On Friday, Citi reiterated its Neutral rating on Expedia (NASDAQ:EXPE) with a steady price target of $155.00. The travel platform's fourth-quarter results for 2023 presented a mix of outcomes, with Gross Bookings reaching $21.7B, marking a 6% increase year-over-year but falling approximately 1% short of market expectations. Revenue stood at $2.9B, aligning with forecasts and reflecting a 10% year-over-year rise, while adjusted EBITDA of $532M, with an 18.4% margin, slightly surpassed consensus by around 1%.
The company saw a 9% year-over-year increase in booked room nights, which matched Citi's projections. In a significant leadership change, Expedia announced that Ariane Gorin, currently President of Expedia for Business, is set to take over from Peter Kern as CEO, effective May 13, 2024.
During the earnings call, attention was drawn to a variety of operational aspects. Key areas of focus included the demand trends for Gross Bookings in January, insights on the U.S. rollout of the One Key initiative, and progress on the platform unification. Other points of interest were the execution at VRBO, trends in direct traffic, marketing strategies and their efficiency, and the overall profitability outlook.
Investors and analysts alike are keeping a close watch on Expedia's strategic moves and performance metrics, particularly in the context of the travel industry's ongoing recovery and evolution.
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