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Expedia (NASDAQ:EXPE) shares were trading more than 6% higher after-hours following the company’s reported Q2 results, with EPS of $1.96 coming in better than the consensus estimate of $1.58.
Revenue grew 51% year-over-year to $3.18 billion, beating the consensus estimate of $3 billion. Total gross bookings increased 26% year-over-year as travel demand further improved and gross bookings improved for lodging, air and other travel products.
Lodging revenue grew 57% year-over-year, driven by a 40% increase in room nights stayed across hotels and alternative accommodations, as well as a 9% increase in stayed average daily rates (ADRs). Air revenue grew 22% year-over-year, primarily driven by a 21% growth in revenue per ticket, as air travel demand remained stable despite higher airfares.
Advertising and media revenue grew 33% year-over-year, driven by increases from both Expedia Group Media Solutions and trivago (NASDAQ:TRVG). Other revenue grew 39% year-over-year, driven by growth from both travel insurance and car products.
According to Peter Kern, Vice Chairman and CEO of Expedia Group, they are very pleased with Q2 financial performance, with lodging bookings reaching a record high, and the company posting its highest ever Q2 revenue and adjusted EBITDA. “Despite the disruptions during the summer travel season and an uncertain macroeconomic backdrop, travel demand has remained strong,” added Kern.
