By Davit Kirakosyan
Expedia (NASDAQ:EXPE) shares fell more than 7% after-hours following the company’s reported Q4 results, with EPS of $1.26 coming in worse than the consensus estimate of $1.69.
Revenue was up 15% year-over-year to $2.62 billion, missing the consensus estimate of $2.69B. Total gross bookings increased 17% year-over-year as gross bookings for lodging and air grew.
Lodging revenue grew 18% driven by a significant increase of 19% in room nights stayed and average daily rate (ADR) growth of 3%. Air revenue increased 44%, driven by an increase of 47% in revenue per ticket. Advertising and media revenue was up 15% due to growth in Expedia Group Media Solutions. Other revenue was down 4% due to declines in car revenue.
"We begin ‘23 with record app usage and member counts, led by Expedia US, the first of our brands to deploy new capabilities and marketing strategies. This year, we are excited to see these benefits accrue to more of our brands and geographies, driving further growth and margin expansion," said Peter Kern, Vice Chairman and CEO of Expedia Group.