Document
false0001324424 0001324424 2020-02-13 2020-02-13 0001324424 exch:XNGS 2020-02-13 2020-02-13


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 13, 2020
 
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.)
1111 Expedia Group Way W.
Seattle, Washington 98119
(Address of principal executive offices) (Zip code)
(206) 481-7200
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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common stock, $0.0001 par value
EXPE
The Nasdaq Global Select Market
Expedia Group, Inc. 2.500% Senior Notes due 2022
EXPE22
New York Stock Exchange
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 13, 2020, 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, 2019. 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 8.01.    Other Events.
On February 13, 2020, Expedia Group announced that its Executive Committee, acting on behalf of its Board of Directors, has declared a quarterly cash dividend of $0.34 per share of outstanding common stock payable on March 26, 2020 to stockholders of record as of the close of business on March 10, 2020.
Item 9.01.    Financial Statements and Exhibits.
(d) Exhibits







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/ Eric Hart
 
 
Eric Hart
 
 
Acting Chief Financial Officer
Dated: February 13, 2020
 



Exhibit
Exhibit 99.1

https://cdn.kscope.io/8890b67b67ba9ef97c3cd761e336ef40-eghorizontalwhiteonbluea05.jpg

Expedia Group Reports Fourth Quarter and Full Year 2019 Results
SEATTLE, WA – February 13, 2020 – Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the fourth quarter and full year ended December 31, 2019.

“Since our management change in December we have re-focused the company on our core operations which had suffered for much of 2019. We have rapidly moved to simplify how we operate and increase efficiency. These changes helped us exceed the high-end of our revised guidance range in 2019 and will contribute to accelerated profit growth in our underlying business in 2020. In addition, we are targeting $300-500 million of run-rate cost savings across our business. We are not providing a specific guidance range given uncertainty on how much cost savings we’ll recognize this year and the full effect of Coronavirus. However, taking these factors into account, we expect 2020 Adjusted EBITDA growth to be in the double-digits,” said Chairman Barry Diller and Vice Chairman Peter Kern. “More importantly, the actions we’re taking to simplify our business and drive cost efficiency will position Expedia Group for improved revenue growth and margin expansion for years to come.”

Key Highlights(1) 
Gross bookings and revenue each increased 8%, to $107.9 billion and $12.1 billion, respectively for the full year 2019.
Total stayed lodging room nights increased 11% for both the fourth quarter and full year 2019.
For full year 2019, Net income and Adjusted EBITDA grew 39% and 8%, respectively.
Net cash provided by operating activities and free cash flow grew 40% and 46%, respectively for the full year 2019 to $2.8 billion and $1.6 billion, respectively.
From early December through early February, Expedia Group repurchased 5.8 million shares for $634 million. For full year 2019, Expedia Group repurchased 5.6 million shares for $683 million.

Financial Summary & Operating Metrics ($ millions except per share amounts) - Fourth Quarter 2019
 
Expedia Group (excluding trivago)(3)
Expedia Group, Inc.
Metric
Q4 2019
Q4 2018
Δ Y/Y
Q4 2019
Q4 2018
Δ Y/Y
Room night growth
11%
11%
(19) bps
11%
11%
(19) bps
Gross bookings
$23,245
$21,957
6%
$23,245
$21,957
6%
Revenue
2,630
2,439
8%
2,747
2,559
7%
Operating income
147
75
94%
160
96
65%
Net income attributable to Expedia Group
 
 
 
76
17
349%
Diluted earnings per share
 
 
 
$0.52
$0.11
363%
Adjusted EBITDA(2)
449
438
2%
478
471
1%
Adjusted net income(2)
174
180
(4)%
185
191
(3)%
Adjusted EPS(2)
$1.16
$1.18
(1)%
$1.24
$1.24
(1)%
Free cash flow(2)
 
 
 
45
(389)
NM

(1)All comparisons are against comparable period of 2018 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 15-22 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.
(3)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.


Page 1 of 23


Financial Summary & Operating Metrics ($ millions except per share amounts) - Full Year 2019
 
Expedia Group (excluding trivago)(3)
Expedia Group, Inc.
Metric
2019
2018
Δ Y/Y
2019
2018
Δ Y/Y
Room night growth
11%
13%
(200) bps
11%
13%
(200) bps
Gross bookings
$107,873
$99,727
8%
$107,873
$99,727
8%
Revenue
11,445
10,532
9%
12,067
11,223
8%
Operating income
861
740
16%
903
714
26%
Net income attributable to Expedia Group
 
 
 
565
406
39%
Diluted earnings per share
 
 
 
$3.77
$2.65
42%
Adjusted EBITDA(2)
2,049
1,954
5%
2,134
1,970
8%
Adjusted net income(2)
914
903
1%
941
902
4%
Adjusted EPS(2)
$5.97
$5.83
2%
$6.15
$5.82
6%
Free cash flow(2)
 
 
 
1,607
1,097
46%

(1)All comparisons are against comparable period of 2018 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 15-22 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.
(3)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.

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, Expedia Local Expert®, CarRentals.com™, Expedia® CruiseShipCenters®, Classic Vacations®, Traveldoo®, VacationRentals.com and SilverRail™. 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. All amounts shown are in U.S. dollars.

