NASDAQ$EXPE

Expedia Group Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Expedia Group's Q2 results reflected the severe impact of COVID-19 on the travel industry, but the company saw consistent growth after April with Vrbo leading the recovery.

Expedia Group reported a challenging second quarter due to the impact of COVID-19. The company saw consistent growth after April, with Vrbo leading the recovery. They focused on cost efficiency and internal improvements, exceeding their initial cost savings target. July trends plateaued, and the company expects a bumpy recovery.

  • Expedia saw consistent growth after April, with May and June considerably better than the trough.
  • Vrbo led the recovery due to interest in the whole home model.
  • The company is focused on internal functioning, structure, speed, and agility, and building for the future.
  • Expedia is driving efficiency programs and expects to exceed $500 million in cost savings.

Headline financials

Total Revenue

$566M

Previous: $3.15B-82.0%
EPS (adj)

-$4.09

Previous: $1.77-331.1%
Capital Expenditures

-$493M

Previous: -$573M+14.0%
Free Cash Flow

-$1.23B

Previous: -$390M-215.1%
Net Income

-$736M

Previous: $183M-502.2%
Operating Income

-$849M

Previous: $265M-420.4%
Gross Profit

-$310M

Previous: $2.63B-111.8%
Cash & Equivalents

$5.05B

Previous: $4.26B+18.7%
Total Assets

$21.9B

Previous: $22.2B-1.3%
Stock-Based Comp

$54M

Previous: $59M-8.5%

Revenue & EPS history

Expedia · Revenue · Quarterly

$566M

Q2 2020-82%vs Q2 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Expedia · $551M total across 2 segments · Q2 2020

  • B2C
    $428M
  • B2B
    $123M

Forward guidance

Expedia Group is focused on what they can control internally and expect the recovery to be bumpy.

Tailwinds

  • Consumers have a strong desire for travel and will find a way when they get comfort to do so.
  • Expedia feels like they are in a great position to participate as travel recovers.
  • The company is rapidly continuing down the path of reshaping how they do business.
  • Expedia is on track to come out of this disruption a stronger, more nimble company with better margins.
  • The company is in position to deliver attractive growth for the long term.

Headwinds

  • There's still a lot of uncertainty about the virus.
  • Expedia expects the recovery will have ups and downs along the way.
  • The recovery will look different in different geographies depending on the ability to control the virus.
  • Recovery depends on travel restrictions.
  • Recovery depends on consumers' general comfort with travelling.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.9%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+0.0%

Avg return

30 days after

57%

39 / 68 earnings

Positive

+24.7%

Q1 2012

Best reaction

-27.2%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-14.6%-9.4%
Q4 2025-6.4%-10.3%+0.5%
Q3 2025+17.4%+24.6%+19.9%
Q1 2025-7.4%+0.1%+4.5%
Q4 2024+17.3%+17.4%+6.8%
Q3 2024+5.2%+5.9%+11.0%
Q2 2024+14.8%+15.3%+16.8%
Q1 2024-13.4%-15.2%-15.2%
Q4 2023-15.1%-12.7%-12.0%
Q3 2023+20.8%+26.6%+49.4%
Q2 2023-12.6%-6.9%-7.1%
Q1 2023+3.3%+3.0%+14.0%
Q4 2022-9.7%-3.5%-17.5%
Q3 2022+2.5%-0.7%+14.8%
Q2 2022-3.0%-1.9%-3.4%
Q1 2022-14.0%-24.3%-27.8%
Q4 2021-2.5%+7.6%-9.0%
Q3 2021+12.3%+15.9%-4.1%
Q2 2021-2.8%-3.0%-6.9%
Q1 2021+1.5%+0.9%+0.3%
Q4 2020-1.6%-0.7%+17.3%
Q3 2020+4.4%+30.2%+30.1%
Q2 2020-5.1%-6.5%+18.2%
Q1 2020+0.9%+2.1%+7.5%
Q4 2019+10.7%+9.1%-37.3%
Q3 2019-27.2%-26.6%-20.3%
Q2 2019+1.2%-1.9%-7.5%
Q1 2019-1.3%-4.6%-10.7%
Q4 2018+2.3%-1.0%-5.1%
Q3 2018+5.5%+9.0%-0.9%
Q2 2018+8.0%+4.9%+2.1%
Q1 2018+6.1%+4.7%+8.7%
Q4 2017-19.6%-21.3%-13.2%
Q3 2017-16.3%-15.7%-14.3%
Q2 2017+1.6%-2.7%-4.9%
Q1 2017-1.5%+2.4%+6.5%
Q4 2016-0.2%-2.6%+2.4%
Q3 2016+4.9%+0.4%+1.4%
Q2 2016-0.5%-3.1%-5.0%
Q1 2016+7.4%
Q4 2015+11.6%
Q3 2015+8.3%
Q2 2015+13.6%
Q1 2015+5.6%
Q4 2014-11.4%
Q3 2014+6.8%
Q2 2014+3.4%
Q1 2014+0.2%
Q4 2013+16.5%
Q3 2013+16.4%
Q2 2013-26.0%
Q1 2013-8.8%
Q4 2012+0.8%
Q3 2012+13.0%
Q2 2012+24.1%
Q1 2012+24.7%
Q2 2011+0.7%
Q4 2011+0.7%
Q3 2011-0.5%
Q1 2011+2.8%
Q1 2010+2.8%
Q2 2010-15.6%
Q4 2008-15.6%
Q4 2010-15.6%
Q3 2009-2.1%
Q3 2010-2.1%
Q4 2009+8.1%
Q2 2009+8.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro