Expedia Group, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Expedia Group, Inc. has filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing its financial performance and position.</b>

AI Summary

Expedia Group, Inc. (EXPE) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Expedia Group, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 31st. Expedia Group, Inc. is incorporated in Delaware. The company's principal business address is in Seattle, WA.

Why It Matters

For investors and stakeholders tracking Expedia Group, Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest financial data for Expedia Group, Inc. for the first quarter of 2024, crucial for assessing recent performance and making informed investment decisions. The report details the company's financial health, operational expenses, and equity structure as of March 31, 2024, offering insights into its current business standing and future outlook.

Risk Assessment

Risk Level: low — Expedia Group, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant new risks or disclosures beyond routine financial reporting.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Expedia Group's Q1 2024 performance and outlook.

Key Numbers

• 2024-03-31 — Period of Report (Quarterly report date)
• 2024-05-03 — Filed As Of Date (Filing date)
• 2024-01-01 — Quarter Start Date (Q1 2024 period)
• 2023-01-01 — Prior Year Quarter Start Date (Q1 2023 period)

Key Players & Entities

• Expedia Group, Inc. (company) — Filer name
• 2024-03-31 (date) — Period of report
• 2024-05-03 (date) — Filed as of date
• Seattle, WA (location) — Business address
• DE (location) — State of incorporation
• 1231 (date) — Fiscal year end

FAQ

Industry Context

Expedia Group operates in the online travel agency (OTA) sector, a highly competitive industry influenced by consumer spending, travel trends, and technological advancements.

Regulatory Implications

As a publicly traded company, Expedia Group is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the financial statements for Q1 2024 to identify revenue trends and expense management.
2. Examine any disclosures regarding operational risks or strategic initiatives mentioned in the report.
3. Compare key financial metrics to prior periods and industry benchmarks.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q.
• 2024-05-03: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is a standard 10-Q for the first quarter of 2024. Specific comparative financial data against the prior year's quarter or full year is not detailed in the header information provided.

Key Financial Figures

• $0.0001 — ange on which registered Common stock, $0.0001 par value EXPE The Nasdaq Global Select

Filing Documents

• expe-20240331.htm (10-Q) — 1052KB
• ex101-psuagreementmarch2024.htm (EX-10.1) — 312KB
• ex102-rsuagreementmarch2024.htm (EX-10.2) — 278KB
• ex22-q12024.htm (EX-22) — 13KB
• ex311-q12024.htm (EX-31.1) — 11KB
• ex312-q12024.htm (EX-31.2) — 11KB
• ex313-q12024.htm (EX-31.3) — 10KB
• ex321-q12024.htm (EX-32.1) — 5KB
• ex322-q12024.htm (EX-32.2) — 6KB
• ex323-q12024.htm (EX-32.3) — 6KB
• image_01.jpg (GRAPHIC) — 2KB
• image_0a.jpg (GRAPHIC) — 2KB
• 0001324424-24-000026.txt (&nbsp;) — 6223KB
• expe-20240331.xsd (EX-101.SCH) — 33KB
• expe-20240331_cal.xml (EX-101.CAL) — 55KB
• expe-20240331_def.xml (EX-101.DEF) — 216KB
• expe-20240331_lab.xml (EX-101.LAB) — 523KB
• expe-20240331_pre.xml (EX-101.PRE) — 349KB
• expe-20240331_htm.xml (XML) — 666KB

Financial Information

Part I Financial Information

Consolidated Financial Statements

Item 1 Consolidated Financial Statements Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (unaudited) 2 Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023 (unaudited) 3 Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 202 3 4 Consolidated Statements of Stockholders Equity for the Three Months Ended March 31, 2024 and 2023 (unaudited) 5 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (unaudited) 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures about Market Risk

Item 3 Quantitative and Qualitative Disclosures about Market Risk 31

Controls and Procedures

Item 4 Controls and Procedures 32

Other Information

Part II Other Information

Legal Proceedings

Item 1 Legal Proceedings 33

Risk Factors

Item 1A Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 34

Other Information

Item 5 Other Information 34

Exhibits

Item 6 Exhibits 35 Signature 36 Table of Contents

Item 1. Consolidated Financial Statements

Part I. Item 1. Consolidated Financial Statements EXPEDIA GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share data) (Unaudited) Three months ended March 31, 2024 2023 Revenue $ 2,889 $ 2,665 Costs and expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) (1) 358 414 Selling and marketing - direct 1,650 1,487 Selling and marketing - indirect (1) 186 187 Technology and content (1) 341 317 General and administrative (1) 186 184 Depreciation and amortization 210 192 Legal reserves, occupancy tax and other 20 5 Restructuring and related reorganization charges 48 — Operating loss ( 110 ) ( 121 ) Other income (expense): Interest income 51 43 Interest expense ( 62 ) ( 61 ) Other, net ( 34 ) 78 Total other income (expense), net ( 45 ) 60 Loss before income taxes ( 155 ) ( 61 ) Provision for income taxes 19 ( 79 ) Net loss ( 136 ) ( 140 ) Net (income) loss attributable to non-controlling interests 1 ( 5 ) Net loss attributable to Expedia Group, Inc. $ ( 135 ) $ ( 145 ) Loss per share attributable to Expedia Group, Inc. available to common stockholders: Basic $ ( 0.99 ) $ ( 0.95 ) Diluted ( 0.99 ) ( 0.95 ) Shares used in computing earnings (loss) per share (000's): Basic 135,501 152,477 Diluted 135,501 152,477 _______ (1) Includes stock-based compensation as follows: Cost of revenue $ 2 $ 3 Selling and marketing 19 20 Technology and content 40 34 General and administrative 43 46 See accompanying notes. 2 Table of Contents EXPEDIA GROUP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In millions) (Unaudited) Three months ended March 31, 2024 2023 Net loss $ ( 136 ) $ ( 140 ) Currency translation adjustments, net of tax (1) ( 15 ) 28 Comprehensive loss ( 151 ) ( 112 ) Less: Comprehensive income (loss) attributable to non-controlling interests ( 3 ) 10 Comprehensive loss attributable to Expedia Group, Inc. $ ( 148 ) $ (

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements March 31, 2024 (Unaudited) Note 1 – Basis of Presentation Description of Business Expedia Group, Inc. and its subsidiaries provide travel products and services to leisure and corporate travelers in the United States and abroad as well as various media and advertising offerings to travel and non-travel advertisers. These travel products and services are offered through a diversified portfolio of brands including: Brand Expedia, Hotels.com, Expedia Partner Solutions, Vrbo, trivago, Orbitz, Travelocity, Hotwire, Wotif, ebookers, CheapTickets, Expedia Group Media Solutions, CarRentals.com and Expedia Cruises TM . In addition, many of these brands have related international points of sale. We refer to Expedia Group, Inc. and its subsidiaries collectively as "Expedia Group," the "Company," "us," "we" and "our" in these consolidated financial statements. Basis of Presentation These accompanying financial statements present our results of operations, financial position and cash flows on a consolidated basis. The unaudited consolidated financial statements include Expedia Group, Inc., our wholly-owned subsidiaries, and entities we control, or in which we have a variable interest and are the primary beneficiary of expected cash profits or losses. We record our investments in entities that we do not control, but over which we have the ability to exercise significant influence, using the equity method or at fair value. We have eliminated significant intercompany transactions and accounts. We have prepared the accompanying unaudited consolidated financial statements in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial reporting. We have included all adjustments necessary for a fair presentation of the results of the interim period. These adjustments consist of normal recurring items. Our interim unaudited consolidated financial statements are not necessarily indicative

Notes to Consolidated Financial Statements – (Continued)

Notes to Consolidated Financial Statements – (Continued) booking volumes, and the more stable nature of our fixed costs. As a result on a consolidated basis, revenue and income are typically the lowest in the first quarter and highest in the third quarter. Note 2 – Summary of Significant Accounting Policies Recent Accounting Policies Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued new guidance that modifies the disclosure and presentation requirements of reportable segments. The new guidance requires the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit and loss. In addition, the new guidance enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statement disclosures. In December 2023, the FASB issued new guidance to improve its income tax disclosure requirements. Under the new guidance, public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate). The new guidance is effective for public business entities for annual periods beginning after December 15, 2024. We are in the

Notes to Consolidated Financial Statements – (Continued)

Notes to Consolidated Financial Statements – (Continued) We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Cash, Restricted Cash, and Cash Equivalents Our cash and cash equivalents include cash and liquid financial instruments, including money market funds and term deposit investments, with maturities of three months or less when purchased. Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or our intention to use the cash for a specific purpose. Our restricted cash primarily relates to certain traveler deposits and to a lesser extent collateral for office leases. The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows: March 31, 2024 December 31, 2023 (in millions) Cash and cash equivalents $ 5,686 $ 4,225 Restricted cash and cash equivalents 1,936 1,436 Total cash, cash equivalents and restricted cash and cash equivalents in the consolidated statements of cash flows $ 7,622 $ 5,661 Accounts Receivable and Allowances Accounts receivable are generally due within thirty days and are recorded net of an allowance for expected uncollectible amounts. We consider accounts outstanding longer than the contractual payment terms as past due. The risk characteristics we generally review when analyzing our accounts receivable pools primarily include the type of receivable (for example, credit card vs hotel collect), collection terms and historical or expected credit loss patterns. For each pool, we make estimates of expected credit losses for our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, prev

Notes to Consolidated Financial Statements – (Continued)

Notes to Consolidated Financial Statements – (Continued) Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 are classified using the fair value hierarchy in the table below: Total Level 1 Level 2 (In millions) Assets Cash equivalents: Money market funds $ 168 $ 168 $ — Term deposits 71 — 71 Derivatives: Cross-currency interest rate swaps 8 — 8 Investments: Term deposits 28 — 28 Equity investments 584 584 — Total assets $ 859 $ 752 $ 107 Liabilities Derivatives: Foreign currency forward contracts $ 9 $ — $ 9 We classify our cash equivalents and investments within Level 1 and Level 2 as we value our cash equivalents and investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Valuation of the foreign currency forward contracts is based on foreign currency exchange rates in active markets, a Level 2 input. Valuation of the cross-currency interest rate swaps is based on foreign currency exchange rates and the current interest rate curve, Level 2 inputs. We hold term deposit investments with financial institutions. Term deposits with original maturities of less than three months are classified as cash equivalents. Those with remaining maturities of less than one year are classified within short-term investments and those with remaining maturities of greater than one year are classified within long-term investments and other assets. As of March 31, 2024 and December 31, 2023, our cash and cash equivalents consisted primarily of term deposits and money market funds with maturities of three months or less and bank account balances. We invest in investment grade corporate debt securities, all of which are classified as available-for-sale. As of March 31, 2024, we had $ 26 million of short-term and $ 43 million of long-term available-for-sale investments. The amortized cost basis of the investments approximated their fair value with gross unr

Notes to Consolidated Financial Statements – (Continued)

Notes to Consolidated Financial Statements – (Continued) Assets Measured at Fair Value on a Non-recurring Basis Our non-financial assets, such a

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