Expedia Beats Second-Quarter Profit Estimates on Sustained International Travel Demand

Reuters08-09

Online travel agency Expedia beat analysts' expectations on Thursday for second-quarter profit, helped by sustained demand for international travel, sending its shares up 11 per cent after the bell.

"The travel environment was healthy in the second quarter and like the last few quarters, we saw strong ongoing demand internationally relative to the US," CEO Ariane Gorin said during an investor call.

Expedia, however, also warned that it saw a more challenging macro environment and a softening in travel demand in July.

Many other travel companies, including rival Booking and short-term rentals platform Airbnb have mirrored this sentiment in their earnings reports, stating that consumers are waiting longer to book vacations and growing cautious about spending.

Expedia said it expects full-year revenue to grow 6 per cent year-over-year, within its previous forecast range, but lower than analysts' estimates of 7.4 per cent

It also forecast 2024 gross bookings growth at 4 per cent year-over-year, compared to Wall Street expectations of 6.3 per cent.

The Seattle-based company reported a quarterly profit of $3.51 per share, beating analysts' estimates of $3.06 per share.

Total revenue for quarter ended June 30 was $3.56 billion, up 6 per cent from a year earlier. Analysts, on average, were expecting revenue of $3.53 billion in the second quarter, according to LSEG data.

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