EXPE - Earnings call transcript Q4 2024

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Operator

Good day, everyone, and welcome to the Expedia Group Q4 2024 Financial Results Teleconference. My name is Alex, and I'll be the operator for today's call. [Operator Instructions] For opening remarks, 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 Fourth Quarter 2024 Earnings Call. joined our call incoming be Ariane our to and Gorin; CFO, pleased on by today's CEO, I'm Scott Schenkel.

our Reconciliations year-over-year any exclude measures stated, all reminder, certain basis, in our GAAP and a commentary rates Unless include included compensation. will stock-based As otherwise release. references measures non-GAAP are measures. expenses the are of reference to non-GAAP growth to earnings these most comparable today to on a

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

release, filings Relations can Investor replay found a be SEC and of our call at today's on ir.expediagroup.com. website earnings Our

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

Ariane Gorin

Schenkel and It's board, start joining want for Thanks, by hear you from new you'll great and our us I welcoming today. thank Harshit, to all have on Scott as CFO. to him shortly. him

our line demand. reflects nights, and travel revenue bookings strength gross strong all with results room digits. Our with quarter double This expectations fourth top our exceeded execution, growing better-than-expected continued along

for bookings points Hotels.com brands, of consecutive to Expedia, outperformance core and Our business expansion. Bookings strong the EBITDA third disciplined in Brand Vrbo, growth quarter resulted accelerated margin line X for our sequentially. saw cost up and with growth. consumer X%, Each top management the

growth. XX%. a had revenue business our advertising quarter to yet And BXB growth Our sequentially with stellar another quarter XX% strong X posted bookings points increasing with business

low-double stronger air. demand last Travel QX hotels, quarter, vacation teens demand and in was high despite high-single than and with of digits rest nights in booked the in increases room the the rentals Europe Like growing remained digits U.S., healthy world. in the U.S. international price in

to from especially in in with solid the our efforts demand, business global continue APAC. bookings this points benefit strong show to U.S. expansion BXB business, consumer growth sequentially. progress Our continues X our accelerating outside And international

remains Expedia Within by on notably our Brand higher product room capabilities. consumer prices, package Air merchandising business, continued with growing Expedia improved nights driven mid-teens. and ticket new improvements strong

traffic sequentially growth for by For with well Hotels.com, improved markets. bookings international as to in returned and momentum growth bookings driven slight conversion. accelerated And Vrbo,

which X% points in active our our Across program up partners of nights Global as benefits room discounts, to over brands. supply also members. member members came loyalty rate help or receive year-over-year. XXX grew additional member These membership XX-month funded brands, from core our loyalty such drive and by basis Silver, nearly higher-tier XX% X Gold in repeat Platinum are our QX, our and was to

and I Brand our strengths Hotels.com CEO growth quarter fourth extending and in we set Vrbo ambition to last advertising disciplined costs. XXXX. being solid Expedia, strong an year, a back stepped When our year results Our to in BXB as and in bring full contributed to while

call work for against year. our I'm delivered of have course momentum teams ahead, the over more proud of While we and how this the action built

our our and features and new inventory had leadership in we've X% in bookings year, growth for and grown from from partners bookings here. BXB XXXX ever year. QX business our X% great best QX. the BXB full in bookings cemented strong grew production consumer Bookings quarter product from in through accounted XX% to year negative our management, of new Overall, account in We've partners. XX% existing last for accelerated every

drove our X% ad with advertisers. overall partners resonating types introduced and sorry, -- tools manage our advertisers revenue. our business launched onboarded to more We Our and advertising of campaigns, revenue are new video to their new strongly which in our XXXX like of advertising for XX% platform, grew all

reminder, high-margin, a a and advertising high-growth business, innovate. opportunity more to see we is As a lot

of is sourcing Supply improving from and commercial strides the supply. We've discounts. business, new our and quality whether supply functionality or package member and rental in our at benefits, have around merchandising technology everyday we improved teams. traveler of the stronger our heart partner relationships year last great made vacation through deals investments, through our We're released efforts more

to these of demand All great supply valuable partners. targeted and our for are delivering travelers while

each X for travel; have greatest we progress we part deliver in XXXX, and invest see where our from on into growth AI opportunity our continue XXXX: and driving across move drive our first, we on then to more margins. how second, expanding all operating overarching priorities share I'll of building value and about third, will As us more X. business; color each efficiencies help talk the

for our savings can delivering Already today, through create. uniquely personalized us value do can and customers. that Let's get experiences supply our we only bundles of effortless, deals travelers. priority with create start and travelers first more through rewarding We with for we this and

do through products travelers want. it and customer also features our We innovative industry-leading and service that

offers; and in and targeted in product trust. and both insights options hotels do rates servicing, enable more experiences agent And more deep of flows in that powered experience; self-service data going member virtual supply, we're that more: travelers the XXXX, in by personalized product, to all and the more course, in in even beyond

business, our value sharp We'll to our our next see growth biggest them. where focusing X propositions clear, drive greatest second consumer part Moving In on of our brands, invest opportunity each means to of for each having we priority. this the business. in

as for a one-stop packages products our like Expedia, shop building strength scaling rentals. on example, focusing differentiators vacation like that's on and For newer while

and program more our In progress marketing, business biggest deepening deeply consumer And looking looking XXXX, in earn. deals targeted the still loyalty new partners, in ahead, signing made is new be at weighted continue internationally commercial unique we our see impact partnership. spending, And our supply we U.S. even BXB the loyalty our push our BXB, while a heavily from to and for Our products in for we'll in about sourcing we'll it's testing to where in way. example, targeted

finally, margins efficiencies margins. further. driving cost We while and to expanding our continue in margins And have priority we areas. were operational to further and still deliver cost us our allowed our third efficiencies strategic XXXX, and variable that disciplined even We expand expand our base believe cost is in profit across to our reinvesting fixed room in management to

X scratched surface. is these all accelerator AI for only of an and priorities, we've the

many and in our unlock even will driving exploring seeing are AI value journey, We're in turn evidence across already growth. better we're how more ahead, look driving ways the we loyalty the and which shopping post-booking is AI discovery, experiences products. As that

to Going forward, also for we'll opportunities increasingly that where present possibilities startups opens AI-native will new are. we experience. new continue business, and to traveler for And them meet BXB AI test our further our GenAI-native AI-generated traffic travel the us. new experiences, our ensuring features and consumers emerge brands they personalize to partnership as to we're drive that inevitably release in search

just move teams to to It's enable tremendous even opportunity exciting What's how our use about more is not AI and spend cost teams to see our we more be reduction. faster it allow to Finally, We're productive. across seeing have time excited about can commercial of where the results our early and how support, and across technology, impact. the biggest more teams, business. potential all are we operate customer really our parts they marketing will

a built opportunity over substantial momentum drive we've we're shareholders. our even quarter performance fourth our closing, XXXX. partners and pleased with believe the we and in greater So we XXXX for that travelers, have value in beyond, And and to

over that, you, to With Scott.

Scott Schenkel

I Expedia forward and to to deliver everyone. the partnering with I'm to our Thank and priorities. good you, look Ariane, Group, and team afternoon, help excited join you

Let's get started.

better-than-expected particularly in promotional the XXXX We bookings across strong wrapped with a both environment period BXC double EBITDA strong and and metrics. $XX.X nights, this where with with ever. post-Thanksgiving and bookings grew gross and gross of acceleration strong quarter, revenue Total We window, XX% all our with operating Room X-point grew both execution. highest BXB billion margins financially a sequential were bookings had of expanding digits fourth nicely. operational a a during many demand

grew air our business our which continued our business, acceleration includes Vrbo. business higher lodging hotel strength XX%, by of new notable XX%, and Outside growing prices, gross in our packages a driven capabilities. at growth and bookings we multi-item Lodging air also saw in merchandising

growth Revenue nearly led the quarter, billion $X.X accelerated X business, grew our XXX XX%, Vrbo's XX% into driven quarter, the improvement points. momentum margin up throughout in the Revenue by Hotels.com. XX%. from primarily further basis points and Gross stays year third BXB of translating bookings which was for by grew

continue to initiatives to are particularly see customer transactional We ongoing service. in our pleased deliver efficiencies,

gross billion, fourth XX up and quarter continued in This flat as marketing expense sequential percent Expedia. sales XX%, to $X.X leading of Brand of was efficiencies basis bookings. leverage by improvement points driven Direct at over the was a

earlier, they bookings expenses. as for incremental resulted noted in any I benefit business did Brand the As air from merchandising our Expedia marketing actions without

leverage. $XXX lower strong and another as our and X%, resulting in committed to a of see pleased P&L, million, efficiencies nearly were overall overhead remain people in strong control. leverage. to expenses Overhead decrease costs XXXX driven XXX of driving of well technology primarily in our products actions by from was We This quarter expense basis points as across we're

quarter to XX.X%, was comp $XXX basis We million, margin greater by basis delivered This lower and delivered We management. higher EBITDA expansion driven points. ongoing leverage. up depreciation and of of effective points. margin than XXX EBITDA $XXX expected an both than better the This expense of fourth an with basis XX% growth revenue EBIT XXX up of stock-based of a XX.X%, with expansion XXX margin million was EBITDA points due

the up also our in X%, revenue throughout billion, underpinned business. BXB of $XX recovery year posted the in and We a year up $XXX business full and to strength results. of continued billion, gross X%; advertising notable BXC bookings nearly by our Turning and

BXC to we and of in financially business, of net by While our gross approximately to XXX feel overhead margin and XXX basis was points driving the paid improvement to marketing disciplined beneficial we business, for points. we this that decided invest being accelerate basis and

As a of points. for XX XX.X%, basis was result, expansion year margin approximately EBITDA an the

by higher enabled earnings expenditures. $X.X of generate XX%, growth robust EBITDA, deferred growth and free driven merchant up another primarily strong This capital flow lower cash at in to bookings billion, year us

balance our to sheet. Moving

the cash notified those of we the May With short-term In we $X.X and that repay unrestricted with late cash debt our in will flow, notes ended tranche investments. February. billion the we of holders January, strong quarter 'XX

levels our current We balance the debt our consistent continue to goal investment-grade sheet with of manage actively with maintaining rating.

to subject intend Xx. maintain As market we target refinance our to conditions, a result of ratio and leverage and

million repurchased. XX.X billion since or our of combined XX the in resulted in repurchased we shares allocation part ago, As disciplined billion program have strategy, X capital years or we shares million over $X little shares over repurchased the XXXX. we reinstated This, $X.X has with a

So a year summary, QX a in solid with finish. strong

Moving our guidance. first to quarter

quarter current to be We QX, X% April. of In in at EBITDA first the impact in expect headwind the X% X% gross lapping exchange be Easter X to year reflects to growth range revenue, from and growth our leap foreign in approximately year-over-year. to margins rates we to slightly the points better to revenue This bookings expect flat and and be X%. shift

our the to highly quarter is lowest As sensitive. causing a be first EBITDA quarter, margins reminder,

guide. full year the to Moving

line range, bookings which revenue the We X X% XXXX, to XXXX factoring negative with our in FX of gross expect in impact. growth and is the roughly in points X%

expansion line, record will another deliver deliver we optimize basis efficiencies. structure year result, of as XX our cost points continue margin year-over-year. expect of we to EBITDA to bottom a the with to On And

continue With our opportunistically back flow, on we share stock with and cash approximately billion strong remaining authorization. performance repurchase EBITDA our $X.X will to buy on

dividend we of annual that Additionally, quarterly a in per March dividend announced today, XXXX yield. with is a $X.XX our starting approximately dividend we are of share, X% which reinstating

will shareholder being growth confident strong So returns continue our that capital to we allocators. and ongoing in XXXX strategies closing, while delivering for I'm beyond. with profitable and deliver long-term focused disciplined we growth on remain in execution,

call open me questions. the for now Let

Operator

[Operator for Instructions] comes from question of Our ISI. Evercore Mark first today Mahaney

Mark Stephen Mahaney

of seen, that's initiatives help the the that I about you've think really just improvement 'XX. into talk the turning for recovery were sustainability to What to have HCOM those businesses next So and just about into -- Hotels.com. that you to around? wanted Vrbo year. ask and Vrbo, the those that started going continue improvement for recovery The us ongoing confidence

Ariane Gorin

Mark. Thanks, Okay.

the that was to product, start marketing. want through the And acceleration it. to a teams a big all -- in those task I me of that do to for with Let did thank a X of because Vrbo. minute We it do take lot drove XXXX And work the supply and on year.

disrupted capabilities We travelers and back. Vrbo to are in some platform still like property fact, product, cognizant back still some Vrbo during Hotels.com do, that features or whether product coming search that particular, recognize the and exciting replatforming, from plans though, that with had on more winning work we've were have But lost. the we both meaningfully also we of XXXX some around of was supply, we the On or put lost we that those. got comparison. dateless we in of it's benefited

pulling was where meaningfully as product know change that one continue say, on going only but tech leaning we also and program supply, loyalty not the where returns the in back -- that more see and with in So the Hotels.com, to just international. in we returns I the would back also We're especially aren't also ahead. there's to comes work impacted was it and pulling the pretty brand migration, strong. When best

As modest come big some has to growth that plans the life reinvigorating around I we the brand of to we'll back the And said, in that year. end XXXX. team see at come really have

got So we do, where up, would are conviction bunch a these but I feel now. we about there's we've right say still good brands. work more X We to know all in

Operator

comes of of from question America. next Post Our Justin Bank

Justin Post

peers, term your thinking and margins, Any on nice you guidance headwinds I been bookings. that improvement and in versus do room are versus you like XX you're But then term maybe QX of with longer issues. And How about weather peers? just a talk what you there's like about has QX there's other Looks bps, issues about? year-over-year. detail lot early Could -- where margins it can you are know thinking some looks longer some there.

Scott Schenkel

start QX with the me Let guide.

X% points as I First X%, lapping headwind to script, in X about the my factoring off, in said X growth FX point bookings year. and is leap of

that, those your excluding So look -- X% different X to at in if be environment, travel you the X% to to appears question. realities. When that's structurally roughly nothing

softening to and in QX, bookings. there the as And be may of believe was have We light some we our pointed out, that. strong, some pull-ins of there latest holiday have seen December, promotions in some -- been strong might which relative January also strong reflects of -- guide we some some

to of we close guide think Easter last of some in X% added the us X% brings and kind kind growth, So of pretty to just good the point, all X%, to reflects to from particular, out feel year, X% that pressure our I'm we revenue shift. about lapping that. But the sure timing to pivot of

X.X way to a point the X% it the you've we take know year equivalent and can the nice think for X% both balances from foreign that balance you to the anything some you very structure. from is overhead roughly point seen that. And need and marketing last down 'XX X makes year is overhead leap Look, a in and cost growth, don't come realized I and sure sure plus demand makes what add sure plus points else. point X we that margin in with handle we makes good I a I in we're we 'XX, reduce we're if and And X point in forward-looking we point Ariane, I think, Easter, and XXXX and at of So we of it. Maybe to traffic keep needs of nice way up, that doing margins. leverage of exchange, a the rate kind XXXX and shot X.X take X start. margin about at I'll think think in

Operator

next Mathivanan comes Our Fitzgerald. Deepak question from Cantor of

Deepak Mathivanan

we the little to Ariane, into primary from to think the then, you map I I'll be you BXB on bit about of hear little the margin of investments XXXX maybe see line you're drivers driving expand super Maybe the you just had the also in strength beyond margin should different the a color as just high-level a also wanted would help you BXB you again. with bit about Can leverage, cost and the great thinking terms be efforts the about should And for you talk fixed Scott, what in strategy marketing how cost-saving that year, deeper new on? growth fixed of would to what dig so kind still is business? And guys Last helpful. comment. partnerships? side. about ask year, APAC? What's leverage. Any like cost can items add that with helped achieving This leverage But expansion. road

Ariane Gorin

Thanks, Yes. Deepak.

the APAC have partnerships that that things are is, BXB, we We're one, there. adding of in on strength partnerships. couple driving So the new the

the deep, well. fact there that have are partnerships long-standing We the and growing some markets

line with market, and we're win So the working with we're partners that or the in able are share growing them. to faster than

So we -- is typically, of as in relationship partner, some strategies sort with put have the then we're over to business. you'll And of do sign win you'll get share. a new we you'll time, them, you deepen their place as able what

partners the So going can can it's we It's year, more? inventory APAC. And going we're of growing. able of done in I as particularly existing what work in we to over they BXB partners have market. I of on for signing to testing lot And we then our testing do is importance really our in put of in also relevant business. and supply can some surface of quality this a also What last is years, with really being with couple that's critical said, BXB growing The get everyone as new supply. that in to partners. sure our the want new formula of products inventory them? supply a terms are understands some so what's -- our in Where some BXB we've, that be of new make to

margins, in well the a to invest I that number we going ability see break maybe is the But can out good opportunities to make of on Just see the clearly, different sure pieces. we just Scott the growth. in long-term up as maintain pick that places. to that we're for it not We want we areas

we as ways leaning talked maybe we number we leaning times XXXX, about as it how where were wasn't balance markets. sort During elsewhere. We in have short-term into also get for investment and a need to of international we long and that a might committed we margin But in return ability were remain of expansion. Vrbo, to into believe the term our good disciplined

Operator

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

Naved Khan

So added to you I some inventory remember guys Vrbo.

you'll inventory I X that that to it type if performing is Vrbo in around question type think or to would the of you advertising roughly was Wondering I relative apartment homes? And inventory XXXX, try properties. is more of a revenue. of expectations. of have just million be about really terms kind any think provide to the or as whole add second it have the of how color inventory you And to

So 'XX. growth really this how XX% into is strong, that is wondering sustainable and

Ariane Gorin

Okay. Thanks for the question.

shared no say specifically always than that not how inventory, There added X we said, doing I'm have other Vrbo's the in as did a host. There contribute areas. aren't And that spaces are to going they're say These lot properties. were apartments. recovery. On properties a to urban of were you number to that Vrbo million

it's only have different flexibility, the maybe has that in make how great not about do -- we cancel and longer has new but policies, supplies supply like. promotions to has supply adding sure that 'XX, look we As the we also

it's not So of in number types it's in and when properties, only supply, but we rate also the think flexibility. quality of

of whether and we're types that auctions, so our right revenue, other the ad quickly. products of lot quarters, around returns monetize still it's brands. ahead, in or been innovation growing of tens work terms getting very We getting that we've advertisers multiple the better with in you're themselves new able world, last and we our thousands into partners the see are more the it's advertisers to into of our hotels ad road a In that whether products, because

team way a more positive in very the So and also for a on value map ahead, has partners driving and doing that's road it they're to quite our travelers. focused our

Operator

comes Our from next Barclays. Trevor of Young question

Trevor Young

think remarks, applications them? Can AI. do view -- Am outlook I AI mentioned any Expedia Ariane, channel a in capabilities some for or shape with of then in you'd for getting that you and partnering And think that does potentially partnership relatedly, there? potential thoughts those for and question second And on using AI then whether acquired, customer be prepared how supply the you you potentially about investments Despegar in-house? And expand a getting as of acquisition some that? and Romie your in Lat your other the on how changes you partner

Ariane Gorin

in for think the I would in Thank it you would say buckets. I about AI, Yes. really X of question. sort

with bucket or first whether obviously And behaviors. we how to second or things do it's we're Same developments use make product? The the when their delightful with to partners, search in doing sure is There's of looking is for years. But we travelers well, our our into traveler that at in The our more they come partners. better, makes advertising, lot through it's great are AI for there all that travelers them for how start want whether we a make brands, need thing AI go. onboarding doing come they're a, getting of experience our couple back. and to changing to a in want it to a we've using products been

As I different search going ways. remarked, start in are to travelers to

then of with search. GenAI-native to up show there that's these team of make a travel AI we there. And fortunately, that places them question we marketing so if the And me, the if to opportunities not new really could I'm we're all are very across want we people sure can our those board, in tech-sophisticated are making we And about X And partner native and there's sure and sure to are start-ups, where a on why, go are got that, And that we've about showing brands those, them. AI that we I front need how using up do we internal uses. think course, using all make talking power our in for of foot. we see of that's go even

Latin would Despegar, doesn't perspective I on change Am. us. is our partner and say America In it Lat a Despegar great of terms for

have We and Am, a there in of brands as own our we Lat number have partnerships well.

Operator

next comes Cunningham of Research. question Melius Our from Conor

Conor Cunningham

nice side. growth then about prepared that think you your changes leverage talk saw for I markets and a what's you that's you better international Can bit And Could more? on merchandising expectation the bundling making some tactical the aiding marketing in underlying you're How of just just I talk just about and if that remarks cross-selling within the into whatnot? in the there 'XX think product. has you little and been? mentioned just general? that in And like

Ariane Gorin

the Yes. for Thanks question.

promotional both which We years where of best understanding X.X brand works talked geo. I at how we've think, and are more those best at loyalty last, and And spend. returns say understanding getting the which sort by been looking that, those the by sophisticated getting of on are we those over marketing, in and on the teams place. returns, of to together we've look marketing, the our about Just three all

that and returns of things. can more would you I I not that being decisively we expect it's able just it's change. see So tactical to mean in And act the path -- better a when it's understanding continuing only year come. to say of down

international came work work the growth done about on in talked also packages. of from Some we've of product, the sort on also package promotions. I've

when than to the package-heavy us, us so helped countries buy tend do in more items countries from multiple repeat. see growth. We they're likely that more be to some that's And others, travelers

know buy we when from package else buy so And X that a when on. a we then us give deal thing something great or travelers add and they they

deal, and we know a So for that they're it getting us. repeat drives good

lean I something beginning would to say, and is Expedia that, brand's continue the DNA the in has since into. we So been

Operator

Our next from Oppenheimer. Kelly Jed question comes of

Jed Kelly

may. Two, I if

of implies Just looking full would at guidance some BXB it for deceleration 'XX, your your year type one segment. in assume

us was advertising I we you flat think in pulled you BXB a were I So back little last just should in you're on some give about figured can surprised, 'XX? And are be going XQ. update you comping how saying margins Vrbo then XQ. your an year to where in

on just you're around how Vrbo? viewing So advertising your can update you an give us

Scott Schenkel

take off, don't Why like I year talked weigh as first about, you in. and FX for headwind -- well. then that Sure. The we a the is

So the start X% index off X%. I'd if you there, to of revenue growth,

You headwind of little and Easter you the got to from in QX, second foreign getting little out a quarter. exchange, for got Easter of really X a comping points the of bit the have as an shift well from pushed

well. So revenue as that pressures

looking to a X factoring really you're So at range those out. in items it spell of X% X% to roughly

by we driven regards deceleration, the we're in of we've that some talked it, really call about to of seeing factoring with that is dynamics a weeks seen in the but what yes, of So January. some first,

guidance. So into that without factored rehashing the we that,

to say something? were going You

Ariane Gorin

advertising were Vrbo significantly through in on I question, pulled Vrbo time that QX was the just it going to add that we migration. going was the the in 'XX back that we because was on the really

just... that So

Scott Schenkel

drive that to get Think to enough room of as leverage as leaving continue line we the overhead ago other growth. And margin-wise, in see leaving but some it's fit cost investments make redeploy the as about, for very room the buckets of well roughly us for out said a Ariane minute we and as we with flat. what to much sure just marketing, talked can

Operator

question next Horowitz from Bank. Deutsche of comes Our Lee

Lee Horowitz

margin you the I you've Maybe one on understand lot margin. Can know, margin Appreciate drive in this if cost you guys margin? marketing other about variable kind Is the leverage. and past of won't 'XX. obviously in leverage bps pieces of that of efficiencies XX input fixed Or help can break us talked there expect to an are to that out that of guide. the margin? of you areas a sort maybe get

Scott Schenkel

the reflect why X.X expansion I them line different not to going point, But get year, appreciate I explain go have the going into question. margin the roughly don't we're not year. understand looking the through I think we're for that. we a as We'll for to items. to you're

Lee Horowitz

And maybe do you Vrbo Vrbo. go can for you like term, a the obviously, Any of bit to towards comments maybe time? to longer comments, And a mid-single worries. the particularly that? what XQ. relative XQ to No see Any Okay. strong maybe can quarter-to-date outlook sort for that's outpace your pointing And of to where market, just relative do think just then digits. as little market slowdown Do some on in trends? low- Vrbo on you quite differentiators guys the growing a

Ariane Gorin

Yes.

the a that the what the the work whether we program. of we can a still I are loyalty play, not of regarding best, we're value get it's guidance of what rental going various time, has directional supply in same being can program of give there's no loyalty had sort the some -- learned believe But say investments the are proposition would homes. there's the it. At we're Vrbo where we year, that differentiated things I of recognize believe last lot the we is like marketing a from investments, year. Again, what brands. in hasn't particular, of a one that or and it and that around its We've the the there of lot vacation that So -- whole spend, And until testing host pure product growth some whether on in it's last to from the returns argue things.

what need year I said, and that, grow to continue based decisions the completely we'll to supply product I you we that to to will brand, across on But make think investing So in come be order it. in a, do conviction. the have in we marketing, and find we'll as

Operator

Kevin comes Securities. from question next TD Our Kopelman of

Kevin Kopelman

Scott, congrats about to Yes, on just capital the I start. wanted ask returns philosophy.

If there. that color about can you thinking share reinstitution the how your of on, returns? your about it of us where capital how any give thinking over first, with and repurchases I And and falls dividend, with the the dividend you're then you're more guess, time philosophy size

Scott Schenkel

Yes. Absolutely.

the Let start allocation. me capital just around with basics

plan we of script the to if refinance some that So the about and are we prepaying market talked about conditions debt, favorable. in

buy XX quarter-to-quarter, remaining Xx. Buybacks, remains So us. alone, a ratio allocation over repurchase leverage buybacks to vary for back billion. I in and $X.XX, what making sure -- let's thresholds. is, market back, priority to I'd those, shares there. our dividend dividends, you the us to remain we those continue how from with income we to progress part 'XX be remain we covered, for say be things doing capital let's and stock specific $X have the capital pace of committed as these we is a in In that how it $X.X while that million bought billion want And can we'll current expect we for that. Specific can this start our in of to authorization, a see to investors invested Obviously, be shares with of and opportunistic the have target

for dividend to and that turned to during do business, also and if have important really we room our important for in allocation is it's invest think opportunities capital that. themselves. off important -- back capital it's in bring process. And our as present the I about important methodology the then thought having our a the think COVID the M&A, structure And that have overall including it was we So it shareholders we to during company as us

to a have, allocation the and what X%, to with pretty of I think with buyback we're strong really a feel So go strong it's going good about out keep important that the gate coming at we're we that stock dividend But we where doing. flexibility.

Kevin Kopelman

of That's add be time fold? better, change does a really doing larger acquisitions the another a would and just follow-up the on there And kind Expedia whether into it consumer about brands way that maybe that brand is the core to thinking with comment helpful. your

Scott Schenkel

don't Look, -- our market scale continue know I think we M&A. here. in and Ariane, be you will should think look, and any I'm they've technology I if, I our new to coming other... in base, is at looking a and company have be. I think any been And at the time But

Ariane Gorin

deals. the to Yes. focused running to looking brands growing continuing I BXB the continue said, we Right you have, have that's now, obviously, we advertising strong be business, and mean, a business we as at returns. team on that have the

Operator

from Doug from comes JPMorgan. question next Our Anmuth

Dae Lee

on Dae This I Doug. have X. for is

regions appreciation from the impact of you demand been And and if we're were in curious might overall particularly U.K. thoughts travel XQ the updated secondly, where the any then into U.S. XQ markets particular and on your of U.S. in dollars? the have in in any First one, loyalty strategy outside travel any on could the and views if share XXXX your taking you have you and there share season XXXX,

Ariane Gorin

that Sorry, the can didn't you I last hear bit. -- repeat

Dae Lee

U.K. curious in XXXX, strategy any if the So of have on U.S. in about the -- your particularly outside your updated and we're markets thoughts the you loyalty

Ariane Gorin

Okay. Yes. Thank you.

we was while some So terms healthy. from anything environment January some changed seen as very healthy the moderation of environment some And pressure, strong as of in prices, environment, just relative travel that I said, FX the we that in fourth the was we've don't is QX, in think travel the promotions. to softening we structurally pull-forwards the There in think has Thanksgiving but is there's said, quarter. and

regions of terms in share. in of believe higher markets, our we're we are that night we in In And room where my was international that markets share, growth U.S. shared the taking remarks number a prepared those I in taking than

help opportunities the for good In terms guidance. our around impact But Americans stronger also obviously, that Scott stronger dollar, always traveling is it are that, the it of are of the our makes dollar can what travelers are when means as there time, whenever over looking for from shared how deals understand at on And that there attractive we abroad. impact more them. teams

loyalty rollout of may the U.K. outside you the paused terms our and we Key all of of 'XX U.S. One in U.K., strategy know, after the In as

taking had our now from been earned it's still And it's redeeming Hotels.com. positive we've and cross-sell Vrbo, but bookings on so learnings on what Hotels.com, on that driven then new are working that Vrbo. travelers earn we're the Expedia. where from drag a always-on Expedia for for who teams on the is know And we from It's have Vrbo, a net people on Key, for assessing the of impact One

by all to what in brand going geography we'll more and look loyalty, need in and of and So share we by learnings we're to come. take do the then to year those

Operator

time, At no this we'll take questions. further

CEO, to remarks. So I'll Ariane hand for any Gorin, back further

Ariane Gorin

joining year all solid us you the closed today, year thank We for the and appreciate full fourth So quarter results. questions. we with and a strong

focused our investing opportunity by margins. And drive X their travelers and to around for close growth I'd see all on the of Looking work team world. and ahead, priorities greatest our delivering thanking you. we're value for where the we more expanding like to partners on our dedication of behalf travelers, Thank and

Operator

call. for today's Thank joining you all

now may disconnect your You lines.

Expedia (EXPE) 6 Feb 252024 Q4 Earnings call transcript