Expedia Group, Inc. Q1 FY2025 earnings call

• Delivered bookings and revenue within guidance range, with 4% bookings growth and 3% revenue growth. - Became first OTA to list Southwest Airlines inventory, saw strong traction with new customers. - Launched Ryanair in Europe, enhanced lodging supply with more member rates, deals, etc. - Injected AI into product experiences, partnered with AI search companies, launched Expedia Trip Matching on Instagram. - B2B business grew double-digits, expanding product features and points of sale. - Adjusted loyalty program, removing always-on earn for Vrbo Blue tier due to insufficient returns.

B2C: Gross bookings of 22.6 billion grew 1%, revenue declined 2%, EBITDA margin 11.1%. B2B: Gross bookings of 8.8 billion grew 14%, revenue grew 14%, EBITDA margin 22% - 22.8%. Advertising: Revenue grew 20% to $174 million. Lodging: Bookings 23 billion grew 5%, revenue $2.3 billion grew 3%. Non-lodging: Bookings $8.4 billion grew 2%.

• Revised full-year gross bookings and revenue guidance to 2% to 4%. - Expect EBITDA margin expansion of 75-100 basis points for the year, up from 50 basis points previously. - Q2 gross bookings growth guidance 2% to 4%, revenue growth 3% to 5% with ~75-100 basis points EBITDA margin expansion.

• Macro-economic uncertainties impacting travel demand. - Softness in US domestic and inbound travel. - Foreign exchange headwinds affecting revenue.

Q: On marketing spend and Hotels.com turnaround, Ariane responded on optimism for Hotels.com and Scott on marketing spend being leveraged for profitable growth.

Q: On managing macro headwinds, B2B vs B2C sensitivity, and margin guidance, Ariane discussed B2B's diversification and Scott on margin expansion from employment actions.

Q: On monthly trends, social opportunity, and demand environment, Ariane talked about social strategies and ongoing travel demand softness with rate plan shifts.

Q: On experiences/attractions and employment actions, Scott discussed employee reductions and margin benefits, Ariane on Expedia's activities with brands.

Q: On AI strategic investments, Ariane spoke about AI in products, traffic driving, partnerships, and team effectiveness.

Q: On booking curve and international rollout, Scott and Ariane discussed booking dynamics and international growth in B2B and consumer brands.

Q: On Vrbo and loyalty, Ariane talked about Vrbo's performance and loyalty program adjustments for returns.

Q: On B2B exposure to US travel softness and advertising impact, Scott and Ariane discussed B2B's global diversification and advertising growth prospects despite B2C pressure