Topline
Expedia shares surged more than 18% Friday after the Seattle-based travel tech firm reported a blowout third quarter, fueled by double-digit growth in bookings, rising revenue and profits as CEO Ariane Gorin touted AI-driven gains and steady travel demand.
The Expedia travel application are seen on an iPhone in this photo illustration on June 18, 2018. (Photo by Jaap Arriens/NurPhoto via Getty Images)
NurPhoto via Getty Images
Key Facts
Expedia’s stock traded 18% higher shortly after opening and was at around 17% at 2 p.m. Friday following its third quarter earnings, the company’s strongest earnings in more than two years.
On Thursday, Expedia reported $4.4 billion in third-quarter revenues up from $4.1 billion, a 9% increase year-on-year, along with 12% growth in gross bookings to $30.7 billion from $27.5 billion over the same period last year.
Expedia also posted a 40% surge in net income year-on-year, while diluted earnings per share climbed 45% to $7.33 from $5.04.
Its adjusted EBITDA margin grew to 32.9%, its highest in over two years.
What Did Executives Say In Expedia’s Earnings Call?
Expedia executives said the latest results beat expectations, fueled by higher travel demand, artificial intelligence and tighter cost control, with the fastest growth in Asia by above 20%, while CFO Scott Schenkel said higher U.S. demand and marketing efficiency lifted profitability. CEO Ariane Gorin said AI is now integrated into Expedia’s core products to enhance search, summarize reviews, and customer service. Gorin also pointed to partnerships with Google, OpenAI, and Perplexity that are gradually strengthening Expedia’s position in agentic travel search. Both Hotels.com and Vrbo, brands under the Expedia Group, returned to year-over-year growth.
