Expedia Group Inc (NASDAQ:EXPE, ETR:E3X1) reported second quarter results that came in ahead of its own guidance and Wall Street expectations, supported by growth in international and B2B bookings.
The company also raised its full-year forecast, citing stronger-than-expected travel demand entering the second half of the year.
For the quarter ended June 30, Expedia posted gross bookings of $30.4 billion, up 5% year-over-year. Booked room nights rose 7%, largely driven by growth outside the US Lodging gross bookings increased 6%, while hotel bookings rose 8%, supported by B2B and Brand Expedia.
Revenue rose 6% from a year earlier, boosted by a 15% increase in B2B revenue and 19% growth in advertising.
Adjusted EBITDA increased 16% to $908 million, with margins expanding by 190 basis points to 24%, while adjusted earnings per share rose 21% to $4.24, ahead of estimates of $4.14.
The company raised its full-year guidance, now expecting gross bookings to grow between 3% and 5% for the year, up from the prior range.
Full-year adjusted EBITDA margin is now projected to expand by around 100 basis points, compared to the previous range of 75 to 100 basis points.
Management said the second half of the year will reflect greater impact from restructuring efforts announced in April.
Analysts at Wedbush noted that the company’s performance exceeded expectations, particularly in B2B.
“Commentary and forward guidance were encouraging relative to consensus expectations,” they wrote. “That said, since the beginning of July, the company has seen an uptick in overall travel demand, particularly in the US.”
Despite the better-than-expected results and guidance raise, Wedbush maintained a ‘Neutral’ rating on the stock, increasing its price target to $220 from $175.
The firm cited uncertainty around US consumer demand and a difficult year-over-year comparison in the fourth quarter as limiting factors.
“We note that strength in Q2 is mostly offset by the implied sequential moderation in year-over-year growth in Q4,” the analysts wrote.
Shares of Expedia traded up 3.9% at about $195 post-earnings.