Thu, Feb. 19, 2:28 PM
- Expedia (EXPE +2%) and TripAdvisor (TRIP +3.9%) are having a good day after Priceline beat Q4 estimates in spite of being heavily pressured by a weak euro, and reported 17% Y/Y bookings growth (above guidance of 8%-15%).
- The online travel giant's Q1 guidance - 4%-11% revenue growth vs. a 13.5% consensus, and 2%-9% bookings growth (14%-21% in constant currency) - is light, but better than feared given forex and Priceline's history of guiding conservatively.
- The shoe was on the other foot last week: Priceline rallied in response to TripAdvisor's results and the Expedia/Orbitz deal.
Fri, Feb. 6, 9:31 AM
- "We are expecting a deceleration in revenue growth in 2015 on headwinds from Travelocity implementation, further impact from the reduction of our hotel margins, the negative impact of foreign currency and the continued success of our loyalty programs," stated Expedia (NASDAQ:EXPE) CFO Mark Okerstrom on the Q4 CC (transcript). The revenue boost from the Wotif acquisition will partly offset.
- Okerstrom added Expedia isn't "expecting any meaningful adjusted EBITDA growth in the first quarter and expect the bulk of our adjusted EBITDA dollar growth to come in the back half of the year." Excluding the 65%-owned Chinese eLong (LONG -4.8%) unit, which is expected to see losses grow amid tough competition from Ctrip/Qunar, adjusted EBITDA growth is expected to be in the 10%-15% range, with forex having a 5% impact.
- Expedia's Q4 gross bookings rose 24% Y/Y to $11.3B, but revenue rose a more modest 19% and adjusted EBITDA (exc. eLong) 13%. A 10% Y/Y drop in revenue/hotel room night and 6% drop in revenue/air ticket (both hurt by forex) pressured the top line, and a 29% increase in sales/marketing spend (thanks to Google and TV ad spend) pressured the bottom line.
- Some positives: Hotel room night still rose 28%, and air tickets sold 30%. U.S. bookings grew 29%, and international 18% (forex again).
- Priceline (NASDAQ:PCLN), which has heavier international exposure than Expedia, is also lower. Its Q4 report arrives on Feb. 19.
- Expedia's Q4 results, PR (.pdf)
Thu, Feb. 5, 4:08 PM
Wed, Feb. 4, 5:35 PM
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Nov. 4, 2014, 8:51 AM
- Priceline (NASDAQ:PCLN) beat Q3 EPS estimates and posted in-line revenue, but offered EPS guidance that was well below consensus and noted macro conditions are mixed, especially in Europe. Revenue guidance (11%-18% Y/Y growth vs. a 23.8% consensus) is also light.
- The online travel giant also reported bookings growth slowed to 28% in Q3 from 34% in Q2 - U.S. bookings growth fell to 9.9% from 20.6%, and international growth to 31.6% from 36.2% - and guided for just 8%-15% Q4 bookings growth. Forex (driven by a weak euro) is expected to have a 500 bps impact on Q4 growth.
- While Priceline has a history of guiding conservatively, the size of the guidance shortfalls is raising eyebrows. Expedia (NASDAQ:EXPE) -1.2% premarket, TripAdvisor (NASDAQ:TRIP) -0.8%. TripAdvisor reports after the bell.
Oct. 31, 2014, 1:42 PM
- Expedia (EXPE +5%) is rallying after beating Q3 estimates on the back of a 29% Y/Y increase in gross bookings (even with Q2's clip) to $13.5B. U.S. bookings rose 35% to $7.9B, and international bookings 22% to $5.6B.
- Hotel room nights rose 24% Y/Y (down from Q2's 28%), and air tickets 30% (up from Q2's 28%). Revenue per room night fell 2%; revenue per ticket fell 7%.
- Sales/marketing spend (much of it on Google) rose 30% to $815.8M, and tech/content spend 20% to $172.8M. $130M was spent on buybacks.
- On the CC (transcript), the company reiterated guidance for 16%-19% full-year adjusted EBITDA growth. CEO Dara Khosrowshahi noted the Travelocity deal is boosting top-line performance, and said the company plans to increase investments in its Chinese eLong (LONG -0.5%) unit, which is facing "challenges and competitive headwinds."
- With marketing spend remaining high and investments in eLong and Trivago ramping, Benchmark expects "minimal EBITDA margin expansion" in 2015. But it also expects 13% sales growth after the Travelocity deal reaches its 1-year anniversary.
- Priceline (PCLN +4.6%) and TripAdvisor (TRIP +2.8%) are getting a lift from Expedia. The Nasdaq is up 1.3%.
Oct. 30, 2014, 4:33 PM
Oct. 29, 2014, 5:35 PM
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Jul. 31, 2014, 5:46 PM
- Expedia (NASDAQ:EXPE) is hiking its quarterly dividend by 20% to $0.18/share. That spells a 0.9% yield at current levels.
