- In addition to missing Q3 EPS estimates (while slightly beating on revenue), Orbitz (OWW -18.1%) is now guiding for 2013 revenue of $840M and adjusted EBITDA growth of 9%-10%. The former is below an $849.4M consensus, and the latter suggests adjusted EBITDA growth is set to reverse course in Q4 after growing at an 18% clip over the first nine months of 2013.
- Orbitz's gross bookings rose 5% Y/Y in Q3, slightly better than Q2's 4% clip. Net revenue margin (the ratio of revenue to bookings) was 8%, +50 bps Y/Y. But free cash flow (tends to be lumpy) was -$39.6M vs. $20.2M in Q2 and -$13M a year ago.
- Standalone air revenue -4% Y/Y, standalone hotel rooms +36%, vacation packages +12%, ads/media -4%, everything else -2%. Gross margin rose 160 bps Y/Y to 82.3%, but SG&A grew to make up 30.6% of revenue (+180 bps), and marketing spend totaled 33.3% of revenue (+170 bps). Online travel firms large and small have been spending aggressively on search keywords.
- Domestic revenue (72% of total) +12% Y/Y, international +9%.
- Expedia (EXPE -1.1%) and Travelzoo (TZOO -1.8%), both of whom also have strong U.S. exposure, are off moderately. Today's Orbitz plunge contrasts sharply with the huge gains the company saw following its Q2 report.
Orbitz crashes due to EPS miss guidance, Expedia and Travelzoo slightly lower
Nov 5 2013, 14:08 ET