EXPE - Earnings call transcript Q4 2020

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Operator

Good afternoon. My name is Katrina. And I'll be your conference operator today. At this time, I would like to welcome everyone to the Expedia Group Fourth Quarter 2020 Conference Call. All lines have been placed on mute, to prevent any background noise. there question-and-answer remarks, speakers' the will session. a After Instructions] Thank you. [Operator call like Corporate Patrick to now over Finance. turn of I'll President the to Vice Thompson, Senior

Patrick Thompson

Good our I'm pleased results be joined Group's fourth afternoon. any call ended including Kern, to to today and the for by quarter today, our CFO, XXXX. call do obligation Peter the financial XXst, December as questions, on And welcome of CEO, conference February reflects this XXXX your update information. not Eric Hart. to undertake responses The revise or management's to following We Expedia XX, discussion, only. views

are always, typically or or statements preceded As plan, confident made forward-looking, such words call we as we are believe, the optimistic of by we we that, on some expect, today's anticipate, we earnings materially refer cause statements. which these factors release the Please information SEC, differ company's could the statements. to to filings from for results and with similar about forward-looking our actual today's

turn note have over this call Please that, and on expense, XXXX. item our of and the cost to the website visit at, And revenue, which technology to website I will the important selling IR in Relations is been and and Investor depreciation non-GAAP all period release, otherwise a stock-based other call You me you will expense, restated all reflect now be Unless reported prior to of company's stated, encourage measures marketing Peter. this content. against posted line earnings compensation. content comparisons for GAAP reconciliations most measures let expense with ir.expediagroup.com. exclude to today our general to expense for separate the our find comparable on in discussed references And periodically comparable periods and And of change. is results administrative that,

Peter Kern

of COVID in be the reflected us. quarter, Thank you rest for Thank and like everything globe, so optimism what kind that, of year course, it from the course, of beginning, a various geographies. And as with was I'll much, good caseloads news Pat. on restrictions fourth say everybody. all across in brief of bumpy And countries, some news the rollouts much the many of mixed fairly as ride. mixed bad vaccine joining afternoon, closures travel. obviously would coming I you very very over saw dominated, looked the a the we world

XXs end of improvement the that did that And the And high the high year in trends So much as with background, on and into total latter about that, in in moderate part we XX% the seemed booking towards we're for has third net that down. I say to the of quarter into holiday bookings, XXXX. cancellations - the gross lodging our fourth January, the And release, page the quarter down happy the the quarter, in down saw XXs. saw moderate at you the as turn we've continue will seen the that, has that pretty on to and season. move whole, January. of near through

and, et has very course, home America spot, been bright helps facts right a We So, driven bumpy be generally it rollouts, North cetera. market be I are That this with being overall, certainly relative a by America improvement attractive. the in whole terrific the the being And going a relative to different big all, a course, in caution a as And would very that. that around for did us although, very attractive is that, see sets expect North different strength of to continue the travel direction. that trends story of Family good, use to vaccine not in our we case surprise. form. thousand Vrbo, continues or a generally geographies. of bad everybody virus But thousand in

So to will things vaccine be forward. ensuing buyers and changes rollout as expect the not But consumer sentiment drive to we predict confidence over drive hope trying and to the consumer we what months. continue certainly are

continue expect a ride. to we So bumpy

more to getting serve a governments we were We as are investing marketing. demand or value making process be With coming doing, background to Vrbo, we upper long-term back mind, on momentum, lot in much what demand, drive recognition as watching what our we like certainly we largely but intended rollouts, people goal the over thought travel there's brand said would for focused brand again. We get moment for of to was as know passports, just the from the as much be as can. marketing can This that are what of these to certainly knew it heavily the there cetera, and we things quarter, and the I've are moving on and lot with market was pent-up in the international ahead on may rules was travel and this where using et travelers vaccine that a soonest and of we as in brand funnel time. it before calls, side the try we fourth of to want on

Vrbo. pushed into So we

more Performance a the which we quick side, as view of twitch marketing muscle. On

across conservative. cancellation very it marketing relatively when saw of wrong Again, very unattractive globe. the they to way. make drive And lots be spikes. happen performance goes the closures continued quickly closures have Those can We massive we

meta that. our as and So as traffic, relatively to calculated upper we opportunity on be remove unprofitable into to incremental more drive leg a back able more activities, direct driving do and our in the we we into profitability from conservative. funnel, And see possible, direct more as vacation think we is performance we much market, marketing. traffic marketing Again, we in as that we'll be much have driving normal performance more have Vrbo all removed And been focus actually rental Google's vein, from product.

make really in marketing differentiation. is geographic they this whatever on sense, wherever the globe. but the about and the we On focus and differentiation to talked brand are of brands continue I've this before, about driving rest side,

global for leaned have Wotif a we're domestic Australia, It's into heavily by strong called another with - everywhere. which Space are good brands market ago. stronger. Australia, in particularly have been for are that we but we the seeing has brand looking which company particularly other parts as So very at years where associated has bought strength, Vrbo stronger. goes And a in It our we use reaction not and North that there travel, in that's are a we is America, Europe well, domestic brand doing brand. that. the Australia, of from brand case, we have primary example, That

seeing to neutrality, into those accommodation in through will, are driving brands. good our our growth brand across leaning alternative out brands we So OTA that, all markets. that intending Longer strong in point alternate our just we are if would addition accommodations term, and also I drive you to

