Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to the Expedia Group Q4 2022 Financial Results Teleconference. My name is Emily, and I'll be the operator for today's call. [Operator Instructions]

For opening remarks, I will turn the call over to Senior Vice President, Corporate Development, Strategy and Investor Relations, Harshit Vaish. Please go ahead.

Harshit Vaish

to XXXX earnings that welcome fourth for and of quarter ended afternoon, Expedia call Group's the Good December XX. be Kern, Julie to our pleased joined call the I'm today CEO, Peter and Whalen. CFO, our on by

The not view X, of management's questions, as obligation any including to following We revise today, do this responses information. discussion, only. your reflects to XXXX undertake February update or

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

I to Investor reconciliation reference You measures on today important in will to find is website stated, for website earnings stock-based non-GAAP Relations expenses information. the visit at you discussed other Unless any compensation. of posted most GAAP otherwise which And to release, consistently encourage our our company's IR excludes comparable the measures ir.expediagroup.com.

with to Peter. call that, the over let And me turn

Peter Kern

transformational past you all one did Thank good And afternoon. today. And initiatives, while of work an in ton a delivering EBITDA. progress was for you, many joining great us thank This on our company's Harshit. We record year important all journey. made and

our quarter. causing through demand and despite winter bookings that cancellations, despite the impact Hurricane from in accelerating was our December journey, in severe the otherwise the in to Ian come for late revenue drove storms yet the step another behind quarter October QX weather. expectations, the and to in up early P&L

disruptions. that good trends seen January we the post come back The booking much stronger in is those news have

a start. is XXXX to off So, great

technology difficult in deliver we were several the travel through best-in-class service these that allowed service really our pleased to over capabilities circumstance. and years investment last And us

must the before, of your around element for deliver when long times said I've work strategy term centered retention every traveler. customers, the valuable many As is of

team work, their hard thanks big over to holidays. our service So the for all especially

I'm showing Now, how across lifetime is improvement of particularly our pleased into high investing as value business. we and in strategy accelerating members retaining launch our XXXX, with

versus the quarter members we users XX%. our year. customers And our importantly, app is new fourth For record XXXX quarterly of number active grew any XXXX than became members, XX% of XXXX, approximately loyalty with XX%. as loyalty active that a entered by And higher over which just increased prior

to our are the these metrics most of us, the strategy. progress gauge important For

loyalty Just compared times an repeat non-members. repeat over period X.X to members times over as the on to gross remind same period. you, the our profit app users XX-month each two business drive our each the gross And business on drive profit

you When member in all, that and combine the the also uses us the two for group app, who loyalty have this production drives fastest of and a customer these cohort growing XXXX. represented highest

important because the have overall as support capabilities in extremely and for brand most strategy. complete in marketing we've and Expedia as This US. US been the better improvements, able But set the where is business, our Expedia where our to fastest our to they're numbers of we business strong those make are, product is even our

yet almost able year, to users. Expedia prior growth plenty deliver US as XX% that versus XXXX XXXX, and And to became Expedia active there's was to almost XXXX, members and more nearly still grew XXX% XX% In loyalty compared in active improvements revenue XX% XXXX entered fourth loyalty of the is clear. over app and XX than come. members evidence with any quarter of by the more US customers new

the required and intentional our term certain discussed we model, some of course, not US in Expedia our at migration, technical when some brands, and Of our work, much the offset short have numbers, like significant friction. look right has all geographies our accelerating did which of where migrations BXC resulted by performance smaller pullback in of you deemphasis been non-core all-up course, largely

very service is of experiences, But you edge customer we about aggressively what is that more I'm you with take to they and rolling true technology, loyalty. out taking a really benefit we use non-US how the Because excited of our program, And proof travel, rewards are a our markets. that clear brands a back. coming other best-in-class cutting our care keep it customers After give to now better begin win. will that's them now forward leap marketplace, great to strategy broader and when working, years drive and and democratizing

marketing support customer will chasing short term as In transactions. that winning you to desirable a be to of strategy, see higher spend maintain when of is term just a customers, will who us marketing attract and term this of mix long the different. rather worth long channels than and parameters Therefore,

We value have of that. and retaining will right increasingly, and clearly the reflect customers, P&L attracting our the proven

number And further XXXX in the business momentum with will app loyalty users year this we loyal of customers. the much highest members to base for see of and We're larger thanks active starting any a year.

migration several and enabled in XXXX. compete to like tech become technology because so what in strategy on lots years. for to brands platform of stack, in underlying us big confidence Work ride on will possible much last created in core our our is ultimately in all places. win Of ability our faster. we on geographies more Expedia And to over expand of begin our the same we to is that of that has This invested our XXXX drag the course, that hotels.com business US have a and only grow the our

have where the optimizing expect run entire product across deployed this, across year grow In of more words, our example freed and get test around are fourfold up sites post our be resources much team a base one As same the many of tests we tests engineers to traffic. OTA our roughly velocity migration we with can larger base. our more core winners and this will and members other

travel continue we to customers in online these more the rapidly our worldwide. level, the journey capabilities product next the done to and the player to new and world as shopping improvements experience improve service the and features technology impact travel consumer. increasingly has to No and around more And in years for of innovate to more take few the travel over further more invest and last

base service as well. emphasize customers, our to in advances only BXB benefit just technology, in product our point, but of direct the partners And and of to benefit customer expanding not our all in continue

our base, market. the business to system of and reinforcing depth BXB of importance of in the of are world and our as largest partner and The one supply Our breadth the expanding products core continues is grow is our the technology travel rapidly. as operating our the

and end, new partners significantly despite still that many we XXXX, added To agents constrained. greatly grew being in

With partners BXB the return the of growth and China anticipate around world, travel business. XXXX robust into year significant of of and new in and we a pipeline our for great out a

we our history, year finish So will was our and most last of year, major growth in overhaul. stack. on we final end, technical profitable exciting the testing coming the year what and brands as the already will been wrap This major our what another we begin new the make up traffic the of migration be last the front front-end come coming has to one will brands all months. on moving in in Vrbo, across, to

world. main many complement It This home will well. last step programs the for time, loyalty And will will partners brands. span new of our loyalty all launch the then renters vacation loyalty will importantly, program, a our our loyalty broadest, And to flexible the which benefits us allow of most first One program. give in the Key it program be as

can be So a are greater in I'm plan going patience. about more that we the extremely last with about expanding I'm hard strategy deliver years work, and drive and and changes. overall, taken will future. that driving a And we tailwinds forward. last the completing of investment It and moving again our where this once what lot we our more strong technical even of the on, boulders we're know financial line But and several and while we big with acceleration proven has we major confident growth headwinds across of gratified year, will the excited

And it Julie. over with that, to me let hand

Julie Whalen

profitable XXXX everyone. hello, results growth. are to long And significant path progress strategic growth are a deliver Peter. year right our on term our And was we on the Thanks, of evidence financial initiatives. that

and particularly to accelerating of first profitability the while brands the transformative billion EBITDA EBITDA success with business, Expedia to from our over enabled US, which of revenue. marketing in And over company total XX%. benefit business same bookings deliver at our and time of initiatives, significant in our lodging The we is at and this our us tech the record driving levels $X.X did margin an lodging record brand

fourth benefited Our on strong at weather these our levels. lodging would October, from events, was demand, have well in heavily storms by as Ian FX quarter in December. bottom impacted record fourth Hurricane Absent the unfortunately US also both headwinds, line quarter been related and but and during the continued as the results top

like-for-like both fourth recorded related this As growth far will performance as basis. earnings and our the quarter, EBITDA calls, regarding to adjusted similar quarter for the revenue discuss details financial a our previous I and metrics on

and GBT non-lodging rates The of the the relationship. our from Amex elements Egencia, like-for-like excludes Chase growth contribution

and EPS on a entered sale Amex business into November reminder, a agreement GBT. X, lodging XXXX, with XX completed the of our As supply we Egencia year

our EBITDA from fourth to performance to by impacted these in XXXX our negatively disclosure basis of negative assessing XXX points important headwinds It points the to to of believe margin. of the basis XXXX business. were and the FX basis our as XXX EBITDA note operational bookings, or to is adjusted basis to impact growth FX XXX points gross compared adjusted rates We and like-for-like are numbers XX helpful also revenue, that headwinds quarter points approximately

of we we XXXX note next quarter Please standard that financial comparisons. move move as like-for-like XXXX, to comparing the our discontinue performance numbers quarter, from towards year-over-year and away first disclosing will levels these

our the back would XX% from versus and this previously of were related like-for-like to a as our on quarter, lost above starting quarter, winter on and XXXX hurricane FX If for with the move the X% storms cancellations were points negative down in a transactions gross XXXX. a quarter during fourth gross booking basis gross US, adjust gross bookings XXX trends. by basis the let's mentioned. reported been and bookings down the we approximately bookings Total have in impacted our Now further the Total spike to impact levels. performance basis

month, By gross were basis X% the on a driven on basis impacted hurricane, bookings X% QX X% the plus which at on were In lodging basis was by winter December, versus reported which in bookings, gross on lodging up a was by Growth plus in record XXXX. November total QX highest by was the US. in a and X% reported October up the storms impacted which up X% and like-for-like

QX through the the accelerated change each lodging Excluding growth high-single quarter. XXXX a our growing we And weather-related XX% for that accelerated saw where further, month reached step events, even XXXX. gross versus January, digits bookings over in versus in

early first meaningfully is While in continuing half and to still XXXX, bookings levels. to XXXX for the including the total continue, it demand to are strong XXXX we XXXX, stays in see pleased expected and lodging of lodging outpace quarter occur

reported related was financial financial a with down includes negative Moving XXX billion the basis events. the P&L, and QX and to metrics as down impact basis total in well the X% a on versus like-for-like $X.X from XXXX, from the FX, impact starting weather point as Revenue basis revenue. X% the on key of

reported would Excluding our have revenue above these levels. factors, XXXX been

XX% higher points our Total shift as also continue to basis for margin business, of mix or benefit XX improved points XXXX margin approximately quarter, has approximately from as up which lodging revenue grown same versus QX period. a to percentage a the the we X,XXX basis total the towards over

as a divestitures ongoing was a basis percentage our efficiencies across $XXX cost for and versus or is our of quarter, XXX reduction revenue of XX% sales driven operations. by the and leverage XXXX, of primarily points Cost customer million support million which $XXX of

systems of implemented over support customer have operations couple the further we past consolidation continue benefit our to onto stack Our continue from we our single costs to no tech and drive of years. forward, various longer able maintenance be with And eliminate platform, cloud and to the we across efficiencies that, a to support. the going licensing should expect are we automation as that initiatives necessary

this XX% our up BXC which Direct was BXB drivers in and increase fourth with The sales both of expense primary was marketing over XXXX quarter versus associated $X.X businesses. and the XXXX. billion, were

BXB fall our in in direct partners. an growth these driving marketing commissions sales accelerating line. increase business And paid commissions and is our Our to our into

spend accelerating spend. and we In return and impact line marketing related our at the marketing business, quarter. increased end the storm fully top our BXC the the our quarter, support we given to their had growth lost of Unfortunately, to cancellations during realize transactions of not did anticipated the the

addition, our investments spend, demand quarter. the mixing closely in longer In the towards term given correlated is we have also return strategically spend, of which, longer been given to less term profile within any marketing

As we deleverage saw this factors, versus QX result of these spend a two XXXX. marketing

this for and total that saw the leverage are our full discounting, we inclusive to leverage versus And maintain in we on year, revenue. going spend improvement of However, BXC forward. contra loyalty XXXX, expect

cost of a a million and of basis leverage versus revenue XX% of percentage reduction $XXX or XXX million, $XXX fourth were expenses XXXX the of XXXX. as quarter in points Overhead

We structure. term and drive on continue the top long general cost continue growth. initiatives, we of as tech our with we we the leverage structure improvement remain can And disciplined line to maintain to stack accelerating deliver growth lower cost this from consolidation believe our expected and

expenses continue will technology strategies and increased accelerate as the of support from various $XX to quarter, product we growth financial that teams our slightly third returns. in our help across term invest long talent approximately top in Overhead initiatives drive million, platform our to

which versus negative the on XXXX was EBITDA or basis, impact Adjusted weather like-for-like for a $XXX quarter events was headwinds. down from X% FX includes million down related the fourth X% and and

we mid-teens grew as basis, our relatively EBITDA these factors, margin to absorbing a line XXXX despite in were compared On impacts. absent And quarter in with these XXXX. negative adjusted the fourth

record from our positive working approximately versus primarily flow cash our technology the XX% Free billion, capital overall on levels $X.X and up billion, as an was as well product was year strength strong our as now on over capital expenditures, driven The for benefit the and EBITDA full $X.X is year transformation. XXXX. lower at by spend focused improved

our sheet, $XXX the or the million the $X.X accelerating $XXX cash levels, the of by with to revolving operate quarter the billion us since and undrawn liquidity we of provides buybacks quarter these combined future levels by us of our to shares. enabled business. million end driven our with billion, share the This of further repurchased authorization to approximately ample quarter. balance $X.X shares shares balance XXXX remaining in existing during to Even at to of with cash capital This which On fourth our million $X.X ended our in billion, X.X ample and access our approximately after liquidity, cash buybacks, of X.X repurchases for with million free maximize flow strong return being strong enter resulted September under unrestricted XX approximately line million shares we XXXX. credit shareholders of

confidence our does reflect remains to and buy performance, the fact not plan ongoing the stock in XXXX. accelerating opportunistically to undervalued given And stock in our and we business, business strong that our our back liquidity, continue our

of all the digit this well double couldn't in position as excited ample working, expanding I about what financial shareholder growth With liquidity profile ability our and ahead term confidence trends the closing, proof combined and more to our deliver as lies and points demand in In XXXX as gives are with strong beyond. that a margin long returns. and business, accelerating XXXX initiatives margins, higher our we enter with us be growth

you. questions. like to with the And call now that, for Thank open would I

Operator

Instructions]. [Operator

question Sachs. Eric Goldman comes Sheridan with first from Our today

Eric Sheridan

if I two, could. Maybe

your we moving the a possible of the stack of about should lift thinking on business transition of in absorbed geographies be to about over, all all there And we be transition? In once through terms have of as from standpoint that that the XXXX, brands be side in are XXXX? costs by that still model your how on we go either mind and some momentum other that should is business keeping technology of to thinking elements

the on you're we're you year, I going know, guide the talk quick can to to And of bit the BXB. seeing in maybe follow-up and full keeping should a business as we BXB obviously, but variables are to growth XXXX? that of or build about little volume one things some you not we the be momentum in mind building that what front think might through business BXB

