Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
FORM 8-K
 
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): February 7, 2019
 
EXPEDIA GROUP, INC.
(Exact name of registrant as specified in its charter)
 

Delaware
 
001-37429
 
20-2705720
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
333 108th Avenue NE
Bellevue, Washington 98004
(Address of principal executive offices) (Zip code)
(425) 679-7200
Registrant’s telephone number, including area code
Not Applicable
(Former name or former address if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
 
 
Emerging growth company ☐
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 






Item 2.02.    Results of Operations and Financial Condition.
On February 7, 2019, Expedia Group, Inc. (“Expedia Group”) issued an earnings release and will hold a conference call regarding its financial results for the quarter and year ended December 31, 2018. A copy of the earnings release is furnished as Exhibit 99.1 hereto.
Expedia Group is making reference to non-GAAP financial measures in both the earnings release and the conference call. A reconciliation of these non-GAAP financial measures to the nearest comparable GAAP financial measures is contained in the attached Exhibit 99.1 earnings release.
Pursuant to General Instruction B.2. to Form 8-K, the information set forth in this Item 2.02 and in the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01.    Regulation FD Disclosure.
Expedia Group management intends to make presentations to various investors, analysts and others using the slides containing company information attached to this report as Exhibit 99.2 hereto.
Pursuant to General Instruction B.2. to Form 8-K, the information set forth in this Item 7.01 and in the accompanying Exhibit 99.2 shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 8.01.    Other Events.
On February 7, 2019, Expedia Group announced that its Executive Committee, acting on behalf of its Board of Directors, has declared a quarterly cash dividend of $0.32 per share of outstanding common stock payable on March 27, 2019 to stockholders of record as of the close of business on March 7, 2019.
Item 9.01.    Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number
  
Description
  
 





SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
EXPEDIA GROUP, INC.
 
 
 
 
By:
/s/ ALAN PICKERILL
 
 
Alan Pickerill
 
 
Chief Financial Officer
Dated: February 7, 2019
 



Exhibit
Exhibit 99.1

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12683225&doc=4

Expedia Group Reports Fourth Quarter and Full Year 2018 Results
BELLEVUE, WA – February 7, 2019 – Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the fourth quarter and full year ended December 31, 2018.
Key Highlights
Gross bookings increased 13% year-over-year to $99.7 billion for the full year 2018. Revenue increased 12% year-over-year to $11.2 billion for the full year.
For full year 2018, Net income, Adjusted net income and Adjusted EBITDA grew 7%, 33% and 15% year-over-year, respectively. Diluted EPS and Adjusted EPS grew 10% and 35% year-over-year, respectively, during full year 2018.
Total stayed lodging room nights increased 13% year-over-year for the full year 2018, and 11% in the fourth quarter. HomeAway stayed property nights grew 29% year-over-year for the full year 2018, and 20% for the fourth quarter.
Expedia Group exceeded 1 million properties available on its core lodging platform as of December 31, 2018, including over 370,000 integrated HomeAway listings.
In 2018, Expedia Group returned $1.1 billion to shareholders, including repurchasing 7.7 million shares for $903 million and paying $186 million in dividends.
Financial Summary & Operating Metrics ($ millions except per share amounts) - Fourth Quarter 2018
 
Expedia Group (excluding trivago)(2)
Expedia Group, Inc.
Metric
Q4 2018
Q4 2017
Δ Y/Y
Q4 2018
Q4 2017
Δ Y/Y
Room night growth
11%
15%
(451) bps
11%
15%
(451) bps
Gross bookings
$21,957
$19,766
11%
$21,957
$19,766
11%
Revenue
2,439
2,187
11%
2,559
2,319
10%
Operating income
75
131
(42)%
96
114
(15)%
Net income attributable to Expedia Group
 
 
 
17
55
(69)%
Diluted EPS
 
 
 
$0.11
$0.35
(69)%
Adjusted EBITDA(1)
438
411
7%
471
402
17%
Adjusted net income(1)
180
142
27%
191
132
45%
Adjusted EPS(1)
$1.18
$0.90
31%
$1.24
$0.84
49%
Free cash flow(1)
 
 
 
(389)
(285)
(36)%

(1) "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 16-22 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.
(2) Upon completion of its initial public offering on December 16, 2016, trivago became 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.





Page 1 of 24


Financial Summary & Operating Metrics ($ millions except per share amounts) - Full Year 2018
 
Expedia Group (excluding trivago)(2)
Expedia Group, Inc.
Metric
2018
2017
Δ Y/Y
2018
2017
Δ Y/Y
Room night growth
13%
16%
(360 bps)
13%
16%
(360 bps)
Gross bookings
$99,727
$88,410
13%
$99,727
$88,410
13%
Revenue
10,532
9,308
13%
11,223
10,060
12%
Operating income
740
651
14%
714
625
14%
Net income attributable to Expedia Group
 
 
 
406
378
7%
Diluted EPS
 
 
 
$2.65
$2.42
10%
Adjusted EBITDA(1)
1,954
1,708
15%
1,970
1,713
15%
Adjusted net income(1)
903
676
34%
902
679
33%
Adjusted EPS(1)
$5.83
$4.29
36%
$5.82
$4.30
35%
Free cash flow(1)
 
 
 
1,097
1,135
(3)%

(1) "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 16-22 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.
(2) Upon completion of its initial public offering on December 16, 2016, trivago became 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.

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, Egencia®, trivago®, HomeAway®, VRBO®, Orbitz®, Travelocity®, Wotif®, lastminute.com.au®, ebookers®, CheapTickets®, Hotwire®, Classic Vacations®, Expedia Group™ Media Solutions, CarRentals.com™, Expedia Local Expert®, Expedia® CruiseShipCenters®, SilverRail™, ALICE® and Traveldoo®, including the related international points of sale for all brands. All amounts shown are in U.S. dollars.

