The paragraph is from the Expedia Group Q4 2024 Financial Results Teleconference. The operator introduces the speakers, including Harshit Vaish, the SVP of Corporate Development Strategy and Investor Relations, CEO Ariane Gorin, and the incoming CFO, Scott Shankel. Harshit Vaish informs that the call will cover both non-GAAP and GAAP measures, and forward-looking statements will be made with a reminder of the uncertainties and risks involved. The call's details and related documents are available on Expedia's Investor Relations website. Ariane Gorin welcomes the new CFO, Scott Shankel, and notes that the fourth-quarter results exceeded expectations.

The paragraph highlights strong financial performance and growth across various areas for the company. Key metrics like room nights, gross bookings, and revenue all saw double-digit growth, driven by robust travel demand and effective execution. The company's B2B and advertising businesses reported substantial revenue growth, and international demand proved stronger than domestic. Brand Expedia, Hotels.com, and Vrbo each experienced booking growth, with improvements in areas like air tickets and loyalty memberships. The global expansion efforts are yielding results, particularly outside the US, with significant growth in bookings and an increase in active loyalty program members.

The paragraph discusses the growth and successes of a company's business operations in 2024. Under the leadership of a new CEO, there was a focus on revitalizing brands like Vrbo and Hotels.com while expanding strengths in Brand Expedia, B2B, and advertising. The company achieved strong fourth-quarter results, with consumer bookings growing from -3% in Q1 to 9% in Q4 and a 21% increase in B2B bookings for the year. This success was attributed to better account management, inventory, and product features. B2B represented 27% of bookings, solidifying their leadership. Advertising revenue grew by 32%, contributing 5% to overall revenue, with new ad types and tools enhancing the business. Moreover, technology investments and stronger partner relationships improved supply and traveler benefits, positively impacting both travelers and supply partners.

As we move into 2025, we have three main priorities: delivering more value for travelers, investing in growth opportunities, and enhancing operational efficiencies to expand margins. To provide more value, we aim to offer unique deals, exceptional customer service, and innovative features. In 2025, we plan to expand member rates, increase self-service options, and use data for personalization. For growth, we will focus on our major brands like Expedia, emphasizing packages and new products such as vacation rentals. While our consumer base is largely US-focused, we aim to expand internationally and be more strategic with our marketing and loyalty program investments.

The paragraph discusses a company's strategic focus on expanding its B2B partnerships, driving operational efficiencies, and leveraging AI to enhance product value and customer experience. By maintaining disciplined cost management, the company was able to improve profit margins while reinvesting in strategic areas in 2024. AI is highlighted as a key accelerator for achieving these goals, enabling personalized traveler experiences, boosting brand traffic through new search experiences, and enhancing productivity across various teams. The company is excited about early positive results and remains optimistic about future growth and momentum.

In the article paragraph, Scott Shankel discusses Expedia Group's strong financial performance in 2024, highlighting double-digit growth in room nights, gross bookings, and revenue, with improved EBITDA margins. Total gross bookings reached $24.4 billion, reflecting a 13% increase, driven by both B2C and B2B segments, and particularly strong post-Thanksgiving promotions. Lodging and air businesses showed significant growth, with notable contributions from Vrbo and Hotels.com. B2B revenue saw a 21% increase, leading overall revenue growth of 10%. Gross margin improved to nearly 90%, with enhancements in customer service efficiency. Marketing and direct sales expenditures grew by 13%, resulting in flat leverage relative to gross bookings, with efficiencies noticed at Brand Expedia.

The paragraph reports on Brand Expedia's financial performance, highlighting cost efficiencies and revenue growth. Overhead expenses decreased by 1%, leading to a strong EBITDA margin of 20.2% for the fourth quarter, up 21%. EBIT also increased with a margin of 10.6%. For the full year, gross bookings reached $111 billion, and revenue nearly $14 billion, both up 7%. Efforts to drive margins and control expenses resulted in a 60 basis point expansion in the annual EBITDA margin, with free cash flow reaching $2.3 billion, a 26% increase. The strong financial results were supported by disciplined market investment and business growth, notably in the B2C and B2B sectors.

