SEATTLE - Expedia (NASDAQ:EXPE) Group, Inc. (NASDAQ:EXPE) reported better-than-expected second quarter results on Thursday, but shares slipped 3.3% in after-hours trading as the company's outlook fell short of expectations.
The online travel agency posted adjusted earnings per share of $3.51, surpassing the analyst consensus of $3.14. Revenue grew 6% year-over-year to $3.6 billion, also topping estimates of $3.53 billion.
Gross bookings increased 6% to $28.8 billion, driven by an 8% rise in lodging gross bookings to $20.7 billion. Room nights booked grew 10% compared to the prior year period.
"Our second quarter results came in at the high end of our expectations, with gross bookings and revenue growing 6%," said Ariane Gorin, CEO of Expedia Group. "We're pleased with our momentum and the sequential improvement in our consumer brands."
However, Gorin noted that the company has seen "a more challenging macro environment and a softening in travel demand" in July. As a result, Expedia is adjusting its expectations for the rest of the year.
The cautious outlook appears to be weighing on investor sentiment despite the Q2 beat. Expedia's B2C segment revenue rose 0.7% to $2.43 billion, while B2B revenue jumped 21.8% to $1.05 billion.
Free cash flow increased 42% year-over-year to $1.31 billion in the second quarter. The company repurchased approximately 9.2 million shares for $1.2 billion year-to-date.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.