Expedia Group Inc. (NASDAQ:EXPE)

Reported Net Income (Loss) Attributable to Expedia Group, Inc.

The reported net income exhibited a positive trend from 2017 through 2019, increasing from 378 million US dollars in 2017 to 406 million in 2018, and further rising to 565 million in 2019. This trend reflects steady profitability over this period.

In 2020, there was a sharp reversal, with net income declining drastically to a loss of 2,612 million US dollars. This significant drop indicates a severe financial impact during that year.

By 2021, the company’s net income returned to a marginally positive level of 12 million US dollars, implying a slight recovery from the previous year’s substantial loss, though far below pre-2020 levels.

Adjusted Net Income (Loss) Attributable to Expedia Group, Inc.

The adjusted net income figures closely mirror the reported net income values, indicating minimal differences due to adjustments. The adjusted net income rose from 371 million US dollars in 2017 to 406 million in 2018 and then to 565 million in 2019, showing consistent profitability.

Similarly, in 2020, the adjusted net income reflects a significant loss of 2,612 million US dollars, paralleling the reported net income, highlighting a major adverse event impacting the company’s profitability.

In 2021, the adjusted net income improved slightly to 12 million US dollars, signaling a modest recovery consistent with the reported net income trend.

The financial data reveals notable fluctuations in profitability and return metrics over the period analyzed.

Net Profit Margin

The reported and adjusted net profit margins display a relatively stable positive trend from 2017 through 2019, increasing slightly from 3.76% to 4.68%. However, there is a drastic decline in 2020, plunging to -50.24%, indicating significant losses during that year. By 2021, the margin shows some recovery but remains near breakeven at 0.14%.

Return on Equity (ROE)

ROE figures, both reported and adjusted, follow a similar pattern as net profit margins. The returns improved from 8.36% in 2017 to a peak of 14.24% in 2019, suggesting strengthening shareholder value. The year 2020 again reflects severe negative returns of -103.16%, implying substantial erosion of equity. In 2021, the metric modestly recovers to 0.58%, indicating a very weak return on equity.

Return on Assets (ROA)

ROA trends align with the other profitability indicators, rising from 2.04% in 2017 to 2.64% in 2019, then sharply falling to -13.98% in 2020. The following year shows minimal improvement, with ROA at 0.06%, barely above break-even levels. This signifies that asset efficiency was severely compromised during 2020 and has yet to return to previous levels.

Overall, the data depicts a robust profitability and return performance until 2019, followed by a substantial negative impact in 2020, likely due to extraordinary or external circumstances. Partial recovery is observed in 2021, though profitability and returns remain substantially below pre-2020 levels.

Net Income Trends

Reported net income attributable to the company displayed an increasing trend from 2017 to 2019, rising from $378 million to $565 million. However, there was a significant decline in 2020, with a large loss of $2,612 million recorded. In 2021, net income returned close to break-even, with a marginal positive income of $12 million. The adjusted net income mirrored the reported values exactly, indicating no adjustments were made that changed the overall income figures.

Net Profit Margin Trends

Reported net profit margin showed a moderate upward movement from 3.76% in 2017 to 4.68% in 2019, reflecting improving profitability relative to revenues during that period. In 2020, the margin sharply declined to -50.24%, indicating substantial losses relative to revenue, consistent with the significant net loss reported that year. By 2021, the margin recovered to a very low positive value of 0.14%, suggesting a return to slight profitability but still far below pre-2020 levels. Adjusted net profit margins were identical to reported margins, further supporting the conclusion that adjustments did not materially alter profitability metrics.

Overall Insights

The data reflects a period of growth in profitability from 2017 through 2019, followed by a dramatic downturn in 2020 likely related to extraordinary circumstances impacting the company's operations. The near break-even results in 2021 suggest initial stages of recovery but indicate ongoing challenges in restoring prior profitability. The exact alignment of reported and adjusted figures across all metrics implies that all significant gains and losses were directly related to core operational performance without material one-time adjustments.

Reported and Adjusted Net Income

The net income attributable to the company demonstrated growth from 2017 through 2019, increasing from US$378 million in 2017 to US$565 million in 2019. However, a significant reversal occurred in 2020, with a substantial loss of US$2,612 million reported, markedly diverging from prior profitability. In 2021, the net income returned to a positive but minimal level of US$12 million. The adjusted net income exhibited an identical pattern, indicating no adjustments materially affected the reported figures.

Return on Equity (ROE)

The reported ROE showed improvement from 8.36% in 2017 to 14.24% in 2019, reflecting a strengthening return on shareholders' equity during this period. In 2020, the ROE steeply declined to -103.16%, signaling a pronounced negative return likely linked to the significant reported loss. By 2021, the ROE marginally recovered to 0.58%, indicating very limited profitability relative to equity. Adjusted ROE mirrored the reported ROE identically, reaffirming consistency between reported and adjusted performance metrics.

Overall Trend and Insights

The data reflects a strong financial position and improving profitability through 2019, followed by a severe downturn in 2020, likely triggered by extraordinary or adverse conditions impacting the company’s earnings and equity returns. The subsequent recovery in 2021 remains modest, with profitability close to break-even levels. The parallel movement of reported and adjusted figures suggests that adjustments did not materially alter the overall financial performance depiction during these years.

Net Income Analysis

The reported and adjusted net income attributable to the company showed an overall increasing trend from 2017 to 2019, rising from 378 million US dollars in 2017 to 565 million US dollars in 2019. However, there was a significant decline in 2020, with a substantial loss of 2,612 million US dollars recorded. In 2021, the net income showed a recovery to a nominal positive value of 12 million US dollars.

Return on Assets (ROA) Analysis

Corresponding to the net income trend, both reported and adjusted ROA demonstrated a positive and increasing trajectory from 2017 through 2019, moving from 2.04% to 2.64%. This trend reversed sharply in 2020 with a significant negative ROA of -13.98%, indicating a major loss relative to assets. By 2021, ROA had improved substantially but only to a marginally positive level of 0.06%, suggesting weak profitability during that year.

Comparative Consistency

The reported and adjusted figures for net income and ROA are identical for each corresponding year, which indicates no discrepancy or adjustments between the reported and investment-adjusted data in this context.

Summary of Financial Trends

The company's financial performance shows a period of steady growth in net income and profitability up to 2019, followed by a drastic decline in 2020, reflecting a severe operational or market challenge during that period. The partial recovery in 2021 was minimal, indicating ongoing difficulties in returning to pre-2020 financial performance levels.