Peter Kern

I'll at top. the start

end talked we on and times. the is think businesses that In stack terms hotels.com front a year last single I technology an the few about moving example, of a instructive in this stack, sense to

less standalone hcom were the a moving engineers obviously across, it. did we're we improve as working to on all moving because As entity, Hcom

you is and optimize the you've back a stack new And something. moving little typically got and the there all that. an get on were, lose to stack So, new then new momentum benefits then the where you're product beyond get period you to where uplift as the to

place a is that some that in typically, absorb numbers. as move you the if to things friction there you will, have takes So lull and you

did we mentioned. We're the I OTA Hcom, the with between all getting that faster benefit now of brands. So testing as much

for a same move. show Vrbo will is the bit then, Julie other course, that, of this still being to we as able the things. to growth the Key One think But we said, next that and suffer unlocks, one absorb can It we and year. of do things. are little And planning

do it to weather the year's and last to lot unlocks numbers. but weathered a across friction of a on we've of other the have So you in get sort there's side, little

growth when us good behind of very little We we will that. course, weather grow Again, this even a left it's faster. despite to drive think have year. And,

looking we're what really at. that's So,

benefit products of side on improving of And the the across everybody. faster faster, get testing the then, it, other you

You get of of them, older benefit benefit able have etc. deprecate you associated to them, with associated engineers stacks being the And also One the with then that get Key. costs

put all your thing. resources can You on most the valuable

So, two going in and thing this the stack. we've hitters got that's of launching the are end up the lots constantly, other but work things and other left back consolidating cleaning year, big on to big we're the optimization in covers both Those do. there's under in

talked had there, gone us. output And been I help. on think in product our the been there's We we help We've lot lot of of breadth up really, vectors. we've invested across will we the driven good BXB haven't to product, big what's I much hoteliers as some growing in wholesale of front, partnerships. has businesses. past relationships about during That COVID. And that distribution We've optimized then, mentioned. very our as That's the gotten well. be We've agent with that's growing, where a Asia opening many But growth. our the travel said, used will into partnerships, expanded, including growing a our which their China for number we've

power We and a of airlines the like continue lot others. biggest partners, to supply

kind coming of products partner, we to every all the with and partners, in new grow of each sort depth continue more So more dimension, time.

So as AI that those and with continues underlying become technology, to exciting capabilities, partners. to faster valuable innovate And with more be for capabilities more and us. area our an other we

Operator

Horowitz Lee Bank. from comes question next with Our Deutsche

Lee Horowitz

the XXXX and Just plans investment for impacts how that margins. thinking about

areas marketing a cost perhaps fixed you So offset marketing that that stack? cost some some see investments. What one Or efficiency from underlying of you areas via P&L? Key, the efficiency on across growth, obviously see perhaps maybe the investments driving in potentially under that investments those other are incremental hand, of you One unified function bringing incremental have the

Peter Kern

more discounting from cetera. times, be we will And talked and retaining everything many somewhat we spend expect brand, and to direct about as balance We we've our acquiring program, but to customers expect, in loyalty marketing as to think investing things. the investment those loyalty performance we in about et

the can underwrite It shift expect of expanding total between if don't might spend the we So the year. we course cost already will, be to we of the buckets. we believe that, have. that you And over all with up

terms we there, will of when just we be off, all may roll to how expect loyalty explain items, against all that get to in out. another. noise. And it one trading we'll the some them there you So those program absorb in line But

Lee Horowitz

for somewhat with the follow-up, healthy. strong given Obviously, strong into state is growth counterintuitive, what of rates travel if seeing sort the One the the really backdrop? you I industry, consumer and given really January demand for inflation. industry do of underlying macro this the Obviously, could. looks that savings overall demand you're To this maybe owe underlying

Peter Kern

a I seen any been of are prioritizing continue are to [indiscernible] think Planes was very and sure high. it travel we just everything. heard for Demand But is about Rates talk see have maybe I'm are you've it you've while, hopeful. that you traveling, If full. about people over still high. it.

it's think we're demand, enriching the it's So keep do We back the of high beyond revenge like But speaking, things want I to keep We that haven't realizing traveling, seen obviously and their I COVID are that. think to come but demand. there's just more we're people I with job maybe of valuable good capturing to not I Asia really strong. still think a it's fully. life. And relatively doing effect still Like, lives. but travel, seeing want markets my

demand so all And pockets. pleased quite we're We're how see I'm to is starting. XXXX sure worried far, about robust. really with But it. continues we'll be

So, any remain world. year. back there'll Asia luck, through will be soft all over come robust the will this industry And landings with the and

Operator

with Kevin Kopelman from comes Cowen. question next The

Kevin Kopelman

to as on number? that? had have that or growth surpass of that us of understand year-to-date? I you're back to high-single a digit think getting follow-up us seeing you you been we kind better Should help help Could that. Or able about that the think

Peter Kern

was in Julie January XX% bookings. of I lodging, think gross up GBV, pointed out, north as

to of of rest out. small how is a We'll dispersed. far. of but BXB But for coming little business. stronger, us. quarter, plays the pretty by quadrants. plays So the our running so brands. out, ahead much we're rest digits geographically see year the rest driven been base definitely have of APAC high back the single relatively It's that's really It's our all it's a It's year

now, broad. well running were pretty in fourth been right it's the where quarter. it's definitely we So, And ahead of

Julie Whalen

And just digits. single you even to the also to third Yeah. I think we back had quarter, high remember, go when

the guys it's holding talking to the accelerated been all and the we're you noise quarter, So that about, and ex storms we're really been and we've fact in that the fourth that seeing with a step change XXXX, business, sign think well US as that's ahead as some year. as into really we our that strength got for this Bex enter we've a we good

Peter Kern

And I'd add, on bit accelerating the really last Kevin. etc. question and like of spent now. lot doing little heavy the testing, hotels.com, it's I in talked that first fourth up a reduced year further quarter, a some We things on We friction. spooled about lifting having

just valuable in drive to lot. really product It's and But and product day add can it's it ability day So up, increment. a really innovating the the the them back you to really be increment by on and is the pieces. small when

lots conversions improving. things of are improving, So

just that's we've we're just those environment, which along again, little headwinds And to those demand multiply the to more things also, working all a everything are and in hopefully, a But we're marketing think just work I tailwinds with than helping helps. So us of drive good done the faster. else. starting think I effects and

Kevin Kopelman

kind on QX, to trends? related incident? of Can Just you one ADR The slower just was quick on that in that. the number touch follow-up weather

Julie Whalen

strong that strong, anyone I remarks. holding But elevated. have any of Vrbo. our been solely the board. ADRs ADRs pretty pretty Yeah. levels, across seen not We've speak it's weather-related that else ADRs. but still with But of issues little holding bit much out think movement. due was and of in don't are That the it's we've significant. to again, movement incidents. really Slight was coming a us high heard But think in called really for I off

Operator

The with comes Lloyd UBS. from question Walmsley next

Lloyd Walmsley

can. Two, I if

a the guys and then dated of towards on get just and those is sort year, convinced the – think on it feel are of kind and marketing the you kind great. I fruit? boosts marketing, loyalty, with around you're marketing going through this where are compelling for there than leverage you to like the loyalty some gravitate to all-in the show things? to users this that would of like the plan of of a be other bears be the discounting as balanced longer that causal sounds just How the point First incremental see side Anything spend rather And your those there share stats to that, can and users uplift. you heaviest related app and of just coincident kind side,

Julie Whalen

So from discounting loyalty all-up spend actually a our perspective, leveraging are we with side, are on the obviously, marketing leverage and with, revenues. which contra

When you look that, hold at if leveraging to and we it, are year. expect totality on the year, improve we not next

do shifting that of for into spends our more we're we long particular just and started make our think we're now have point on we're I make investments. putting sure a couple can that of to to the wanting Because any quarters quarter, you see where term spend right? movement,

And three that out. benefit quarters two or the could so, make investment today get you and

days our judging And that bucket per so, it's we not about any one XX spends. se, of the total should particular be

it on leveraging year on focused in the So, spend entire across really profile. the we're total

think that's how So, you I think should about it.

seen more leverage. getting We're to in into time see the really of a come all significantly Expedia seeing the it's it pretty we to strong like US and are lifetime that business exciting that that I value this brand fruition. are look think types translate think And I we're shooting getting revenue, it's great when and for again customers that customers, we've at here. high you things

Peter Kern

and we've Lloyd, and would we've to expanded I have add more Xx even those at the of pace question your we've on people And members, able multiple usage. greatly pretty a is rapid been just expand app What more seen, into gave and pool. the trends that about held causal or not. I into – numbers loyalty and as with the loyalty historical X.Xx those even our app for higher bring plans

and app usage starts who's other more a that effectively can we them that once everybody beyond we'll of et not leverage benefits into starts says, them bringing over the and in all the efficiently. just It's right benefits, loyalty, loyal model given Julie we in into customers, to the because becomes, And things. base that, consistently marketing create do base customers the get becoming again, points then more a we pool. cetera, more as have pricing have the And it's at that's to can loyalty we really bigger get the member once loyalty, bigger the trying time, places to And beyond see think that and we and we buy to get So, back. and sticky member. devotee this add can bigger

Operator

The from Bank of next Lynch. Merrill Anthony Post question comes America with

Anthony Post

shape big picture one year. the of Maybe question about the

of XXXX? us of year, a Your over thinking long that think know projects spend of you build term? for base. better that to revenues. is working Can a about a does lot bookings on you customer And think about how I this help when you're said line? marketing percentage you on Are as XX% leverage about you mean that

spring. shape for thinking year, of – in our just there's right of comp Secondly, comes virus How easy kind tough comps bookings know about in the float I of some you the models? the question. a are virus now. Ton

Peter Kern

one, let break is one. about with your it the a way think got little bit. the second first Julie But to up to I'll deal think I to you've

our expanding spend. part BXB are all, marketing commissions we've got business, where of First of

has grows mix, XX% you've some and that growing level. into are higher the movement business our this where faster BXC So been as commissions than got than currently that business,

So, higher. the it's pulling number

start And customers, At use from to direct more the the of time, of marketing we're to this business driving bigger, right, leverage people model. build become direct base funnel people what pie you're of to spending gets new the same you of to somewhat trying leverage as the in get base piece because add you're and to the new the a smaller business. overall

and of members all grows, see app adding new customers gain is retaining we're so, bigger and the pieces top that the as that churn, direct people back. base now big a you into that. will on driving we and start of them, funnel. top on that and is go And to I just loyalty bigger that get that coming where But grows of is lowering That a we're and keep the leverage, base spend focused think bigger to us business of is on how very grows

leverage term where the we which on growth we at and who that better build. base long get that but we So we it, knows from. we is the that's get how And believe will balance profitability,

Can I'm second you Anthony. repeat sorry, the question?

Anthony Post

saw now have months. of industry with couple big into comps a and And the bookings May. virus then We of April in easy you flood first

are models people and you the sure that. Just want to right you think how thinking about about how make

Julie Whalen

is So what for top comps your suggesting? line

Peter Kern

to Comps last year.

Justin Post

And bookings, yeah.

Julie Whalen

not strong. That how gives that started year. Obviously, can is how I to and out Difficulty] on quarter. ahead we us year, how [Technical [Technical But what's committing US bookings get that on our year out plays us the Bex move Difficulty] wouldn't year. comps of levels on lot right now, plus XXXX growth and in greater we in for That of believe the confidence. throughout drive the it as momentum the we a are of these of quarter, double-digit I think the it's the lot really gross gives covers under a but obviously the year-over-year. speaking than still exciting super the We're with we we double-digit year performing the But XX early confidence at us early coming by

Operator

Fargo. question Next from comes Fitzgerald Bryan Wells with

Brian Fitzgerald

your and there opportunity work thoughts you pursue early the in give in those A on on that reopen? they as any guys. and Could relation couple an partnerships how of other questions, us outbound, would how to players update you China market

got velocity was in grow cuts test Xx, of Vrbo couple second the it right. on can if quarters, the over quickly The first that one really I that just

If around in in you test in or had and of inning terms the XX eighth – bow to all in we we're put are a of velocity. testing terms properties, your of amount that the homing then on [indiscernible] inning across ninth

Peter Kern

China first.

dealing now airspace, you've in fly is hard airlift which getting of issues making between course, unique Russian of for on. in challenging trip.com with European we of between lot with some early direct there other this the airlines lot outbound fairly of are there's sure it shopping of then some forth. and there's smaller relationships. a travel Our issues, outbound China and to you'll there's and still and with, rules from But And challenging, hear players, of days, still travel a going out offline have the so issues interest. it's and the relationships then, that got to China, biggest political great relationship tons but with I'm airlift is It's China.

a very itself to interest But high. going it's work while is to So take out. little

things a it's on out. little but uplift, the seeing and be will ways some uplift quiet hopefully, big are are But robust US possible. obviously, to still the we'll We lobby of to exciting, expect lot between get very to of and we a that industry doing more rid various travel to make governments see cooperation continue more a restrictions. Certainly, to is various going down, it

at planned we second piece, Xx The are already velocity.

together. classic has a with bringing OTA sort lot that to do of So brands core the

and same already. So ride brands Hotels, Expedia, then some the the that smaller of rails

And next be across. the product its it testing. will unique similar from will to thing is But own benefit also somewhat of a it a right. come Vrbo in lot

still it's the already Xx a will say back halfway think of would of the that's whole these end So, end the these less or more in will whether and And across OTA. do as on the happen. some of comes company, than of can Xx we're a to as everything, terms will get nothing across capable some and the going because Vrbo When not. we more home aligned, as of Vrbo I benefits, end, what get on coming stack those I things. of across, of core we or than because really to to get effect benefits multi opportunity we the get around go go with a AI the faster. different, winners with they're other some a be test of or lots really of is variables. all single to driven our has now our it And Vrbo it tests have in of used payments that what be environment and knock more lot test But are little aligned, but front It's checkout baked, front

And of equivalent XX the so, tests. one test might be

really up amp considerably. to starting it's So

we because on there's and And platform. we're and lot a things the just gotten one there. moving into butter to upside there's to of shifting that. transitions lot bread of And And haven't all them back of a so that big doing we're focused opportunity during our finally getting

Operator

Jefferies. comes with Colantuoni The from next question John

John Colantuoni

well, them. I brand of and smaller the some about business down you made deemphasize wanted start brands of dragging of and geographies that the the Expedia comment because to sort your sort performing decisions been with to have of intentional overall

overall going so So, curious geographies the an I'm and when there's to if point brands? smaller just material, the Vrbo to mirror improves starts as it become inflection brands that those less be Expedia growth and

your a curious The comes that been unpack the AI. business across second perspective mind, uptick there's to but I'm where ecosystem. trajectory to service the And and biggest the is on obviously well. if could get in how is curious leverage in immediately you about to opportunities question could big as Customer you see travel that alter that one capabilities your conversations AI

Peter Kern

precisely about But obviously one a talked your been talk languages developed probably available we've Likewise, Expedia question was again, second all first, take immediately everything of could in brands. Expedia in is, believe the hours. not with US. we and about your Expedia lot we on all I'll countries. that And – we a not geographies. couple is the all for think has which issue in first yes, I brand

So be and that and out start same be roll playbook now to other places. goodness things, comes stack, going with as we're benefiting each same on from more that with to from more the able tests we hotels.com the able to to

still some Expedia, But BXB that will have we Vrbo still Once same ecosystem on One inclusive Expedia. that the than the they some our as smaller slower different stack, will brands, loyalty Hcom's we of the now and do. past of to Key, things. believe growth whole Now, work programs of business, well. and big those that simplify there's hotels.com, inflect

the back playbook we This not about, good to slowing out slowing strategy like, bad, down as slower the way. as the as driving deploying But keeping And controlled many in geographies, winning clear, you're rigorous but the is and can. to want this places focus places way is into want be growing. the business more to move And down winning in we it the more no and about and keeping in this that on in and we there's then bad. play places,

the about where we can you're brand drive, geography to bit right, certain still have it's and of, slower also this of the overtaking we a strategy same market where whether a success. stuff. slower the big, certain play the or we items good So, it's a growth stuff can we It's a in the some growth believe deploying playbook think out

combination those it's of So a things.

But talking As far sure, use we of it of opportunities, things conversation, up in we're experimenting service, about, learning and in machine serve queries board we we all customer of personalization, kinds already how with you. answering In using in products. for cetera. we're the already and cetera. to amount a all for There's newer We'll in as AI over AI you, goes, of fair the big use we're time, for like there. the some across et sort content of that terms machine communications what customers. consumer creating direct learning et In in terms voice

well mentioned, that. testing. using more test testing our all in we're to we sophisticated tests. as we're So, that algorithms Do multivariable And expedites it I develop multivariable using as as tests,

using we're So it.

capability. you service, is a But properties, with the in care of we broadly that benefit of taking you which I'd natural AI get value about better search voice even ultimately terms already really personalization. how highest can voice say but search you probably new for biggest, will think in get search, of have that how its the capability,

those to it we And opportunities of the how forefront far use at category to are our improve advance in how I become things by use all and the it. big So terms we in customer best can it to experience. of think

Operator

question next Tom from comes The with Champion Sandler. Piper

Tom Champion

hearing it I in was comment this earnings different a the think clarify a I that you year-over-year? bit and restate growth. you the curious, headcount. expectations for just you that also was thinking season. guidance been seems It for can headcount that Can year? comments And How ones like around or us? we've just bookings? double year? Julie. for your quickly about quick digit Is Is are little two restate than Maybe XXXX the of Julie, versus and through

Julie Whalen

From year-over-year. a – top on and said we it's both That's to double-digit guidance and bottom perspective, relevant growth. line,

no I old longer at year We're be move that beginning going se, per metric. to as be, So, mentioned switching year-over-year. year to to next a the to against going we're tracking four to

guidance that that. relevant And so, to is

than probably that yes, other headcount, in what is places. you've heard different Regarding

job, think the what's out is taking did $X of the important years. that cost team to an incredible worth couple here remember I of billion over last

this a spot we're companies different coming other from so, and forth. than at many so And tech

taken we've down a think out And XX% already. so. cost – lot I so, we're point, heads, that some And at of down or

spot. different And so, from a again, coming

obvious and economy about business, everybody tech invest talking for and to support being Obviously, to like reasons. seeing being thoughtful we watching what the growth back really who this we about thoughtful getting line. else. Peter about been completed. really, And We're initiatives just we're invest into, strong but primarily get are investments into. this has We're incredibly tech our we're our back stack over us product in

our do And in and of a that to with we're discipline, limited so, cost structure like strong growth we our maintaining sales to our keeping financial be headcount able levels spot below great growth. feel

Operator

question Anmuth comes JPMorgan from Doug next Chase. with The

Dae Lee

This is Dae I two. for Doug. on Lee have

Or comments, that types that you're strength property deals deals something any seeing? and maybe types? some that that there this accommodation you're the driving revisiting So, or seeing demand might of be particular is across are

growth to from lodging your what's do strong January in driving changed be XQ are going that and you comment, January think obviously sustainable vectors January With how those might forward?

Peter Kern

we difference, poorly doing seeing not when bottom – you is or at dissect not variable well, but every versa. could that find to and think, the sure question, anything, says vice anything doing look is broadly, I'm first I luxury your we're but there's it some

And are generally middle biased are of little a the market. towards end the seeing and more we We upper strength. consistent fairly

been to mentioned, also growth. Obviously, West measured back. back come is seeing nice a against while. APAC, coming I faster, it itself, but back it's longer for the As way But has a had

for is big not us enough APAC our drive overall number. So to

And class type everything. every and a really and class every of is it it's class of large, – within by kind of product. So product of

the there's up board nothing things. really like, So else wow, off we've is seen is making that's everything and luxury driving other for

pretty So we consistent. trade or downs haven't seen been any of products between much movement that. It's or

travel the as terms Julie that I lot getting some while gave times multiply up January, mentioned, mentioned of we've of combination downloads, believe XX we we the in been investing improving. back of And put of for don't for in some getting get product, – time to about, transitions, customers. book take time constantly kinds knew start that's talking in right talked And the we focus hardest focus and on it's improving on getting we've year. these and app because to benefit short getting as all through this marketing we've people always term vectors. on testing, long a a business of machine some we've a term it some work And refined, our a itself would long for of to to been the to a

members, the up stacking So I product. improving time this of think the and users, catching of this benefit is of app base the up of base

time. bunch all which features bunch and a shopping their smart flight to the world launched of tracking have just flight new shopping places tracking out of more to rolled of rolling and comparison those we've and gone, the right. outside the products, out We're engaging great in shopping been rest recently around own very US. of we've and collaborative We all the As a

X. I think now. benefits great in January to up they're seeing we're And stack So those magic There's things. no starting to just

exactly January. So I you can't tell why

a across strong, the of hard ton it's But I of rebound. disruptions the post really entire storms, think seen And robust our we've combination of company. and a demand all work

Operator

Wolfe Mathivanan today with from Research. Our Deepak final question comes

Deepak Mathivanan

Maybe a couple of ones for Julie.

to but on should But of maybe there it. remain lot if we kind Understand and was you put helpful, specificity more that macro January seen can is up uncertainties. can through level So, creates macro a expansion with trends of expect first, the guidance any in year? recovery obviously, margin holds the that, you've a curious what consistent

Also buybacks. the very and kind another us maintaining flow philosophy business cash for capacity? the have financial of given Is in about, plenty of to think you on good question, terms What is of generative maybe is buybacks? a the proxy of XQ velocity

Julie Whalen

record and that to of think, committed and that I it's XXX we're basis to important with remember year margin expanding ending all, are EBITDA levels this On expanding points, we're on expansion, that. first of top margins

where of margins proud really we're are. So, our

said would this think at then want that we give but give last I love target, I to time when – point they the target. a think target, Certainly, you I the even higher that

really driving to the demonstrate efficient on pushing we year with has can starting deriving we're be we're accelerated we and as growth more efficient, our we these towards as we're be marketing profitability get value spend, bode in started think and profitable when So, driving to even able that the to growth. do And all have we're getting and coming should us drive through XXXX, lifetime to stronger that levels customers top EBITDA. QX and seeing we're well that for in the of line to

But you expansion. commit as margin about that's where is can to so, point, going time, update to And we through. over on this at move we're we

committed we're to at our the to stock. best returns of as we We so From maximize and buying seeing still return. use we're Certainly, time. back we stock own a believe our capital is earlier, therefore, buyback buying the shareholder said with this is I perspective, business, best our in that undervalued, it's the believe really momentum stock back believe,

with the going we $XXX as started of opportunistically. of did the million as on that. $XXX we're you basis, earlier, and accelerated back Obviously, top So on fourth continue we an said And million buy to buy that back quarter. in had it mentioned, September. We're end of to sort going we another was approximately that

these levels with elevated go we opportunistically XXXX. as back buying going throughout continuing we're be so, and to And

Peter Kern

I it. think that was

forward all joining to and Appreciate look care. us. So operator. time update. for our Take your thank Thank next you, you

Operator

That concludes today's call.

may You a now day. lines. disconnect your nice Have

Expedia (EXPE) 10 Feb 232022 Q4 Earnings call transcript