Source: Depositphotos | Author: DeltaStock
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The price per share fell after the online travel company announced its weaker-than-usual earnings release for its first quarter of 2020. Expedia executives, however, remain optimistic, stating that they have observed higher booking activity in recent weeks and are hard at work coming up with new ways of promoting the business beyond investing in Google Ads campaigns.
Yet again we’re witnessing the devastating effects of COVID-19 on the global economy, this time in the travel sector. Here are the key highlights of Expedia’s first-quarter performance:
– Loss of $1.83 per share
– Total revenue of $2.21 billion
– Company revenue down 15% y/y
– Adjusted net loss of $285 million, up 545% y/y
This comes in stark contrast with Wall Street’s expectations of $1,23 loss per share, though revenue slightly surpassed forecasts of $2.20 billion.
In addition, the company’s lodging revenue went down by 10% for the quarter. Clients also opted to stay fewer nights (14% decrease) in the rented properties, while revenue from air travels and advertising and media revenue fell by 56% and 23%, respectively.
“In February, gross bookings declined year over year as the virus spread, particularly into Europe by later in the month. During March, with COVID-19 becoming a global pandemic, including significantly impacting North America, our largest region, cancellations exceeded new bookings, and total gross bookings were negative for the month.”
Spokesperson for Expedia
Last month, the company announced that it was raising $3,2 billion in new capital in order to afford more financial flexibility and fortify its liquidity positions throughout the pandemic. Expedia also stated that it was actively developing new marketing strategies in order to end its overreliance on Google Ads due to unfavourable changes in its algorithms that led to the company’s subpar visibility in the search engine results page.
“We’ve not been disciplined about it. We’ve chased unhealthy growth over the years, and Google and other performance marketing channels have tried to disintermediate us, and we’ve made some not terribly smart choices along the way.”
Peter Kern, CEO
Upcoming earnings reports
See the full list of upcoming earnings reports for 2 – 5 June in the tables below.
Tuesday, 2nd June 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | Zoom Video Communications Inc | First quarter of 2021 |
| USA | Ambarella Inc | First quarter of 2021 |
| USA | GameStop Corp | First quarter of 2020 |
| United Kingdom | Electrocomponents Plc | Full year 2020 |
Wednesday, 3rd June 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | ABM Industries Inc | Second quarter of 2020 |
| Austria | Voestalpine AG | Full year 2020 |
| United Kingdom | Templeton Emerging Markets Investment Trust Plc | Full year 2019 |
| United Kingdom | Chemring Group Plc | Half year 2020 |
Thursday, 4th June 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | Gap Inc | First quarter of 2020 |
| USA | Slack Technologies Inc | First quarter of 2021 |
| United Kingdom | Pennon Group Plc | Full year 2020 |
| Germany | Wirecard AG | Fourth quarter of 2019 |
Friday, 5th June 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| Japan | Toshiba Corp | Full year 2020 |
| USA | Broadcom Inc | Second quarter of 2020 |
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