- that for we've time. saying been We a long haven't

finally, who we have new on yet complete segmenting it, highly attack biggest are sufficiently the marketing the a is markets opportunity and on the years, but on to ran We not focus in we in we on Brand and we highly there so the focused existing are it. do brand campaign does alternative most are focused are to we and side about pool will the we roll that. the multiple want new but trying differentiation the is out focused essentially and spring experience do, where on be trips, things, OTA now Vrbo future. doing think with the - more driving approach an work the message people Brand yet. not over where it, rolling that It's we a going And consumer way is complete continue don't will trip, is Expedia, market our to we ready the optimistic We both to brand, are it of OTA big the on that And brand Expedia there complex just the other accommodation or be do then brand. not

we and that we we this an XXXX is great problems our and is or of critical that, recruit that energy we re-landed, and and is success people suppliers everything that, building On think, forward, focused being and in, point that be opportunity this in And do, keenly impact role on our ours. way keenly a this tech important around that facts into company our on and great where we the platform. key of an our the calculate of company just the we us. steps a our strengthening product, our our also that I in area and systems the the tech to focus for play that. initially on that consumer to is and frequently, in is to It mission, are ourselves bring for of expect to that broadening X information emphasis Tier place tech experience. I for that purpose find important the are choices time bringing enterprise the opportunity, perhaps enterprise equally little we help everything turning that's good, we the a to obviously, being focused travel together, an mining and is place on travelers we about values have environment, refocusing with we of drive world. retain with to out to and environment. obviously investing to margin, by important really in looking express less talent has for problems, side the retain on forward and talked simplifying help through that a are year Tier tech better And do an and But other connections. partner better we most doing calories US we of do what delivery X outcomes the to we've our travel want and want and particularly our world continues which that and but is environment, think build ourselves horizons along the and a it's year, That solving end talent acknowledged the well on going and and think will company help reset business revenue tools I'll And the creates end important we years on easy focus we're on be with finally, on something And time, and house, force as we platform. to on the significant which and make have to

have of terms for have important And in push workforce really challenges goals not for then our the to successful roll our around and we've And business. travel outcomes, every that. product people a done really ambitious having express finally, an it the bold, enough workforce. time drive we beyond we we all and are and many product that's every through travel to want well. diversity about we we and everything because intend some want that out, building as So we experience, us. through we to who people a goes drive to made that And ourselves do, There through help inclusion in think consumer time that

should become just a been don't we is bumpy by be for going this close things saying through, So I'll we've don't to with think to expect expect and what I think linear. I linear, it while. that,

through We rollout clearly to are is I Thank be going to going just able the comes confident going will travel, consumer that, when will we're to that optimistic with it back, we're be think I demand that there. feel it. vaccine to We ready to Eric. And they well, turn see consumers are and when people power over that travel. And you. when confidence

Eric Hart

for also, margin we've one along into a of we've as joining a in fronts. of and Coming pleased significant areas lot well. you, call made as talked Thank expansion driving our about the Peter. priorities, those number progress being we're Thanks, XXXX, key

to a on $XXX of since fixed million during the first, a want range basis. $XXX the last to range start relative year We million upped that million now We $XXX savings, we that cost be to of fixed to range. We that touch talked then $XXX year at to at exit million. rate. cost the XXXX end it believe The is I million to will higher million year on our of $XXX and upped for $XXX

We on run we cost have XXXX. rate And basis. largely all by achieved the to a expect approximately $XXX of realize end million of savings the

and in have to of keep expect annual that projecting the see do mind attractive increases as where As for, opportunities mentioned we previously, well. business will invest when in areas we

based we at in remain revenue payments volume through On annual economics cost million three conversations cost for variable the all as to levels. platform, these are over key $XXX of our initiatives, XXXX of variable The end costs cloud improved expect cost to savings our well. of on track drivers XXXX. the we costs Similar variable of side, lower expansion the on and by savings largely realize fixed

costs Although start on we adjusted EBITDA will savings based, wanted $XX given business two by that P&L to distorted until reach details not QX providing by volume fully items are approximately more one-time I our and the million. Shifting the our normalized results. be reduced levels. to evident

expense We the products restructured related in insurance our First, and to P&L unit commercial third-party also forward. primarily going not contra so impact higher travel and we cancellations. pandemic that QX terms to of we our recognized and of recorded economics those related our will approximately due $XXX revenue, million

revenue improved this impact, by X% XX% Excluding the QX decline year-over-year. to

- to when plan despite you are and revenue. invest made continue that that them continue key forward look protection part of for customer And to to of to line we going products adjustment despite We was the terrific to offer, we at and continue business also insurance XXXX, the profitable, provide area. experience less a in insurance believe substantially and our

personnel The second was one-time favorable change costs. adjustment a to

majority year our XXXX, our employees. bonuses, equity for which accrued year Given of to the at throughout impact XX% the to this vast we the shift we decided business cash in to

bonuses As and paid. in We first QX in year. million of benefit will bonus related when we expenses. the the accrued approximately $XX this QX, a overhead in three recognize The savings quarters expense of of are result, reversed bonus the that majority cash of typically come XXXX,

accrual XX%, the and bonus in bonus minimal declined The the reversal, decline similar in disposal on reversal Bodybuilding.com of declined revenue, to year-over-year the approximately year-over-year had cost of XX% impact expenses a benefit. X% Excluding overhead provided QX. QX, which

to Moving on generally bonuses.

