Stock Analysis on Net
Stock Analysis on Net

Expedia Group Inc. (NASDAQ:EXPE)

$22.49

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

Common-Size Income Statement
Quarterly Data

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Expedia Group Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Revenue
Cost of revenue, exclusive of depreciation and amortization
Gross profit
Selling and marketing
Technology and content
General and administrative
Depreciation and amortization
Impairment of goodwill
Intangible and other long-term asset impairment
Legal reserves, occupancy tax and other
Restructuring and related reorganization charges
Operating income (loss)
Interest income
Interest expense
Loss on debt extinguishment
Gain on sale of business, net
Other, net
Other expense, net
Income (loss) before income taxes
Provision for income taxes
Net income (loss)
Net (income) loss attributable to non-controlling interests
Net income (loss) attributable to Expedia Group, Inc.
Preferred stock dividend and loss on redemption of preferred stock
Net income (loss) attributable to Expedia Group, Inc. common stockholders

Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Revenue and Gross Profit Trends
Revenue consistently represents 100% across all periods, serving as the baseline for percentage comparisons. Gross profit as a percentage of revenue generally remains strong, ranging mostly between 68% and 85%, indicating healthy margins. There are notable declines during 2020—corresponding to the COVID-19 pandemic period—with gross profit dipping to as low as approximately 31% in June 2020, reflecting the operational challenges experienced.
Cost of Revenue Patterns
The cost of revenue (excluding depreciation and amortization) fluctuates but typically lies between roughly -14.5% and -20% of revenue. A sharp rise in this cost is observed during the second quarter of 2020, when it surged substantially to nearly -69%, a significant increase compared to other periods, which negatively impacted gross profit margins during that quarter.
Operating Expenses Analysis
Selling and marketing expenses as a percentage of revenue show considerable volatility, with values ranging from approximately -35% up to -60%. The expenses spiked during pandemic quarters, though in some periods there was a marked reduction, such as in Q3 2020, indicating potential cost-cutting measures. Technology and content expenses generally remain under -16%, except for a spike around the second quarter of 2020 reaching -45%, reflecting increased investment or impairment. General and administrative costs remain relatively stable around -5% to -8%, with occasional sharp increases also in 2020.
Depreciation, Amortization, and Asset Impairments
Depreciation and amortization fluctuate between about -2% and -10%, increasing markedly during 2019 and 2020. Impairment of goodwill presents sporadic occurrences with significant negative impacts during 2020, including a notable 34.63% reduction in one quarter. Intangible and other long-term asset impairments appear irregularly and contribute smaller negative percentages.
Special Charges and Other Expenses
Restructuring and related charges are minimal for most periods but spike notably in late 2019 and 2020, peaking near -9.36%, indicative of organizational changes or cost restructuring efforts. Legal reserves and other tax-related items fluctuate narrowly around zero, sometimes positive, sometimes negative, without a clear trend. Other expenses trend near zero but include some notable negative anomalies during 2020, possibly reflecting extraordinary items or write-offs.
Operating Income and Profitability
Operating income as a percentage of revenue shows considerable volatility. Pre-pandemic periods show a balanced mix of positive and negative results, including notable peaks of profitability around Q3 2017 and Q3 2018 (around 16%-20%). However, in 2020 operating income suffered severe deterioration, with losses extending beyond -50% and even reaching -150% of revenue in Q2 2020. Subsequent quarters exhibit partial recovery though remain below pre-pandemic norms.
Interest and Other Financial Items
Interest income remains low but steady, generally under 1% of revenue. Interest expense is moderately consistent between -1% and -2% in normal periods but spikes dramatically in Q2 and Q3 of 2020, aligned with liquidity or debt management challenges during the pandemic. A one-time loss on debt extinguishment is evident in Q1 2021 at -22.47%. A positive gain on sale of business occurs in Q1 2022, reflecting possible strategic divestitures.
Income Before Taxes and Net Income
Income before income taxes mirrors operating income trends, with positive results interspersed with negative quarters. The pandemic period again shows marked losses, with income before taxes falling below -50% and even -160% at times in 2020. Provision for income taxes varies, sometimes positive, sometimes negative, indicating the effect of losses and tax credits. Net income follows the same cyclical pattern, with large losses peaking during 2020, followed by a gradual, incomplete recovery in 2021. The net income attributable to common stockholders reflects these trends closely.
Summary
The data reveals a business with historically healthy gross margins but exposed to significant volatility in operating expenses and impairments, particularly during 2020. The impact of external shocks, notably the COVID-19 pandemic, caused sharp deterioration in profitability and increased costs. Recovery into 2021 and early 2022 shows improvement but does not fully restore pre-pandemic profitability levels. Periodic restructuring and asset impairments indicate active management responses to changing conditions. Interest expense spikes and one-time financial charges reflect financial management complexity during this period. Overall, financial performance is cyclical with evident sensitivity to global economic conditions.