Expedia Stock Plunges After Q2 Report: The Details

Expedia Group, Inc EXPE reported second-quarter revenue growth of 6% year-on-year to $3.36 billion, marginally missing the consensus of $3.37 billion. Adjusted EPS of $2.89 beat the consensus of $2.32.

Lodging gross bookings climbed 7% Y/Y to $19.2 billion. Gross bookings climbed 5% Y/Y to $27.3 billion.

Adjusted EBITDA margin expanded by 190 bps to 22.2%. The free cash flow declined 37% Y/Y to $923 million.

"The second quarter saw travel demand remain strong, and we were pleased that along with the progress on our tech transformation, we were able to post another record quarter. Our focus on driving consumers into our loyalty programs and apps has helped us build the most valuable pool of consumers we have ever had," said Peter Kern, Vice Chairman and CEO of Expedia Group. 

"On top of which, we recently took a major leap forward in our consumer business with the launch of One Key in the U.S., the most flexible and comprehensive rewards program in the industry. Yet another compelling reason that the most desirable online travelers will continue to choose Expedia" added Kern.

Expedia Group execs said pricing has softened a little bit in domestic air and North America.

The company reiterated FY23 guidance of double-digit top-line growth with margin expansion versus consensus of $12.91 billion.

Price Action: EXPE shares traded lower by 15.80% at $99.34 on the last check Thursday.