Expedia Group Inc (NASDAQ: EXPE) reported a narrower-than-expected loss for its first quarter, while sales missed estimates, sending the company’s stock price below the breakeven point.
The company out of Bellevue, Washington, said Thursday gross bookings increased 8% and revenue increased 4% year-over-year. Excluding the impact of foreign exchange, gross bookings increased 11% and revenue increased 7% year-over-year.
Expedia Group's net loss improved 25% to $52 million, and Adjusted EBITDA grew 42% year-over-year. Total stayed lodging room nights increased 9% year-over-year. Expedia Group exceeded 1.1 million properties available on its core lodging platform as of March 31, 2019, including approximately 460,000 integrated Vrbo listings.
For the first quarter of 2019, both total GAAP and adjusted selling and marketing expense increased 1% compared to the first quarter of 2018, primarily due to a $22 million increase in direct costs partly offset by a decrease in indirect costs.
Indirect costs represented 18% of total GAAP selling and marketing costs and 16% of total adjusted selling and marketing expense in the first quarter of 2019 compared to 18% and 17%, respectively, in the first quarter of 2018.
In March, Expedia Group paid a quarterly dividend of $47 million ($0.32 per common share). In addition, on May 1, the Executive Committee of Expedia Group’s Board of Directors declared a quarterly cash dividend of $0.32 per share of outstanding common stock to be paid to stockholders of record as of the close of business on May 23, with a payment date of June 13.
In April, Expedia Group agreed to acquire Liberty Expedia Holdings, Inc. in an all-stock transaction. As a result of the transaction Expedia Group expects to retire approximately 3.1 million shares.
Shares dropped $1.13 by Friday’s closing bell to $127.10
