Expedia Group, Inc. Q4 FY2024 earnings call

Key Achievements in 2024 - Fourth quarter results exceeded expectations with top - line strength from strong execution and better - than - expected travel demand. - Disciplined cost management led to strong EBITDA growth and margin expansion. - Consumer business bookings accelerated, B2B had stellar growth, and advertising revenue grew strongly. - Made strides in supply improvement through technology investments, stronger partner relationships, etc. ### 2025 Priorities - Deliver more value for travelers: More member rates, more self - service options, and personalized products powered by data. - Invest where to drive growth: In consumer business, focus on big brands with clear value propositions; in B2B, force unique supply, test new products, and deepen partnerships; in loyalty and marketing, be more targeted. - Drive operational efficiencies and expand margins: Still have room to improve variable and fixed costs. - AI as an accelerator: Explore ways AI will unlock value in product, drive traveler experience, traffic to brands, and improve team productivity.

In the fourth quarter, room nights, gross bookings, and revenue all grew double digits. Bookings for the consumer business accelerated for the third consecutive quarter to 9%, with each core brand - Brand Expedia, Hotels.com, Vrbo - seeing bookings growth. B2B business had 24% bookings growth sequentially. Advertising business posted 25% revenue growth. For the full year 2024, consumer business bookings grew from negative 3% in Q1 to 9% in Q4; B2B bookings grew 21% for the full year, accounting for 27% of total bookings; advertising revenue grew 32% and drove 5% of overall revenue.

First Quarter Guidance - Expect gross bookings growth in the 4% to 6% range and revenue growth to be 3% to 5%. - EBITDA margin is flat to slightly better year over year. ### Full Year Guidance - Expect 2025 gross bookings and revenue growth in the 4% to 6% range, factoring in 2% negative FX impact. - Expect to deliver another record year of EBITDA with margin expansion of 50 basis points year over year. - Reinstating quarterly dividend starting in March 2025 with a dividend of 40 cents per share, approximately a 1% annual dividend yield.

Travel demand fluctuations, exchange rate changes, and intense market competition could impact the company's performance.

Q: Mark Mahaney asked about the sustainability of the recovery of Vrbo and Hotels.com into next year and the initiatives that turned them around.

A: Ariane Gorin said they did a lot of work in 2024 on product, supply, and marketing for Vrbo, and for Hotels.com, it was impacted by tech migration and loyalty program change, but the teams have big plans for 2025.

Q: Justin Post asked about Q1 guidance headwinds and longer - term margins versus peers.

A: Scott Shankel said Q1 guide factors in FX headwind, lapping leap year, and Easter shift, and margins are expected to have 50 basis points expansion in 2025.

Q: Deepak Mathivanan asked about the strength in APAC for B2B, margin strategy beyond fixed cost leverage, and ad revenue sustainability.

A: Ariane Gorin said APAC B2B strength is from partnerships and growing markets, margins are about balancing investment and efficiency, and ad revenue has room for growth with more advertisers and innovation.

Q: Deepak Mathivanan asked about Vrbo inventory performance and ad revenue sustainability.

A: Ariane Gorin said Vrbo's added inventory contributed to recovery, and ad revenue has a roadmap with more advertisers and product innovation.

Q: Trevor Young asked about partnering in AI and Laban.

A: Ariane Gorin said AI has opportunities in product improvement, traveler behavior change, and partnering with AI travel startups, and Laban doesn't change their perspective on LatAm.

Q: Conor Cunningham asked about marketing tactics and bundling.

A: Ariane Gorin said marketing is about better understanding returns by brand and geo, and bundling helps with international growth and repeat business.

Q: Jed Kelly asked about B2B deceleration in 2025 and ad revenue.

A: Scott Shankel said 2025 guidance factors in FX, leap year, and Easter shift, and ad revenue is about growth with learnings from Vrbo migration.

Q: Lee Horowitz asked about marketing leverage and Vrbo quarter - to - date trends.

A: Scott Shankel said marketing is about understanding returns, and Vrbo has a differentiated value proposition but no directional guidance on quarter - to - date trends.

Q: Kevin Kopelman asked about capital returns philosophy.

A: Scott Shankel said buybacks will continue with over $3 billion remaining, dividend starts at 40 cents per share, and there's flexibility for investment and M&A.

Q: Doug Anmer asked about travel demand in Q4 and loyalty strategy outside US and UK.

A: Ariane Gorin said travel environment was healthy in Q4 with some softening in Jan, taking share in international markets, and loyalty strategy outside US and UK is about learning from OneKey and adjusting by brand and geography.