Page 2 of 23



Gross Bookings & Revenue
Gross Bookings by Segment ($ millions)
 
Fourth Quarter
 
 
Full Year
 
2019
 
2018
 
Δ%
 
 
2019
 
2018
 
Δ%
Core OTA
$
19,076

 
$
17,921

 
6%
 
 
$
87,644

 
$
80,320

 
9%
Vrbo
2,275

 
2,192

 
4%
 
 
11,933

 
11,449

 
4%
Egencia
1,894

 
1,844

 
3%
 
 
8,296

 
7,958

 
4%
Total
$
23,245

 
$
21,957

 
6%
 
 
$
107,873

 
$
99,727

 
8%

Fourth Quarter 2019: Total gross bookings increased 6% (foreign exchange impact was negligible), driven primarily by growth in Expedia Partner Solutions, which includes the benefit from enterprise deals launched in late 2018, and Hotels.com. Domestic gross bookings increased 7% and international gross bookings increased 4% (including 1 percentage point of negative foreign exchange impact).
Full Year 2019: Total gross bookings increased 8% (including 2 percentage points of negative foreign exchange impact), driven primarily by growth in Expedia Partner Solutions, which includes the benefit from enterprise deals launched in late 2018, and Hotels.com. Domestic gross bookings increased 10% and international gross bookings increased 5% (including 4 percentage points of negative foreign exchange impact).
Revenue by Segment ($ millions)
 
Fourth Quarter
 
 
Full Year
 
2019
 
2018
 
Δ%
 
 
2019
 
2018
 
Δ%
Core OTA
$
2,178

 
$
2,054

 
6%
 
 
$
9,427

 
$
8,760

 
8%
Vrbo
259

 
230

 
13%
 
 
1,340

 
1,171

 
14%
Egencia
159

 
155

 
3%
 
 
620

 
601

 
3%
Corporate (Bodybuilding.com)
34

 

 
NM
 
 
58

 

 
NM
Expedia Group (excluding trivago)
$
2,630

 
$
2,439

 
8%
 
 
$
11,445

 
$
10,532

 
9%
trivago
171

 
190

 
(10)%
 
 
938

 
1,084

 
(13)%
Intercompany eliminations
(54
)
 
(70
)
 
(23)%
 
 
(316
)
 
(393
)
 
(20)%
Total
$
2,747

 
$
2,559

 
7%
 
 
$
12,067

 
$
11,223

 
8%
Fourth Quarter 2019: Total revenue increased 7% (including 2 percentage points of negative foreign exchange impact), driven primarily by growth in Expedia Partner Solutions and Hotels.com, as well as inorganic impact related to an acquisition. Domestic revenue increased 10% and international revenue increased 4% (including 1 percentage point of negative foreign exchange impact).
Full Year 2019: Total revenue increased 8% (including 2 percentage points of negative foreign exchange impact), driven primarily by growth in Expedia Partner Solutions, Vrbo, Hotels.com and Brand Expedia. Domestic revenue increased 11% and international revenue increased 4% (including 3 percentage points of negative foreign exchange impact).

Product & Services Detail - Fourth Quarter 2019
As a percentage of total worldwide revenue in the fourth quarter of 2019, lodging accounted for 70%, advertising and media accounted for 9%, air accounted for 7% and all other revenues accounted for the remaining 14%.
Lodging revenue increased 9% in the fourth quarter of 2019 on an 11% increase in room nights stayed driven by growth in Hotels.com and Expedia Partner Solutions, partly offset by a 2% decrease in revenue per room night.
Air revenue decreased 8% in the fourth quarter of 2019 driven by a 9% decrease in revenue per ticket. Air tickets sold were flat year over year. The decrease in revenue per ticket is primarily related to a shift in product mix and changes in classification of certain fees.

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Advertising and media revenue increased 4% (including 2 percentage points of negative foreign exchange impact) in the fourth quarter of 2019 due to growth at Expedia Group Media Solutions, partly offset by declines at trivago. Other revenue increased 11% in the fourth quarter of 2019 benefiting from inorganic impact related to an acquisition and growth in car products.

Product & Services Detail - Full Year 2019
As a percentage of total worldwide annual revenue, lodging accounted for 70%, advertising and media accounted for 9%, air accounted for 7% and all other revenues accounted for the remaining 14%.
Lodging revenue increased 10% in 2019 on an 11% increase in room nights stayed driven by growth in Hotels.com, Expedia Partner Solutions and Brand Expedia, partly offset by a 1% decrease in revenue per room night.
Air revenue decreased 1% in 2019 driven by an 8% decrease in revenue per ticket, mostly offset by a 7% increase in air tickets sold. The decrease in revenue per ticket is primarily related to changes in classification of certain fees, a shift in product mix and a negative impact from foreign exchange. The increase in air tickets sold was driven by growth at Expedia Partner solutions, largely related to enterprise deals launched in late 2018.
Advertising and media revenue increased 1% (including 3 percentage points of negative foreign exchange impact) in 2019 due to growth at Expedia Group Media Solutions, largely offset by declines at trivago. Other revenue increased 6% in 2019 benefiting from inorganic impact related to an acquisition and the reclassification of certain partner fees from air revenue.



