EXPE - Earnings call 3 2023 | Expedia Group, Inc.

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Operator

Good day, everyone, and welcome to the Expedia Group Q3 2020 Financial Results Teleconference. My name is Lauren, and I'll be your operator for today's call. [Operator Instructions] I will turn the call over to SVP, Corporate Development Strategy and Investor Relations, Harshit Vaish. Please go ahead.

Harshit Vaish

Good afternoon, and welcome to Expedia Group's Third Quarter 2023 Earnings Call. joined our call CFO, be Peter our to and Kern; Julie pleased on by today's CEO, I'm Whalen.

to of As will a our reference non-GAAP earnings Reconciliations stated, unless included expenses include today comparable measures these any references to release. measures reminder, certain non-GAAP in our are the most commentary exclude otherwise compensation. GAAP And measures. stock-based

based projections as materially also differ do not on by or which to any could XX-K, during are to the this will call, These recent assumptions, statements law, statements responsibility expectations predict. discussed during be undertake Forms events. forward-looking current forward-looking these to call Except are statements and and XX-Q and results with are statements. other risks predictions, required that making to our about filings most due and Actual future We are which we subject uncertainties in other update factors SEC. the difficult

SEC the replay website at and release, Relations with let that, Our a And over Investor call turn to me of can found Peter. our ir.expediagroup.com. earnings filings call be on today's

Peter Kern

Harsh, you, joining us and all and good today. you Thank thank for afternoon,

holding slight EBITDA. broad lodging of modest decline stable and price solid considering to some APAC air also had pronounced quarter the remained car. few effects region, months. with line in third over came and remained Latin and pressure we seen America. revenue Vrbo America up by particularly ADRs. business year-over-year impact stable otherwise a but each large. put on remained have leading demand mix and expectations Europe North in overall disproportionate consistent overall. in in pressure are Hotel demand with and in Conversely, more ADRs are and Prices growth the on a top was ahead the results record with and fires Our in which Travel This gratifying our trends Maui, last our Vrbo

We the on also escalating appeared keeping violence in October. some are on travel impact eye global early which the East, have Middle in a close to

I'm to conclusion More this onto of of relevant share U.S. our happy front-end the Vrbo the with global our the just completed to final new our launch past Monday specific that leg verbal stack migration of performance, our the single we've in app

marks work the This to a our been associated into go but to the transformation. long, well a us has backwards accelerate to migrations without last worth in complex that journey, of as forced effort forward. our with the major the are future of in transformation It order now position drag we multiyear go

feature dramatically providing are base to and in velocity We a learn operate test also to capacity now a scalable and and release our position efficient increase upon. while

of improve aspects We understand our long-term utilize growth. to and experience. AI launch our with our drive continue value to One radically travelers, of ML our all the more profitable can to capabilities faster, now ability key the to we begin of and traveler And industry-leading increasing

strong a business, the for new up We're to our last year. with starting XXX% increasing year-on-year. to China features Demand particular, and growth. launching from partners wallet existing from our to continues up over China, new share Partners with support and pick in QX products with bookings year on with Moving pillars on performance, revenue remains key versus category-leading our BXB which XX% QX growing of deals, track winning

payments. business, core whether the our forward, push along continuing in We market the service continued the platform of or AI BXB bring improvements strength addressable that the advantages from driven and BXB technology, will to by into anticipate in application going machine with our learning and

for enhance this our the on capabilities stacks, further partners. unify we BXB As offer will also

revenue BXC business growth pleased our in business, to all with year-over-year BXB as of I'm what working points is over see up am even for we've so growth happier hard accelerating continued sequentially. been as us. I QX, XXX our basis But momentum the This with picking

these it's see gratifying So very to results to beginning improve.

loyalty Another brands, major in Vrbo, milestone our for expediahotels.com us unifies new across XQ, key program. our and cash vast July members marketplace. and one major our our currency, key One U.S. the was allowing burn launch to of earn one simple

had As members. I've the which said, given dividends mentioned before, this happy with are One travel. from frequency a some early That like and program take traction the we with consumers very getting time with key our will results most

members seen already new And the have members million Vrbo XX mix, last growth over addition migrated with XX% have to year. program. We the the we over in of to

on many impacted cash have unduly and cash One seen already pleased have key been have have One members Vrbo key that using on using shop been not for already Expedia. products been including We and members across other brands, to Hotels.com

was complete, our marketing our app points these users the business in year-over-year we into our lean launch for attract Overall, app we that the higher can key One approximately of And generally our third ultimately fully next as promising more lifetime us with loyalty value key and rental leverage members. learnings members, XXX which ongoing in will bookings solid of migration One Vrbo now XQ, BXC customers, to have the basis efforts to to core grow year. mix through more space. the the third gives other results that useful in be is And with contributed continues given the along apps up accelerating Vrbo quarter. differentiation our sequentially and in quarter, countries vacation coming percentage

a and products squarely traveler problems from more and our We new have few the friction been fall the release highlights. complex exciting engagement. features missed and it, case enhancing give releasing also series you of aimed at we In that products In features of showcasing announced solving and planning I'll and a you September, booking process. remove more

