 INVESTOR PRESENTATION June 2012 Exhibit 99.1 |
 2 Safe Harbor Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on management’s expectations as of June 25, 2012 and assumptions which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. The use of words such as "intends" and “expects,” among others, generally identify forward-looking statements. However, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward- looking statements and may include statements relating to future revenues, expenses, margins, profitability, net income / (loss), earnings per share and other measures of results of operations and the prospects for future growth of Expedia, Inc.’s business. Actual results and the timing and outcome of events may differ materially from those expressed or implied in the forward-looking statements for a variety of reasons, including, among others: competitive risks; declines or disruptions in the travel industry; changes in our relationships and contractual agreements with travel suppliers or travel distribution partners; increases in the costs of maintaining and enhancing our brand awareness; changes in search engine algorithms and dynamics; our inability to adapt to technological developments or to maintain our existing technologies; our ability to expand successfully in international markets; changes in senior management; volatility in our stock price; changing laws, rules and regulations and legal uncertainties relating to our business; unfavorable new, or adverse application of or failure to comply with existing, laws, rules or regulations; adverse outcomes in legal proceedings to which we are party; provisions in certain credit card processing agreements that could adversely impact our liquidity and financial positions; fluctuations in our effective tax rate; liquidity constraints or our inability to access the capital markets when necessary; risks related to our long term indebtedness; fluctuations in foreign exchange rates; risks related to the failure of counterparties to perform on financial obligations; potential liabilities resulting from our processing, storage, use and disclosure of personal data; the integration of current and acquired businesses; the risk that our intellectual property is not protected from copying or use by others, including competitors; risks related to interruption or lack of redundancy in our information systems; and other risks detailed in our public filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2011. Except as required by law, we undertake no obligation to update any forward-looking or other statements in this presentation, whether as a result of new information, future events or otherwise. Appendices. These measures are intended to supplement, not substitute for, GAAP comparable measures. Investors are urged to consider carefully the comparable GAAP measures and reconciliations. sources as well as from research reports prepared for other purposes. We have not independently verified the data obtained from these sources and cannot assure you of the data’s accuracy or completeness. © 2012 Expedia, Inc. All rights reserved. CST: 2029030-50 Forward-Looking Statements. This presentation contains "forward-looking statements" within the meaning of the Private Securities Non-GAAP Measures. Reconciliations to GAAP measures of non-GAAP measures included in this presentation are included in the Industry / Market Data. Industry and market data used in this presentation have been obtained from industry publications and Trademarks & Logos. Trademarks and logos are the property of their respective owners. |
 3 Investment Highlights A Growth Company Global Global Leader Leader in in ~$1 ~$1 Trillion Market Trillion Market with with Strong Offline-to-Online Trends Strong Offline-to-Online Trends Significant Growth Opportunities Across Geographies Significant Growth Opportunities Across Geographies Rapid Expansion in Highly Fragmented Hotel Industry Rapid Expansion in Highly Fragmented Hotel Industry Technology Platform Investment and Technology Platform Investment and Innovation Driving Higher Conversion Innovation Driving Higher Conversion Success in New Distribution Channels, e.g. Mobile Success in New Distribution Channels, e.g. Mobile Powerful Free Cash Flow Generation Powerful Free Cash Flow Generation |