We $XX quarter bonuses annual this payroll due converted fully change. to from million of relative shift also anticipate structure to majority funded salary. program to annual going QX XXXX, made bonus vast We away this of quarterly starting in the costs, the decision XXXX to strategic approximately compensation our forward, with our in QX being cash mainly extra

at been have data the to believe of drive the retail to this benefits technology Moving Peter at in the and time, on at us marketing how in unifying the approach, short more marketing funnel, all along more channels. and that, of and profitability top long-term. brand higher we operating with same volume, the, while spend, efficiency, balance investing mentioned variable much direct both enable our we the in traffic ROI be will of strategic We

in normalizing in negative I well QX negative and a heavily emerge such, have total, due it the quarter it during on COVID EBITDA marketing, we've in and into As $XX profit into Vrbo On initiatives, leaned we efficiency the adjusted for the particularly our faster leaner, Peter advantage of In seasonality to for mentioned, additional basis. of walked will non-recurring capital. Overall, And million from we as take performance $XXX free negative just two negative improved as prudently million accommodations. QX executed negative where marketing back weigh when in and through, this was continued QX, enable negative typically disruption $XXX with brand to demand. alternative million. - XXX well, margins. cash see the to we was us was demand to is working flow, And to as us items reported

with cash $X is year $X.X which to unrestricted total of about lower on ended short-term investments billion, cash, and ended QX. Moving we, billion than we the

an of the the billion cash cash. on During XXXX $X a essentially and revolver, quarter, in billion in our with change we $X.X into million which repaid position, remaining strong majority accounted untaxed outstanding $XXX the We in the revolver. for head the liquidity

As structure. few to the years, to our next deleveraging capital committed we business back the over remain historical recovers

to Turning XXXX.

While, to the and we about, vaccines recovering. remain travel forward look optimistic

recovery on like near-term look visibility the will mentioned, what low and this trends Peter remains point. at As

we significant quarter. current Given do typical a the EBITDA seasonality, the and loss adjusted expect trends in

the reminder, revenue QX lowest the profit historically quarter year. a is and As of

XXXX of a on forecasting, you the give are of just part costs costs, to the terms of where insight the In we have bit visibility. overhead P&L, most

We in QX to impact costs expect the bonus to of be overhead QX, changes accrual. to similar before the

we due is closing, a In approximately million, will steps feel we're our recovery from question. QX good we're mentioned feel you. on good the like, earlier temporary of there by right the margin we in overhead position. about from while COVID-related expect liquidity principally in And shift about are We With remaining from up ready away a considerable $XX the the what thank XXXX. and that look accelerate savings where to to recovery. bonus Katrina, expansion. step our taking that lapping for confident compensation, to we're We that, uncertainty first And I

Operator

from question [Operator Sheridan Your Instructions] comes first of line UBS. of the Eric

Your open. line is

Eric Sheridan

my the that a is ups much. for including within taking more little the the returns? on Expedia conversion better bit get outcomes might do alternative as marketplace? of whether demand be, Maybe a as coming optimize sites through we two when Or about core for Expedia can brand? that's brand? sense think we so you're accommodations, inventory better, branded accommodation follow thinking already the and you Can that strength you're alternative Or understand seeing how and you little what's coming Thanks in question. for apps there, Thanks through the bit

Peter Kern

Happy Eric. address Thanks, that. Yes. to

off and are sub-brands sites in or specific mentioned, virtually - vast through the of vast, I alternatives vast, of to countries. the as has been clear, Vrbo that be some the Vrbo the to branded just So success

believe, business in modest you happens It Hotels.com important markets when basically has small, part product OTAs. might think the that a very be or are though, satisfactory small brands, particularly a of on or less but of that strong that time, is aggressively, non-presence business, it brand. been any space our part about can alternative do We but in a have where through a that Expedia is we as the than an business. Vrbo OTAs We have our of working the

where customers We really markets and absolutely or think that's that think be being an and we Expedia are into coming revealed see use pipe I through through option where hotel of can So another scenario and against able brand as it accommodation cases a our in overlap, while just ask piped would kinds for options. where valuable. alternative it, even big there to think is alternative we that, want they want could believe currently accommodations you other partners, which that add there's do. - then not to is really opportunity to a And BXB there's I didn't

are advantage certain And to we have So drive all of continue those supply, but markets. it side don't think in Hope opportunities the we to in space. on what the on of terms to alternative necessarily expand brand I to what take have that…

Eric Sheridan

Thank you.

Peter Kern

Yes.

ready Please. are We yes. the next question, for

Operator

Thank you.

Your next Truist from of Khan Naved from line the question comes Securities.