see one travel group but significantly activities, options utilize lodging, friends another to to a rentals the creating family planning trip reach. time more the and a not selections first network expand saved the for air everyone. consumer's simplified for car better, family place and own a Products have group on add us We collaborate and process and these planning, group trip like allow one to to providing successful and of across consumer our friends only enhance using experience, for

location. to and We research traveler scrape to research the reviews launched levels into given tools traveler times generative the where one amenities to prices, also AI-powered given stay, details. also about property crowd generative answer stay now AI their neighborhoods We've Hotel and leverage even destination. aid in and determine to place dream visit, to to a weather, tools when best to to best questions

sorting to whether out the find the you're strong reviews WiFi hundreds like is, quality no through to how of breakfast. of going more the So pool or

the kind, takeaway shape out which of literally for with in faster EG leading I space platform And AI-powered so with capabilities one allows important behind launched innovate the interested the how and beta test allowing no is travel. many to them to in and our AI, and travel us also of our to than could in first go machine customers future We hand its much we is work play we will products, innovating but come. the years on, and Labs, project on a us. learning

not is many given go sets our believe technologically, opportunities for offense on markets in worked which to better is exciting up this but years existing and only in spot I to get short-term many year. back a place, business up and us literally for have anyone We don't more to next

XXXX In far. and see QX our pleased through closing, I'm so to solid in execution

in of our growth going we rates, vacation distorts global While key migration mix differentiator the share grown the to all and Vrbo virtually or completing Key, markets held have we with rental booking business share of expect gross and key geographic finally that our we One improve forward. of believe its hotel

addition, and where plans are our In faster drive growth. to for more expect we profitable finalizing we 'XX,

not travelers, what with and excited own be is hand marketplace change, program, let bring our growth, focused to spending going on we innovation to But partners and business, will most year and for best And Our the loyalty shareholders. XXXX on I'm it beyond and high-level doing will that, efficiency. best to best surgery of best product, we instead and Julie. service. our of strategy over for me

Julie Whalen

Peter, Thanks, hello, and everyone.

both billion meaningful expectations. third EBITDA business $X.X acceleration a of growth XXX in approximately quarter billion accelerating basis and reflect further beat a accelerating versus to margin, X% at of year out. clear confident the is growth and expansion. why record continue double-digit with last with an points basis margin and earnings level, quarter with almost buying quarter. to is our back second XXX initiatives the a which we new revenue XX% with announced share reaching the even of year-over-year our growth $X year, an our top repurchase results have continued It full we points Our this and expansion from and guidance transformation have sequentially are stock reiterate to over This fourth to authorization strategy playing into accelerated are momentum anticipate line

of quarter. the acceleration in up to X% bookings sequential gross billion been record. XX%. even on at verbal a highest business have for hotel higher pace acceleration business Total bookings year, on $XX.X results Now And last given last third X% our a our the at would higher, were from for were and versus much but gross grew this quarter. Overall, quarter grew growth lodging our

from from and have in saw strength migration recent particularly our fires our all BXC Maui more year. well was areas. this our front-end to impact, seeing the we the business And softness stack the consistent primarily Our with short-term hotel. quarter, single continued urban continued demand Vrbo saw from second business what strength BXB we as impacted and brand's continued Despite by business towards shift been the outperformance the as accelerate

the primarily and in year. by lodging, $X.X of XX%, was the Moving Revenue hotel our to which growth grew X% by P&L, financial driven on the driven grew total key was with of highest billion performance record continued the Revenue business. starting versus metrics revenue. last

BXC some growth we in comp pandemic. which, car of our basis continue year-over-year we we businesses, have and discussed also sequentially we have accelerate quarter, points for Both become was This the to as to quarter. the expect been by car in insurance trajectory second rest by the declines revenue a softness growth quarter, the saw offset impacted quarter. this these our been as last changes that and year We industry-wide partially insurance post to over start fourth versus the seeing have growth of XXX drag to less and

margins. last last the XX%, lower margin with key by eliminate to year continued benefits quarter, all efficiencies of approximately by driven approximately systems revenue by XXXX, is which drive efficiencies versus while comp higher we of million percentage points continue primarily we some have And revenue ongoing XX the licenses expect will seen to and by increased a higher costs redundant of we have and as lodging driven we the XXX sales Cost third or of leverage reduce for than XXXX, as basis start such the million versus Total as to in basis which revenue, year, areas cloud, quarter of $XXX year. to $XX was mix points these maintenance. during

Direct they quarter a marketing commissions are a marketing in third XX%. the in paid on due strong than was partners more and are sales a was our are agreed-upon increase Again, the sales more the versus an revenue $X.X our percentage and quarter our as of third and guaranteed and are of expensive billion, BXB overall to contractually support and percentage, commissions growth as BXB business to expense returns of in which basis business. to BXC immediate. generally stated paid line our But XXXX direct in to up revenue XX%

continue loyalty year leverage of and and this more members, our gross X% business last marketing benefits in BXC with quarter app this we members or efficiencies loyalty revenue that as the investments higher traffic million, to resulted increase versus of BXC line These are again we continued and trend $XX a result positive efficient. seeing $XXX expect Our in growth. bookings. from saw percentage marketing incremental as from app and direct higher million is an and Overhead repeat in were expenses

our have investment we is expect and talent in cost to efficiencies technology forward. across support increase as realize we XXXX, year, initiatives. in As to systems redeploy work our deprecate said, and a result And our look going we to this resources product finish of this and year-over-year teams strategic technology our

expenses with year-over-year. with basis record strong we revenue than over points expense this $X.X lower EBITDA With performance XXX control, of revenue, and of billion, an was margin almost overall which up growing EBITDA expanding XX%, delivered XX%

increases Similar business year-to-date. we to at Our pandemic, levels remains this with and quarter, cash bookings normalized $X.X EBITDA changes last merchant expect robust pleased within year-over-year ongoing has the from free capital. the We with year, is since saw in balances, our strong working levels, record remain them remain as to deferred emerged our from strong decline year. meaningful associated Last flow which primarily we the going billion year-over-year timing cash flow forward.

our From capital perspective, billion at at ratio X.X%. only remains level leverage debt billion, the with down quarter expanding a balance with debt to sheet, the unrestricted cost us balance operate gross revolving of $X.X liquidity credit undrawn our of driven approximately billion with $X.X On our come cash the average we $X.X has of our of plenty with And X.Xx. EBITDA, ended and which strong business. to an $X.X billion, of cash provides by line of our

have gross quarters expect some to progress in Xx we make repayment. early further to a target debt our potentially ratio EBITDA growth progress and the coming As result, towards of make continued and leverage through

From perspective, buying allocation a stock record at we capital levels. have back our been

that to cash stock flow use long-term is of performance We the maximize price continue best business. we and capital accelerated believe our returns. our and free remains does to our our not shareholder basis given levels, our undervalued liquidity buying reflect strong the believe of expected And back on an stock

dilution, million lowest or date, result, in to since of As our count forward. COVID confidence and billion buying XXXX. back a stock share as a well level maximizing share our us in $X.X bought announced we our continue the to long-term power our approximately we authorization, outlook company our getting as not expect fact, for new to billion largest given back our repurchase of only approximately our year-to-date our era going XX offsetting cash-generating repurchases And our shares, we the of business, to commitment and opportunistically returns have $X shareholders, but

the our So the in momentum in continued closing, delivering we are pleased quarter. to ever business, see best

transformation been have a we said upon amid able do we corresponding to uncertainty. and We of going period what deliver to were significant

ahead, Looking year top with our of we margin outlook are line double-digit expansion. reiterating full growth

third EBITDA geopolitical expect for relatively potential levels, gross we acceleration modest be the sequential versus in line based and impact with growth fourth on its third revenue on growth As quarter, with in the environment bookings quarter travel, uncertain to and the quarter. year-over-year

huge you the And would that year and to execution XXXX. right confidence results that maximize there quarter shareholder returns. give to We of in for for look and front growth forward the plans long-term open on our that, Overall, opportunity I this Thank you. now to to us path next and call questions. with we are us a profitable updating is on like our the drive

Operator

comes first from Eric Sheridan Goldman [Operator question from Instructions] Sachs. Our

Eric Sheridan

if two, can. Maybe I

guardrails key liquidity the variable as be to how and the respect of In how into thinking years out with And free billion deeper terms about for XXXX. annualized around should Vrbo tied elements new that either might about into look we or that One and buyback of cash growth how migration, post-migration against $X brand on flow we a the deploy ahead. be will in growth and targets XXXX aligned beyond you authorization, any assimilant

Peter Kern

Eric. I'll buybacks. Thanks, the let and first the maybe Julie question one take on answer

their all I even -- and As far obviously, finished even the people haven't as said, not apps updated as Vrbo migration, literally it's we app goes, just yet.

little across, will So but weeks. to for we're think take it's a fully then there. it from us a about time I talking build And be

right? negative across, have stacks come optimize a the that through was us for It remember improve the negative to actually conversion then them. switch migration was and going process, You the to

on across previously. where and working process So and past part were improvement the we inflecting the now we're having of everything in

were using in will It's believe here. So One greatly improve have one, We key many our cash future, in other drag across had in XQ on there all and Expedia their this we of for past the migrating. or members year, the the products. HCOM, product in won't drive number And differentiator things many are option during It to obviously, space. of on we from of different are Vrbo the allows believe, drags VR we've a platform a to the then key. have the which humans of growth VR instead more we conversion while

I more vacation mentioned there's We on a that other moving. the So last number Vrbo. as to that actually -- we out into our live OTA a brands proposition be make Vrbo lot there's way competition. a pull things we call, incorporate multiunit to have way much the better think its doing. will we decidedly And programs. don't will customers of it's I a It's are on a value of Vrbo more work rental in yet our to than

think of so One growth across but excited I again there's had get parts now. that take to fully waiting we of push So opportunities. so start open We inventory to that could key growth that the on then to plan to and things migration in and pieces move Vrbo, been many our advantage could work the really we've optimizing, finish we're this we other these some up this other

good we a this year about it. tough the Obviously, do a Vrbo's in but how lot for we of coming with of years what migration, can feel positioned. was optimism So

