Expedia posted $2.97 billion in revenue, a 15 percent increase over the same time last year in its third-quarter earnings report Thursday. Gross bookings increased 11 percent year-over-year to $22.2 billion, in the first quarter since former CEO Dara Khosrowshahi departed to take the helm at Uber.
The Bellevue, Wash. travel giant’s Q3 revenue tracked closely with analyst estimates of $2.98 billion. Expedia reported non-GAAP earnings per share of $2.51, lower than average analyst estimates of $2.62.
Shares of Expedia — which has grown aggressively through acquisitions and purchased HomeAway for $3.9 billion in December 2015 — fell more than fourteen percent in after-hours trading.
The miss was attributed to the hurricanes and wildfires that decimated parts of the country during the last quarter.
Expedia anticipates it took a $15 million to $20 million hit from the natural disasters that occurred during the third quarter. It could also have to do with the company’s leadership change, as former CFO Mark Okerstrom took over after Khosrowshahi’s departure this quarter.
Okerstrom said that the outbreaks of violence worldwide did not significantly impact Expedia’s business during the last quarter.
“The overall microclimate is hard to ignore,” he said. “Some of the terrorist activity that we’ve seen, Barcelona. Obviously the horrible events we saw in Las Vegas. There are things going on that are starting to be the new normal. Aside from that, when we look at the macro environment it still looks reasonably solid and a lot of the trends that we have seen for some time now look to be continuing.”
Gross bookings are up sequentially from Q2, which saw a 12 percent increase and revenue is up from the $2.6 billion reported last quarter.
“I’m incredibly optimistic about the opportunity ahead,” Okerstrom said during Thursday’s Q3 earnings call.
Here’s a look at some of the numbers from Expedia’s earnings report:
