Expedia beats the Street on revenue, earnings
Online travel giant Expedia continued to outperform over the second quarter of 2019, beating the Street’s expectations on revenue and earnings. Underlying this performance were solid fundamentals that spoke to the health of Expedia’s business. With a major campus expansion around the corner, the company looks to be on a path to success heading into its third quarter.
Expedia’s share price has increased by 23% so far this year
Source: Yahoo Finance
Expedia reported revenues of $3.15 billion for its second quarter, just beating out consensus estimates for $3.12 billion. On earnings, it managed a bigger beat, returning $1.77 instead of the $1.67 that analysts had expected. Perhaps most importantly, these strong fundamentals are a result of strength in Expedia’s core business. The company said it saw gross bookings (the sum of customer spend on rooms, flights, and other travel across Expedia’s portfolio of brands) increase by 9%. Breaking that down by market, Expedia said that domestic gross bookings were up 11% and international 7% (all of these growth figures are reported on a year on year basis).
Expedia’s CEO, Mark Okerstrom, used the company’s earnings call to elaborate on hwo the company is evolving. He said: “We're focusing on being more customer-centric, adding features and functionality to better serve travellers. For example, we're rolling out a virtual agent platform, which is already driving improved customer satisfaction and increasing the efficiency of our customer service. This year, our efforts to increase the speed of execution and innovation have evolved into a new third strategic theme around fully leveraging the power of our global platform. We're collaborating across the company and operating more and more as one group than ever before.”
He also noted that these and other improvements were just “the tip of the iceberg” and that the company was striving to achieve “better customer and partner experiences, as well as stronger long-term growth and value creation.”
Dominion holds Expedia in its Global Trends Ecommerce Fund.
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