Page 4 of 23



Costs and Expenses ($ millions)
 
Costs and Expenses
 
 
As a % of Revenue
 
Fourth Quarter
 
 
Fourth Quarter
 
2019
 
2018
 
Δ%
 
 
2019
 
2018
 
Δ (bps)
Generally Accepted Accounting Principles (GAAP) Expenses - Expedia Group
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue
$
559

 
$
476

 
17
 %
 
 
20.3
%
 
18.6
%
 
174

Selling and marketing
1,283

 
1,209

 
6
 %
 
 
46.7
%
 
47.2
%
 
(54
)
Technology and content
459

 
417

 
10
 %
 
 
16.7
%
 
16.3
%
 
39

General and administrative
225

 
211

 
7
 %
 
 
8.2
%
 
8.3
%
 
(5
)
Total GAAP costs and expenses
$
2,526

 
$
2,313

 
9
 %
 
 
91.9
%
 
90.4
%
 
155

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Expenses - Expedia Group
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue*
$
536

 
$
449

 
19
 %
 
 
19.5
%
 
17.6
%
 
190

Selling and marketing*
1,257

 
1,187

 
6
 %
 
 
45.7
%
 
46.4
%
 
(63
)
Technology and content
303

 
277

 
10
 %
 
 
11.1
%
 
10.8
%
 
26

General and administrative*
182

 
182

 
 %
 
 
6.6
%
 
7.1
%
 
(49
)
Total adjusted costs and expenses
$
2,278

 
$
2,095

 
9
 %
 
 
82.9
%
 
81.9
%
 
104

 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Expenses - Expedia Group (excluding trivago)**
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue*
$
533

 
$
448

 
19
 %
 
 
20.3
%
 
18.4
%
 
186

Selling and marketing*
1,193

 
1,124

 
6
 %
 
 
45.4
%
 
46.1
%
 
(70
)
Technology and content
289

 
262

 
11
 %
 
 
11.0
%
 
10.7
%
 
30

General and administrative*
174

 
175

 
 %
 
 
6.6
%
 
7.1
%
 
(52
)
Total adjusted costs and expenses excluding trivago
$
2,189

 
$
2,009

 
9
 %
 
 
83.2
%
 
82.3
%
 
94

*Adjusted expenses are non-GAAP measures. See pages 15-22 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.'
Note: Some numbers may not add due to rounding.
Cost of Revenue
Total GAAP and adjusted cost of revenue increased 17% and 19%, respectively, compared to the fourth quarter of 2018, primarily due to an increase in cloud expense, inorganic impact related to an acquisition and higher payment processing costs at Vrbo. GAAP cost of revenue includes a decline in depreciation expense.
Selling and Marketing
Both GAAP and adjusted total selling and marketing expense increased 6% compared to the fourth quarter of 2018, primarily due to a $64 million increase in direct costs. The higher direct costs primarily reflect increases at Expedia Partner Solutions and Hotels.com. Indirect costs represented 22% of total GAAP selling and marketing costs and 20% of total adjusted selling and marketing expense in the fourth quarter of 2019 compared to 22% and 21%, respectively, in the fourth quarter of 2018.
Technology and Content
Both total GAAP and adjusted technology and content expense increased 10% compared to the fourth quarter of 2018, primarily due to investments in product and technology initiatives and higher cloud expenses.
General and Administrative
Total GAAP general and administrative expense increased 7%, primarily due to an increase in stock-based compensation, which includes an acceleration of expense related to the departure of the former CEO in the fourth quarter. Adjusted general and administrative expense was flat compared to the fourth quarter of 2018.

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Costs and Expenses
 
 
As a % of Revenue
 
Full Year
 
 
Full Year
 
2019
 
2018
 
Δ%
 
 
2019
 
2018
 
Δ (bps)
Generally Accepted Accounting Principles (GAAP) Expenses - Expedia Group
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue
$
2,163

 
$
1,965

 
10
%
 
 
17.9
%
 
17.5
%
 
41

Selling and marketing
6,135

 
5,767

 
6
%
 
 
50.8
%
 
51.4
%
 
(55
)
Technology and content
1,763

 
1,617

 
9
%
 
 
14.6
%
 
14.4
%
 
20

General and administrative
847

 
808

 
5
%
 
 
7.0
%
 
7.2
%
 
(18
)
Total GAAP costs and expenses
$
10,908

 
$
10,157

 
7
%
 
 
90.4
%
 
90.5
%
 
(11
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Expenses - Expedia Group
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue*
$
2,065

 
$
1,853

 
11
%
 
 
17.1
%
 
16.5
%
 
59

Selling and marketing*
6,033

 
5,677

 
6
%
 
 
50.0
%
 
50.6
%
 
(59
)
Technology and content
1,152

 
1,061

 
9
%
 
 
9.5
%
 
9.4
%
 
10

General and administrative*
705

 
687

 
3
%
 
 
5.8
%
 
6.1
%
 
(28
)
Total adjusted costs and expenses
$
9,955

 
$
9,278

 
7
%
 
 
82.5
%
 
82.7
%
 
(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Expenses - Expedia Group (excluding trivago)**
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue*
$
2,054

 
$
1,847

 
11
%
 
 
17.9
%
 
17.5
%
 
40

Selling and marketing*
5,610

 
5,117

 
10
%
 
 
49.0
%
 
48.6
%
 
43

Technology and content
1,089

 
997

 
9
%
 
 
9.5
%
 
9.5
%
 
6

General and administrative*
665

 
642

 
4
%
 
 
5.8
%
 
6.1
%
 
(28
)
Total adjusted costs and expenses excluding trivago
$
9,418

 
$
8,603

 
9
%
 
 
82.3
%
 
81.7
%
 
61

*Adjusted expenses are non-GAAP measures. See pages 15-22 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.'
Note: Some numbers may not add due to rounding.
Cost of Revenue
Total GAAP and adjusted cost of revenue increased 10% and 11%, respectively, compared to the prior year, primarily due to an increase in cloud expense and inorganic impact related to an acquisition.
Selling and Marketing
Both GAAP and adjusted total selling and marketing expense increased 6% compared to the prior year, primarily due to a $373 million increase in direct costs partly offset by a decrease in indirect costs. The higher direct costs reflect increases at Expedia Partner Solutions, as well as at Vrbo and Hotels.com. Indirect costs represented 18% of total GAAP selling and marketing costs and 16% of total adjusted selling and marketing expense compared to 19% and 18%, respectively, in the prior year.
Technology and Content
Both total GAAP and adjusted technology and content expense increased 9% compared to the prior year, primarily due to investments in product and technology initiatives and higher cloud expenses.
General and Administrative
Total GAAP and adjusted general and administrative expense increased 5% and 3%, respectively, compared to the prior year, primarily due to higher professional fees and inorganic impact related to an acquisition. The increase in total GAAP general and administrative expense also included higher stock-based compensation compared to the prior year, which includes an acceleration of an expense related to the departure of the former CEO in the fourth quarter.


Page 6 of 23




Net Income Attributable to Expedia Group and Adjusted EBITDA*
Adjusted EBITDA by Segment ($ millions)
 
 
Fourth Quarter
 
 
Full Year
 
2019
 
2018
 
Δ%
 
 
2019
 
2018
 
Δ%
Core OTA
$
615

 
$
584

 
5%
 
 
$
2,447

 
$
2,305

 
6%
Vrbo
22

 
22

 
(3)%
 
 
281

 
288

 
(2)%
Egencia
31

 
31

 
(3)%
 
 
116

 
107

 
8%
Unallocated overhead costs
(219
)
 
(199
)
 
10%
 
 
(795
)
 
(746
)
 
7%
Expedia Group (excluding trivago)
$
449

 
$
438

 
2%
 
 
$
2,049

 
$
1,954

 
5%
trivago(1)
29

 
33

 
(11)%
 
 
85

 
16

 
NM
Total Adjusted EBITDA
$
478

 
$
471

 
1%
 
 
$
2,134

 
$
1,970

 
8%
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Expedia Group(2)
$
76

 
$
17

 
349%
 
 
$
565

 
$
406

 
39%
(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. trivago Adjusted EBITDA grew 447% in 2019, which we believe to be a non-meaningful growth rate. (2) Expedia Group does not calculate or report net income (loss) by segment.
* Adjusted EBITDA is a non-GAAP measure. See pages 15-22 herein for a description and reconciliation to the corresponding GAAP measure.
Note: Some numbers may not add due to rounding.
Amortization of Intangible Assets
Consolidated amortization of intangible assets decreased $24 million to $44 million in the fourth quarter of 2019, primarily due to the completion of amortization related to certain intangible assets. Consolidated amortization of intangible assets decreased $85 million to $198 million in 2019, primarily due to the completion of amortization related to certain intangible assets.

In the fourth quarter of 2018, we recorded a $42 million impairment loss related to indefinite-lived trade names.

Impairment of Goodwill
We did not record any impairment of goodwill in 2019. In 2018 we recorded $86 million in impairment losses, including a $25 million impairment loss in the fourth quarter of 2018.
Legal Reserves, Occupancy Tax and Other
Legal reserves, occupancy tax and other expense was $34 million in 2019 compared to a $59 million gain in 2018, which included a $78 million gain on a pay-to-play refund.

Restructuring and Related Reorganization Charges
In connection with the centralization and migration of certain operational functions and systems, we recognized $8 million and $24 million in restructuring and related reorganization charges related to severance, benefits and professional fees in the fourth quarter and full year 2019, respectively. We did not record any restructuring and related reorganization charges in 2018.
Interest and Other
Consolidated interest income increased $4 million in the fourth quarter of 2019, primarily due to higher invested balances. Consolidated interest income decreased $12 million in 2019, primarily reflecting the comparison to accumulated interest on the pay-to-play refund noted above that was recognized in 2018. Consolidated interest expense increased $12 million in the fourth quarter of 2019, due to the issuance of the $1.25 billion of senior unsecured notes in September 2019. Consolidated interest expense decreased $17 million in 2019, primarily due to the repayment of $500 million of senior unsecured notes in August 2018, partly offset by the issuance of the $1.25 billion of senior unsecured notes in September 2019.