The results include the impact of SilverRail and ALICE following the Expedia Group’s acquisition of a majority ownership stake in June 2017 and August 2017, respectively. All comparisons, unless otherwise noted, are to the corresponding period of 2017.


Gross Bookings & Revenue
Gross Bookings by Segment ($ millions)
 
 
Fourth Quarter
 
 
Full Year
 
2018
 
2017
 
Δ%
 
 
2018
 
2017
 
Δ%
Core OTA
$
17,921

 
$
16,182

 
11%
 
 
$
80,320

 
$
72,701

 
10
%
HomeAway
2,192

 
1,913

 
15%
 
 
11,449

 
8,746

 
31
%
Egencia
1,844

 
1,670

 
10%
 
 
7,958

 
6,963

 
14
%
Total
$
21,957

 
$
19,766

 
11%
 
 
$
99,727

 
$
88,410

 
13
%

Note: Some numbers may not add due to rounding.


Page 2 of 24



Fourth Quarter 2018: Total gross bookings increased 11% (including 2 percentage points of negative foreign exchange impact), driven primarily by growth in Expedia Partner Solutions and Brand Expedia. Domestic gross bookings increased 13% and international gross bookings increased 8% (including 3 percentage points of negative foreign exchange impact).
Full Year 2018: Total gross bookings increased 13% (including 1 percentage point of positive foreign exchange impact), driven primarily by growth in Brand Expedia, HomeAway, Hotels.com and Expedia Partner Solutions. Domestic gross bookings increased 11% and international gross bookings increased 15% (including 2 percentage points of positive foreign exchange impact).
Revenue by Segment ($ millions)
 
 
Fourth Quarter
Full Year
 
2018
 
2017
 
Δ%
 
 
2018
 
2017
 
Δ%
Core OTA
$
2,054

 
$
1,857

 
10%
 
 
$
8,760

 
$
7,881

 
11%
HomeAway
230

 
193

 
20%
 
 
1,171

 
906

 
29%
Egencia
155

 
137

 
13%
 
 
601

 
521

 
16%
Expedia Group (excluding trivago)
2,439

 
2,187

 
11%
 
 
10,532

 
9,308

 
13%
trivago
190

 
215

 
(12)%
 
 
1,084

 
1,166

 
(7)%
Intercompany eliminations
$
(70
)
 
$
(83
)
 
15%
 
 
$
(393
)
 
$
(414
)
 
5%
Total
$
2,559

 
$
2,319

 
10%
 
 
$
11,223

 
$
10,060

 
12%
Fourth Quarter 2018: Total revenue increased 10% (including 2 percentage points of negative foreign exchange impact), driven primarily by growth in Brand Expedia and Expedia Partner Solutions. Domestic revenue increased 14% and international revenue increased 6% (including 4 percentage points of negative foreign exchange impact).
Full Year 2018: Total revenue increased 12% (including 2 percentage points of positive foreign exchange impact), driven primarily by growth in Brand Expedia, HomeAway, Expedia Partner Solutions and Hotels.com. Domestic revenue increased 12% and international revenue increased 11% (including 1 percentage point of positive foreign exchange impact).

Product & Services Detail - Fourth Quarter 2018
As a percentage of total worldwide revenue in the fourth quarter of 2018, lodging accounted for 69%, advertising and media accounted for 9%, air accounted for 8% and all other revenues accounted for the remaining 14%.
Lodging revenue increased 10% in the fourth quarter of 2018 on an 11% increase in room nights stayed driven by growth in Expedia Partner Solutions, Hotels.com and Brand Expedia, partly offset by a 1% decrease in revenue per room night.
Air revenue increased 18% in the fourth quarter of 2018 driven by a 10% increase in air tickets sold and a 7% increase in revenue per ticket year-over-year. The reclassification of distribution fees from contra-revenue to cost of revenue added 3% to the growth in air revenue in the fourth quarter.
Advertising and media revenue increased 9% (including 2 percentage points of negative foreign exchange impact) in the fourth quarter of 2018 due to continued growth in Expedia Group Media Solutions, which was partly offset by declines at trivago. Other revenue increased 10% in the fourth quarter of 2018 reflecting growth in the travel insurance product.

Product & Services Detail - Full Year 2018
As a percentage of total worldwide annual revenue, lodging accounted for 69%, advertising and media accounted for 10%, air accounted for 8% and all other revenues accounted for the remaining 13%.

Page 3 of 24



Lodging revenue increased 13% in 2018 on a 13% increase in room nights stayed driven by growth in Hotels.com, Expedia Partner Solutions and HomeAway.
Air revenue increased 12% in 2018 on a 5% increase in air tickets sold and a 7% increase in revenue per ticket. The reclassification of distribution fees from contra-revenue to cost of revenue added 3% to growth in air revenue in 2018. The reclassification began in the first quarter of 2018 and the fourth quarter of 2018 is the last period it will impact the comparability of our results.
Advertising and media revenue increased 2% (including 3 percentage points of positive foreign exchange impact) in 2018 due to growth in Expedia Group Media Solutions offset by declines at trivago. Other revenue increased 14% in 2018 reflecting growth in the travel insurance and car rental products.
Generally Accepted Accounting Principles (GAAP) Expenses
 
 
Costs and Expenses
 
 
As a % of Revenue
 
Fourth Quarter
 
 
Fourth Quarter
 
2018
 
2017
 
Δ%
 
 
2018
 
2017
 
Δ in bps
 
($ millions)
 
 
 
 
 
 
 
 
 
GAAP cost of revenue
$
476

 
$
437

 
9
%
 
 
18.6
%
 
18.9
%
 
(26
)
GAAP selling and marketing
1,209

 
1,124

 
8
%
 
 
47.2
%
 
48.5
%
 
(122
)
GAAP technology and content
417

 
372

 
12
%
 
 
16.3
%
 
16.0
%
 
27

GAAP general and administrative
211

 
198

 
7
%
 
 
8.3
%
 
8.5
%
 
(26
)
Total GAAP costs and expenses
$
2,313

 
$
2,131

 
9
%
 
 
90.4
%
 
91.9
%
 
(148
)
 
Costs and Expenses
 
 
As a % of Revenue
 
Full Year
 
 
Full Year
 
2018
 
2017
 
Δ%
 
 
2018
 
2017
 
Δ in bps
 
($ millions)
 
 
 
 
 
 
 
 
 
GAAP cost of revenue
$
1,965

 
$
1,757

 
12
%
 
 
17.5
%
 
17.5
%
 
5

GAAP selling and marketing
5,767

 
5,298

 
9
%
 
 
51.4
%
 
52.7
%
 
(128
)
GAAP technology and content
1,617

 
1,387

 
17
%
 
 
14.4
%
 
13.8
%
 
62

GAAP general and administrative
808

 
676

 
20
%
 
 
7.2
%
 
6.7
%
 
48

Total GAAP costs and expenses
$
10,157

 
$
9,118

 
11
%
 
 
90.5
%
 
90.6
%
 
(13
)
GAAP Cost of Revenue
Fourth Quarter 2018: Total GAAP cost of revenue increased 9%, compared to the fourth quarter of 2017, primarily due to an increase in customer operations expenses primarily at Expedia Partner Solutions and Egencia, as well as an increase in cloud expense. Cloud expense in GAAP cost of revenue was $26 million during the fourth quarter of 2018, compared to $18 million in the fourth quarter of 2017.
Full Year 2018: Total GAAP cost of revenue increased 12%, compared to the prior year, primarily due to higher customer operations and cloud expenses. Cloud expense in GAAP cost of revenue was $92 million during 2018, compared to $57 million in 2017.
GAAP Selling and Marketing
Fourth Quarter 2018: Total GAAP selling and marketing expense increased 8%, compared to the fourth quarter of 2017, due to a $63 million increase in direct costs and a $22 million increase in indirect costs. Brand Expedia and HomeAway accounted for the majority of the increase in direct costs. The growth in indirect costs was primarily driven by increased headcount in the lodging supply organization.
Full Year 2018: Total GAAP selling and marketing expense increased 9%, compared to the prior year, due to a $310 million increase in direct costs and a $159 million increase in indirect costs. Expedia Partner

Page 4 of 24



Solutions, Brand Expedia and Hotels.com accounted for the majority of the increase in direct costs. The growth in indirect costs was primarily driven by increased headcount in the lodging supply organization.

GAAP Technology and Content
Fourth Quarter 2018: Total GAAP technology and content expense increased 12%, compared to the fourth quarter of 2017, primarily due to higher headcount investments to develop our ecommerce platform and further enhance our products. Cloud expense in GAAP technology and content expense was $12 million during the fourth quarter of 2018, compared to $11 million in the fourth quarter of 2017.
Full Year 2018: Total GAAP technology and content expense increased 17%, compared to the prior year, primarily due to higher headcount investments to develop our ecommerce platform, growth at HomeAway, an increase in depreciation and amortization and the inorganic impact from acquisitions. Cloud expense in GAAP technology and content expense was $48 million in 2018, compared to $38 million in 2017.
GAAP General and Administrative
Fourth Quarter 2018: Total GAAP general and administrative expense increased 7%, compared to the fourth quarter of 2017, primarily due to increased headcount at corporate.
Full Year 2018: Total GAAP general and administrative expense increased 20% compared to the prior year, primarily due to increased headcount at corporate as well as the prior year reversal of approximately $41 million of previously recognized stock-based compensation expense related to the departure of the former CEO in 2017.
Adjusted Expenses - Expedia Group
 
 
Costs and Expenses
 
 
As a % of Revenue
 
Fourth Quarter
 
 
Fourth Quarter
 
2018
 
2017
 
Δ%
 
 
2018
 
2017
 
Δ in bps
 
($ millions)
 
 
 
 
 
 
 
 
 
Adjusted cost of revenue *
$
449

 
$
409

 
10
%
 
 
17.6
%
 
17.6
%
 
(4
)
Adjusted selling and marketing *
1,187

 
1,104

 
7
%
 
 
46.4
%
 
47.6
%
 
(124
)
Adjusted technology and content *
277

 
239

 
16
%
 
 
10.8
%
 
10.3
%
 
50

Adjusted general and administrative *
182

 
168

 
8
%
 
 
7.1
%
 
7.2
%
 
(12
)
Total adjusted costs and expenses
$
2,095

 
$
1,920

 
9
%
 
 
81.9
%
 
82.8
%
 
(90
)
Total depreciation
169

 
165

 
2
%
 
 
6.6
%
 
7.1
%
 
(53
)
Total stock-based compensation
49

 
45

 
7
%
 
 
1.9
%
 
2.0
%
 
(5
)
Total costs and expenses
$
2,313

 
$
2,131

 
9
%
 
 
90.4
%
 
91.9
%
 
(148
)
 
Costs and Expenses
 
 
As a % of Revenue
 
Full Year
 
 
Full Year
 
2018
 
2017
 
Δ%
 
 
2018
 
2017
 
Δ in bps
 
($ millions)
 
 
 
 
 
 
 
 
 
Adjusted cost of revenue *
$
1,853

 
$
1,647

 
13
%
 
 
16.5
%
 
16.4
%
 
14

Adjusted selling and marketing *
5,677

 
5,220

 
9
%
 
 
50.6
%
 
51.9
%
 
(131
)
Adjusted technology and content *
1,061

 
887

 
19
%
 
 
9.4
%
 
8.8
%
 
62

Adjusted general and administrative *
687

 
599

 
15
%
 
 
6.1
%
 
6.0
%
 
16

Total adjusted costs and expenses
$
9,278

 
$
8,354

 
11
%
 
 
82.7
%
 
83.0
%
 
(38
)
Total depreciation
676

 
614

 
10
%
 
 
6.0
%
 
6.1
%
 
(8
)
Total stock-based compensation
203

 
149

 
36
%
 
 
1.8
%
 
1.5
%
 
32

Total costs and expenses
$
10,157

 
$
9,118

 
11
%
 
 
90.5
%
 
90.6
%
 
(13
)
*Adjusted expenses are non-GAAP measures. See pages 16-22 herein for a description and reconciliation to the corresponding GAAP measures.
Note: Some numbers may not add due to rounding.

Page 5 of 24



Adjusted Expenses - Expedia Group (excluding trivago)
 
 
Costs and Expenses
 
 
As a % of Revenue
 
Fourth Quarter
 
 
Fourth Quarter
 
2018
 
2017
 
Δ%
 
 
2018
 
2017
 
Δ in bps
 
($ millions)
 
 
 
 
 
 
 
 
 
Adjusted cost of revenue *
$
448

 
$
406

 
10
%
 
 
18.4
%
 
18.6
%
 
(17
)
Adjusted selling and marketing *
1,124

 
993

 
13
%
 
 
46.1
%
 
45.4
%
 
66

Adjusted technology and content *
262

 
225

 
16
%
 
 
10.7
%
 
10.3
%
 
43

Adjusted general and administrative *
175

 
156

 
12
%
 
 
7.1
%
 
7.1
%
 
3

Total adjusted costs and expenses
$
2,009

 
$
1,780

 
13
%
 
 
82.3
%
 
81.3
%
 
95

Total depreciation
164

 
162

 
2
%
 
 
6.8
%
 
7.4
%
 
(66
)
Total stock-based compensation
43

 
41

 
4
%
 
 
1.8
%
 
1.9
%
 
(13
)
Total costs and expenses
$
2,216

 
$
1,983

 
12
%
 
 
90.8
%
 
90.6
%
 
16

 
Costs and Expenses
 
 
As a % of Revenue
 
Full Year
 
 
Full Year
 
2018
 
2017
 
Δ%
 
 
2018
 
2017
 
Δ in bps
 
($ millions)
 
 
 
 
 
 
 
 
 
Adjusted cost of revenue *
$
1,847

 
$
1,639

 
13
%
 
 
17.5
%
 
17.6
%
 
(7
)
Adjusted selling and marketing *
5,117

 
4,571

 
12
%
 
 
48.6
%
 
49.1
%
 
(53
)
Adjusted technology and content *
997

 
833

 
20
%
 
 
9.5
%
 
8.9
%
 
52

Adjusted general and administrative *
642

 
564

 
14
%
 
 
6.1
%
 
6.1
%
 
3

Total adjusted costs and expenses
$
8,603

 
$
7,607

 
13
%
 
 
81.7
%
 
81.7
%
 
(5
)
Total depreciation
661

 
605

 
9
%
 
 
6.3
%
 
6.5
%
 
(22
)
Total stock-based compensation
179

 
131

 
36
%
 
 
1.7
%
 
1.4
%
 
29

Total costs and expenses
$
9,443

 
$
8,343

 
13
%
 
 
89.6
%
 
89.6
%
 
1

*Adjusted expenses are non-GAAP measures. See pages 16-22 herein for a description and reconciliation to the corresponding GAAP measures.
Note: Some numbers may not add due to rounding.
Adjusted Cost of Revenue
Fourth Quarter 2018: Total adjusted cost of revenue increased 10%, compared to the fourth quarter of 2017, primarily due to an increase in customer operations expenses primarily at Expedia Partner Solutions and Egencia, as well as an increase in cloud expense.
Full Year 2018: Total adjusted cost of revenue increased 13%, compared to the prior year, primarily due to higher customer operations and cloud expenses.
Adjusted Selling and Marketing
Fourth Quarter 2018: Total adjusted selling and marketing expense increased 7%, compared to the fourth quarter of 2017, due to $63 million more in direct costs and a $19 million increase in indirect costs. As a percentage of total adjusted selling and marketing, indirect costs represented 21% in the fourth quarter of 2018, consistent with 21% in the fourth quarter of 2017.
Adjusted selling and marketing expense excluding trivago increased 13% in the fourth quarter of 2018. Brand Expedia and HomeAway accounted for the majority of the increase in direct costs. The growth in indirect costs was primarily driven by increased headcount in the lodging supply organization.    
Full Year 2018: Total adjusted selling and marketing expense increased 9%, compared to the prior year, due to an $310 million increase in direct cost and a $147 million increase in indirect cost. As a percentage of total adjusted selling and marketing, indirect costs represented 18% in 2018, compared to 16% in 2017.

Page 6 of 24



Adjusted selling and marketing expense excluding trivago increased 12% in 2018. Expedia Partner Solutions, Brand Expedia and Hotels.com accounted for the majority of the increase in direct costs. The growth in indirect costs was primarily driven by increased headcount in the lodging supply organization.
Adjusted Technology and Content
Fourth Quarter 2018: Total adjusted technology and content expense increased 16%, compared to the fourth quarter of 2017, primarily due to higher headcount investments to develop our ecommerce platform and further enhance our products.
Full Year 2018: Total adjusted technology and content expense increased 19%, compared to the prior year, primarily due to higher headcount investments to develop our ecommerce platform, growth at HomeAway and the inorganic impact from acquisitions.
Adjusted General and Administrative
Fourth Quarter 2018: Total adjusted general and administrative expense increased 8%, compared to the fourth quarter of 2017, primarily due to increased headcount at corporate.
Full Year 2018: Total adjusted general and administrative expense increased 15%, compared to the prior year, primarily due to increased headcount at corporate.
Depreciation Expense
Depreciation expense increased $4 million to $169 million in the fourth quarter of 2018 and $62 million to $676 million in 2018, primarily due to previously capitalized software development costs for completed technology projects which have been placed into service, partly offset by a decrease in expenses related to capitalized data center hardware.
Stock-Based Compensation Expense
Stock-based compensation expense increased $4 million to $49 million in the fourth quarter of 2018. Stock-based compensation expense increased $54 million to $203 million in 2018, primarily due to the prior year reversal of approximately $41 million of previously recognized stock-based compensation expense related to the departure of the former CEO in 2017.

Net Income Attributable to Expedia Group and Adjusted EBITDA(1)*
Adjusted EBITDA by Segment ($ millions)
 
 
Fourth Quarter
 
 
Full Year
 
2018
 
2017
 
Δ%
 
 
2018
 
2017
 
Δ%
Core OTA
$
584

 
$
534

 
9%
 
 
$
2,305

 
$
2,057

 
12%
HomeAway
22

 
31

 
(27)%
 
 
288

 
202

 
43%
Egencia
31

 
19

 
65%
 
 
107

 
95

 
13%
Unallocated overhead costs
(199
)
 
(173
)
 
(15)%
 
 
(746
)
 
(646
)
 
(15)%
Expedia Group (excluding trivago)
$
438

 
$
411

 
7%
 
 
$
1,954

 
$
1,708

 
15%
trivago(2)
33

 
(9
)
 
NM
 
 
16

 
5

 
186%
Total Adjusted EBITDA
$
471

 
$
402

 
17%
 
 
$
1,970

 
$
1,713

 
15%
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Expedia Group(3)
$
17

 
$
55

 
(69)%
 
 
$
406

 
$
378

 
7%
(1) During the first quarter of 2018, we updated our allocation methodology and recast the historical Adjusted EBITDA by segment information presented to be on a comparable basis. (2) Upon completion of its initial public offering on December 16, 2016, trivago became 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 (3) Expedia Group does not calculate or report net income by segment.
* Adjusted EBITDA is a non-GAAP measure. See pages 16-22 herein for a description and reconciliation to the corresponding GAAP measure.
Note: Some numbers may not add due to rounding.

Page 7 of 24



GAAP net income attributable to Expedia Group was $17 million in the fourth quarter of 2018, compared to GAAP net income of $55 million in the fourth quarter of 2017. GAAP net income attributable to Expedia Group was $406 million in 2018, an increase of 7% compared to GAAP net income of $378 million in 2017.
Adjusted EBITDA was $471 million in the fourth quarter of 2018, compared to Adjusted EBITDA of $402 million in the fourth quarter of 2017. Adjusted EBITDA was $2.0 billion in 2018, an increase of 15% compared to Adjusted EBITDA of $1.7 billion in 2017.
Amortization of Intangible Assets
Consolidated amortization of intangible assets decreased $3 million to $68 million in the fourth quarter of 2018. Consolidated amortization of intangible assets increased $8 million to $283 million in 2018. In the fourth quarter of 2018 we recorded a $42 million impairment loss related to indefinite-lived trade names.
Impairment of Goodwill
In the fourth quarter of 2018 we recorded a $25 million impairment loss. In 2018 we recorded $86 million in impairment losses. We did not record any impairment of goodwill in 2017.

Legal Reserves, Occupancy Tax and Other
In 2018, legal reserves, occupancy tax and other includes a $78 million gain on a pay-to-play refund.
Interest and Other
Consolidated interest income increased $1 million in the fourth quarter of 2018, and increased $37 million in 2018, compared to the prior year periods. The increase for the full year is primarily due to $19 million in accumulated interest on the pay-to-play refund above, as well as higher invested balances and, to a lesser extent, higher rates of return. Consolidated interest expense decreased $11 million in the fourth quarter of 2018, compared to the fourth quarter of 2017, due to the repayment of $500 million of senior unsecured notes in August 2018 and increased $8 million in 2018, compared to 2017, primarily due to the issuance of the $1 billion of senior unsecured notes in September 2017.
Consolidated other, net was a loss of $9 million in the fourth quarter of 2018, compared to a gain of $5 million in the fourth quarter of 2017. Consolidated other, net was a loss of $110 million in 2018 and a loss of $60 million in 2017. The loss in 2018 was primarily due to mark-to-market losses on minority equity investments, and the loss in 2017 was primarily related to foreign exchange.
Income Taxes
The effective tax rate on GAAP pretax income was 57% and 18% for the fourth quarter and full year 2018, respectively, compared to 30% and 11% in the prior year periods. The increase in the quarterly effective tax rate for 2018 compared to 2017 is due to a number of factors, including a decrease in excess tax benefits related to share-based payments and a non-deductible goodwill impairment. The increase in the annual effective tax rate for 2018 compared to 2017 was primarily due to the same factors.

The effective tax rate on pretax adjusted net income ("ANI") was 24% and 19% for the fourth quarter and full year 2018, respectively, compared to 31% and 25% in the prior year periods. The year-over-year change in the ANI effective tax rate for the full year 2018 was primarily driven by the Tax Cuts and Jobs Act enacted in 2017.

Balance Sheet, Cash Flows and Capitalization
Cash, cash equivalents, restricted cash and short-term investments totaled $2.7 billion at December 31, 2018. For the year ended December 31, 2018, consolidated net cash provided by operating activities was $2.0 billion and consolidated free cash flow totaled $1.1 billion. Both measures include $382 million from net changes in operating assets and liabilities, primarily driven by an increase in deferred merchant bookings. Free cash flow decreased $38 million in 2018 compared to the prior year period, primarily due to increased capital expenditures related to our Seattle headquarters, partly offset by higher net cash provided by operating activities.


Page 8 of 24



Long-term investments and other assets includes our minority investments in Despegar.com, Corp. ("Despegar"), which is recorded at a fair value of $119 million as of December 31, 2018, and our investment in Traveloka Holding Limited of $442 million, which includes a $70 million additional investment in the fourth quarter of 2018. As of January 1, 2018, we adopted the new guidance related to accounting for minority equity investments and financial liabilities under the fair value option, and minority equity investments with readily determinable fair values, such as our investment in Despegar, must be carried at fair value with changes in fair value recorded through net income. Previously, this investment was designated as available for sale and recorded at fair value with changes in fair value reflected through other comprehensive income (loss). Investments without readily determinable fair values are adjusted for observable price changes.  
Long-term debt, net of applicable discounts, debt issuance costs and current maturities, totaled $3.7 billion at December 31, 2018. In August 2018, our $500 million in registered senior unsecured notes that bore interest at 7.456% matured and the balance was repaid. As of December 31, 2018, Expedia Group had a $2.0 billion unsecured revolving credit facility, which was essentially untapped.
At December 31, 2018, Expedia Group, Inc. had stock-based awards outstanding representing approximately 20 million shares of Expedia Group common stock, consisting of options to purchase approximately 18 million common shares with a $100.11 weighted average exercise price and weighted average remaining life of 4.3 years, and approximately 3 million restricted stock units (“RSUs”).
During 2018, Expedia Group, Inc. repurchased 7.7 million shares of Expedia Group, Inc. common stock for an aggregate purchase price of $903 million excluding transaction costs (an average of $117.02 per share). As of December 31, 2018, there were approximately 12.2 million shares remaining under an April 2018 repurchase authorization.
On December 6, 2018, Expedia Group, Inc. paid a quarterly dividend of $48 million ($0.32 per common share). In addition, in February 2019, the Executive Committee of Expedia Group’s Board of Directors declared a quarterly cash dividend of $0.32 per share of outstanding common stock to be paid to stockholders of record as of the close of business on March 7, 2019, with a payment date of March 27, 2019. Based on current shares outstanding, the total payment for this quarterly dividend is estimated to be approximately $47 million. Future declaration of dividends and the establishment of future record and payment dates are subject to the final determination of Expedia Group’s Board of Directors.



Page 9 of 24



Recent Highlights
Expedia Group, Inc.
Expedia Group exceeded 1 million properties available on its core lodging platform as of December 31, 2018, including over 370,000 integrated HomeAway listings. HomeAway offers over 1.8 million online bookable listings.
Expedia Group became the first OTA based in North America to achieve IATA New Distribution Capability (NDC) Level 3 Certification. This certification as well as ongoing NDC product development, recognizes Expedia Group’s commitment to evolve technology in line with NDC capabilities in readiness for integration across its brand portfolio.
Expedia Group executed commercial agreements with American Airlines, Frontier Airlines, Icelandair, SAS and WOW Air.

Core OTA
Hotels.com Rewards now has over 43 million members who can earn 1 reward night for every 10 nights stayed.
Expedia Partner Solutions successfully migrated Chase Sapphire®, Freedom® and Ink® cards onto the Ultimate Rewards Travel Center powered by Expedia.
Expedia Partner Solutions was recognized for innovation in digital travel winning Travolution’s ‘Best trade supplier’ award for their online template solution, Hotels.com for Partners, and their versatile API, EPS Rapid.
Brand Expedia and Expedia Group Media Solutions announced two tourism cooperation agreements with the Ministry of Tourism of the Republic of Indonesia to promote and help drive travel demand to 15 key destinations in Indonesia and to support the Ministry’s target of achieving 20 million international tourist arrivals by the end of 2019.
Travelocity launched its first augmented reality experience in its mobile app allowing users to snap travel photos and videos with the brand's popular spokesperson, The Roaming Gnome
Orbitz Rewards membership surpassed 9 million travelers. The Orbitz Rewards program announced enhanced benefits for its Platinum members who can now choose between free TSA Precheck or LoungeBuddy passes and earn $50 back on everyday travel expenses.
Hotwire launched TravelAds sponsored listings on its primary hotel booking path, successfully incorporating a pay-per-click hotel advertising platform within search result sets.
Expedia CruiseShipCenters achieved over $790 million in gross bookings in 2018, exhibiting 17% year-over-year growth.
Celebrity Cruises named Expedia Group as their North American Partner of the Year 2018 and Norwegian Cruise Line named Expedia Group as their Elite Partner of the Year.

HomeAway
HomeAway now offers over 1 million instantly bookable listings.
HomeAway re-launched its Stop Searching, Start Finding TV marketing campaign in the U.S. to promote VRBO and encourage mobile app downloads. As part of the campaign, VRBO was the title sponsor for the Citrus Bowl college football game on New Year’s Day, reaching more than 7.5 million viewers.
HomeAway launched its virtual tours platform, which is compatible with different types of virtual tour content ranging from “DIY” tours filmed on personal phones and cameras to professionally captured footage, easily allowing homeowners and property managers to share a 360-degree walk-through of their properties.

trivago
trivago continued to grow its alternative accommodation inventory and now has over 1.5 million alternative accommodation properties listed.

Egencia
Business travelers, travel arrangers, travel managers and travel approvers are increasingly using the Egencia mobile app; the percentage of Egencia users that utilized the mobile app grew more than 25% year-over-year in 2018.

Page 10 of 24



EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except for per share data)
(Unaudited)
 
Three months ended December 31,
 
Year ended December 31,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Revenue
$
2,559

 
$
2,319

 
$
11,223

 
$
10,060

Costs and expenses:
 
 
 
 
 
 
 
Cost of revenue (1) (2)
476

 
437

 
1,965

 
1,757

Selling and marketing (1) (2)
1,209

 
1,124

 
5,767

 
5,298

Technology and content (1) (2)
417

 
372

 
1,617

 
1,387

General and administrative (1) (2)
211

 
198

 
808

 
676

Amortization of intangible assets
68

 
71

 
283

 
275

Impairment of goodwill
25

 

 
86

 

Impairment of intangible assets
42

 

 
42

 

Legal reserves, occupancy tax and other
15

 
2

 
(59
)
 
25

Restructuring and related reorganization charges

 
1

 

 
17

Operating income
96

 
114

 
714

 
625

Other income (expense):
 
 
 
 
 
 
 
Interest income
10

 
9

 
71

 
34

Interest expense
(41
)
 
(52
)
 
(190
)
 
(182
)
Other, net
(9
)
 
5

 
(110
)
 
(60
)
Total other expense, net
(40
)
 
(38
)
 
(229
)
 
(208
)
Income before income taxes
56

 
76

 
485

 
417

Provision for income taxes
(31
)
 
(23
)
 
(87
)
 
(45
)
Net income
25

 
53

 
398

 
372

Net (income) loss attributable to non-controlling interests
(8
)
 
2

 
8

 
6

Net income attributable to Expedia Group, Inc.
$
17

 
$
55

 
$
406

 
$
378

 
 
 
 
 
 
 
 
Earnings per share attributable to Expedia Group, Inc. available to common stockholders:
 
 
 
 
 
 
 
Basic
$
0.11

 
$
0.36

 
$
2.71

 
$
2.49

Diluted
0.11

 
0.35

 
2.65

 
2.42

Shares used in computing earnings per share (000's):
 
 
 
 
 
 
 
Basic
148,509

 
152,252

 
149,961

 
151,619

Diluted
151,358

 
155,974

 
152,889

 
156,385

_________
 
 
 
 
 
 
 
(1) Includes stock-based compensation as follows:
 
 
 
 
 
 
 
Cost of revenue
$
3

 
$
2

 
$
11

 
$
10

Selling and marketing
10

 
9

 
44

 
40

Technology and content
15

 
13

 
61

 
55

General and administrative
21

 
21

 
87

 
44

 
 
 
 
 
 
 
 
(2) Includes depreciation as follows:
 
 
 
 
 
 
 
Cost of revenue
$
24

 
$
26

 
$
101

 
$
99

Selling and marketing
12

 
11

 
46

 
38

Technology and content
125

 
120

 
495

 
445

General and administrative
8

 
8

 
34

 
32



Page 11 of 24




EXPEDIA GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
(Unaudited)
 
December 31,
 
2018
 
2017
ASSETS
Current assets:
 
 
 
Cash and cash equivalents
$
2,443

 
$
2,847

Restricted cash and cash equivalents
259

 
69

Short-term investments
28

 
468

Accounts receivable, net of allowance of $34 and $31
2,151

 
1,866

Income taxes receivable
24

 
21

Prepaid expenses and other current assets
292

 
269

Total current assets
5,197

 
5,540

Property and equipment, net
1,877

 
1,575

Long-term investments and other assets
778

 
845

Deferred income taxes
69

 
18

Intangible assets, net
1,992

 
2,309

Goodwill
8,120

 
8,229

TOTAL ASSETS
$
18,033

 
$
18,516

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
Accounts payable, merchant
$
1,699

 
$
1,838

Accounts payable, other
788

 
698

Deferred merchant bookings
4,327

 
3,219

Deferred revenue
364

 
326

Income taxes payable
74

 
33

Accrued expenses and other current liabilities
808

 
1,265

Current maturities of long-term debt

 
500

Total current liabilities
8,060

 
7,879

Long-term debt, excluding current maturities
3,717

 
3,749

Deferred income taxes
69

 
329

Other long-term liabilities
506

 
408

Commitments and contingencies
 
 
 
Redeemable non-controlling interests
30

 
22

Stockholders’ equity:
 
 
 
Common stock $.0001 par value

 

Authorized shares: 1,600,000
 
 
 
Shares issued: 231,493 and 228,467
 
 
 
Shares outstanding: 134,334 and 138,939
 
 
 
Class B common stock $.0001 par value

 

Authorized shares: 400,000
 
 
 
Shares issued and outstanding: 12,800 and 12,800
 
 
 
Additional paid-in capital
9,549

 
9,163

Treasury stock — Common stock, at cost
(5,742
)
 
(4,822
)
Shares: 97,159 and 89,528
 
 
 
Retained earnings
517

 
331

Accumulated other comprehensive income (loss)
(220
)
 
(149
)
Total Expedia Group, Inc. stockholders’ equity
4,104

 
4,523

Non-redeemable non-controlling interests
1,547

 
1,606

Total stockholders’ equity
5,651

 
6,129

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
18,033

 
$
18,516


Page 12 of 24



EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
 
Year ended December 31,
 
2018
 
2017
Operating activities:
 
 
 
Net income
$
398

 
$
372

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation of property and equipment, including internal-use software and website development
676

 
614

Amortization of stock-based compensation
203

 
149

Amortization and impairment of intangible assets
325

 
275

Impairment of goodwill
86

 

Deferred income taxes
(308
)
 
(103
)
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net
111

 
(79
)
Realized gain on foreign currency forwards
(31
)
 
(6
)
Loss on minority equity investments, net
111

 
14

Other
22

 
(30
)
Changes in operating assets and liabilities, net of effects from acquisitions:
 
 
 
Accounts receivable
(282
)
 
(456
)
Prepaid expenses and other assets
(29
)
 
(71
)
Accounts payable, merchant
(134
)
 
316

Accounts payable, other, accrued expenses and other current liabilities
196

 
257

Tax payable/receivable, net
102

 
(30
)
Deferred merchant bookings
489

 
593

Deferred revenue
40

 
30

Net cash provided by operating activities
1,975

 
1,845

Investing activities:
 
 
 
Capital expenditures, including internal-use software and website development
(878
)
 
(710
)
Purchases of investments
(1,803
)
 
(1,811
)
Sales and maturities of investments
2,137

 
1,096

Acquisitions, net of cash and restricted cash acquired
(53
)
 
(169
)
Other, net
38

 
13

Net cash used in investing activities
(559
)
 
(1,581
)
Financing activities:
 
 
 
Payment of long-term debt
(500
)
 

Proceeds from issuance of long-term debt, net of issuance costs

 
990

Purchases of treasury stock
(923
)
 
(312
)
Proceeds from issuance of treasury stock
31

 

Payment of dividends to stockholders
(186
)
 
(176
)
Proceeds from exercise of equity awards and employee stock purchase plan
166

 
229

Changes in controlled subsidiaries, net
(62
)
 
(18
)
Other, net
(15
)
 
(25
)
Net cash provided by (used in) financing activities
(1,489
)
 
688

Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents
(139
)
 
147

Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents
(212
)
 
1,099

Cash, cash equivalents and restricted cash and cash equivalents at beginning of year
2,917

 
1,818

Cash, cash equivalents and restricted cash and cash equivalents at end of year
$
2,705

 
$
2,917

Supplemental cash flow information
 
 
 
Cash paid for interest
$
196

 
$
163

Income tax payments, net
282

 
174


Page 13 of 24



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.