The company ended the quarter with $4.5 billion in unrestricted cash and short-term investments, actively managing its balance sheet to maintain investment-grade debt levels and aiming for a leverage ratio of two times. They repurchased $1.6 billion or 12.1 million shares in 2024, totaling over $4 billion or 36 million shares since reinstating the program. They forecast first-quarter gross bookings growth of 4%-6% and revenue growth of 3%-5%, considering foreign exchange and holiday timing impacts. For the full year, they expect 2025 gross bookings and revenue growth to be similar to 2024, with the aim of achieving record EBITDA and a 50 basis point margin expansion. There is $3.2 billion remaining for opportunistic stock repurchases.

The paragraph discusses a company reinstating its quarterly dividend in March 2025 with a 40-cent per share payout, equating to an approximate 1% annual yield. The company remains committed to long-term growth and disciplined capital allocation, confident in its strategies to deliver shareholder returns beyond 2025. During a Q&A session, Mark Mahaney from Evercore ISI inquires about the recovery of Vrbo and Hotels.com. Ariane Gorin responds, highlighting significant work done in 2024 on product, supply, and marketing, which drove business acceleration. Vrbo was notably affected by replatforming, but efforts are ongoing to regain travelers. The company plans to enhance features like dateless search and property comparison, with exciting developments expected in 2025.

The paragraph is part of a discussion in a financial or earnings call, focusing on the performance and future plans for Hotels.com and other aspects of the business. The speaker acknowledges challenges faced by Hotels.com, such as tech migration and changes in the loyalty program, but expresses confidence in future growth and brand reinvigoration plans for 2025. Updates on Q1 guidance are shared, noting expected bookings growth of 4-6%, with FX headwinds and leap year factors affecting numbers. The speaker highlights a softening travel environment compared to a strong Q4, which is reflected in their current guidance. Margins are mentioned as an area with potential for future improvement compared to peers.

The paragraph discusses the company's expectations for revenue growth and margin improvement. They anticipate a 4-6% growth due to strong holiday promotions and a shift in Easter timing. The guidance includes considerations for foreign exchange and other factors, aligning closely with last year's performance. They aim for a half-point margin growth in both 2024 and 2025, balancing growth with marketing efforts and reducing overhead costs. The paragraph ends with a shift to a Q&A session, where Deepak Mathivanan from Cantor Fitzgerald asks about the B2B side, particularly regarding growth in the APAC region and future partnerships contributing to 2025 growth.

In the paragraph, Deepak Mathivanan asks about strategies for margin expansion beyond fixed cost leverage, including marketing investments. Ariane Gorin responds by highlighting the strength of their B2B business in the APAC region, driven by robust partnerships and market growth. She explains their approach to strengthening relationships with existing partners and acquiring new ones by enhancing inventory and ensuring high-quality supply. Gorin underscores the importance of maintaining and improving supply quality to support B2B growth and mentions plans to test new products in the market.

In the paragraph, the speakers discuss their company's strategic investment approach, particularly in international markets and with Vrbo, where they have added around a million apartment-type properties, primarily in urban areas. They emphasize balancing long-term investment with maintaining disciplined margin expansion, despite potentially lower short-term returns. Questions are raised about how this inventory is performing relative to expectations and whether similar types of properties will be added in 2025. Additionally, the strong 25% growth in advertising revenue and its sustainability into 2025 are inquired about.

In the paragraph, a discussion occurs about Vrbo's recovery and plans for enhancing supply flexibility and quality, including better cancellation policies and varied promotions. There is also a focus on ad revenue growth and innovation, with aims to increase advertiser participation and improve returns. The conversation transitions to a Q&A section where Trevor Young from Barclays asks about potential AI partnerships and their impact on Expedia's customer acquisition strategy. He also inquires about the potential acquisition of Bigar and its effect on the outlook for Laban and associated partnerships. Ariane Gorin acknowledges the questions, indicating areas of focus and consideration for the company.

