Slide 1: Company Overview Q2 2010
Exhibit 99.2 Company Overview Q2 2010 Q210 Company Overview
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the future financial and operational performance of the Company. These statements are not guarantees of future per
Slide 3: Global Opportunity
Sources: U.S. Online Travel Overview 8th Edition Update: 2009 – 2010 (April 2009); U.S. Corporate Travel Distribution 4th Edition (July 2009); European Online Travel Overview 5th Edition (October 2009); European figures assume Euro/USD exchange rate in each period of $1.40; APAC data - PhoCusWright
Slide 4: World's Largest and Most Intelligent Travel Marketplace
World’s Largest and Most Intelligent Travel Marketplace Suppliers Customers Hotels Leisure travelers Travel Airlines products Corporate travelers Car rental companies Travel service providers Cruise lines Travel info (“white label”) Global distribution system (GDS) partners Offline retail travel Tec
Slide 5: Expedia - the Travel Sector Leader
1 Sources: comScoreMediaMetrix, November, 2009 & companydata; 2 See Appendix B for reconciliation of non-GAAP to GAAP numbers. Adjusted EBITDA Expedia - the Travel Sector Leader is calculated as operating income plus depreciation, restructuring charges, intangibles amortization, stock-based compensa
Slide 6: Largest Worldwide Audience
Largest Worldwide Audience U.S. Worldwide +152%¹ +122%¹ +101%¹ 700 +149%¹ +188%¹ 600 500 +190%¹ 400 300 200 100 0 Min Spent Online Page Views Orbitz Travelocity Yahoo Travel Priceline Source: comScoreMediaMetrix, June 2010 1 Denotes Expedia’spercentage difference over next largest competitor Q210 Co
Slide 7: Expedia's Virtuous Cycle
Expedia’s Virtuous Cycle Cash flow to invest in improved traveler More ad experience revenue Better supplier economics More travelers Growth / Scale Compelling supplier & advertising channel User-generated content Scale drives opportunity to enhance supplier, traveler & advertiser value propositions
Slide 8: Revenue by Product & Geography
Revenue by Product & Geography Product Categories (TTM 6.30.10) Geographic Split (TTM 6.30.10) Revenue Revenue International Car, Cruise & Other 38% 13% Advertising & Media 12% Air 12% Domestic Hotel 63% 62% * Hotel & Advertising – 75% of revenue base and * Europe & other international markets benef
Slide 9: Product Category - Hotel
Product Category - Hotel Business Overview •Merchant hotel -Expedia merchant of recordwith no inventoryrisk -Expedia receivescash upfront from travelers,payshoteliers severalweeks later -Some control over pricing,highermargins & ability to packagewith other products -1 - 3 year contracts with major
Slide 10: Trended Worldwide Hotel Growth Statistics (y/y)
Trended Worldwide Hotel Growth Statistics (y/y) Source: Company financial reports . 2005 – 2007 data is for merchant hotel only; 2008 – 2010 data is for both agency and merchant hotel. Q210 Company Overview 10
Slide 11: Product Category - Advertising & Media
Product Category - Advertising & Media Business Overview Revenue Drivers •Two primary businesses – •Offer advertisers targeted audiences •TripAdvisor Media Network(leading global collection •CPC, CPM & subscription based ad models of user-generated content sites) •TripAdvisor leverages industry-lead
Slide 12: Product Category - Air
Product Category - Air Business Overview • Air revenue= 12% of Expedia’sworldwideannual revenue(TTM) - ~95% of airplane tickets sold over Expedia’sonline propertiesare agencytransactions,in which Expediaacts as an agent on behalf of a supplierand collectsa commission - Customerpayssupplier directly,
Slide 13: Trended Worldwide Air Growth Statistics (y/y)
Trended Worldwide Air Growth Statistics (y/y) Source: Company financial reports Q210 Company Overview 13
Slide 14: Stable Supplier Relationships & Economics
Stable Supplier Relationships & Economics Trended Revenue Margin (TTM) Excluding ad & media revenue Including ad & media revenue 13.6%12.5% 13.7% 13.6% 12.5% 13.8% 14.0% 14.1% 13.9% 13.6% 12.6% 12.5% 12.6% 12.6% 12.4% 13.1% 12.8% 12.1% 11.6% 11.3% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Re
Slide 15: Q210 Results
* Excludes stock-based compensation. ** OIBA includes realized gain/(loss) from revenue hedges *** Adjusted EBITDA is calculated as operating income plus depreciation, restructuring charges, intangibles Q210 Results amortization, stock-based compensation, any impairments and certain legal reserves a
Slide 16: Trended Free Cash Flow (TTM)
Trended Free Cash Flow (TTM) $millions ