Stock Analysis on Net
Stock Analysis on Net

Expedia Group Inc. (NASDAQ:EXPE)

This company has been moved to the archive! The financial data has not been updated since May 3, 2022.

Common-Size Income Statement 

Expedia Group Inc., common-size consolidated income statement

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Revenue 100.00 100.00 100.00 100.00 100.00
Cost of revenue, exclusive of depreciation and amortization -17.70 -32.31 -17.21 -16.61 -17.46
Gross profit 82.30% 67.69% 82.79% 83.39% 82.54%
Selling and marketing -49.09 -48.97 -50.37 -50.98 -52.66
Technology and content -12.49 -19.43 -10.16 -10.00 -13.79
General and administrative -8.20 -11.48 -6.75 -6.90 -6.72
Depreciation and amortization -9.47 -17.18 -7.54 -8.54 -2.74
Impairment of goodwill -0.16 -15.37 0.00 -0.77 0.00
Intangible and other long-term asset impairment -0.07 -3.37 0.00 -0.37 0.00
Legal reserves, occupancy tax and other -0.01 0.25 -0.28 0.53 -0.25
Restructuring and related reorganization charges -0.64 -4.44 -0.20 0.00 -0.17
Operating income (loss) 2.16% -52.30% 7.48% 6.36% 6.21%
Interest income 0.10 0.35 0.49 0.63 0.34
Interest expense -4.08 -6.92 -1.43 -1.69 -1.81
Loss on debt extinguishment -3.26 0.00 0.00 0.00 0.00
Gain (loss) on sale of business, net 5.30 -0.25 0.00 0.00 0.00
Foreign exchange rate gains (losses), net -0.56 1.37 -0.28 0.03 -0.45
Gains (losses) on minority equity investments, net -0.34 -2.73 0.07 -0.99 -0.14
Other 0.22 -0.12 0.10 -0.02 -0.01
Other, net -0.67% -1.48% -0.12% -0.98% -0.60%
Other expense, net -2.61% -8.31% -1.06% -2.04% -2.07%
Income (loss) before income taxes -0.44% -60.61% 6.42% 4.32% 4.14%
Provision for income taxes 0.62 8.14 -1.68 -0.78 -0.45
Net income (loss) 0.17% -52.47% 4.74% 3.55% 3.69%
Net (income) loss attributable to non-controlling interests -0.03 2.23 -0.06 0.07 0.07
Net income (loss) attributable to Expedia Group, Inc. 0.14% -50.24% 4.68% 3.62% 3.76%
Preferred stock dividend and loss on redemption of preferred stock -3.27 -1.44 0.00 0.00 0.00
Net income (loss) attributable to Expedia Group, Inc. common stockholders -3.13% -51.68% 4.68% 3.62% 3.76%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Revenue and Gross Profit Trends
The company's revenue consistently represents 100% across all years. Gross profit margins remained relatively stable from 2017 through 2019, fluctuating between approximately 82.5% and 83.4% of revenue. There was a significant decline in gross profit margin in 2020, dropping to 67.69%, before recovering to 82.3% in 2021.
Cost of Revenue and Operating Expenses
The cost of revenue, exclusive of depreciation and amortization, was stable around 16-17% between 2017 and 2019, spiked sharply to 32.31% in 2020, and then reverted to 17.7% in 2021. Selling and marketing expenses consistently accounted for nearly half of revenue, showing a slight decreasing trend from 52.66% in 2017 to 49.09% in 2021. Technology and content expenses decreased from 13.79% in 2017 to around 10% in 2018 and 2019 but surged to 19.43% in 2020 before falling back to 12.49% in 2021. General and administrative costs rose from about 6.7% in 2017-2019 to 11.48% in 2020, then dropped to 8.2% in 2021. Depreciation and amortization followed a similar pattern, increasing notably in 2020 (17.18%) compared to earlier years, then declining in 2021 to 9.47%.
Impairments and Restructuring Charges
Goodwill impairment showed sizeable fluctuations, absent in 2017 and 2019, but appearing as a minor expense in 2018 (-0.77%), rising sharply in 2020 (-15.37%), and again reducing to negligible in 2021 (-0.16%). Other long-term asset impairments also surfaced primarily in 2018, 2020, and 2021 with the largest percentage in 2020 (-3.37%). Restructuring and related charges were minimal except for 2020 (-4.44%), indicating a significant reorganization effort during that year.
Operating Income and Profitability
Operating income remained positive and stable between 6.21% and 7.48% from 2017 through 2019. However, 2020 experienced a severe operating loss of -52.3%, attributable to increased costs and impairments, before rebounding to a modest 2.16% in 2021. Earnings before income taxes mirrored this pattern, shifting from positive margins (4.14% to 6.42%) in earlier years to a large loss (-60.61%) in 2020 and a near break-even position (-0.44%) in 2021.
Other Income and Expenses
Interest income remained modest and relatively stable around 0.1% to 0.63%. Interest expense decreased steadily from -1.81% in 2017 to -1.43% in 2019, spiked to -6.92% in 2020, and improved to -4.08% in 2021. The loss on debt extinguishment was negligible until a notable -3.26% in 2021. Gains and losses on the sale of business were absent until a loss in 2020 (-0.25%) followed by a gain in 2021 (5.3%). Foreign exchange impacts were minor but fluctuated between small gains and losses. Losses on minority equity investments were generally negative, with a spike to -2.73% in 2020. Overall other expenses increased significantly in 2020 (-8.31%) compared to prior years.
Net Income and Attributable Earnings
Net income attributable to the company’s common stockholders remained stable and positive from 2017 to 2019, ranging between 3.62% and 4.68%. The year 2020 witnessed a drastic decline, resulting in a net loss of -51.68%, followed by a continued loss of -3.13% in 2021. Preferred stock dividends and related redemption losses negatively impacted net income in 2020 and 2021, notably increasing in 2021 (-3.27%). Income taxes showed negative provisions through 2019, turning positive and significant in 2020 (8.14%), then dropping again in 2021 (0.62%).
Summary Insights
The data reveals that 2020 was an exceptional and challenging year marked by sharply increased costs, impairments, restructuring expenses, and resulting large losses at multiple profitability levels. This year notably disrupted the otherwise stable margins experienced between 2017 and 2019. Recovery efforts in 2021 are evident from the partial normalization of operational and profitability metrics, though net losses persisted, partly influenced by ongoing preferred stock-related costs. The company demonstrated resilience in restoring gross profit margins and reducing expenses after the pandemic-impacted 2020, but full profitability recovery lagged behind. Variability in impairments and restructuring reflects significant adjustments to asset base and business organization during this period.