Expedia grows revenue 12%, but its next-quarter outlook is softer
A strong completed quarter sits alongside a more cautious forecast for the final three months of the year.
Expedia reported third-quarter revenue of $4.938 billion, up 12% from a year earlier, but its fourth-quarter sales forecast pointed to slower growth.
The travel-booking company expects fourth-quarter revenue of $3.69 billion to $3.75 billion, representing growth of 4.0% to 5.7%. The midpoint is below the $3.74 billion analyst estimate cited by Reuters, although that estimate falls within the forecast range.
Third-quarter gross bookings rose 11% to $34.008 billion and booked room nights increased 7%. Gross bookings measure the value of travel booked through the platform, not the revenue Expedia keeps.
Business-to-business revenue grew 23%, helping drive the overall sales increase. GAAP diluted earnings were $8.42 per share, while adjusted earnings were $9.39. Those are different measures and should not be treated as interchangeable.
Expedia raised its full-year revenue outlook to $16.37 billion to $16.43 billion from $16.05 billion to $16.22 billion. It also lifted its annual gross-bookings forecast to $131.4 billion to $131.9 billion from $129.5 billion to $130.8 billion.
The combination is the point of the report: a stronger completed quarter can lift the full-year total even when the next quarter is expected to grow more slowly. The guidance remains a company forecast, not a result already delivered.