Julie Whalen

buybacks. to excess then the time, company a where got cash. also and we then how of don't as we've as levels and what then pivots to are we make same And make as is, our the say year. obviously se $X we is valuation flow have buyback the what outlook But long-term decision call the and at set per in far our the billion where free a look stock speaking, that price generally although would believe our guardrails, any authorization, cash I much is to

even wanted be aggressive if what per we on year, that more do se, so to the for free cash is well. could flow plan we And as the

we it flexibility is And a answer short back but to lot depends, buy of there. intend the we So our stock have really and opportunistically.

Operator

you. Thank

next Lee Deutsche comes Our Bank. from from Horowitz question

Lee Horowitz

year out about Peter, headwinds fourth I you XXXX that the you growth you geopolitical line the some highlighted which more in into travel a driving the as industry. you're incremental the of others confidence concerns. macro perhaps presumably concerns guys business yet, more outlook given in profitable as what well the some quarter on bit your talked accelerated geopolitical going some faster next cautious top gives guess sort underwrite despite building and for market reacceleration,

Peter Kern

referred as Yes. opining movement Thanks, likelihood appear to, some from be Middle some there all I'm in was potentially short-term -- in that leader 'XX. be an the our sakes, not what October to to hope That Lee. not geopolitical as thing, we Look, a but was of we're noise. seeing East. going now, world early the there for on was appeared doesn't I acceleration on in what but ongoing certainly

But mindful volatility like are to like when was the days potential Vrbo it frankly, get would ambitious ago. I beginning because, we and benefit say even quarter, So the excited the of the being past more like just barely we're is from more fourth I that. migration talk about X

of in quarter. fourth So fourth we're the quarter, the middle

lot this early snowball big than next across and turn, lot everything -- what still XQ and it's X out faster. in you faster we're in it's It's days, going we you is like of So pushing that take and turn forth. getting and take year. we're starting so across still a to the a relatively but to that if for being just And now next harder is have ambition weeks, that a

about us. on to there. have it we where our to it easier opportunity ambition Obviously, relative been, much competition, make we're we could or better place. just So in be and be that to drive of harder next things all think year. But there more a to own macro going ability our we've our own relative

as to world It's journey. and everyone think go just in be all come down we're away not piece. going we It's gives better spot will think that the is we're that further materially a along that wars this will and So what all ambition. us have will we

Lee Horowitz

then Got it. And follow-up maybe on that. one

sort tech about sort next timing perhaps you, talked all of markets into are you put there? when migration leading work relates any of to have the you as broader may guys of there about You now some behind with I gating to into the dollars Or global sort think the of XXXX? of ambitions international factors it investment should some of how phasing year. those guess just that we

Peter Kern

Yes.

technologically, to there a of I we One we've rolled -- gating the I U.S. haven't only think items. lot mentioned key aren't that

to that getting come come countries. rolling key lift. out. But energy strategy. with more technical that One gating that in not again, there the it's It's So in is a certain part some into will but will has a It issue, along be just work leaning places not as will -- and launched roll of big something to happen other we

got lifetime you've know, the market into how get mentioned have. But believe the a believe customers, than have We that. ever the customers, we're now. we countries. want, customers, these understanding we importantly, value a like which balance. compete the we right say more find And equipped we we better product. how to things customers tools highest we believe I back we We winning to as all We I'd have better it's of

it where valuable world. So orderly We're markets most about we're selectively not it's just after rest we we're to process. to But in in the doing We're and in at of go carpet world. -- us excited go most we're the just the to bond chipping right the to an just to on away the back going win, keep to really have going it. going offense

Operator

comes question Kevin. from Our from Kopelman Cowen. next Kevin

Unknown Analyst

in Jacob Kevin. is for This

color point the levers expect we that you cost to regional at tech are And performance if ratio provide wondering quarter-to-date? what market from can see you also, look on So . the as

Peter Kern

Yes.

stab a Sorry, I'll you broke it. but up a at take bit, little

have of and a as rebound basically, different me, have excuse for been their of everybody. regions regional, terms I Latin in think EMEA mentioned, exposed is are America APAC and rebound where saw America, less -- less faster-growing in exposed it but I business, function been post-COVID. Europe. somewhat more state. same in the terms the America APAC obviously, a we've and to than consistent and to it's on what more stable. They've our earlier the We've Europe business been North seen North seen are markets is APAC kind to, is, of of our

So there's the referred there. even pretty seeing small and is globe, much share. what to we've differences where what But I seen been to able is relatively we've around in have share we're markets hold we or grow

those we're to Again, pie aggression arms tied done into of we we make could -- back. and the eating increasingly, us with what of behind better the and different more as all And trying different had. four better and remember, and levers competitive, for we have our product more we more go levers believe, will and markets, forward. but that basically we with we have do this We're we've

but had go I et while, As efficiencies far for faster across undertaken we've gets migrations, saying we've the huge to cetera. think Everything tasks been transformation, do these the get we've these as this a and easier. that

it of do, we grow and We which longer opportunities, amount the tech. to whether or opportunity to stop. of cloud, and more in quite referred output this grow no base work a now particularly or maintenance be of to Julie in our choose energy We've as either to it in think order bit in our need opportunities to licensing other business that other in time there's with of same grow So overhead for to our product much faster. grown now -- as

talking as lines and So become those that's efficient, we're diverge, what more we about.

