Expedia closed out 2018 by besting Wall Street expectations for revenue while sharply increasing profits and the amount people are spending on the platform.
Revenue: Expedia reported $2.56 billion in revenue in the fourth quarter, bringing the 2018 total to $11.2 billion. Those figures just beat analyst expectations and represent growth of 10 and 12 percent respectively.
Profits: Expedia posted net profits of $191 million in the fourth quarter, or $1.24 per share, an increase of 45 percent over a year ago, well ahead of analyst expectations of $1.08 per share. For the year, Expedia brought in $902 million in net profits, up 33 percent over 2017.
Gross bookings: This figure is an important one for Expedia as it represents the total amount spent by customers booking rooms, flights and other travel across Expedia’s brands. In the fourth quarter, gross bookings rose 11 percent year-over-year to $21.96 billion. For all of 2018, gross bookings were $99.73 billion, a 13 percent rise over 2017.
Expedia stock is up slightly in after-hours trading.
Expedia’s latest financial report comes the same week that a federal court in New York unsealed a lawsuit brought by the travel giant against United Airlines. The lawsuit alleges United is locking Expedia out of fare data as part of a contract dispute.
If the dispute continues, Expedia said in the suit that it will no longer be able to offer United Flights on its platforms starting Sept. 30. Expedia said in the lawsuit that customers have already reserved more than 2,000 seats on United flights departing after Sept. 30.
Expedia is alleging breach of contract and asking the court to bar United from withholding fare data.
Other Highlights
- Expedia now has more than 1 million lodging properties on its platform, with 200,000 of those added in 2018 alone. HomeAway, the Airbnb competitor that Expedia acquired in 2015 for $3.9 billion, is responsible for 370,000 of those 1 million total properties on the platform.
- Expedia has a big year ahead as it gets set to move into a new Seattle waterfront headquarters. Set to open this fall, the campus has room for 5,000 people, giving it some growth potential beyond its current 4,500-person workforce. Expedia says the new campus will feature “biophilic design,” which involves connecting people and nature to increase physical and mental well-being through views of the water, mountains and open office spaces with plenty of natural light.
