Analysis of Reportable Segments
Expedia Group Inc. operates in 3 segments: Retail; B2B; and trivago.
Segment Profit Margin
Expedia Group Inc., profit margin by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Retail | 26.13% | 6.36% | 24.08% | 24.89% | — |
| B2B | 7.53% | -22.08% | 17.33% | 15.91% | — |
| trivago | 9.22% | -5.00% | 9.06% | 1.48% | — |
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).
- Retail Segment Profit Margin
- The Retail segment exhibited a fluctuating profit margin over the observed periods. After a strong margin close to 25% in 2018 and a slight decline to 24.08% in 2019, there was a significant drop to 6.36% in 2020. This decline coincides with the global disruptions of 2020, likely impacting operating profitability. In 2021, there was a notable recovery with the margin increasing to 26.13%, slightly surpassing pre-pandemic levels.
- B2B Segment Profit Margin
- The B2B segment showed a less stable trend. It started at 15.91% in 2018, improving moderately to 17.33% in 2019. However, 2020 saw a substantial negative profit margin of -22.08%, reflecting considerable losses during this period. By 2021, the segment rebounded to a positive 7.53%, indicating partial recovery but still below historical levels seen in 2018 and 2019.
- Trivago Segment Profit Margin
- The trivago segment's profit margin was relatively low but positive at 1.48% in 2018 and increased significantly to 9.06% in 2019. Similar to other segments, it was negatively impacted in 2020 with a -5% margin, indicating losses. The following year demonstrated recovery with the margin returning to 9.22%, marking a return to profitability and a marginal improvement relative to 2019.
- Overall Insights
- Across all segments, the data reveals a pronounced impact in the year 2020, with profit margins declining significantly and even turning negative in some cases. This trend likely reflects external economic shocks affecting operational performance. The year 2021 shows a consistent recovery in profit margins for all segments, with the Retail segment achieving margins slightly higher than pre-2020 levels, and the trivago segment fully regaining profitability. The B2B segment, despite recovery, remains below earlier margins, suggesting continued challenges or a slower returns rate in this area.
Segment Profit Margin: Retail
Expedia Group Inc.; Retail; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDA | 1,782) | 254) | 2,121) | 2,088) | —) |
| Revenue | 6,821) | 3,993) | 8,808) | 8,389) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 26.13% | 6.36% | 24.08% | 24.89% | — |
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).
1 2021 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Revenue
= 100 × 1,782 ÷ 6,821 = 26.13%
The financial data for the "Retail" segment reveals several notable trends over the years ending December 31, 2017 through 2021. Due to the absence of data for 2017, the analysis begins with the 2018 period.
- Revenue
- Revenue demonstrated a positive trajectory from 2018 to 2019, increasing from 8,389 million US dollars to 8,808 million US dollars, which indicates moderate growth in the segment. However, 2020 saw a significant decline in revenue, dropping to 3,993 million US dollars—less than half of the prior year's revenue—reflecting a considerable contraction in sales, likely influenced by external factors affecting business activity during that year. In 2021, revenue partially recovered to 6,821 million US dollars, representing a substantial rebound but still below the pre-2020 levels.
- Adjusted EBITDA
- Adjusted EBITDA followed a broadly similar pattern to revenue, with values of 2,088 million and 2,121 million US dollars in 2018 and 2019 respectively, indicating stable earnings before interest, taxes, depreciation, and amortization. In 2020, adjusted EBITDA declined drastically to 254 million US dollars, a sharp reduction consistent with the revenue falloff. The segment showed resilience by recovering adjusted EBITDA to 1,782 million US dollars in 2021, although this level remained below the figures recorded in 2018 and 2019.
- Segment Profit Margin
- The segment profit margin was relatively steady at roughly 24.9% in 2018 and slightly decreased to 24.1% in 2019, illustrating consistent profitability relative to revenue. In 2020, the margin markedly deteriorated to 6.36%, reflecting the severe impact on profitability during the revenue downturn. Notably, the profit margin improved substantially in 2021 to 26.13%, surpassing the margins seen in previous years, which suggests enhanced operational efficiency or cost management post-recovery.
Overall, the segment experienced strong performance in 2018 and 2019, followed by a significant disruption in 2020 characterized by steep declines in revenue, EBITDA, and profit margin. The year 2021 showed a marked recovery across all financial measures, with profitability exceeding prior years, indicating a successful rebound phase for the segment.
Segment Profit Margin: B2B
Expedia Group Inc.; B2B; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDA | 110) | (208) | 447) | 341) | —) |
| Revenue | 1,460) | 942) | 2,579) | 2,143) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 7.53% | -22.08% | 17.33% | 15.91% | — |
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).
1 2021 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Revenue
= 100 × 110 ÷ 1,460 = 7.53%
- Revenue
- The revenue for the segment exhibited a fluctuating trend over the analyzed periods. From 2018 to 2019, revenue increased notably from 2,143 million US dollars to 2,579 million US dollars, indicating strong growth. However, in 2020, there was a sharp decline to 942 million US dollars, reflecting a significant contraction likely influenced by external adverse factors. This trend reversed somewhat in 2021 with revenue rising to 1,460 million US dollars, showing a partial recovery but remaining below pre-2020 levels.
- Adjusted EBITDA
- The adjusted EBITDA followed a similar trend to revenue but with more pronounced changes. It improved from 341 million US dollars in 2018 to 447 million US dollars in 2019, evidencing increased operational profitability. However, 2020 marked a substantial downturn, with adjusted EBITDA falling to a negative 208 million US dollars, signaling operational losses during that period. The segment managed to return to positive adjusted EBITDA in 2021 with 110 million US dollars, though this was still significantly lower than the 2018 and 2019 results.
- Segment Profit Margin
- The segment profit margin reflects profitability relative to revenue and experienced a fluctuating course. It rose from 15.91% in 2018 to 17.33% in 2019, indicating improved efficiency and profitability. A pronounced dip occurred in 2020, where the margin became negative at -22.08%, consistent with the segment operating at a loss. By 2021, the margin improved to 7.53%, suggesting a recovery in profitability, though it remained substantially below the margin levels seen in 2018 and 2019.
- Summary
- The overall trend in the segment data points to a positive growth and profitability period up to 2019, followed by a sharp decline in 2020 that impacted revenue, profitability, and margins significantly. Partial recovery is evident in 2021 across all financial metrics; however, the figures have not yet returned to the levels achieved before 2020. This suggests that while conditions have improved, challenges remain affecting the segment’s full return to prior financial performance.
Segment Profit Margin: trivago
Expedia Group Inc.; trivago; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Adjusted EBITDA | 39) | (14) | 85) | 16) | —) |
| Revenue | 423) | 280) | 938) | 1,084) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 9.22% | -5.00% | 9.06% | 1.48% | — |
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).
1 2021 Calculation
Segment profit margin = 100 × Adjusted EBITDA ÷ Revenue
= 100 × 39 ÷ 423 = 9.22%
The segment data reveals notable fluctuations in financial performance over the five-year period. Initially, adjusted EBITDA showed a positive figure in 2018 at 16 million USD, followed by a substantial increase to 85 million USD in 2019. However, this was followed by a sharp decline to negative adjusted EBITDA of 14 million USD in 2020. The subsequent year saw a partial recovery with adjusted EBITDA rebounding to 39 million USD in 2021.
Revenue trends demonstrate a similar pattern of volatility. The segment experienced peak revenue of 1,084 million USD in 2018, which then declined moderately to 938 million USD in 2019. The impact of 2020 was severe, with revenue plummeting to 280 million USD, reflecting significant business challenges or external disruptions. In 2021, there was some improvement, with revenue increasing to 423 million USD, though it remained substantially lower than pre-2020 levels.
The segment profit margin provides further insight into operational efficiency and profitability. It stood at a modest 1.48% in 2018 and improved notably to 9.06% in 2019, indicating enhanced profitability. In 2020, profit margin turned negative to -5%, in line with the negative adjusted EBITDA and revenue decline observed, highlighting considerable operating losses during that year. By 2021, profit margin had rebounded strongly to 9.22%, signaling a recovery in profitability despite ongoing revenue challenges.
- Adjusted EBITDA
- Positive growth from 2018 to 2019, followed by a significant decline in 2020, and a partial recovery in 2021.
- Revenue
- Revenue peaked in 2018, declined in 2019, dropped sharply in 2020, and partially recovered in 2021, remaining below earlier highs.
- Segment Profit Margin
- Margin improved through 2019, turned negative in 2020, and rebounded strongly in 2021, reflecting fluctuations in profitability corresponding with revenue and EBITDA trends.
Revenue
Expedia Group Inc., revenue by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Retail | 6,821) | 3,993) | 8,808) | 8,389) | —) |
| B2B | 1,460) | 942) | 2,579) | 2,143) | —) |
| trivago | 423) | 280) | 938) | 1,084) | —) |
| Corporate & eliminations | (106) | (16) | (258) | (393) | —) |
| Total | 8,598) | 5,199) | 12,067) | 11,223) | —) |
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).
The segment revenue data reveals several notable trends across the periods analyzed. Overall, total revenues exhibit a declining pattern from 2019 through 2020, followed by a partial recovery in 2021. This suggests a significant downturn in business activities during 2020, possibly related to external factors affecting the industry, with a subsequent rebound in the following year.
- Retail Segment
- The Retail segment represents the largest contributory revenue source throughout the period. After increasing modestly from 8,389 million USD in 2018 to 8,808 million USD in 2019, revenues sharply decreased to 3,993 million USD in 2020, indicating a substantial contraction. In 2021, this segment showed a marked recovery to 6,821 million USD, though still below pre-2020 levels.
- B2B Segment
- The B2B segment displays a parallel trend, with revenue rising from 2,143 million USD in 2018 to 2,579 million USD in 2019, then declining significantly to 942 million USD in 2020. The subsequent increase to 1,460 million USD in 2021 reflects partial recovery but remains below the earlier peak.
- Trivago Segment
- The Trivago segment shows a consistent decline over the entire period. From 1,084 million USD in 2018, revenue decreased to 938 million USD in 2019, then dropped significantly to 280 million USD in 2020. Although there was a rise to 423 million USD in 2021, the segment had not regained its previous scale by the end of the reported period.
- Corporate & Eliminations
- The Corporate & eliminations category records negative figures throughout the period, suggestive of internal adjustments, inter-segment eliminations, or corporate-level expenses. The negative values decreased in magnitude from -393 million USD in 2018 to -106 million USD in 2021, indicating a reduction in such charges or eliminations over time.
- Total Revenue
- Total revenues, encompassing all segments and eliminations, escalated from 11,223 million USD in 2018 to a peak of 12,067 million USD in 2019 before plunging to 5,199 million USD in 2020. In 2021, total revenues climbed again to 8,598 million USD. This pattern underscores the severe impact on revenue during 2020, with recovery dynamics emerging in 2021 but not yet reaching prior highs.
In summary, the data reflects a strong business performance through 2018 and 2019, followed by a steep decline in 2020 across all reportable segments. The subsequent year shows signs of improvement but does not fully compensate for the earlier losses. The Corporate & eliminations figures suggest a decreasing burden from these adjustments over the observed timeframe.
Adjusted EBITDA
Expedia Group Inc., adjusted ebitda by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Retail | 1,782) | 254) | 2,121) | 2,088) | —) |
| B2B | 110) | (208) | 447) | 341) | —) |
| trivago | 39) | (14) | 85) | 16) | —) |
| Corporate & eliminations | (454) | (400) | (519) | (475) | —) |
| Total | 1,477) | (368) | 2,134) | 1,970) | —) |
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).
The adjusted EBITDA data for the various reportable segments reveals notable fluctuations over the analyzed periods. The Retail segment shows a generally positive trend from 2018 through 2019, increasing slightly from $2,088 million to $2,121 million, before experiencing a significant decline in 2020 to $254 million. This sharp drop corresponds with the global disruptions that year but partially recovers in 2021 with a return to $1,782 million, indicating a strong rebound though not yet reaching pre-2020 levels.
The B2B segment exhibits a growth pattern from 2018 to 2019, rising from $341 million to $447 million. However, the segment then reports a negative adjusted EBITDA of -$208 million in 2020, signaling substantial operational challenges. In 2021, the B2B division recovers to a positive $110 million, though this is still below the peak seen in 2019.
The trivago segment’s adjusted EBITDA shows modest improvement from 2018 ($16 million) to 2019 ($85 million). Nevertheless, similar to other segments, it dips into negative territory in 2020 with -$14 million, before returning to positive performance of $39 million in 2021. The recovery here is more limited compared to other segments.
Corporate and eliminations consistently report negative adjusted EBITDA values across all periods from 2018 to 2021. The losses fluctuate between -$475 million and -$519 million with the smallest loss in 2020 at -$400 million, implying ongoing overhead costs or inter-segment expense eliminations without clear improvement or deterioration trend.
Overall, the total adjusted EBITDA mirrors the segment-level patterns. The company experienced healthy profitability in 2018 and 2019, succeeded by a sharp decline to -$368 million in 2020, demonstrating significant impacts, likely reflective of external market conditions. In 2021, the total adjusted EBITDA rebounds to $1,477 million, indicating a substantial recovery, although it remains somewhat below the levels achieved before 2020.
In summary, the data illustrate a strong negative impact on profitability across all segments during 2020, followed by a recovery phase in 2021. Retail remains the largest contributor to returned profitability, while B2B and trivago show more modest improvements. Corporate and eliminations present persistent negative contributions throughout the observed periods.
- Retail Segment
- Growth from 2018 to 2019, sharp decline in 2020, partial recovery in 2021.
- B2B Segment
- Growth until 2019, negative in 2020, partial positive recovery in 2021.
- trivago Segment
- Modest gains from 2018 to 2019, negative in 2020, partial recovery in 2021.
- Corporate & Eliminations
- Consistent negative adjusted EBITDA throughout, no clear trend.
- Total Adjusted EBITDA
- Strong performance pre-2020, significant decline in 2020, substantial but incomplete recovery in 2021.