- Gross bookings +29% Y/Y in Q2 (even with Q1's growth rate) to $13.05B, and free cash flow +66% to $411M. U.S. bookings +35% to $7.9B, international bookings +21% to $5.2B. Agency bookings +38%, merchant bookings +19%.
- Hotel room nights +28% Y/Y, an improvement from Q1's +24%. Revenue/night -4%, though that's better than Q1's -10%. Air tickets sold +28%, revenue/ticket -5%.
- Revenue as a % of gross bookings fell 45 bps Y/Y to 11.5%. Costs/expenses grew 21% to $1.23B, with sales/marketing spend (fueled by Google search ad buying) rising 26% to $737M.
- $217M was spent on buybacks at an average price of $71.40.
- Q2 results, PR
Jul. 31, 2014, 4:03 PM
Jul. 30, 2014, 5:35 PM
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May. 2, 2014, 10:45 AM
- Though Expedia (EXPE -2.7%) beat Q1 estimates on the back of solid bookings growth, the company reiterated guidance for 13-16% full-year adjusted EBITDA growth on its CC (transcript), while adding "the vast majority" of the growth will happen in 2H14.
- Moreover, when asked by Deutsche's Ross Sandler whether hotel room night growth (24% Y/Y in Q1 and 25% in Q4) could accelerate to 30%+ in Q2 given an "easy comp" for Hotwire (the business struggled in Q2 last year) and a shift in Easter's timing from Q1 to Q2, CFO Mark Okerstrom chose to punt. "Well, I would say that Hotwire is actually a headwind for us until Q3 ... we don't expect that Q2 is a particularly easy comp for us on the bottom line."
- Priceline (PCLN -0.1%), which is near breakeven in spite of Expedia's decline, has been providing tough competition for Hotwire in the opaque travel bookings space. Its Q1 report arrives on May 8.
- Expedia's gross bookings rose 29% Y/Y in Q1 to $12.6B, an improvement from Q4's 21% clip and Q3's 15%. U.S. bookings rose 35% to $7.43B, and international bookings 21% to $5.2B. Room nights +24% with a 10% drop in revenue/night, air tickets sold +30% with a 1% increase in airfare.
- Heavy online ad spend led sales/marketing expenses to grow 26% to $624.7M (52% of revenue). The Travelocity deal boosted room night growth by 3%, and air ticket growth by 18%.
May. 1, 2014, 4:07 PM
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Feb. 13, 2014, 1:21 PM
- A day after rallying in response to TripAdvisor's strong Q4 report and guidance, Priceline (PCLN +2%) and Expedia (EXPE +2.2%) are following Orbitz (OWW +29.4%) higher. The travel site has skyrocketed in response to a healthy Q4 beat. Also helping: 10% of Orbitz's float was shorted as of Jan. 31.
- Orbitz, pummeled in November following a Q3 EPS miss, is guiding for Q1 revenue of $202M-$207M (below a $207.3M consensus) , and for low-to-mid single-digit full-year revenue growth (consensus is for 3.7% growth). Full-year adjusted EBITDA is expected to grow at a high-single digit rate.
- Gross bookings rose 4% Y/Y in Q4 vs. 5% in Q3, and net revenue margin rose 30 bps Y/Y to 8%. Standalone hotel revenue +18%, standalone air -11%, vacation packages +16%, ads/media -2%, everything else -3%.
- Much like its peers, Orbitz is spending heavily on advertising: Marketing spend rose to 32.1% of revenue from 29.4% a year ago.
- Priceline might also be getting a lift from a Credit Suisse PT hike.
- Orbitz's earnings release
Feb. 12, 2014, 12:03 PM
- TripAdvisor (TRIP +8.3%) is making new highs after beating Q4 revenue estimates and providing strong guidance on its CC (transcript). The travel reviews leader said it expects 2014 revenue growth to be in the mid-20s range (consensus is at 21.9%), and for EBITDA to grow at a similar clip.
- TripAdvisor expects click-based (CPC) ad sales to show accelerating growth in 2014, with full-year growth in the low-20s range. Display ad sales (CPM-based) are expected to grow at a high-teens rate, and all other businesses (subscriptions, transactions, etc.) are expected to collectively grow in the low-50s range.
- CPC ad sales made up 68% of Q4 revenue, display ads 15%, and all other businesses 17%. North American sales (51% of revenue) rose 22%, EMEA 30%, and Asia-Pac 40%. Latin America was flat.
- Mobile's share of TripAdvisor traffic doubled to 40% in 2013, and app downloads rose nearly 150% to 82M. Travel listings rose 80% to 550K, and business listing subs 38% to 69K.
- Priceline (PCLN +2.5%) and Expedia (EXPE +1.1%), both major TripAdvisor clients, are also trading higher. Expedia took off last week following a Q4 beat. Priceline, which launched an updated Android app this morning, reports on Feb. 20.
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