Operator

B. from Securities. Khan question . Riley next Naved Our from comes

Naved Khan

A questions couple here. of

or of the longer the on on the But the consumer, was the earlier So and anything just has or results? remaining. and signs Any I migration, just can sign that week piece website Vrbo think down maybe share Peter, migration weakening there? the seeing in be taking consumer last how I the or been anything that so. in was on how trading was talked then you you app done any And website on about completed had And book the one might think, just that? early that, you are to yielding

Peter Kern

Sure.

get subregion So money the have cash of we part before, bottom really certain we line. really sub it gold silver looking. for the who properties We gotten keep using people of in customers the take and or and have key One lot of cut you'd are higher consumer customers room to to anecdotally, hard where typically they to price as that some anything by seen as point cetera, members and et introduced at the question, cases, didn't key, obvious it One better discounts a haven't have a to noticeable on there's seen anything our and part it and try -- to type first opposed side. look to But we've it Interestingly really and definitely to your things nothing that squint by see

money. rather for actually they're mind in more had using So available than just the they the capital saving

shift that's just on. again, does So there any not be to appear major anecdote, going an but

historically be upper have seen of parts to habit. mid the market. lowest and broad still opposed as in market any end have our the in consumer moving we not that, And and of change we strongest the course, slightly, Of again, the but may

first mentioned, the goes, across and will OTA now there. winners successful the the on many our had rolled Expedia second won of go out have lot of of benefit going we moving As part Hotels.com, and getting far I it. backwards a now as is as from of it that benefit brands the that things was Vrbo consolidating to was your forwards, question website

testing things so of the OTA getting won have store brands, the in So historically other in that the and search middle maps and best-in-class on of the we're all things forth. and

in have we're terms in to conversion, zones. rise past where app to catching of on that still up, versus we are I'd going better, on pre so appeared terms in it's less and journey. faster. of expect I'd website, the going we behind of has but still we're and see forward hopes So done backwards migration are say were -- and we'll the say that we more post the And inflect and our less far

up but we back migrate. going did from as take bit directionally we're So a of here, step a have to we little

Operator

Kelly comes question Oppenheimer. from Jed next Our from

Jed Kelly

Two, some growing just now the and view three think -- do marketing One going that of you key versus get talk just you to Great. can efficiencies plan I complete, EBITDA you use you'll if brands. how brand in margin? able EBITDA about And you may, highlight now being around is your then tech dollars the migration

Peter Kern

I'll and spend to to universe, take to how then of would place Jed them continue what of brand have best we us to us And lot bring we is about spend of the money launch I customers in our people more terms Expedia learn HCOM now take them business ability customer One say would a direct optimize the of brands we to the And around and brands that a in on most shop everything bring brands and grow just already to with needs and the is begin in. a will efficiency seen way verbal, brands, their on customer products. have that a currency or the ability customer optimize our stay group base part thanks, in market whether those marketing sort it's needs to I our all universe the keep get performance use because in the journey an to get of and that a to there, of the opportunity standpoint, key flight bring best and a big across. whether of other of who But to that we're or from car -- first more maybe say cross to spend to you've customers use -- together. to each second. get drive that a a excited marketing to and that that Julie can an gives who it's our

after not more as getting have after, for direct much value acquisition. more have, we're to customer we latitude as know, it we all base. about performance marketing, optimize then that want smarter or who And go we we the and we lifetime how how we customer we new driving into drives business smarter the again, of and margin the and them invest As go the

that's think about we it. how I So think

going bolts membership on. of from in a the have a and other on brands start goes One to I didn't of But in about pool that big Vrbo. think opportunity, before turn lot products can I terms best One we across and they out like but we're as members, In membership promote that a group new basically, journey we bunch and we're where more the best took to they into to still time the of a to see excited members couldn't nuts big practical with The as mentioned have different it. there, new the get I a them the present think get way benefit learning you're about way all And figured of brands promote the together. work of brands key key, the

that's us. exciting So to what's

we've direct we're more and what we acquire think time capital for to any of efficient that. pricing to And those customers, goal one the things business. dollars pool I trade -- as happy going business spend of look to we as us to you're discounting And on Our do way for best to off and overall through more see that's way before, and focused over really said kind more. to loyalty, the the do, much so retain drive for and most all that's at is marketing, drive that's