 
 
 
2017
 
 
 
2018
 
 
 
Full Year
 
 
 
Y/Y Growth
 
 
 
 
 
Q1
Q2
Q3
Q4
 
 
 
Q1
Q2
Q3
Q4
 
 
 
2017
2018
 
 
 
Q418
2018
 
 
Gross bookings by segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core OTA
 
 
$
19,110

$
18,954

$
18,456

$
16,182

 
 
 
$
21,171

$
21,011

$
20,217

$
17,921

 
 
 
$
72,701

$
80,320

 
 
 
11%
10%
 
 
HomeAway
 
 
2,697

2,123

2,013

1,913

 
 
 
3,947

2,814

2,496

2,192

 
 
 
8,746

11,449

 
 
 
15%
31%
 
 
Egencia
 
 
1,804

1,761

1,728

1,670

 
 
 
2,078

2,073

1,963

1,844

 
 
 
6,963

7,958

 
 
 
10%
14%
 
 
Total
 
 
$
23,610

$
22,838

$
22,197

$
19,766

 
 
 
$
27,196

$
25,898

$
24,676

$
21,957

 
 
 
$
88,410

$
99,727

 
 
 
11%
13%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross bookings by geography
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
 
$
15,128

$
14,730

$
13,540

$
11,800

 
 
 
$
16,582

$
16,213

$
15,232

$
13,362

 
 
 
$
55,197

$
61,389

 
 
 
13%
11%
 
 
International
 
 
8,483

8,108

8,657

7,966

 
 
 
10,614

9,685

9,444

8,595

 
 
 
33,213

38,337

 
 
 
8%
15%
 
 
Total
 
 
$
23,610

$
22,838

$
22,197

$
19,766

 
 
 
$
27,196

$
25,898

$
24,676

$
21,957

 
 
 
$
88,410

$
99,727

 
 
 
11%
13%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross bookings by business model
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
$
11,342

$
11,168

$
10,392

$
9,493

 
 
 
$
12,445

$
12,290

$
11,442

$
10,688

 
 
 
$
42,395

$
46,865

 
 
 
13%
11%
 
 
Merchant
 
 
9,572

9,546

9,792

8,360

 
 
 
10,803

10,794

10,739

9,077

 
 
 
37,269

41,413

 
 
 
9%
11%
 
 
HomeAway
 
 
2,697

2,123

2,013

1,913

 
 
 
3,947

2,814

2,496

2,192

 
 
 
8,746

11,449

 
 
 
15%
31%
 
 
Total
 
 
$
23,610

$
22,838

$
22,197

$
19,766

 
 
 
$
27,196

$
25,898

$
24,676

$
21,957

 
 
 
$
88,410

$
99,727

 
 
 
11%
13%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core OTA
 
 
$
1,700

$
2,009

$
2,314

$
1,857

 
 
 
$
1,926

$
2,253

$
2,527

$
2,054

 
 
 
$
7,881

$
8,760

 
 
 
10%
11%
 
 
HomeAway
 
 
185

224

305

193

 
 
 
234

297

410

230

 
 
 
906

1,171

 
 
 
20%
29%
 
 
Egencia
 
 
123

135

126

137

 
 
 
151

156

139

155

 
 
 
521

601

 
 
 
13%
16%
 
 
Expedia Group (excluding trivago)
 
 
$
2,008

$
2,368

$
2,745

$
2,187

 
 
 
$
2,311

$
2,706

$
3,076

$
2,439

 
 
 
$
9,308

$
10,532

 
 
 
11%
13%
 
 
trivago
 
 
286

328

338

215

 
 
 
319

280

295

190

 
 
 
1,166

1,084

 
 
 
(12)%
(7)%
 
 
Intercompany eliminations
 
 
(104
)
(110
)
(117
)
(83
)
 
 
 
(122
)
(106
)
(95
)
(70
)
 
 
 
(414
)
(393
)
 
 
 
15%
5%
 
 
Total
 
 
$
2,189

$
2,586

$
2,966

$
2,319

 
 
 
$
2,508

$
2,880

$
3,276

$
2,559

 
 
 
$
10,060

$
11,223

 
 
 
10%
12%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by geography
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
 
$
1,251

$
1,459

$
1,578

$
1,255

 
 
 
$
1,351

$
1,632

$
1,792

$
1,426

 
 
 
$
5,542

$
6,202

 
 
 
14%
12%
 
 
International
 
 
938

1,127

1,388

1,065

 
 
 
1,157

1,248

1,484

1,133

 
 
 
4,518

5,021

 
 
 
6%
11%
 
 
Total
 
 
$
2,189

$
2,586

$
2,966

$
2,319

 
 
 
$
2,508

$
2,880

$
3,276

$
2,559

 
 
 
$
10,060

$
11,223

 
 
 
10%
12%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Revenue by business model
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
$
571

$
684

$
803

$
629

 
 
 
$
658

$
777

$
876

$
699

 
 
 
$
2,687

$
3,010

 
 
 
11%
12%
 
 
Merchant
 
 
1,176

1,376

1,559

1,283