Expedia beats expectations in Q2, delivers $2.6 billion revenue
Online travel kingpin Expedia beat analysts’ expectations for the second quarter, delivering $2.6 billion revenue. That’s an 18% rise from the same period a year ago. The company also reported adjusted earnings of $0.89 per share and a net income of $56.7 million for the quarter, a 79% improvement, year-over-year. This is better performance than we saw in the first quarter, where Expedia narrowly missed analysts’ expectations.
Expedia’s earnings win pushed the share price up even further
SOURCE: Yahoo Finance
One of the drivers of Expedia’s growth last quarter was its HomeAway unit. This business, which competes against Airbnb in the short-term rental hospitality space, saw revenue increase 31% year-over-year to $224 million. The company claims to have big plans for it.
Expedia’s CEO Dara Khosrashawi told investors: “one of our very significant growth opportunities over the next five years with HomeAway is to expand internationally. Our focus has been mostly domestic this year and you can expect our focus to turn from domestic to growing the international markets.”
HomeAway is not the only area Expedia has earmarked for growth. The company has completed its majority acquisition of Silverrail, an online platform to help manage train trips in the UK. Khosrashawi said: “Silverrail has a great opportunity ahead as a standalone enterprise and has done a terrific job building rail technology.”
He also said that the company plans to invest $350 million into the Southeast Asia online travel market through Indonesian travel site Traveloka. He said on the earnings call: “we are incredibly excited to have Traveloka as an even closer partner. They’ve really performed exceptionally well and in a relatively short period of time, have established themselves as a real leader in Indonesia.”
Dominion holds Expedia in its Global Trends Ecommerce Fund.
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