Julie Whalen

answer obviously margin We to have EBITDA to we and I drive have we tech to need dollar growth strong is both. as think short want on the migration to want post expect the have past. as invest expansion. we in going EBITDA question much not the And We're to

incremental get As Peter in, past. that We all protect the the and all be costs earlier, complete. migration out starting should getting getting machine just goodness investing associated of the more redeploying been now from efficiencies leverage with systems, that said more we've by deprecating output, is resources, to of more in cutting here the

Now said. we on we the to also offensive wanting as are be

But offense year this the driving need flexibility. as for of invest, we're a both, committed in and situations. So that may is not to we want certain margin maybe most EBITDA we think and that there in but so EBITDA to still growth times much part, areas we have be to

Operator

Jefferies. next Our John question Colantuoni from comes from

Unknown Analyst

This for John. is on Chris

impacts far been vacation seen have figures, there Vrbo So some the from in you have demand nights how Could growth changes onetime for to in questions any trajectory around elaborate customer of tech kind the recent accommodation of industry like alternative rentals? and preference beyond things Maui the migration trends across the on as you broadly.

Peter Kern

Chris. Thanks, Yes.

are for that, think In we of demand house how as for little there. own more kind We mortgage pressure we're and struggle own lots think definitely as progressing, there, experience We things friends bit terms opportunity when urban, of lots they kind growth. everyone in competition. homeowners way, a the you us, in to for many their there's that differently in think COVID reset this runway . be whatever. came shared a -- supply and off. a cetera. on our the in and rent play good on little et seeing we business, other opportunity in knitting spaces, for and our we opposed supply will opportunity is There's boom trying are space there's do think with was than sticking coming era there saw areas, year more are situated once and I much whole shared stable, and things. be supply accommodations. are a the there's their as We and we But past whole probably we saw to of huge that for the across but of of building apartment rates parts But of of in urban our us, other of pretty home to

time plenty So different places areas. of opportunity in compressed in time periods we and banded see compressed still

back. who space, about speak political, things, the back the with accommodation areas macro on our bit focused. we going I knows. can't growth expect spaces the And been whole to been of and hand again, we've We've other offense. a playing good that's for behind geo shared home feel in I where there bar and think we're So not the playing, But be little this is other we one

Operator

from Our comes Bank from Post next America. Anthony? question of Anthony

Justin Post

With bookings positions growing that off X% think this of quarter and top you're You maybe growth this suggesting how line you for you year? similar next growth next accelerating year. mentioned quarter, do

been that of say, you about that second, in but then know the and getting, been And lot anything Are effort metrics, implications. So growth to the marketing. customer I than ad app return rate users repeat the you there's already I apologize metrics and few rates thinking show on or in using increase ago. bookings customer a years maybe just versus search better anything were if better it's asked, a spend seeing

Julie Whalen

first mean both I'll take that I far those gave, shorter-term I of as subsequent think quarter the the and guidance QX past things some this have one. as bookings, we the that occurred. are indicative

could expected environment. what gross uncertainty fires the our unfortunately impact with were down bookings we be an by thoughtful and potentially lower that So being in impacted as of in we Maui the associated in guidance brought than QX the geopolitical mentioned, had we we're QX,

the out for So we'll plays that quarter. see how

and mentioned the the of completed an this XXXX. but out the we top early as and the gross and momentum to the launch other going that incrementally members that in each of point, should the of the at that And goodness underlying indication business migration we and the from the all necessarily drive what's have loyalty things app of health that kind for growing up. all year that's adding provided doesn't of that and the quarter, So of tech through noise coming all very One in coming we've seen all in and Peter little bookings key we have base of happen on roll

Peter Kern

switch they of just part. go flip Xx, over take change that like I the faster, But I you but it and each of I'll out I'll period need goes you wish all and you're lots tools but And on could is other add, over growing build a this everything the to of migration is it's we a second tell with when time.

the is gate. gate going first not our XXnd week like our out So week be of out the of to

built our building macro. the we And on what the line so some and other on geopolitics landing, see underlying is there's is where but it or from noise trend year we'll the can to something numbers this -- next for things, what blocks, is is what the alluded today in the enthusiasm where up as ends not bring

So that's comes enthusiasm from. our where

surprising we money yes, have the lean heavily customers direct remarketing may our highest a members, particular, into It CLV come us app saves has absolutely. I understanding that was them. app. -- have Obviously, was the highest that's the the about, it highest reason is for case. As you're asking they not metrics that the mean return to so in producing more, be the which propensity that knowing and et rates, cetera,

that those make elements better there's lots of So members for us.

product. more reasons. as We both all into of in those marketing cohorts they app And that and much in a cetera. for the have perform as still more customers the better invested et move well much, acquiring not who's to doing guest better through them and directly more than those people pushed perform we seeing a even the app, or member we're still as still

those pushing up. So statistics have keep We held it.

in to coming are most keep us fastest. we and in going of product, innovation be to coming see it. you You're first pushing see terms at terms of where going the

loyalty is people that enjoy apps customers product, the they people foremost experience I the talked and best innovation app, all program. So getting working our happening first state into the and product so our best between about of into our in in it. we as get our more we making and are of we like and more leaned app our into of making course, sure hopefully, benefits fully then,

of why to that's, The pushing the benefit, keep So and we We've that's all hold yes, seen up. it. numbers that.

