Expedia Group, Inc 10-Q for FY2021 Q2

Expedia Group, Inc. (EXPE)

10-Q 2021-08-06 For: 2021-06-30

Added on April 11, 2026

About this 10-Q

Expedia Group, Inc filed this 10-Q on August 6, 2021, covering the quarter ended June 30, 2021 (FY2021 Q2).

Headline figures

Quarter ended June 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.11B; up 273.0% from $566M a year earlier
Net loss: $172M; compared with a net loss of $736M a year earlier
Diluted EPS: -$2.02; compared with -$5.34 a year earlier

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Delaware						20-2705720
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)



Part I	Financial Information

Item 1	Consolidated Financial Statements

	Consolidated Statements of Operations for the Three and Six Months Ended June 30 , 2021 and 2020 (unaudited)	2

	Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30 , 2021 and 2020 (unaudited)	3

	Consolidated Balance Sheets as of June 30 , 2021 (unaudited) and December 31, 2020	4

	Consolidated Statements of Stockholders Equity for the Three and Six Months Ended June 30 , 2021 and 2020 (unaudited)	5

	Consolidated Statements of Cash Flows for the Six Months Ended Ju ne 30 , 2021 and 2020 (unaudited)	7

	Notes to Consolidated Financial Statements (unaudited)	8

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

Item 3	Quantitative and Qualitative Disclosures about Market Risk	43

Item 4	Controls and Procedures	44

Part II	Other Information

Item 1	Legal Proceedings	45

Item 1A	Risk Factors	46

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	46

Item 6	Exhibits	47
Signature		48


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020

Revenue	$	2,111	$	566	$	3,357	$	2,775
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below) (1)	374		381		685		1,010
Selling and marketing (1)	1,199		291		1,863		1,496
Technology and content (1)	276		271		523		586
General and administrative (1)	184		149		340		334
Depreciation and amortization	205		232		414		461
Impairment of goodwill	—		20		—		785
Impairment of intangible assets	—		10		—		131
Legal reserves, occupancy tax and other	(8)		8		(9)		(13)
Restructuring and related reorganization changes	13		53		42		128
Operating loss	(132)		(849)		(501)		(2,143)
Other income (expense):
Interest income	1		3		3		13
Interest expense	(83)		(95)		(181)		(145)
Loss on debt extinguishment	—		—		(280)		—
Other, net	(10)		(12)		(15)		(157)
Total other expense, net	(92)		(104)		(473)		(289)
Loss before income taxes	(224)		(953)		(974)		(2,432)
Provision for income taxes	47		213		216		295
Net loss	(177)		(740)		(758)		(2,137)
Net loss attributable to non-controlling interests	5		4		8		100
Net loss attributable to Expedia Group, Inc.	(172)		(736)		(750)		(2,037)
Preferred stock dividend	(22)		(17)		(50)		(17)
Loss on redemption of preferred stock	(107)		—		(107)		—
Net loss attributable to Expedia Group, Inc. common stockholders	$	(301)	$	(753)	$	(907)	$	(2,054)

Loss per share attributable to Expedia Group, Inc. available to common stockholders
Basic	$	(2.02)	$	(5.34)	$	(6.16)	$	(14.57)
Diluted	(2.02)		(5.34)		(6.16)		(14.57)
Shares used in computing earnings (loss) per share (000's):
Basic	149,093		141,072		147,148		140,947
Diluted	149,093		141,072		147,148		140,947


(1) Includes stock-based compensation as follows:
Cost of revenue	$	6	$	3	$	11	$	6
Selling and marketing	32		13		49		25
Technology and content	32		18		59		38
General and administrative	50		20		84		40