Your is open. line

Naved Khan

quick a lot. clarification. just Maybe Thanks Yes. a

to like for again, guys to you in make with investors more share and maybe so a On respect we recently. recently, XXs to sense out out just in the that break change it it the not business? been Is versus much by And to more could you US more that consolidating. separately QX performance does is lodging the January give it to of driven trends geos? and with maybe start Vrbo, improvement terms - then credit and the here to, fair details then most Is in the that of XXs you that can this called in you've assume into of

Peter Kern

order, Okay. I in I'll take those questions guess.

other has First I America improvement, we engaging compared the haven't markets, in in the terms of a - to shutdowns big in different any different to more at drivers, is retained would less around places. stories North say all, people I has but more rates, I travel, America tale it strength the had generally would due mean, way back lion's come in say willingness have of North in in is of of many we to move the share other government places. yes,

as believe say we story the The we to North probably because So way. ride driving out intend it that to another yes, all moment, Essentially, not It's want. in a want question, of having - for we it, content outcome bulk to of America to that traveler view a but and can no we're business lives the that business. driving easier, this as so. one month of great travelers your all new don't we collectively, being consumers Vrbo of mentioned through break that and outcome I business. product the we not make - it's your we exposed a would we as type But it's we I the view glad the obviously, over success is we the because across will that it don't it product some and own one best the view OTAs, because and second piping we're just whatever and about lines or we believe

effectively, we're think and it been artificial way So, separation that report not future. to in planning this has we the

Naved Khan

Okay. Thank you.

Operator

Nowak we Brian have Morgan question, from Next Stanley.

is open. Your line

Brian Nowak

X question. my guys. for Thanks taking I have

the able data out to in of sort weren't you Any found you've improve optimize coming were sharing you ways of areas other curious previously? really for first throughout sharing steps than And sort and some to recovery solve know then you through examples a hotel that maybe hear of been relationships more The I their hoping have of new points crisis in with enough one, are sort sort business than done about have processes. of one, the your and recovery? your the conversations evolve and you lot And of second your what past? how the of you've which to data great tension optimize to you're sort the better of suppliers where the

Peter Kern

those Yes. I sort relations smash hoteliers. two with the little might good together quite the Thanks for have of bit, been which question. is a

drive real-time our overall types, higher revenue. optimize upsell come try optimized I help distribution, to, we players focus and towards can working hotels. them think as sharing been and with data. provide alluded And to we been with more and both which and has we rooms, the Similarly, I where ADRs have we've the so And of we out data, but you drive help that have value decision-making with better technology the outcomes ways. they the product, think for a we're distribution for a the talked hoteliers, And course, much without that clean in agreements being to essentially tools more point that we our We're on cetera, before include it. now. the renewed that revenue approach, them. abused wholesale et up driving us. through doing we're product and more them part an doing some things up to a wrong really become perhaps done of about so working We've like of to for a And might all a think for aligned chains can number our gives and them, helping us of for sell of number of data hotelier, few to and that room improve on examples hard help We've drive hoping so can that wholesale our this they help we where clean net opportunity market can some is marketplace, to positive debate. new by that's

lot going a work on. there's So of

be wanting tightly hotel we're and to out the think in I come aligned successful.

the and around, play try the a we to rebuild good I a relationships all hard been quite good rebound, in role to think understand it's market. hotels the and we're and working appreciate and environment all

Brian Nowak

Okay. Thanks

Operator

Your Lloyd from Deutsche next from the Walmsley comes Bank. question line of

is line open. Your

Lloyd Walmsley

Great. Thanks. Two, can. if I

it Google making some First, like like of Metasearch. sounds Vrbo big you're out pulling moves

marketing doing the mean, second back a other if we call And just when then to coming normalized of when see pandemic, to any of one; a had marketing And strategically? revenue, comments do Expedia. about holding you percent been harsh the change pretty I to Thanks. harsh share kind at about on? company? changes pretty some Curious, over, have there would kind As comments great. can work-life the up about over, back at big the be and morale you environment of performance as you tough Barry culture a you'd you get took maybe How mean, some all going given direct the think how shifts what I out you go of we is environment? Barry had balance out spend all Anything travel

Peter Kern

Well, those in Thanks for I'll Lloyd. reverse Yeah. maybe order. take the questions,

quite is morale think I good.

are I think energized. people

fear of the of I think and those in there was long all days, survival early kinds things. We're past that.

and in performance we've manpower. I think culture, gets considerably company terms shrunk that lot done, drive the we culture a a trying to are a of

a hard. about, ton going issues. suppliers, going we talked for stack, people big work with our ton work just of going big it's There's So customer. a on on and undertaking are work of on a This as there's ton of People tackling tech replatforming working the are of entire there.

So where quite people that. culture appeal that's behind build of want to morale think who trying energy what and a to Does And to I is doing. inspired that I not, their is I there's maybe And work. think a good. want everybody, we're what best to but that We're do lot driving? feel to we're win think thrive,

engaged. People and good. that. morale say mission So purpose, and People behind our aligned new our about I I is good feel would all are think we're

in a path very jump investment you profitability, and to goes revenue we're And if not good But we're happy in, to keen of continuing in performance to As sharp-minded profits. we're incremental I not would Eric, say, on as far where want that drives just sense and as good anything the the that continue about invest well. it was productive.

we're So also of we the great Vrbo. seeing period particularly Google valuable. particularly experience we didn't for VR We And where didn't in think find was in course, incremental. product, are, traffic the customer direct investment a

and, to So drive we view, traffic. in other our found ways profitable more ways

marketing the proposition rest hotels performance for a and far different As It's performance et value different cetera, clearly goes consumer. as marketing the for the the products Meta, and of and consumer. historically had for has

feel we we it. to think play continue like I will at

the about we think marketing where smashed haven't to before. I've algorithms talked before we towards wiring We're data teams, we've it. together and things at performance pushing done all how we streams. will continue our multi-brand I improve

shifts terms use portfolio. to continue much are say to I So wouldn't are in it, in big be that effectively. we're they driving of very we're other what the than at of would veins there And to profitability now, looking we're it are. better how we wherever for it, seeing - able the terms about no there right can, hopefully get But and optimize tectonic going think very we clinical best of money in to being we as apply for going to

Eric Hart

for we're on at a Eric. the COVID specific a not of this in question. is solving Yeah. for We're just point, This the to revenue, this on percentage. Thanks touch percent And Ultimately, just marketing that. as period.

that's as going appropriate, and then and on, incrementality mentioned, we waiting we lifetime well, ton ultimately particularly - leveraging multi-brand multi-brand for channels to but about, ultimately as in bidding, a trying example, mentioned, just understand investment on as in well. as into bidding, our as but channels, But, And Peter value Peter work just data, performance mentioned, think as there's overall so Peter back performance we're just Vrbo. of prudently brand it's where talked

particular, the And aggregating scale, we're given so, together. we're now running those are data scale business in and of the the the the that new muscles, way

has So that And different performance periods. that then and on learn longer I it more very has side, brand return a profile just than to the think there's there.

behind that And brands, the invest to so, Vrbo. we're confident doing obviously, behind

We more, some expect behind And associated that well. we line of do to brands as the even And in in narrow value specific our propositions. of marketing product on other then, as those.

improve marketing. for have we and specific a now. that long-winded the of a trying percentage way and But we're proposition related to a lot So saying, solving the of value don't time spending on side marketing certainly we're

Lloyd Walmsley

Okay. Thank you, guys.

Eric Hart

you. Thank

Operator

line the Cowen from Kevin comes Company. of Your from Kopelman & next question

open. line Your is

Kevin Kopelman

a Great. Thanks follow-ups. a lot. I couple just of had

that to gone I the to, XXs end January to improvement high drilling of the at as the XXs, in the the high hoping have some of declines seen, trends, January. the So you've was from

sense that, drivers you And then, Thanks. kind the COVID-XX on what get Vrbo experience cases what rates and there? And - decline you of in as January? see a kind the did vaccine the of impact rollout if, growth that, what demand consumer there? So, within in do the did having key we're

Eric Hart

to ahead. do Yeah. you take want one? Peter, me Go this

Peter Kern

improvement say, people Kevin Jump mentioned, seeing doesn't in the everyone think you improvements And part that case. the whether be it I and But you But The sometimes and better the and a long broadly, cases obviously, as as just was feel we're opportunity hard anywhere, show that, feeling is the dated. tends be up. should sometimes say North to correlated summer, Vrbo opens in that be to into strong up I use say, would a Vrbo lean to would year the in for it. I opposite. America were Vrbo tends - Eric. it's It's of that to strong

so, going in that, towards the Vrbo by America. health the North lodging, again, Eric, exactly, and a conventional into strong. cetera. in was, more in of but improvement But bit health spaces. a little large, et And amplified And you know and little months, say of it think I would if the it's improvement anything. bit good a continued summer to particularly add don't how some been Vrbo have I don't seen I blending we we'll break And conventional want out has even

Eric Hart

around a which during the The We've only seen just you is what and on of bifurcation, booking back booking And I lodging is touched But and look shortening to seen that like we've summer more it, COVID, any saw what that, gets that we see to - add or which we've windows is bit we've see the much a year, before. Peter is to side talked add Yeah. bookings that the hotel historically, about on would of expected elongate to again. we the continued conventional a windows. is, of have business. on Vrbo other which mentioning. the But

that there's example. People as to we using want to able going I an have to pent-up I suspect they're demand. think travel. the people least And confidence U.S. domestically at And so be know travel

book now. And so starting they're to summer months those

Kevin Kopelman

see of to as Great, should follow-up seen base on on, demand the of that of ad Or and You've just of about out kind bookings a kind scenario? the the lines, kind case, trending picking of, along those the kind should up spend question how playing ad at think we ahead how similarly year-over-year a kind of a played of basis? helpful. it's we spend has last you out? very And do that in having then the start How being on should - how has year? assume about think in as spend is - rebound we -

Peter Kern

Yes.

we want behind. definitely to don't I be think,

in we anything, getting capturing the we'll certainly - if So demand. invest will -

dates for happened Eric If book XXXX. think, there's large and where then to part again. time. as that is investing of XXXX together think starts mentioned, funny capturing for in much expand not vein, see it even I And which normal, staying that we'll closer that its stay were to be more if demand that in seems see thing some may you to doing, I a demand us look dates start that

same. mentioned, our plan the the on versus when may the dislocation, heels. certainly in consistently work but we've when stay or a in terms be spend numbers as certainly for recognition And We've the I We we're is so we some and Expedia. stating, you see is on - strong we Vrbo in would marketing don't that - we'll bumpiness I working have got to of expect the brand, upper on revenue funnel Hotels.com, back Brand campaign

So I and market is think, we you'll up, demand see that lean the continue, in question. no opening as and continue we will believe to

Kevin Kopelman

so much. Thanks

Eric Hart

windows, as that around we're we're it that. you're just recognition, briefly, just more we a lodging, out stage, the helpful And to And going seeing Vrbo see just - Hopefully, that the time longer that recognize one that reminder the add Peter at revenue yes, generally that revenue on quick mentioned a Kevin, well. comes And but it's of for everyone, it when months. as then of into pushed with mix of later on speaking. those particularly into transactions the now, lot the their summer, get to we in revenue booking

to more Vrbo marketing, then revenue where ways lots use the of may Peter's we're in bit you word, now at spending the when So back it's elevated line. look different bumpier to down be in just a because go

Kevin Kopelman

Thanks Justin Your comes Bank lot. from of from next a Operator question of line the Post America.

Your line is open.

Justin Post

right forward how businesses now, planning do looking to the market your overall, you. I any start the in your alternative And about market industry right now? guess, trending just how you Thank seeing of you're on some share any second, Are summer, have. you people summer? accommodations. thoughts you especially or how the your feel give if sites seeing have you traffic you as core Great. your do that front you're in is doing just end any on other wondering share-wise But anything that very in through uptick optimism for there

Peter Kern

to competitors good seen warts relative and markets, competition. strong But guys. combinations question, the in would back But take would of to have each growth I'll we we our say, believe we to question. and in different share say, our this I overall, share one other very good let come different I have first, alternative specific that and Yes. our in be me and main

heavy our Vrbo very could and in the where inversion better cities, of supply conversely, cities and a conventionalizing et equally. the secondary where people in better been strong in case we have cetera, have even that major have a hurt international and are with wanting and has also maybe a competitors point and we where we who of have travel, is good to alternative travel. don't I a presence of use - We obviously guy has have accommodations But which to in markets any presence. one both

are Some shut. of markets those

Some of of a tale those markets It's many are stories. strong.

certain So But it we have better and strong, there solutions accommodations we're for I seeing overall use certainly well, they're where North and we're doing alternative that. in share, think benefit cases, to in who are certainly America. competitors think comes as from

I It's really the excited now. anybody moment trend can too And the get - I dislocation of are a because unique a during get bunch So would could not one using of travel right one just caution really share, think - fooled by I other creates you this trend. stories. way it's think that's how or to a a about would people

markets VR. So and we're gained particular, - have but happy strongest about in we in our and that, and,

specific that that - traffic. time for I think lot The not It's clear summer something you answer that. a your - relatively there's don't had trends think for anything was searching than in We're on but end this year. question of seeing year been we seeing I booking. of it's It's see the like the end - are small, not is other there's - the or holidays interest entirely ago. but which are stronger zone, we already all still specific it tells next a at of people

very just people what in of a being are And seeing of cities think and looking that necessarily see cities, We lodging. say, conventional contra on. share terms other quick I is going alternatives, to a things. muted lot at interest in still would but strong in are in not lot Some and travel booking, there's things we're highly looking there of people of people plenty

So, I sure. of think is there's indicative I the of think for but - tons not it's looking pattern booking, of yet a interest

Justin Post

you. Thank Great.

Operator

question of from comes line the Wells Fargo. Brian next from Fitzgerald Your

is open. line Your

Brian Fitzgerald

the that. chains from how long-term that into slower. or transient guys might apartment for come to you lean and may your that contra that hotels or the that not Trivago trend? struggle back thoughts trend then as into towards hotel XXX leisure and thoughts getting Any that just of housekeeping confirm to I claims bps insurance, yesterday related on maybe - the third-party Thanks. then And added inventory one and EBITDA, back on or other heard One stay the COVID pneumatic think was and about workers one, revenue I to Thanks how to talked business would group benefit

Eric Hart

question. the back part. first was the was it revenue, contra EBITDA. can added to take mentioned, for I as Thanks and not It

that I what I portion, been ounce if or upfront just we would yes. have just in EBITDA the would gave have think taken the

Peter Kern

And I'll I'll of thought. - just given tremendous Brian, a just yes, say, haven't amount

in historically large play I it part one's big hotels the been space No alternative at different think try into a a particularly seen success, anybody's made business. Hasn't in really. ways. to we've of

at particularly apartment-type be hotelier product I those products think these if we'll that stay sure will virtually every it of think through way. us. certainly back trends; most way of experimentation do good us, or the help a don't sell think for delighted Then can we We will it's in other play they'll in But don't longer stay, short-lived. industry of I is we're particularly But kinds class. trend - that And disfavors be or hotel think or favors I Vrbo, to there. see that. particularly bad. one relatively conventional it I the I'm many thinks a

slight shift big us. maybe for think a I some but difference just for not maybe it's shift just for a a slight hoteliers, some it's

Brian Fitzgerald

Thanks, Peter. Eric. Thanks,

Operator

of from Suisse. line Ju Credit Stephen question comes next Your from the

is line open. Your

Stephen Ju

so much. you Thank Okay.

maybe a go bit. little in Peter, So back history

search I of in results duplicative point the a when in the public was it the of think Vrbo past content. to was don't for make de-ranked you company pain part sure because get

onto I integrate, Homeaway.com inventory or Vrbo.com. think say, Abritel's you try to as

loss Thanks. in to So, for you your from that they think maybe accommodations Brand consumer, are you either worry we the as or do guess, need of degradation itself future? about to need a to integration willing traffic to is more alternative or Expedia? standpoint OTA do so potential I onto properties, content the a that Vrbo the And you on what to integrate consumer work the pick something inventory, experience more that to address seamless

Peter Kern

yes, a of I of Obviously, parallel. as panels the in has it is we being peanut stories think, good Thanks, de-ranked think a that I necessarily of lots as who question. lodging there's first learning that. you Yeah. to in et have of and butter of it's play us a world Google, And those of watch we'll gone of think But the things of the sort to shouldn't this cetera, part, approach, out. all roll into lot not

house if them a someone's Paris, apartment France. necessarily of the for for in south offering of people an solution for south a XX looking in or not two a So hotel people,

So, I solutions. think there be different will

the we're think what should consumer working I be. through experience

the experience, other. of the can But the the our mostly match have those so Some oriented Vrbo particularly versus cetera. whole things small each relatively competitors to small done when they is towards case, well places, it's room. again, next putting of use sort home apartment Right et in up secondary largely hotel vacation now, places,

as question and attractive a the in really those somewhere, consumer, reveal beach go you it cetera. opportunities, you not an of product it's the et to So want get to confuse how does those and line way the how do things up,

room is what an we a used give essentially. service the might which the for it? information you one when the we the really right that them? how a things do, rent rental can then hotel to want in to all different we it's are them digest How of service how be and have does end-to-end and to the - benefit the home So things do And so consumer

discovery our We question absolute demand except of lot there's work brands. into you, We partners. So, in we have I where know have of that that BXB from there a places that. don't answer is know a for going know an there's don't we demand. is there getting

experience So we there's still opportunity, makes to make consumer know the sense. to do sure have we but work

Stephen Ju

Thank you.

Operator

line JPMorgan. Douglas Anmuth question the from comes from of next Your

line Your

Douglas Anmuth

of you that other out example, Thanks. content you global, Or for for trying more Thanks Vrbo Vrbo to doing and in letting build taking understand have geos? you just are VR Great. do there? brands Europe, in the what to vacation Peter, isn't question. some my mentioned brands those other you're

Peter Kern

Yeah.

we I we have strong are brands. content where those to drive think perfectly brands

made that effective approach we to have cetera. et whether marketing, creative, we and with our same from performance opportunity drive in them Vrbo, our think techniques, created that's I the et have to cetera,

that through. little well. into that brand. turning some are That And places absolutely there can't said, we behind to we'll to in benefit to like no drive do So, going And is are some no Vrbo. it Vrbo. invest take converted markets, that in as And we a we where brand Australia. Space have reason there's there being And

combination So Vrbo places I where, the you'll think is a see of right answer.

And start say, as to stickiness. our few other see trying where to where don't and brands I OTA places brown and some we places neither we'll local, scratch. brands think in use awareness from other worth it or intent it's brand have things And where strong You'll use a that a exists. real we're drive long-dated to then

Douglas Anmuth

Thank you.

Peter Kern

Yeah.

Operator

Clarke the Your next Bernstein. question comes from of Richard line from

is line Your open.

Richard Clarke

Thanks questions. there. taking my Hi for

top the at using of Just more. the alternatives you call, in mentioned BXB

will one. that be like? how coming sort label of And that Or that you would through? going another look what Just a product? to Is see white I ask can wondering just

of With charge the the about any continues? looking into And consumers uncertainty changing kind quarter. this in the to any next think taken you've of the in way of change flexibility general, that's there pandemic and Thanks. you is year sort that

Peter Kern

the it. They're sorry. think Eric, to initiatives consumers Well, want take - we've that want they to one number more is first? we're build do assurance products. areas second happy we one us of it. constantly got insurance I trying it. want of take I'm a to think and you It's telling out I'm the

against expand offerings We've going We some got it. can those team we great offerings. have there. off that's and think We executing a

of i.e. think at we've the have relative around you And something on say or been invest dips the course, that's have top and that's whether and I all would certainly think we I looked to that terms forth. into we're associated so situation itself. But in, standpoint, been COVID modified with those and necessarily so insurance those, for and it exposed it the product a flexibility for offerings. innovate going generally, us. everyone From around around. to mind we're it's So great of a don't

of we our so to We communicate But flexibility. we're And Most adjustments to there's, made relevant. make sure that policies to that them those have trying speaking, offerings. been give make generally them making or customers built we're appropriate that's promoting that on those so the decisions. I hope another. sure site, form one flexibility have can in And products helpful. to that make we're

Eric Hart

And - Richard, regional many that BXB we through have the excuse as business. BXB I forms, our Thanks. a I'll everyone BXB me, on remind, quite just healthy Yeah. our It including takes alternatives to powering travel that say, partners we are all places in some there's even powering and agents. in of for and think programs, OTAs rewards cases And where use are lot of places not, we we offline accommodations. where a alternative

And been but - We do I that we about demand it, have be not will tech wired significant to we there in opportunities talked those can vectors. goes when our platform do it, to believe frequently.

a we take of circumstances. program, where the take kinds being have product a product label everything particularly a the offering So don't has flights could rewards part of conventional our of certain form for been of even in it and that's It that's could template white alternative now broader and our right form strong compelling OTAs. and product in BXB alternative own our the because just power in We not equally partners.

OTAs. So that's we into flexibility the coming We on as opportunity just as see space. it own the accommodations alternative master we our the build and platform as our

Peter Kern

make to on into the or types to on cetera, of that's to from add just just that Peter can I have, template, And folks that sure able And partners, we're to said, it. could that And as could but there's demand right et the right get on the That Yes. partners that, got it rewards to BXB made API, and we BXB template. API. site powering whatever inventory. program, mean, certainly a the different that be we be our based be that experience distributed data however incorporate for

Richard Clarke

so much. Thanks Wonderful.

Peter Kern

Thank you.

Operator

Mario comes Your next Barclays. Lu line from of from question the

Your line is open.

Mario Lu

Great. Thanks for taking the question.

hand. curious on are despite you removing Thanks. you on as what a where on of And provide just it see from from still thoughts this value historically? where waiting might environment cash make to percentage Any you recovery? your you might billion could So bookings color for find $X.X with came Google. via one guys Vrbo the capital that hear listings M&A, Do strategic one, some high-level allocation of sense second some

Peter Kern

be is Yes, I focus our to take part, and which on can the stabilization for I recovery. the moment continues Peter, think, first

will, and early if stabilization, we've phase, think, of innings I we're through in the and the you gotten it call that recovery that.

things great this phase, billion we talk get invest to that of brands and and revolver. we talked When the then plus of our revolver I line, be But could to feel we'll a return But do all think debt, looking ask, a allocation the to good back about the - the suspect recovery down the I that back think at we I will $X to that returning from the feel $X want in want comfortable to down house, to we that level do the risk how But quarters. get like standpoint, we we're that mentioned, obviously position, obviously, as decide be So can make which off that we're with on investment we paid our capital. up about so that in in consumers. to grade, would And billion, we've about be the we million able can didn't side you previous take conversation capital of billion. point, whatever sure $XXX to not capital. recovery the say the I $X.X we comes relevant with do behind take to in it in debt I and

as strong will more question specifically We've company, a at I legacy an your Now M&A, in know. opportunistic moment. you say, posture we're M&A in a got on would this on more as

sure are what data But that be got will. marketing might I on opportunistic, right. We get say the right conversations if and we invest we right, and business. primarily can out would behind our certainly having seeing now, and We making ourselves we're our focused you platform

Eric Hart

with doesn't keen was won't is make Yes. never mean a going again. of cap are those but successful And as is drives what we as would doesn't our mean significant. us Vrbo additive, made mistakes answer we M&A, not be the company. made complicated is as historical us. opportunities, core were And was It which to move I And find sure which will also the that VR something, made. buy why not make the that just Google not then we that we we are - don't on what concluded it we was we we not we particularly to And question, that

a business made we're particularly our across shot it's value. and piece set was a it a - like part substantial not took decision. we value, that so not And and We of just not critical business, we of our just wasn't and it the adding a believed

Mario Lu

sense. makes That you, Thank Great. a both. of lot

Peter Kern

Thank you.

Operator

take We JMP our Andrew Securities. from final the of line now coming will Boone question from

open. line is Your

Andrew Boone

Thanks me for getting guys. in. Hi,

the inventory their alternative price-sensitive more guys Can One talks your lack your listings. have update areas. we just ready - guys accommodation to you the about first there like provide signs competitors to there? accommodation and I And of lean tech in recovery, stack there? any then talked can seeing your Can you historically update efforts you give Thank secondly, an you're of we're you as about of feel kind just whether an alternative talk on of expand about you marketing think of in you. exclusivity your listings? of And

Peter Kern

Sure.

side, So of competitors I and exclusivity. our listing fair would the a we say on have amount

things to trying that's drive exclusive. We're our that to huge just that's building bunch the of a different spend figure make of trying out geography, tight. inventory to how sometimes not spending because We're of time Sometimes amount because category. a time It's of our entirely it.

for probably true well. as that's I broadly think them

turnover other things. been time. home second doing inventory, living and increasing between It's particularly a as between hasn't great far market challenging a homes people for that in As their been

in markets that focused place. some seen the on in and in expanding serve, we have haven't market, certain those really the we supply of we grow knowing been We the over are to inventory challenges broadly places. trying just because compression all But

where time, as there's normalizes be we'll an business. opportunity first demand, And over the the see compression we to and are we market market on where there's good that. the we places we content, of lots a know of focused know order So back quality in doing attract as

we're stack every going as be lots making As we're far marketing, tech Are progress want improvements as day. far think as to we And we No. as of we can? Yes. fast yet? every goes on the we Are we where making day.

So coming And I we'll out more to year. list. our We've of we think, common still measure of probably or not be set a normal terms I'm common of coming of of a I'm sure the while tech we'll are that. is stack, months to hope this But it, doing doing the will weeks. going in hopefully, I we're to been set be if level. data, in place it's it. tech take real it out you to said indeed we're take course common again, of it, I are stack. big crisis, throughout to we It's and over think one a be going now and three good converting I some sure how of XX time, brands And not it, back but to - we coming analytics, beginning this one all benefits. at And of think the that reap one out

a continue long were day. and will progress ahead we every we are to We way make of where

but when we're that progress. depends really it So recovery good making comes,

Andrew Boone

so much. you Thank

Peter Kern

Yeah. it. I that's think And

hope stay all you back can I all safe. you we Hopefully, all to thank again, for So get your time. soon. traveling

do, You probably much care. and forward talking look take you we to again, miss it as as so to

Eric Hart

everyone. Thank you,

Operator

Thank you, call. conference today's This concludes presenters.

now may You day. disconnect. great a Have

Expedia (EXPE) 12 Feb 212020 Q4 Earnings call transcript