Page 7 of 23



Consolidated other, net was a loss of $1 million in the fourth quarter of 2019, compared to a loss of $9 million in the fourth quarter of 2018. Consolidated other, net was a loss of $14 million in 2019 and a loss of $110 million in 2018. The loss in 2019 was primarily related to foreign exchange, partly offset by mark-to-market gains on minority equity investments. The loss in 2018 was primarily due to mark-to-market losses on minority equity investments.
Income Taxes
The effective tax rate on GAAP pretax income was 35% and 26% for the fourth quarter and full year 2019, respectively, compared to 57% and 18% in the prior year periods. The decrease in the quarterly rate was in part related to the comparison to a non-deductible goodwill impairment in the fourth quarter of 2018. The increase in the annual effective tax rate was primarily due to an increase in U.S. federal and state taxable income.

The effective tax rate on pretax adjusted net income ("ANI") was 23% and 24% for the fourth quarter and full year 2019, respectively, compared to 24% and 19% in the prior year periods. The year-over-year change in the ANI effective tax rate for the full year 2019 was primarily driven by an increase in U.S. federal and state taxable income.

Balance Sheet, Cash Flows and Capitalization
Cash, cash equivalents, restricted cash and short-term investments totaled $4.6 billion at December 31, 2019. For the year ended December 31, 2019, consolidated net cash provided by operating activities was $2.8 billion and consolidated free cash flow totaled $1.6 billion. Consolidated free cash flow increased $510 million in 2019 compared to the prior year period, due to an increase in net cash provided by operating activities primarily related to changes in working capital, as well as higher adjusted EBITDA, partly offset by increased capital expenditures, which includes investments in our Seattle headquarters. The increase in working capital was mainly due to higher deferred merchant bookings at Vrbo as it transitioned to the Expedia Group payment platform.

Long-term investments and other assets includes our minority investments in Despegar.com, Corp. ("Despegar"), which is recorded at a fair value of $129 million as of December 31, 2019, and our investment in Traveloka Holding Limited. We account for minority equity investments with readily determinable fair values, such as our investment in Despegar, at fair value with changes in fair value recorded through net income. Equity investments without readily determinable fair values are adjusted for impairments and observable price changes.
Current maturities of long-term debt includes $750 million in 5.95% senior notes due in August 2020. Long-term debt, net of applicable discounts, debt issuance costs and current maturities, totaled $4.2 billion at December 31, 2019. In September 2019, Expedia Group issued $1.25 billion of 2030 senior notes that bear interest at 3.25%. As of December 31, 2019, Expedia Group had a $2.0 billion unsecured revolving credit facility, which was essentially untapped.
At December 31, 2019, Expedia Group had stock-based awards outstanding representing approximately 17 million shares of Expedia Group common stock, consisting of options to purchase approximately 13 million common shares with a $102.97 weighted average exercise price and weighted average remaining life of 3.3 years, and approximately 4 million restricted stock units (“RSUs”). Beginning in 2019, RSUs became Expedia Group's primary form of stock-based compensation.
During 2019, Expedia Group repurchased 5.6 million shares of Expedia Group common stock for an aggregate purchase price of $683 million excluding transaction costs (an average of $122.72 per share). As of December 31, 2019, there were approximately 26.7 million shares remaining under the April 2018 and December 2019 repurchase authorizations. Subsequent to the end of 2019, Expedia Group has repurchased a total of 3.4 million shares for a total cost of $370 million excluding transaction costs (an average of $109.88 per share).
On December 12, 2019, Expedia Group paid a quarterly dividend of $50 million ($0.34 per common share). In addition, in February 2020, the Executive Committee of Expedia Group’s Board of Directors declared a quarterly cash dividend of $0.34 per share of outstanding common stock to be paid to stockholders of record as of the close of business on March 10, 2020, with a payment date of March 26, 2020. Based on current shares outstanding, the total payment for this quarterly dividend is estimated to be approximately $47 million. Future declaration of dividends

Page 8 of 23



and the establishment of future record and payment dates are subject to the final determination of Expedia Group’s Board of Directors.

Recent Highlights
Expedia Group, Inc.
Expedia Group's core lodging platform included nearly 1.6 million properties available as of December 31, 2019, including over 765,000 integrated Vrbo listings. Vrbo offers over 2.1 million online bookable listings, now including approximately 1.5 million that are instantly bookable.
Expedia Group executed commercial agreements with Turkish Airlines and Alaska Airlines.
During 2019, over 40% of transactions across Expedia Group’s consumer OTA brands were booked via mobile. Additionally, total app transactions across the Expedia Group consumer OTA brands increased over 40% year over year in 2019.
Expedia Group announced the formulation of a new Travel Industry Group within CEO Action aimed at bringing travel leaders together to cultivate diverse and inclusive environments and impact positive change. Expedia Group signed the broader CEO Action for Diversity & Inclusion™ (CEO Action) pledge on October 9, 2019.

Core OTA
As part of the Expedia Trips experience, Brand Expedia launched Trip Assistance, which enables Expedia to notify a hotel of a customer’s planned arrival time and update this information if there is a flight delay.
In another step to service the full trip for our customers and manage their complete itinerary, users can now add externally booked flight details to their itineraries in our mobile app, and get real time flight updates, including status, terminal and gate information. The mobile app itinerary information is also available to travelers when they are offline to ensure access at any time during their trip.
As of December 31, 2019, Expedia Local Expert now offers more than 210,000 tours and activities to customers.
Brand Expedia launched a new TV advertising campaign, “Inspired Expedia,” highlighting how Expedia takes the burden off the family travel planner by having “everything your trip needs, for everyone you love.” It is currently live across eight markets globally.
Expedia Partner Solutions has successfully migrated over 90% of its API partners to it's new API, Rapid.
Chase has integrated the Expedia Conversation Platform into their Expedia-powered travel experiences for select Ultimate Rewards customers on the web and through their Chase Mobile app.
Newsweek recognized Hotwire as one of the top 3 brands for the "Travel Agencies" category in Newsweek's “America’s Best Customer Service 2020” companies.
Expedia Group was selected as Norwegian Cruise Lines Elite Partner of the Year, their top award, for the second year in a row and was awarded the Celebrity Cruises Inc. North America Partner of the year for the third year in a row.
In early 2020, Expedia CruiseShipCenters opened its 100th franchise location in the U.S.

Vrbo
Vrbo.com rolled out to Mexico and Canada, making Vrbo the flagship brand and point of sale across all of North America with multilingual and multi-currency support.
By early 2020, nearly all new merchant transactions in the Vrbo marketplace were flowing through the Expedia Group payment platform solution, resulting in higher payment success rates and reduced fraud rates.

trivago
trivago continues its integration of alternative accommodation listings, expanding to over 3.3 million available on the platform as of the end of 2019.

Egencia
Egencia clients and travelers across ten countries can now access NDC fares from Lufthansa Group (Lufthansa German Airlines, Austrian Airlines and SWISS Airlines), Europe’s largest airline group, making Egencia the first managed corporate travel company to offer NDC content at a significant scale.

Page 9 of 23



EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share data)
(Unaudited)
 
Three months ended
December 31,
 
Year ended
December 31,
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Revenue
$
2,747

 
$
2,559

 
$
12,067

 
$
11,223

Costs and expenses:
 
 
 
 
 
 
 
Cost of revenue (1) (2)
559

 
476

 
2,163

 
1,965

Selling and marketing (1) (2)
1,283

 
1,209

 
6,135

 
5,767

Technology and content (1) (2)
459

 
417

 
1,763

 
1,617

General and administrative (1) (2)
225

 
211

 
847

 
808

Amortization of intangible assets
44

 
68

 
198

 
283

Impairment of goodwill

 
25

 

 
86

Impairment of intangible assets

 
42

 

 
42

Legal reserves, occupancy tax and other
9

 
15

 
34

 
(59
)
Restructuring and related reorganization charges
8

 

 
24

 

Operating income
160

 
96

 
903

 
714

Other income (expense):
 
 
 
 
 
 
 
Interest income
14

 
10

 
59

 
71

Interest expense
(53
)
 
(41
)
 
(173
)
 
(190
)
Other, net
(1
)
 
(9
)
 
(14
)
 
(110
)
Total other expense, net
(40
)
 
(40
)
 
(128
)
 
(229
)
Income before income taxes
120

 
56

 
775

 
485

Provision for income taxes
(42
)
 
(31
)
 
(203
)
 
(87
)
Net income
78

 
25

 
572

 
398

Net (income) loss attributable to non-controlling interests
(2
)
 
(8
)
 
(7
)
 
8

Net income attributable to Expedia Group, Inc.
$
76

 
$
17

 
$
565

 
$
406

 
 
 
 
 
 
 
 
Earnings per share attributable to Expedia Group, Inc. available to common stockholders:
 
 
 
 
 
 
 
Basic
$
0.52

 
$
0.11

 
$
3.84

 
$
2.71

Diluted
0.52

 
0.11

 
3.77

 
2.65

Shares used in computing earnings per share (000's):
 
 
 
 
 
 
 
Basic
144,647

 
148,509

 
147,194

 
149,961

Diluted
146,828

 
151,358

 
149,884

 
152,889

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

 
$
3

 
$
12

 
$
11

Selling and marketing
11

 
10

 
45

 
44

Technology and content
18

 
15

 
74

 
61

General and administrative
34

 
21

 
110

 
87

 
 
 
 
 
 
 
 
(2) Includes depreciation as follows:
 
 
 
 
 
 
 
Cost of revenue
$
20

 
$
24

 
$
86

 
$
101

Selling and marketing
15

 
12

 
57

 
46

Technology and content
138

 
125

 
537

 
495

General and administrative
9

 
8

 
32

 
34



Page 10 of 23




EXPEDIA GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in thousands and par value)
(Unaudited)
 
December 31,
 
2019
 
2018
ASSETS
Current assets:
 
 
 
Cash and cash equivalents
$
3,315

 
$
2,443

Restricted cash and cash equivalents
779

 
259

Short-term investments
526

 
28

Accounts receivable, net of allowance of $41 and $34
2,524

 
2,151

Income taxes receivable
70

 
24

Prepaid expenses and other current assets
521

 
292

Total current assets
7,735

 
5,197

Property and equipment, net
2,198

 
1,877

Operating lease right-of-use assets
611

 

Long-term investments and other assets
796

 
778

Deferred income taxes
145

 
69

Intangible assets, net
1,804

 
1,992

Goodwill
8,127

 
8,120

TOTAL ASSETS
$
21,416

 
$
18,033

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
Accounts payable, merchant
$
1,921