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net loss	$	(177)	$	(740)	$	(758)	$	(2,137)
Currency translation adjustments, net of tax(1)	19		34		(18)		(56)
Comprehensive loss	(158)		(706)		(776)		(2,193)
Less: Comprehensive income (loss) attributable to non-controlling interests	1		2		(18)		(100)
Less: Preferred stock dividend	22		17		50		17
Less: Loss on redemption of preferred stock	107		—		107		—
Comprehensive loss attributable to Expedia Group, Inc. common stockholders	$	(288)	$	(725)	$	(915)	$	(2,110)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	June 30, 2021		December 31, 2020
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	5,464	$	3,363
Restricted cash and cash equivalents	2,541		772
Short-term investments	11		24
Accounts receivable, net of allowance of $86 and $101	1,440		701
Income taxes receivable	399		120
Prepaid expenses and other current assets	1,258		654
Total current assets	11,113		5,634
Property and equipment, net	2,261		2,257
Operating lease right-of-use assets	467		574
Long-term investments and other assets	663		671
Deferred income taxes	850		659
Intangible assets, net	1,457		1,515
Goodwill	7,370		7,380
TOTAL ASSETS	$	24,181	$	18,690
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, merchant	$	1,157	$	602
Accounts payable, other	778		496
Deferred merchant bookings	8,240		3,107
Deferred revenue	172		172
Income taxes payable	328		50
Accrued expenses and other current liabilities	1,038		979
Total current liabilities	11,713		5,406
Long-term debt	8,480		8,216
Deferred income taxes	22		67
Operating lease liabilities	408		513
Other long-term liabilities	465		462
Commitments and contingencies
Series A Preferred Stock: $.001 par value, Authorized shares: 100,000; Shares issued and outstanding: 600 and 1,200	511		1,022
Stockholders’ equity:
Common stock: $.0001 par value; Authorized shares: 1,600,000	—		—
Shares issued: 269,239 and 261,564; Shares outstanding: 145,197 and 138,074
Class B common stock: $.0001 par value; Authorized shares: 400,000	—		—
Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 5,523
Additional paid-in capital	13,995		13,566
Treasury stock - Common stock and Class B, at cost; Shares 131,318 and 130,767	(10,182)		(10,097)
Retained earnings (deficit)	(2,531)		(1,781)
Accumulated other comprehensive income (loss)	(186)		(178)
Total Expedia Group, Inc. stockholders’ equity	1,096		1,510
Non-redeemable non-controlling interests	1,486		1,494
Total stockholders’ equity	2,582		3,004
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	24,181	$	18,690


Three months ended June 30, 2020	Common stock			Class B common stock			Additional paid-in capital		Treasury stock - Common and Class B			Retained earnings (deficit)		Accumulated other comprehensive income (loss)		Non-redeemable non-controlling interest		Total
	Shares	Amount		Shares	Amount				Shares	Amount
Balance as of March 31, 2020	258,769,812	$	—	12,799,999	$	—	$	13,124	130,592,112	$	(10,083)	$	(470)	$	(301)	$	1,471	$	3,741
Net income (loss)												(736)				(4)		(740)
Other comprehensive income (loss), net of taxes														28		6		34
Payment of preferred dividends (declared at $14.02 per share)							(17)											(17)
Proceeds from exercise of equity instruments and employee stock purchase plans	315,120	—					10											10
Common stock warrants, net of issuance costs							110											110
Treasury stock activity related to vesting of equity instruments									57,631	(4)								(4)
Adjustment to the fair value of redeemable non-controlling interests							4											4
Other changes in ownership of non-controlling interests							9									(4)		5
Stock-based compensation expense							59											59
Other							1		20,630									1
Balance as of June 30, 2020	259,084,932	$	—	12,799,999	$	—	$	13,300	130,670,373	$	(10,087)	$	(1,206)	$	(273)	$	1,469	$	3,203


