Expedia Group Reports Strong Q4 2024 Performance

Expedia Group posts impressive Q4 results with double-digit growth in key metrics. Strong travel demand and disciplined cost control drive EBITDA growth, indicating potential for future stock price appreciation.

Date: 07-02-2025

AI Rating: 7

Financial Performance Overview

Expedia Group's Q4 2024 earnings call reveals robust financial performance with significant growth in bookings, revenue, and EBITDA margins, which can impact stock prices positively.

Earnings Growth and Margins

The report outlines that total gross bookings grew 13% to reach 24.4 billion, while revenue rose 10% to 3.2 billion, driven largely by their B2B segment which saw a remarkable growth of 21%. The EBITDA margin improved to 20.2%, an increase of 175 basis points, indicating effective cost management and potentially stronger profitability moving forward.

Free Cash Flow and Shareholder Returns

Furthermore, the company generated robust free cash flow of $2.3 billion, up 26% year-over-year, which allows for continued investment in growth and shareholder returns, such as stock buybacks and the reinstatement of dividends. The new quarterly dividend set for $0.40 per share adds to the appeal for income-focused investors.

Forward Guidance

Management projects steady growth in gross bookings and revenue for 2025, forecasting a 4% to 6% growth rate which suggests the company is poised for continuous expansion. Potential foreign exchange headwinds may affect this, but overall, the outlook remains stable.

Despite some mild softening noted in early Q1, the strong performance of their various brands, particularly in international markets, coupled with effective marketing and loyalty strategies provides confidence in ongoing growth. Consequently, the overall sentiment, based on performance metrics, is optimistic, potentially uplifting stock prices as investor interest increases.

Stocks: EXPE