Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Expedia Group Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Revenue	8,598)	5,199)	12,067)	11,223)	10,060)
Cost of revenue, exclusive of depreciation and amortization	(1,522)	(1,680)	(2,077)	(1,864)	(1,757)
Gross profit	7,076)	3,519)	9,990)	9,359)	8,303)
Selling and marketing	(4,221)	(2,546)	(6,078)	(5,721)	(5,298)
Technology and content	(1,074)	(1,010)	(1,226)	(1,122)	(1,387)
General and administrative	(705)	(597)	(815)	(774)	(676)
Depreciation and amortization	(814)	(893)	(910)	(959)	(275)
Impairment of goodwill	(14)	(799)	—)	(86)	—)
Intangible and other long-term asset impairment	(6)	(175)	—)	(42)	—)
Legal reserves, occupancy tax and other	(1)	13)	(34)	59)	(25)
Restructuring and related reorganization charges	(55)	(231)	(24)	—)	(17)
Operating income (loss)	186)	(2,719)	903)	714)	625)
Interest income	9)	18)	59)	71)	34)
Interest expense	(351)	(360)	(173)	(190)	(182)
Loss on debt extinguishment	(280)	—)	—)	—)	—)
Gain (loss) on sale of business, net	456)	(13)	—)	—)	—)
Foreign exchange rate gains (losses), net	(48)	71)	(34)	3)	(46)
Gains (losses) on minority equity investments, net	(29)	(142)	8)	(111)	(14)
Other	19)	(6)	12)	(2)	(1)
Other, net	(58)	(77)	(14)	(110)	(61)
Other expense, net	(224)	(432)	(128)	(229)	(208)
Income (loss) before income taxes	(38)	(3,151)	775)	485)	417)
Provision for income taxes	53)	423)	(203)	(87)	(45)
Net income (loss)	15)	(2,728)	572)	398)	371)
Net (income) loss attributable to non-controlling interests	(3)	116)	(7)	8)	7)
Net income (loss) attributable to Expedia Group, Inc.	12)	(2,612)	565)	406)	378)
Preferred stock dividend and loss on redemption of preferred stock	(281)	(75)	—)	—)	—)
Net income (loss) attributable to Expedia Group, Inc. common stockholders	(269)	(2,687)	565)	406)	378)

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: Revenue demonstrated a steady growth from 2017 to 2019, increasing from approximately $10.06 billion to $12.07 billion. However, a significant decline occurred in 2020, falling sharply to $5.2 billion, likely reflecting the impact of external adverse conditions. A partial recovery is observed in 2021 with revenue rising to $8.6 billion, yet still below pre-crisis levels.
Cost of Revenue, Exclusive of Depreciation and Amortization: Costs associated with revenue exhibited a rising trend from 2017 to 2019, increasing from about $1.76 billion to $2.08 billion. In 2020, costs decreased to $1.68 billion and further to approximately $1.52 billion in 2021, consistent with the downturn in revenue.
Gross Profit: Gross profit expanded from $8.3 billion in 2017 to nearly $10 billion in 2019, reflecting strong revenue growth. In 2020, gross profit dropped considerably to $3.5 billion, corresponding to reduced revenue, followed by a recovery to around $7.1 billion in 2021.
Selling and Marketing Expenses: Selling and marketing expenses rose steadily from 2017 through 2019, reaching nearly $6.1 billion. A sharp decrease occurred in 2020 to about $2.5 billion, before partially increasing again in 2021 to $4.2 billion, suggesting cost control efforts amid revenue pressures.
Technology and Content Expenses: Technology and content expenses fluctuated but generally remained near the $1 billion mark, with a notable dip in 2018 to $1.12 billion and remaining relatively stable through 2021. This steadiness suggests sustained investment in technology throughout the period.
General and Administrative Expenses: General and administrative expenses increased steadily from 2017 to 2019, peaking at $815 million, then declined in 2020 to $597 million, before rising again in 2021 to $705 million. This pattern indicates some temporary cost reductions during the downturn.
Depreciation and Amortization: Depreciation and amortization showed a notable increase in 2018 and 2019 compared to 2017, peaking near $959 million in 2018, then gradually declining to $814 million in 2021, reflecting changes in asset base or amortization schedules.
Impairment Charges: There were impairment charges related to goodwill and intangible assets, notably in 2018 and 2020, with major impairments recorded in 2020 ($799 million on goodwill and $175 million on intangible assets), indicating asset write-downs likely due to diminished asset values during adverse conditions. Impairments significantly reduced in 2021.
Operating Income (Loss): Operating income rose from $625 million in 2017 to $903 million in 2019, showing operational growth. However, a substantial operating loss of $2.7 billion occurred in 2020, consistent with widespread disruptions. Recovery to a positive operating income of $186 million was seen in 2021, although still below pre-crisis earnings.
Net Income (Loss) Attributable to Common Stockholders: Net income attributable to common stockholders followed an upward trend from $378 million in 2017 to $565 million in 2019. In 2020, a significant net loss of $2.7 billion was reported, reflecting operational difficulties and impairment charges. The situation worsened in 2021 to a net loss of $269 million, influenced by preferred stock dividends and other financial factors.
Other Financial Items: Interest income stayed relatively low and declined slightly in recent years, while interest expense increased notably in 2020 and 2021, reflecting higher borrowing costs or increased debt levels. A substantial loss on debt extinguishment was recorded in 2021 (-$280 million). The gain on the sale of business in 2021 ($456 million) partially offset other losses.
Income Taxes: Provision for income taxes turned negative in 2020 (tax benefit), likely related to losses, then returned to a positive provision in 2021. This volatility corresponds with income fluctuations in those years.
Summary of Trends: The financial data reveals strong growth and profitability through 2019, followed by a sharp downturn in 2020 attributed to extraordinary conditions, with partial recovery starting in 2021. Cost management initiatives appeared in marketing and general expenses during downturn years. Significant impairment charges impacted income in 2020. Interest expenses and losses on debt events increased, indicating financing pressures. Although recovery signs emerge in operating income and revenue, net profitability remained challenged in 2021.

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Expedia Group Inc. (NASDAQ:EXPE)

Income Statement