Operator

Our Champion next question Sandler. comes from Piper Tom from

Thomas Champion

strong. quite you. It Peter, sounded it out BXB for growth side. then, seeing wondering talk a could China. Maybe was on you the you're And I was Julie, if bit of question the little about

Going appropriate? new? the is as at in size existing the the being of How eye-popping. what's the to And including the that total you plan plus today, buyback, did back kind of arrive amount

Peter Kern

place Yes. our the I China, off know, anymore. business, really as basis in BXB a we a the compete a first. on is none have you and Yes. tough I'll mean nice companies BXC Western do to business knock China. of

So that have benefit. don't we

remind it's There But story, I'll On still flights China the out the is BXB massive pre-Covid is some and week well a nice were levels. of pickup. you still the between a side, a not but good recent of that we're below which story. U.S., seeing in China airlift announcements last

and of substantially less west. -- again, so you have the snap And up, China XXXX to your nice hopefully, levels, finger improve but not to to -- going visa it's be relations for most more tailwind issues other into a airlift opens back in there's things. as going and it's it's still going China of not but time think out be So -- a travel I to be it's a and long

BXB we and the business, progress off-line there's pickup seeing of players of we're some online. some And local agents travel travel. So in power a there. our definitely good

Some is intra-Asia. of that

getting will obviously, China take a even the Some a but back China, business, business BXB our intra up, nice travel mainly gotten tailwind, that piece to for big lot we is international pick that is proved to a levels, But for some tailwinds. haven't time. of it's which which at there is has real yet, and really

for So one another it's just us.

Julie Whalen

back buyback, that. Xx a how And much it's $X over bought if year-to-date, mean, we've as far as you little the I look what, billion at just

growing meant having know comfortable with we with this is multiyear, be fact free we're the to that this very a level cash and flow. definitely but So be we feel to going

was thought this right to out so go And the with. we amount

so not will, making but not we're if also far out. annual So it an doing review, you

was it thought we So healthy good a balance.

very left what's very, as far As today, very, the plan in there's little.

really this launch. and is the new So existing that sort of .

Operator

comes from Wolfe Research. question Mathivanan Deepak next Our from

Zachary Morrissey

the given ask launch? Deepak. consumer in incentives to from has on been Hotels.com, . for This is about behavior wanted performing just like Zach XQ the I how change

Peter Kern

Yes. Thanks, Jack.

were actually, Obviously, As I behavior expected have the of few, generally we've been had some we there their we anticipated. number continue customer we than to and people right has in and Harley, make with of the behavior customers to by ways less less our buying that unhappiness and general, for consistent and -- and frankly dislocation mentioned a seen in prepared it's a better we my that's do. large. But been seen with going were been we being comments, than we've upset but prior considerably some base behaviors

cash help use some member platinum into buy we've Expedia even again, There some moving see of had to, and that and alluded key state to things. with One really And key a One ton we're benefits our exceptions, starting with to other with as their or being that. we I of them programs customers think we're most to are that valued there. But a come gold good on

beginnings flexible. we quite ferment, may are which that idea be to this not trying So much of as the rich, it what more is while it's it's

program. to it the more of benefit you more the different added discounts and use and as flexible. added You way just many get can just for other with improved can the program, and out slightly benefits way now we've things member built much

what hoped good trending. had we general, it we pleased. say better we were pretty over-under, about and it and was how if So I'd it's we definitely way, that remains in feel took than the knock

Operator

from Richard Richard? comes Our Clarke next Bernstein. from question

Richard Clarke

BXB future Just What your current you your of double-digit one, growth thinking revenues visibility level. and the the keep do first to growing delivering that in level within upside or of growth? have deals and deals beyond ability into the about to keep XXXX

Peter Kern

feel the BXB say our I'd continued about Yes. we growth quite good of business.

year. we're our next I for finalizing mentioned, As plans still

And first continue like in of second doesn't to year adding based One, But So on not the a partners. a committing sales, confident perform growth, number and partner, constantly mature BXB we year performance. we new that into new to any can feel same-store numbers are terms or grow anything. reasons. of like double-digit partner business so people

that. got runway of we've So a

make new it's designed We've our sell partners APIs our in We got number on to whether into partners, our continue have more expectation even works the products for on and we platform. our together. offline choose travel put pieces agents, of to an new price, how they marketplace, our what of a technology best how best can can it's appealing, the whether initiatives how the they flexibility or

that build kind what that all in a strong are have all business. we to that -- visibility of into number think of is we continued So good growth up initiatives built

Richard Clarke

a And I earlier. just question if can one asked ask follow-up to someone maybe

One the to cost of could what's there? the I been Just of you've quantify you've to fulfill around level maybe growth some seen key out? include guess you on what's there's you launch, the rolling the been questions decent had to that revenue contra And

Peter Kern

Well, that evenly would would rolling more say across Yes. our in allocated cost. would base customers out, principle, programs, I the loyalty to idea was it were of the that be collective differently our among we additive customers. our not spread when between and it It the be benefits net

zero-sum contra So kind game revenue. expected you a expended in dollars terms can think of as of of total it in

as other. member benefits, other more other discounts, were built I platinum there things into and level Now our mentioned,

bring more Hotels.com that still made just space. in We the alluded to a across it have roughly as whole in a designed incurring are we've we the all that it's expended. I And cost of ish a program. et the similar basically But of be customers, continue help numbers. other contra all the cetera. terms I as transition overall added the pieces kind other similar in some business. see all, along we just some have in margin you kind come there think exercise. to, on. as good of get as revenue we back on side what than the now mentioned, And cost to of a cost value -- terms to zero-sum of held lot of are I what some revenue our that go better outside But engaged benefit So of thought to been a we've in game. some or to a work long you time of think people which the we it side, against it. to takes through way something the That's growth And But was

us the on of positive in really more net we margin any terms the us than expending think really revenue were and before. shouldn't side growth think we So of shouldn't it as cost -- cost

Operator

comes from from ISI. Mark Evercore Our next Mahaney question

Mark Stephen Mahaney

what maybe The website, about you'd I on time, of the feature future think, that with that too, quite future.? had is out GPT, get and you've the app can getting some just like traction on of the in what for Chat that you to talk kind

Peter Kern

I well, first launch to We've it. learning so a conferences say lot were Mark. would learned sure, with few customers at we've -- all, a gone. We've first how as about to it. of help talked engage been Yes, the we we've

questions, into people discovery Sometimes the get et generative AI to right world cetera. in know and a what around they on don't of ask. prompts There's to of the lot how going

So bunch it. a people just We've we're frankly, so more, work doing of highlighted find on recently, could that. it

we necessarily net anything curious. could winner. knew if customers conversion certain cetera. was planning, help them with see et We weren't a We not were just or it wanted to winner We

materially But to want the for and highlighted since it it's really the experience again, more -- it keeping who other I on -- it we've of wouldn't customers think days, customers it. forefront So business we've discover the more, us our we've and through than much of gotten it's impacting and as not early technology engagement.

in in through want using Now our go and AI using other time many to as I are that, question. good Paris We're hey, simple lot mentioned, help in a Paris, it sift is go of I question, a a but generative we we're to to ways besides to it in just using using service. reviews We're places. to ask customers it reviews when

really but long like the we for it like it's want of it for discovery, you through still trip use But to journey. the and to Whatever out a whether or it's and we AI comparison, trying business page, -- who all more the help that I want AI feature where pretty the generative a want a it's is a that's areas customers. best -- think places just part like easily it's can to say terms you that on we're And AI figure those generative end-to-end. are to home take us of use friction one journey collective up it. of or story people So sort, that of of and We generative journey use we People complicated to have for, feature And I small. through moving want the a just in for enhance. feature on, anywhere is it. term and one AI, page, of one want appropriate kind take that's homepage everybody. to ultimately, purchase out it greenfields AI you other, wouldn't part broadly way home there, search, to to bigger use

Operator

Our final question Wells Gabreski is Fargo. from from Ken

Unknown Analyst

over been Appreciate feels years. like program. on it years the the seems like journey centralization centralization, do Orbitz, tech it for over last to on last clean the business Alex of up 'XX? centralization in about growth that of Ken. centralization you brands Specifically, Travelocity, nights few focused sense have Hotwire make is couple brands? legacy been the think a drag the on of Could How This question. platform, the loyalty of It has the

Peter Kern

say, those invested program or and else. we've turn somewhere away. Yes. Thank to those if the think years. gone everything again, those planning them has would in how your make the who few been enjoy we the in go to technology, better are this not be at best-in-class customers main last really, off point, We're brands brands the point, brands. of enjoy. capital, happy things else. at with We obviously as off maintaining for smaller they centralized them we've But lift loyalty and you are any There look really our brands you, to investing customers have not we I Ken. But have still on they'd

old as an efficient matter. keep multiple So state stacks we that, things doesn't X to having or like and where get rid to of and XX up we jacks really get other

will focused where a run small of Now two may of fewer different matter the brand in have in all goes off. where And are don't as to experience, that on big brands parts general, consumer of we to we on of may the are look keep and have want that's most spending than extent that. a group it's a a matter different. three. the different may slightly of focused the We -- X these But brands, customers have one the world, and marketing, going doing we or then under we we name. be to other We

but helping that's say, smaller the getting to spending that, those been shrink certainly as maintain not brands. I long and into and honestly, our us, like accelerate all is like those bigger the it's and will say which a using small drags. they to if drag, also expect the them, you drag as start go you customers continue virtually as core getting to for to we we should so to It's on As drag can drag. energy energy But accelerate is pieces us, are increasingly trying we're smaller, and outrun the their

I think that's it.

thank you, joining talking Thank after forward to you for Take us We So you end care. operator. to question. year. last the all today. the look of

Operator

you today's That Thank concludes everyone. joining, for call.

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

Expedia (EXPE) 2 Nov 232023 Q3 Earnings call transcript