Expedia’s (NASDAQ:EXPE) Q3: Beats On Revenue

Online question bureau Expedia (NASDAQ:EXPE) reported gross up of Wall Streets expectations successful Q3 CY2025, with income up 8.7% twelvemonth connected twelvemonth to $4.41 billion. On apical of that, adjacent quarter’s gross guidance ($3.41 cardinal astatine the midpoint) was amazingly bully and 4.2% supra what analysts were expecting. Its non-GAAP nett of $7.57 per stock was 9% supra analysts’ statement estimates.

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• Revenue: $4.41 cardinal vs expert estimates of $4.29 cardinal (8.7% year-on-year growth, 2.9% beat)

• Adjusted EPS: $7.57 vs expert estimates of $6.95 (9% beat)

• Adjusted EBITDA: $1.45 cardinal vs expert estimates of $1.33 cardinal (32.8% margin, 8.8% beat)

• Revenue Guidance for Q4 CY2025 is $3.41 cardinal astatine the midpoint, supra expert estimates of $3.27 billion

• Operating Margin: 23.5%, up from 18.8% successful the aforesaid 4th past year

• Free Cash Flow was -$686 million, down from $921 cardinal successful the erstwhile quarter

• Room Nights Booked: 108.2 million, up 10.8 cardinal twelvemonth connected year

• Market Capitalization: $26.45 billion

Originally founded arsenic a portion of Microsoft, Expedia (NASDAQ:EXPE) is 1 of the world’s starring online question agencies.

Examining a company’s semipermanent show tin supply clues astir its quality. Any concern tin person short-term success, but a top-tier 1 grows for years. Regrettably, Expedia’s income grew astatine a mediocre 8.3% compounded yearly maturation complaint implicit the past 3 years. This fell abbreviated of our benchmark for the user net assemblage and is simply a unsmooth starting constituent for our analysis.

This quarter, Expedia reported year-on-year gross maturation of 8.7%, and its $4.41 cardinal of gross exceeded Wall Street’s estimates by 2.9%. Company absorption is presently guiding for a 7% year-on-year summation successful income adjacent quarter.

Looking further ahead, sell-side analysts expect gross to turn 4.5% implicit the adjacent 12 months, a deceleration versus the past 3 years. This projection is underwhelming and suggests its products and services volition spot immoderate request headwinds.

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As an online question company, Expedia generates gross maturation by expanding some the fig of stays (or experiences) booked and the committee charged connected those bookings.