- In addition to missing Q3 EPS estimates (while posting in-line revenue), Orbitz (NYSE:OWW) is guiding for 9%-10% full-year revenue growth, below a 10.7% consensus.
- The online travel agency is also initially guiding for mid-single digit 2015 revenue growth; consensus is at 6.1%. Adjusted EBITDA is expected to grow 8%-10% in 2014, and at a mid-to-high single-digit % in 2015.
- Gross bookings rose 14% Y/Y in Q3, and hotel room nights 19%. Standalone hotel revenue +26% Y/Y; standalone air +6%; vacation packages +5; ads/media +4%; everything else +17%. U.S. revenue +17% international +7%.
- Net revenue margin was flat Y/Y at 8%. Cost of revenue rose to 19.6% of revenue from 17.7% a year ago; SG&A spend fell to 28% from 30.6%, and marketing spend (much of it on Google) rose to 36.5% from 33.3%.
- Bigger rival Priceline recently provided soft Q4 guidance. Likewise, TripAdvisor recently cut its full-year click (search ad) revenue guidance, citing hotel shopper seasonality.
- Q3 results, PR