 
$
1,699

Accounts payable, other
906

 
788

Deferred merchant bookings
5,679

 
4,327

Deferred revenue
321

 
364

Income taxes payable
88

 
74

Accrued expenses and other current liabilities
1,050

 
808

Current maturities of long-term debt
749

 

Total current liabilities
10,714

 
8,060

Long-term debt, excluding current maturities
4,189

 
3,717

Deferred income taxes
56

 
69

Operating lease liabilities
532

 

Other long-term liabilities
374

 
506

Commitments and contingencies
 
 
 
Redeemable non-controlling interests
15

 
30

Stockholders’ equity:
 
 
 
Common stock $.0001 par value

 

Authorized shares: 1,600,000
 
 
 
Shares issued: 256,692 and 231,493; Shares outstanding: 137,076 and 134,334
 
 
 
Class B common stock $.0001 par value

 

Authorized shares: 400,000
 
 
 
Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 12,800
 
 
 
Additional paid-in capital
12,978

 
9,549

Treasury stock — Common stock and Class B, at cost
(9,673
)
 
(5,742
)
Shares: 126,893 and 97,159
 
 
 
Retained earnings
879

 
517

Accumulated other comprehensive income (loss)
(217
)
 
(220
)
Total Expedia Group, Inc. stockholders’ equity
3,967

 
4,104

Non-redeemable non-controlling interests
1,569

 
1,547

Total stockholders’ equity
5,536

 
5,651

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
21,416

 
$
18,033


Page 11 of 23



EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
 
Year ended
December 31,
 
2019
 
2018
Operating activities:
 
 
 
Net income
$
572

 
$
398

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation of property and equipment, including internal-use software and website development
712

 
676

Amortization of stock-based compensation
241

 
203

Amortization and impairment of intangible assets
198

 
325

Impairment of goodwill

 
86

Deferred income taxes
(91
)
 
(308
)
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net
(5
)
 
111

Realized gain on foreign currency forwards
(22
)
 
(31
)
(Gain) loss on minority equity investments, net
(8
)
 
111

Other
(21
)
 
22

Changes in operating assets and liabilities, net of effects from acquisitions:
 
 
 
Accounts receivable
(368
)
 
(282
)
Prepaid expenses and other assets
(193
)
 
(29
)
Accounts payable, merchant
224

 
(134
)
Accounts payable, other, accrued expenses and other current liabilities
254

 
196

Tax payable/receivable, net
(23
)
 
102

Deferred merchant bookings
1,342

 
489

Deferred revenue
(45
)
 
40

Net cash provided by operating activities
2,767

 
1,975

Investing activities:
 
 
 
Capital expenditures, including internal-use software and website development
(1,160
)
 
(878
)
Purchases of investments
(1,346
)
 
(1,803
)
Sales and maturities of investments
852

 
2,137

Acquisitions, net of cash and restricted cash acquired
80

 
(53
)
Other, net
21

 
38

Net cash used in investing activities
(1,553
)
 
(559
)
Financing activities:
 
 
 
Proceeds from issuance of long-term debt, net of issuance costs
1,231

 

Payment of long-term debt

 
(500
)
Payment of Liberty Expedia Exchangeable Debentures
(400
)
 

Purchases of treasury stock
(743
)
 
(923
)
Proceeds from issuance of treasury stock

 
31

Payment of dividends to stockholders
(195
)
 
(186
)
Proceeds from exercise of equity awards and employee stock purchase plan
301

 
166

Changes in controlled subsidiaries, net
(28
)
 
(62
)
Other, net
9

 
(15
)
Net cash provided by (used in) financing activities
175

 
(1,489
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents
3

 
(139
)
Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents
1,392

 
(212
)
Cash, cash equivalents, restricted cash and cash equivalents at beginning of year
2,705

 
2,917

Cash, cash equivalents and restricted cash and cash equivalents at end of year
$
4,097

 
$
2,705

Supplemental cash flow information
 
 
 
Cash paid for interest
$
157

 
$
196

Income tax payments, net
304

 
282


Page 12 of 23



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.

 
 
 
2018
 
 
 
2019
 
 
 
Full Year
 
 
 
Y/Y Growth
 
 
 
 
 
Q1
Q2
Q3
Q4
 
 
 
Q1
Q2
Q3
Q4
 
 
 
2018
2019
 
 
 
Q419
2019
 
 
Gross bookings by segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core OTA
 
 
$
21,171

$
21,011

$
20,217

$
17,921

 
 
 
$
23,029

$
23,305

$
22,234

$
19,076

 
 
 
$
80,320

$
87,644

 
 
 
6%
9%
 
 
Vrbo
 
 
3,947

2,814

2,496

2,192

 
 
 
4,163

2,862

2,633

2,275

 
 
 
11,449

11,933

 
 
 
4%
4%
 
 
Egencia
 
 
2,078

2,073

1,963

1,844

 
 
 
2,217

2,125

2,060

1,894

 
 
 
7,958

8,296

 
 
 
3%
4%
 
 
Total
 
 
$
27,196

$
25,898

$
24,676

$
21,957

 
 
 
$
29,409

$
28,292

$
26,927

$
23,245

 
 
 
$
99,727

$
107,873

 
 
 
6%
8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross bookings by geography
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
 
$
16,582

$
16,213

$
15,232

$
13,362

 
 
 
$
18,363

$
17,962

$
16,793

$
14,315

 
 
