Expedia Group shares sank as much as 13 percent in after-hours trading after the travel giant missed profit expectations for its third quarter earnings report. The Seattle-based company reported revenue of $3.56 billion, up 9 percent, and adjusted earnings per share of $3.38, down 7 percent. Analysts expected revenue of $3.58 billion and EPS of $3.80.
The sum of what customers spent across rooms, flights and other travel across Expedia’s brands — known as gross bookings — grew 9 percent to $26.9 billion for the quarter. Domestic gross bookings increased 10 percent and international gross bookings grew 7 percent.
Revenue from vacation home rental platform Vrbo grew 14 percent but growth slowed from the second quarter. The Vrbo segment also includes HomeAway, the Airbnb competitor that Expedia acquired in 2015 for $3.9 billion.
Expedia’s stock was up 21 percent this year before the market closed Wednesday.
The company is beginning to move thousands of employees into its new Seattle headquarters. Expedia recently settled disputes with United Airlines and Ryanair, bolstering its position in online travel booking.
Expedia is also staring down Google as a looming giant in the field of travel, as GeekWire reported earlier Wednesday.