The paragraph discusses the strategic approach to using AI in a company, focusing on three main areas: improving products for travelers and partners, adapting to changing traveler behaviors and search methods, and exploring partnerships with native AI travel startups. The aim is to remain proactive and innovative, with a mention of internal AI applications. It also highlights the company's consistent strategy in Latin America, emphasizing strong partnerships like the one with Despergar and maintaining regional brands. The paragraph ends with an acknowledgment of participants in a discussion and an operator introducing the next question.

The paragraph discusses the company's approach to marketing, loyalty, and promotional spending, highlighting a focus on understanding and optimizing returns by brand and geography. It mentions ongoing efforts in international growth, particularly through package deals and cross-selling of products, which have led to increased customer repeat rates. The strategy remains consistent with the brand's identity, and there is an expectation of continued focus on these areas in the future.

In a Q&A session, Jed Kelly from Oppenheimer asks about the company's full-year guidance for 2025, specifically regarding the deceleration in the B2B segment and flat margins in Q1. Ariane Gorin and Scott Shankel respond by explaining that the projected revenue growth is impacted by several factors, including foreign exchange headwinds, Easter timing shifts, and trends observed in January. They clarify that the apparent deceleration results from these dynamics. They also address questions about Vrbo advertising, noting it was scaled back in the previous quarter due to a migration process, which affected their projections. Overall, despite these challenges, margins are expected to remain flat.

The paragraph is a segment of a conversation during a financial discussion or earnings call, involving several participants, including Harshit Vaish, Scott Shankel, and Deepak Mathivanan. They are discussing topics like marketing leverage and margin expectations for the year 2025. Scott Shankel mentions that they won't reveal specific details about the margin guide, but acknowledges there's no anticipated margin expansion for the year, and they will explain financial decisions as the year progresses. The discussion also touches on Vrbo, with an observation of a slowdown in Q1 compared to a strong Q4, and considerations about Vrbo's long-term growth potential relative to a market showing low to mid single-digit growth, and its ability to outperform the market.

In the provided paragraph, Ariane Gorin discusses Vrbo's unique value as a pure-play vacation rental platform offering whole homes without hosts, noting a focus on growth through investments in product supply, marketing, and loyalty programs. The goal is to optimize returns by experimenting with various approaches. Deepak Mathivanan then asks about the company’s capital returns philosophy, specifically regarding share repurchases and dividend size. Scott Shankel responds by emphasizing a foundational approach to capital allocation, mentioning plans to repay and potentially refinance debt if market conditions allow.

The article discusses the company's commitment to maintaining a target leverage ratio of two times and prioritizing capital allocation through stock buybacks and dividends. In 2024, they repurchased 12 million shares worth $1.6 billion and plan to continue buybacks with over $3 billion still authorized. They aim to provide a dividend income for investors, with an initial rate of 1%, after having paused dividends during COVID-19. The company also emphasizes retaining financial flexibility for potential investments, including mergers and acquisitions, as opportunities arise. Mark Mahaney asks about the impact of strong core consumer brand performance on acquisition strategies, to which Scott Shankel suggests that the company should always be open to M&A opportunities, given its scale and technology base.

The discussion involves various executives addressing questions about their business performance and strategies. They note continued focus on managing existing brands, expanding B2B and advertising, and delivering strong returns. A query is raised about travel demand in the fourth quarter, with an emphasis on regional performance and currency impact. The response indicates that the travel environment was robust in Q4, although there was some softening in January, attributed to factors like strong Thanksgiving promotions and foreign exchange pressures. However, they believe the overall travel environment remains healthy, with no significant structural changes. They also discuss loyalty strategy considerations for 2025, particularly outside the US and UK.

The paragraph discusses the growth in room nights, highlighting that international markets are performing better than the US as they gain market share in those regions. The stronger dollar is seen as making international travel more attractive for Americans, and the company is strategizing to inform travelers about good deals. The rollout of the OneKey loyalty program was paused after the UK, and the company is analyzing its impact across different brands and regions, especially its mixed effects on platforms like Expedia, Hotels.com, and Vrbo. The speaker concludes by expressing gratitude for the team's work and commitment to providing value to travelers and partners, emphasizing priorities such as delivering value, investing in growth, and expanding margins.

The operator thanked participants for joining the call and informed them they may now disconnect their lines.

This summary was generated with AI and may contain some inaccuracies.