 
$
61,389

$
67,433

 
 
 
7%
10%
 
 
International
 
 
10,614

9,685

9,444

8,595

 
 
 
11,046

10,330

10,134

8,930

 
 
 
38,337

40,440

 
 
 
4%
5%
 
 
Total
 
 
$
27,196

$
25,898

$
24,676

$
21,957

 
 
 
$
29,409

$
28,292

$
26,927

$
23,245

 
 
 
$
99,727

$
107,873

 
 
 
6%
8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross bookings by business model
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
$
12,445

$
12,290

$
11,442

$
10,688

 
 
 
$
13,727

$
13,680

$
12,588

$
11,134

 
 
 
$
46,865

$
51,129

 
 
 
4%
9%
 
 
Merchant
 
 
10,803

10,794

10,739

9,077

 
 
 
11,519

11,750

11,707

9,835

 
 
 
41,413

44,811

 
 
 
8%
8%
 
 
Vrbo
 
 
3,947

2,814

2,496

2,192

 
 
 
4,163

2,862

2,633

2,276

 
 
 
11,449

11,933

 
 
 
4%
4%
 
 
Total
 
 
$
27,196

$
25,898

$
24,676

$
21,957

 
 
 
$
29,409

$
28,292

$
26,927

$
23,245

 
 
 
$
99,727

$
107,873

 
 
 
6%
8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core OTA
 
 
$
1,926

$
2,253

$
2,527

$
2,054

 
 
 
$
2,037

$
2,480

$
2,732

$
2,178

 
 
 
$
8,760

$
9,427

 
 
 
6%
8%
 
 
Vrbo
 
 
234

297

410

230

 
 
 
267

347

467

259

 
 
 
1,171

1,340

 
 
 
13%
14%
 
 
Egencia
 
 
151

156

139

155

 
 
 
153

163

145

159

 
 
 
601

620

 
 
 
3%
3%
 
 
Corporate (Bodybuilding.com)
 
 




 
 
 


24

34

 
 
 

58

 
 
 
NM
NM
 
 
Expedia Group (excluding trivago)
 
 
$
2,311

$
2,706

$
3,076

$
2,439

 
 
 
$
2,457

$
2,990

$
3,368

$
2,630

 
 
 
$
10,532

$
11,445

 
 
 
8%
9%
 
 
trivago
 
 
319

280

295

190

 
 
 
237

251

279

171

 
 
 
1,084

938

 
 
 
(10)%
(13)%
 
 
Intercompany eliminations
 
 
(122
)
(106
)
(95
)
(70
)
 
 
 
(85
)
(88
)
(89
)
(54
)
 
 
 
(393
)
(316
)
 
 
 
(23)%
(20)%
 
 
Total
 
 
$
2,508

$
2,880

$
3,276

$
2,559

 
 
 
$
2,609

$
3,153

$
3,558

$
2,747

 
 
 
$
11,223

$
12,067

 
 
 
7%
8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by geography
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
 
$
1,351

$
1,632

$
1,792

$
1,426

 
 
 
$
1,476

$
1,838

$
1,982

$
1,573

 
 
 
$
6,202

$
6,869

 
 
 
10%
11%
 
 
International
 
 
1,157

1,248

1,484

1,133

 
 
 
1,133

1,315

1,576

1,174

 
 
 
5,021

5,198

 
 
 
4%
4%
 
 
Total
 
 
$
2,508

$
2,880

$
3,276

$
2,559

 
 
 
$
2,609

$
3,153

$
3,558

$
2,747

 
 
 
$
11,223

$
12,067

 
 
 
7%
8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by business model
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
$
658

$
777

$
876

$
699

 
 
 
$
686

$
841

$
917

$
721

 
 
 
$
3,010

$
3,165

 
 
 
3%
5%
 
 
Merchant
 
 
1,334

1,532

1,688

1,396

 
 
 
1,392

1,680

1,863

1,524

 
 
 
5,950

6,459

 
 
 
9%
9%
 
 
Advertising & media
 
 
282

274

302

233

 
 
 
264

285

311

243

 
 
 
1,092

1,103

 
 
 
4%
1%
 
 
Vrbo
 
 
234

297

410

230

 
 
 
267

347

467

259

 
 
 
1,171

1,340

 
 
 
13%
14%
 
 
Total
 
 
$
2,508

$
2,880

$
3,276

$
2,559

 
 
 
$
2,609

$
3,153

$
3,558

$
2,747

 
 
 
$
11,223

$
12,067

 
 
 
7%
8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA by segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core OTA
 
 
$
323

$
561

$
837

$
584

 
 
 
$
344

$
623

$
865

$
615

 
 
 
$
2,305

$
2,447

 
 
 
5%
6%
 
 
Vrbo
 
 
(21
)
78

209

22

 
 
 
(40
)
84

215

22

 
 
 
288

281

 
 
 
(3)%
(2)%
 
 
Egencia
 
 
27

30

19

31

 
 
 
29

37

19

31

 
 
 
107

116

 
 
 
(3)%
8%
 
 
Unallocated overhead costs
 
 
(177
)
(186
)
(184
)
(199
)
 
 
 
(181
)
(196
)
(199
)
(219
)
 
 
 
(746
)
(795
)
 
 
 
10%