2,331 |
|
|
$ |
(2,052) |
|
|
$ |
4,333 |
|
|
$ |
(3,123) |
|
Adjusted Expenses (Cost of revenue, Selling and marketing, technology and content and general and administrative expenses)
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
(In millions) |
||||||||||||||
|
Cost of revenue |
|
$ |
374 |
|
|
$ |
381 |
|
|
$ |
685 |
|
|
$ |
1,010 |
|
|
Less: stock-based compensation |
|
6 |
|
|
3 |
|
|
11 |
|
|
6 |
|
||||
|
Adjusted cost of revenue |
|
$ |
368 |
|
|
$ |
378 |
|
|
$ |
674 |
|
|
$ |
1,004 |
|
|
Less: trivago cost of revenue(1) |
|
4 |
|
|
- |
|
|
7 |
|
|
8 |
|
||||
|
Adjusted cost of revenue excluding trivago |
|
$ |
364 |
|
|
$ |
378 |
|
|
$ |
667 |
|
|
$ |
996 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Selling and marketing expense |
|
$ |
1,199 |
|
|
$ |
291 |
|
|
$ |
1,863 |
|
|
$ |
1,496 |
|
|
Less: stock-based compensation |
|
32 |
|
|
13 |
|
|
49 |
|
|
25 |
|
||||
|
Adjusted selling and marketing expense |
|
$ |
1,167 |
|
|
$ |
278 |
|
|
$ |
1,814 |
|
|
$ |
1,471 |
|
|
Less: trivago selling and marketing expense(1)(2) |
|
60 |
|
|
8 |
|
|
78 |
|
|
81 |
|
||||
|
Adjusted selling and marketing expense excluding trivago |
|
$ |
1,107 |
|
|
$ |
270 |
|
|
$ |
1,736 |
|
|
$ |
1,390 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Technology and content expense |
|
$ |
276 |
|
|
$ |
271 |
|
|
$ |
523 |
|
|
$ |
586 |
|
|
Less: stock-based compensation |
|
32 |
|
|
18 |
|
|
59 |
|
|
38 |
|
||||
|
Adjusted technology and content expense |
|
$ |
244 |
|
|
$ |
253 |
|
|
$ |
464 |
|
|
$ |
548 |
|
|
Less: trivago technology and content expense(1) |
|
13 |
|
|
13 |
|
|
25 |
|
|
29 |
|
||||
|
Adjusted technology and content expense excluding trivago |
|
$ |
231 |
|
|
$ |
240 |
|
|
$ |
439 |
|
|
$ |
519 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
General and administrative expense |
|
$ |
184 |
|
|
$ |
149 |
|
|
$ |
340 |
|
|
$ |
334 |
|
|
Less: stock-based compensation |
|
50 |
|
|
20 |
|
|
84 |
|
|
40 |
|
||||
|
Adjusted general and administrative expense |
|
$ |
134 |
|
|
$ |
129 |
|
|
$ |
256 |
|
|
$ |
294 |
|
|
Less: trivago general and administrative expense(1) |
|
8 |
|
|
8 |
|
|
15 |
|
|
17 |
|
||||
|
Adjusted general and administrative expense excluding trivago |
|
$ |
126 |
|
|
$ |
121 |
|
|
$ |
241 |
|
|
$ |
277 |
|
Note: Some numbers may not add due to rounding.
(1) trivago amount presented without stock-based compensation as those are included with the consolidated totals above.
(2) Selling and marketing expense adjusted to add back Retail spend on trivago eliminated in consolidation.