Expedia, Inc. Reports Third Quarter 2016 Results

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Expedia, Inc. Reports Third Quarter 2016 Results BELLEVUE, WA – October 27, 2016 – Expedia, Inc. (NASDAQ: EXPE) announced financial results today for the quarter ended September 30, 2016. All figures below include the impact from acquisitions, unless otherwise noted. Key Highlights • •

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Gross bookings increased $3.2 billion or 21% year-over-year to $18.6 billion. Revenue increased 33% yearover-year to $2.6 billion. Room nights stayed increased 17% year-over-year, with growth of 11% excluding Orbitz Worldwide. Growth in room nights stayed accelerated in September to 20% year-over-year, with growth of 14% excluding Orbitz Worldwide. Global lodging portfolio increased by over 14,000 properties during the quarter, or 19% year-over-year, bringing total hotel property count to over 321,000 available on Expedia, Inc. sites. On a standalone basis, trivago reached $276 million in revenue, an increase of 57% year-over-year. HomeAway delivered $210 million of revenue, representing an increase of 61% year-over-year on a standalone basis. Year to date, Expedia repurchased 3.2 million shares of its common stock for approximately $349 million.

Financial Summary & Operating Metrics ($ millions except per share amounts) Expedia, Inc. Q3 2016



(1,919) bps(2)













Net income attributable to the Company



Diluted EPS





Metric Room night growth Gross bookings Revenue Adjusted


Operating income Adjusted net Adjusted

Free cash





“Adjusted EBITDA” (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization), “Adjusted net income,” “Adjusted EPS” and “Free cash flow” are non-GAAP measures as defined by the Securities and Exchange Commission (the “SEC”). Please see “Definitions of Non-GAAP Measures” and “Tabular Reconciliations for Non-GAAP Measures” on pages 14-19 herein for an explanation and reconciliations of non-GAAP measures used throughout this release. (2) Expedia sold its ownership interest in eLong, Inc. on May 22, 2015 and eLong is excluded from our results from that point forward. The room night growth comparison for Q3 2015 excludes eLong. Please refer to the Glossary in the Quarterly Results section on Expedia’s investor relations website for definitions of the business and financial terms discussed within this release.

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Discussion of Results The results include Expedia.com® (“Brand Expedia”), Hotels.com®, Orbitz Worldwide, Inc. (“Orbitz Worldwide”), Expedia® Affiliate Network (“EAN”), trivago®, HomeAway®, Egencia®, Travelocity®, Hotwire.com®, Wotif Group, Classic Vacations®, CarRentals.comTM, Expedia Local Expert®, Venere®, Expedia® CruiseShipCenters®, AirAsia ExpediaTM and eLong (through May 22, 2015 unless otherwise noted), in addition to the related international points of sale. The results include the results of Orbitz Worldwide following the acquisition by Expedia in September 2015, as well as results of HomeAway following the acquisition by Expedia in December 2015. Beginning in the fourth quarter of 2015, the results of Orbitz for Business are reported within the Egencia segment; the results of the rest of Orbitz Worldwide are reported within the Core OTA segment as well as within unallocated overhead costs. Inorganic impact of acquisitions is calculated through the date that the acquisition closed in the prior year. Unless otherwise noted, all comparisons below are versus the third quarter of 2015. Estimated Impact of Recent Major Acquisitions (including operating results as well as d