Expedia Group Inc. (NASDAQ:EXPE)

The analysis of the financial performance over the period reveals notable fluctuations and trends in operating income, revenue, and operating profit margin. The data indicates variability in profitability and revenue growth, influenced by external and internal factors impacting the company.

Operating Income (Loss)

The operating income shows significant volatility, with positive earnings in most years except for notable losses in 2008 and 2020. The loss in 2008 is substantial at -2,429 million US dollars, indicating a challenging fiscal period. Again in 2020, there is a heavy operating loss of -2,719 million US dollars, likely reflecting extraordinary circumstances impacting the business environment. Outside these years, operating income generally ranges between 351 and 903 million US dollars, with a peak in 2019 at 903 million, suggesting relative operational strength prior to the downturns.

Revenue

Revenue exhibits a predominantly upward trend from 2,119 million US dollars in 2005 to a peak of 12,067 million US dollars in 2019. This steady increase over fourteen years points to strong growth and expansion in the company’s market presence or sales volume. However, in 2020, revenue declines sharply to 5,199 million US dollars, almost halving from the previous year, reflecting a major disruption. Revenue partially recovers in 2021, reaching 8,598 million US dollars but still remains below pre-2020 levels.

Operating Profit Margin

The operating profit margin aligns closely with the trends in operating income and revenue, showing corresponding volatility. Margins rise to a peak of approximately 19.85% in 2007 before plunging to -82.7% in 2008. After this drop, margins stabilize at lower levels ranging between approximately 5.26% and 7.48% for the years 2010 through 2019, indicating moderate profitability relative to revenue. The margin again contracts sharply to -52.3% in 2020, in line with an operating loss and revenue decline, and then improves to 2.16% in 2021, signaling ongoing recovery but continued pressure on profitability.

Overall, the financial data reflect a company experiencing substantial growth over the long term, interrupted by significant downturns in 2008 and 2020, which impacted both profitability and revenue. The recovery following these periods suggests resilience, though profitability margins remain below historic peaks, highlighting potential challenges in restoring previous operating efficiency levels.