Six months ended June 30, 2020	Common stock			Class B common stock			Additional paid-in capital		Treasury stock - Common and Class B			Retained earnings (deficit)		Accumulated other comprehensive income (loss)		Non-redeemable non-controlling interest		Total
	Shares	Amount		Shares	Amount				Shares	Amount
Balance as of December 31, 2019	256,691,777	$	—	12,799,999	$	—	$	12,978	126,892,525	$	(9,673)	$	879	$	(217)	$	1,569	$	5,536
Net income (loss)												(2,037)				(100)		(2,137)
Other comprehensive income (loss), net of taxes														(56)		—		(56)
Payment of preferred dividends (declared at $14.02 per share)							(17)											(17)
Payment of dividends to common stockholders (declared at $0.34 per share)												(48)						(48)
Proceeds from exercise of equity instruments and employee stock purchase plans	2,393,155	—					96											96
Common stock warrants, net of issuance costs							110											110
Treasury stock activity related to vesting of equity instruments									393,099	(44)								(44)
Common stock repurchases									3,364,119	(370)								(370)
Adjustment to the fair value of redeemable non-controlling interests							4											4
Other changes in ownership of non-controlling interests							10									—		10
Stock-based compensation expense							118											118
Other							1		20,630									1
Balance as of June 30, 2020	259,084,932	$	—	12,799,999	$	—	$	13,300	130,670,373	$	(10,087)	$	(1,206)	$	(273)	$	1,469	$	3,203


Three months ended June 30, 2021	Common stock			Class B common stock			Additional paid-in capital		Treasury stock - Common and Class B			Retained earnings (deficit)		Accumulated other comprehensive income (loss)		Non-redeemable non-controlling interest		Total
	Shares	Amount		Shares	Amount				Shares	Amount
Balance as of March 31, 2021	265,207,012	$	—	12,799,999	$	—	$	13,919	131,141,343	$	(10,152)	$	(2,359)	$	(199)	$	1,479	$	2,688
Net income (loss)												(172)				(5)		(177)
Other comprehensive income (loss), net of taxes														13		6		19
Payment of preferred dividends (declared at $47.11 per share)							(50)											(50)
Proceeds from exercise of equity instruments and employee stock purchase plans	1,561,799	—					110											110
Exercise of common stock warrants	2,470,221	—					—											—
Loss on redemption of preferred stock							(107)											(107)
Treasury stock activity related to vesting of equity instruments									177,075	(30)								(30)
Adjustment to the fair value of redeemable non-controlling interests							(11)											(11)
Other changes in ownership of non-controlling interests							—									6		6
Stock-based compensation expense							134											134
Balance as of June 30, 2021	269,239,032	$	—	12,799,999	$	—	$	13,995	131,318,418	$	(10,182)	$	(2,531)	$	(186)	$	1,486	$	2,582


Six months ended June 30, 2021	Common stock			Class B common stock			Additional paid-in capital		Treasury stock - Common and Class B			Retained earnings (deficit)		Accumulated other comprehensive income (loss)		Non-redeemable non-controlling interest		Total
	Shares	Amount		Shares	Amount				Shares	Amount
Balance as of December 31, 2020	261,563,912	—		12,799,999	—		13,566		130,766,537	(10,097)		(1,781)		(178)		1,494		$	3,004
Net income (loss)												(750)				(8)		(758)
Other comprehensive income (loss), net of taxes														(8)		(10)		(18)
Payment of preferred dividends (declared at $47.11 per share)							(50)											(50)
Proceeds from exercise of equity instruments and employee stock purchase plans	5,204,899	—					379											379
Exercise of common stock warrants	2,470,221	—					—											—
Loss on redemption of preferred stock							(107)											(107)
Withholding taxes for stock options							(7)											(7)
Treasury stock activity related to vesting of equity instruments									551,881	(85)								(85)
Adjustment to the fair value of redeemable non-controlling interests							(11)											(11)
Other changes in ownership of non-controlling interests							—									10		10
Stock-based compensation expense							225											225
Balance as of June 30, 2021	269,239,032	$	—	12,799,999	$	—	$	13,995	131,318,418	$	(10,182)	$	(2,531)	$	(186)	$	1,486	$	2,582


	Three months ended June 30, 2020				Six months ended June 30, 2020
	As reported		As reclassified		As reported		As reclassified
	(In millions)
Cost of revenue	$	389	$	381	$	1,018	1,010
Selling and marketing	296		291		1,506		1,496
Technology and content	255		271		563		586
General and administrative	152		149		339		334


	Total		Level 1		Level 2
	(In millions)
Assets
Cash equivalents:
Money market funds	$	257	$	257	$	—
Mutual funds	24		24		—
Term deposits	48		—		48
Investments:
Term deposits	11		—		11
Marketable equity securities	127		127		—
Total assets	$	467	$	408	$	59

Liabilities
Derivatives:
Foreign currency forward contracts	$	26	$	—	$	26


	Employee Severance and Benefits		Other		Total
	(In millions)
Accrued liability as of January 1, 2021	$	103	$	—	$	103
Charges	19		23		42
Payments	(53)		(4)		(57)
Non-cash items	(3)		(14)		(17)
Accrued liability as of June 30, 2021	$	66	$	5	$	71


	June 30, 2021		December 31, 2020
	(In millions)
2.5% (€650 million) senior notes due 2022	$	772	$	798
3.6% senior notes due 2023	496		496
4.5% senior notes due 2024	498		497
6.25% senior notes due 2025	1,031		1,972
7.0% senior notes due 2025	—		740
5.0% senior notes due 2026	745		744
0% convertible senior notes due 2026	984		—
4.625% senior notes due 2027	744		743
3.8% senior notes due 2028	993		993
3.25% senior notes due 2030	1,234		1,233
2.95% senior notes due 2031	983		—
Long-term debt(1)	$	8,480	$	8,216


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
	(in millions)
Business Model:
Merchant	$	1,338	$	368	$	2,134	$	1,708
Agency	573		105		896		667
Advertising, media and other	200		93		327		400
Total revenue	$	2,111	$	566	$	3,357	$	2,775
Service Type:
Lodging	$	1,533	$	487	$	2,436	$	2,029
Air	78		(70)		128		39
Advertising and media	161		25		249		228
Other(1)	339		124		544		479
Total revenue	$	2,111	$	566	$	3,357	$	2,775


	Three months ended June 30, 2021
	Retail		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	1,715	$	305	$	91	$	—	$	2,111
Intersegment revenue	—		—		24		(24)		—
Revenue	$	1,715	$	305	$	115	$	(24)	$	2,111
Adjusted EBITDA	$	303	$	(8)	$	5	$	(99)	$	201
Depreciation	(133)		(26)		(2)		(18)		(179)
Amortization of intangible assets	—		—		—		(26)		(26)
Stock-based compensation	—		—		—		(120)		(120)
Legal reserves, occupancy tax and other	—		—		—		8		8
Restructuring and related reorganization charges	—		—		—		(13)		(13)
Realized (gain) loss on revenue hedges	(3)		—		—		—		(3)
Operating income (loss)	$	167	$	(34)	$	3	$	(268)	(132)
Other expense, net									(92)
Loss before income taxes									(224)
Provision for income taxes									47
Net loss									(177)
Net loss attributable to non-controlling interests									5
Net loss attributable to Expedia Group, Inc.									(172)
Preferred stock dividend									(22)
Loss on redemption of preferred stock									(107)
Net loss attributable to Expedia Group, Inc. common stockholders									$	(301)


	Three months ended June 30,								Six months ended June 30,
	2021			2020			% Change		2021			2020			% Change
	($ in millions)								($ in millions)
Gross bookings	$	20,815		$	2,713		667	%	$	36,237		$	20,598		76	%
Revenue margin (1)	10.1		%	20.9		%			9.3		%	13.5		%


	June 30, 2021		December 31, 2020
	(In millions)
Combined Balance Sheets Information:
Current Assets (1)	$	9,513	$	5,076
Non-Current Assets	10,476		10,245
Current Liabilities	10,030		4,595
Non-Current Liabilities	9,047		8,804
Series A Preferred Stock	511		1,022

	Six Months Ended June 30, 2021		Year Ended December 31, 2020
Combined Statements of Operations Information:
Revenue	$	2,877	$	4,229
Operating loss (2)	(405)		(1,884)
Net loss	(622)		(1,890)
Net loss attributable to Obligors	(779)		(1,965)


August 5, 2021	Expedia Group, Inc.

	By:	/s/ Eric Hart
		Eric Hart
		Chief Financial Officer