 The Largest Travel Company in the World Mutually Beneficial Supply Agreements Value to Travelers Scale Enables Virtuous Circle Diverse Demand: Geography AND Travel Type 1 Source: comScore Worldwide Average Monthly Unique Visitor data, Full year 2011 Massive Massive Depth and Depth and Breadth of Breadth of ~150,000 Hotels in 200+ Countries 300+ Airlines 2.6 Million 2.6 Million Packages Unmatched Unmatched Volume and Volume and Diversity of Diversity of Global Travel Global Travel 60 Million Unique Visitors 1 Travelers in ~70 Countries Corporate and Leisure Travel; Online and Offline SUPPLY SUPPLY DEMAND DEMAND 4 |
 A Leader in Global Corporate Travel Established Brands with Global Reach #1 Online Travel Agency “Expedia Inside” Private Label Solutions Brand Strength in EVERY Solid Foothold in Emerging Markets A Leading Hotel Specialist Globally 76 Sites in 67 Countries 10,000 Affiliates in 33 Countries Presence in 50+ Countries 30 Sites in 30 Countries 5 Trusted Brands Trusted Brands Established Market |
 Business Mix Transformation Positions Us for Growth Revenue Revenue 5 Years Ago 5 Years Ago Revenue Revenue TTM 3/31/12 TTM 3/31/12 Hotels 63% Other Hotels 73% Other Air 10% Air 22% International 24% Domestic International 42% Domestic Note: 5 Years Ago = 2005 Revenues 6 PRODUCT GEOGRAPHY |
 Expedia 4% Other Expedia 5% Other Expedia 11% Other Expedia 2% Other ONLINE TRAVEL SEGMENT 58% 21% 42% 24% % of Total Travel Market Expedia Well-Positioned to Capture Significant Global Growth Opportunity Sources: PhoCusWright estimates and Expedia data Note: EXPE share of travel market defined by TTM gross bookings as of March 31, 2012. APAC data includes gross bookings from AirAsia joint venture Expedia Share: Expedia 6% Other Expedia 0.3% Expedia 2% Expedia 1% Other Other $293B $68B $313B $290B UNITED STATES EUROPE ASIA PACIFIC LATIN AMERICA Other 7 2012 TOTAL TRAVEL MARKET |
 8 Expedia Expedia ® Has Scale in Hotels … Has Scale in Hotels … Number of Hotels3 Rapidly Expanding in Fragmented Hotel Market 1 Other includes Car, Advertising, Destination Services, Insurance, Cruise, Agency Packages, and Other 2 Sources: Smith Travel Research and Expedia data 3 Hotel data for TripAdvisor, Priceline, Orbitz and Ctrip.com obtained from respective company websites … … And Significant Room for And Significant Room for Additional Growth Additional Growth Hotels Hotels 73% 73% $3.5B TTM 1Q 2012 Revenues Air Other¹ 39,000 85,000 150,000 235,000 570,000 ~150k Hotels in 200+ Countries Single Largest Booker of Rooms in US … But Still Only ~5% Share 2 Number of Hotels 3 Global Team Working to Sign Up New Hotels |
 Technology Investment Positions Us for Growth CUSTOMIZED Front-End Technology for Rapid Innovation and Powerful Analytics … Improving Conversion 9 10,000 Affiliates UNIFIED Customer Operations Technology UNIFIED Transactional Infrastructure: Financials / Order Management / Inventory Management |
 Industry Leading Mobile, Social and Deal Initiatives Drive Traffic and Revenue 50-70% of Mobile Bookings of Mobile Bookings Completed within Completed within One Day of Travel / Stay of Travel / Stay in App Development Leading Travel App Developer in App Success #1 Free iPhone Travel Apps in 40+ Countries PC-Connected Users 24 x 7 Mobile Users Unique Supply Deal and Unique Supply Deal and Value Proposition to Value Proposition to Customers: Customers: 40-50% Off Just for Mobile Just for Mobile The World Is The World Is Changing … Changing … Opening Up Significant Opening Up Significant Opportunity in Travel Opportunity in Travel … … Expedia Expedia Leads the Way Leads the Way 1 Source: AppAnnie 10 in Deals 1 |
 11 Expedia’s Significant Competitive Moats SCALE and BREADTH SCALE and BREADTH Global Scale Across Multiple Travel Brands and Product Offerings Global Scale Across Multiple Travel Brands and Product Offerings DIVERSE DEMAND DIVERSE DEMAND Multiple Sources Multiple Sources Leisure Leisure Corporate Corporate Call Centers Call Centers Traditional Travel Agency Traditional Travel Agency Online Online SUPPLY SUPPLY Global Travel Supply Footprint and Global Travel Supply Footprint and Deeper Supplier Relationships Deeper Supplier Relationships TECHNOLOGY PLATFORM TECHNOLOGY PLATFORM Investment in Technology to Investment in Technology to Drive Conversion and Bookings Drive Conversion and Bookings |
 12 Large User Base With Multiple Growth Vectors Large User Base With Multiple Growth Vectors Key Financial Highlights High Quality Diversified Revenue Streams High Quality Diversified Revenue Streams Consistent, Robust Cash Flow Generation and Strong EPS Growth Consistent, Robust Cash Flow Generation and Strong EPS Growth Strong Balance Sheet Allows Ample Value-Add Opportunities Strong Balance Sheet Allows Ample Value-Add Opportunities Investing Now to Support Future Growth |
 13 Improving Financial Results ADJUSTED EBITDA 1 ADJUSTED EPS 2,3 $ Millions 2 See Appendix B for Non-GAAP to GAAP Reconciliation 3 Adj. EPS is EPS for Expedia, Inc. considering TripAdvisor on a discontinued operations basis $ Billions 1 See Appendix A for Non-GAAP to GAAP Reconciliation GROSS BOOKINGS $ Billions World’s Largest Travel Company ’07-’10 CAGR: 3.9% TTM 1Q12 Y-o-Y Growth: 7.1% ’07-’10 CAGR: 6.7% TTM 1Q12 Y-o-Y Growth: 16.5% $624 $621 $662 $700 $711 $731 2007 2008 2009 2010 2011 TTM 1Q12 $2.08 $1.97 $2.10 $2.53 $2.75 $2.83 2007 2008 2009 2010 2011 TTM 1Q12 $2.5 $2.7 $2.7 $3.0 $3.4 $3.5 2007 2008 2009 2010 2011 TTM 1Q12 $20 $21 $22 $26 $29 $30 2007 2008 2009 2010 2011 TTM 1Q12 REVENUE ’07-’10 CAGR : 6.1% TTM 1Q12 Y-o-Y Growth: 13.6% |
 14 The Three Stages of Expedia Growth 1 Represents 2007 – 2010 CAGR 2 See Appendix A for Non-GAAP to GAAP Reconciliation Revenue Growth Modest: 6.1% Growth Accelerating Continuing Line Item Trajectory (% of Revenues) Cost of Revenue 22.5% Flat as % of Revenue Declining % Revenue Selling and Marketing 40.3% Increasing as % of Revenue Flat to Slightly Increasing as % of Revenue Technology and Content 9.8% Increasing as % of Revenue Flat or Declining % Revenue G&A 7.6% Declining % of Revenue Declining % of Revenue as of as of as as 1 2 STAGE 1 2010 STAGE 2 2011 2012 STAGE 3 2013 - Adjusted EBITDA Margin 23.1% Slightly Decreasing as % of Revenue Increasing as % of Revenue |
 15 Summary Global Leader in ~$1 Trillion Market with Global Leader in ~$1 Trillion Market with Strong Offline-to-Online Trends Strong Offline-to-Online Trends Significant Growth Opportunities Across Geographies Significant Growth Opportunities Across Geographies Rapid Expansion in Highly Fragmented Hotel Industry Rapid Expansion in Highly Fragmented Hotel Industry Technology Platform Investment and Technology Platform Investment and Innovation Driving Higher Conversion Innovation Driving Higher Conversion Success in New Distribution Channels, e.g. Mobile Success in New Distribution Channels, e.g. Mobile Powerful Free Cash Flow Generation Powerful Free Cash Flow Generation A Growth Company |
 16 APPENDICES 16 |
 17 Definitions related to certain subsidiary equity plans; (2) acquisition-related impacts, including (i) amortization of intangible assets and goodwill and intangible asset impairment, and (ii) gains (losses) recognized on changes in the value of contingent consideration arrangements; (3) certain infrequently occurring items, including restructuring; (4) items included in Legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to hotel occupancy taxes, related court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain occupancy tax proceedings; (5) gains (losses) realized on revenue hedging activities that are included in other, net; and (6) depreciation. The above items are excluded from our Adjusted EBITDA measure because these items are noncash in nature, or because the amount and timing of these items is unpredictable, not driven by core operating results and renders comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA is a useful measure for analysts and investors to evaluate our future on- going performance as this measure allows a more meaningful comparison of our performance and projected cash earnings with our historical results from prior periods and to the results of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. In addition, we believe that by excluding certain items, such as stock-based compensation and acquisition-related impacts, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, from which capital investments are made and debt is serviced. Adjusted from options and warrants per the treasury stock method and include all shares relating to RSUs in shares outstanding for Adjusted EPS. This differs from the GAAP method for including RSUs, which treats them on a treasury method basis. Shares outstanding for Adjusted EPS purposes are therefore higher than shares outstanding for GAAP EPS purposes. We believe Adjusted EPS is useful to investors because it represents, on a per share basis, Expedia’s consolidated results, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other items which are not allocated to the operating businesses such as interest expense, taxes, foreign exchange gains or losses, and minority interest, but excluding the effects of certain expenses not directly tied to the core operations of our businesses. Adjusted Net Income and Adjusted EPS have similar limitations as Adjusted EBITDA. In addition, Adjusted Net Income does not include all items that affect our net income / (loss) and net income / (loss) per share for the period. Therefore, we think it is important to evaluate these measures along with our consolidated statements of operations. Adjusted EBITDA is defined as operating income plus: (1) stock-based compensation expense, including compensation expense EPS is defined as Adjusted Net Income divided by adjusted weighted average shares outstanding, which include dilution |
 $ Millions 2007 2008 2009 2010 2011 TTM 3/31/2012 Adjusted EBITDA $624 $621 $662 $700 $711 $731 Depreciation (57) (72) (93) (106) (133) (138) Amortization of Intangible Assets (68) (58) (24) (23) (22) (20) Impairment of Goodwill - (2,480) - - - - Impairment of Intangible and Other Long-Lived Assets - (234) - - - - Legal Reserves , Occupancy Tax and Other (1) (1) (68) (23) (21) (18) Stock-Based Compensation (60) (56) (56) (53) (64) (66) Restructuring Charges - - (34) - - - Realized Loss on Revenue Hedges - - 11 4 8 4 Operating Income (Loss) $437 $(2,281) $398 $501 $480 $493 Total Other Expense, Net (32) (66) (78) (75) (78) (73) Income (Loss) from Continuing Operations before Income Taxes 405 (2,347) 320 426 402 420 Provision for Income Taxes (166) 3 (102) (120) (76) (78) Income (Loss) from Continuing Operations 239 (2,343) 218 306 326 342 Discontinued Operations, Net of Taxes 55 (177) 85 120 148 78 Net Income (Loss) 294 (2,521) 304 426 475 420 Net (Income) Loss Attributable to Noncontrolling Interests 2 3 (4) (4) (2) (3) Net Income (Loss) Attributable to Expedia, Inc. $296 $(2,518) $300 $422 $472 $417 Non-GAAP / GAAP Reconciliation Appendix A: Adjusted EBITDA Note: Numbers may not sum due to rounding 18 |
 $ Thousands 2007 2008 2009 2010 2011 TTM 3/31/2012 Net Income / (Loss) attributable to Expedia, Inc. $295,864 $(2,517,763) $299,526 $421,500 $472,294 $416,974 Discontinued operations, net of taxes (54,502) 177,366 (85,561) (119,885) (148,148) (78,046) Stock-Based Compensation 59,948 55,731 55,756 52,507 63,847 66,000 Amortization of Intangibles 68,367 58,275 23,875 22,514 21,925 19,513 Restructuring Charges - - 34,168 - - - Noncontrolling Investment Basis Adjustment - - 5,158 - - - Legal Reserves, Occupancy Tax and Other 1,276 1.051 67,999 22,692 20,855 18,221 Foreign Currency Loss on U.S. Dollar Cash Balances Held by eLong 8,642 8,586 128 2,711 2,690 2,207 Impairment of Goodwill - 2,480,470 - - - - Impairment of Intangible and Other Long-Lived Assets - 233,900 - - - - Federal Excise Tax Refunds (12,058) - - - - - (Gain) / Loss on Derivative Instruments Assumed at Spin-Off 5,748 (4,600) 38 - - - Amort. of Intangible Assets as Part of Equity Method Investments 2,324 2,593 458 - - - Unrealized (Gain) / Loss on Revenue Hedges - - (1,033) 4,898 (4,479) (2,964) Noncontrolling Interests (4,515) (3,837) (1,343) (2,877) (3,135) (2,932) Provision for Income Taxes (38,290) (195,678) (86,395) (34,449) (41,362) (40,451) Adjusted Net Income $332,804 $296,094 $312,774 $369,611 $384,487 398,522 GAAP Diluted Weighted Average Shares Outstanding 157,117 143,084 146,071 144,014 138,702 139,306 Additional Restricted Stock Units 3,119 6,886 3,183 1,889 1,331 1,694 Adjusted Weighted Average Shares Outstanding 160,236 149,970 149,254 145,903 140,033 141,000 Adjusted Earnings from Continued Operations Per Share $2.08 $1.97 $2.10 $2.53 $2.75 $2.83 Non-GAAP / GAAP Reconciliation Appendix B: Adjusted EPS Reconciliation Note: Numbers may not sum due to rounding |
 $ Thousands 2010 Cost of Revenue $685 Stock-Based Compensation (2) Cost of Revenue (excludes Stock-Based Compensation) $683 Selling and Marketing $1,235 Stock-Based Compensation (12) Selling and Marketing (excludes Stock-Based Compensation) $1,223 Technology and Content $309 Stock-Based Compensation (12) Technology and Content (excludes Stock-Based Compensation) $297 G&A $259 Stock-Based Compensation (27) G&A (excludes Stock-Based Compensation) $232 Non-GAAP / GAAP Reconciliation Appendix C: Non-GAAP Expense Items Non-GAAP Cost of Revenue, Selling and Marketing, Technology and Content and General and Administrative Expenses Excluding Stock-Based Compensation Note: Numbers may not sum due to rounding |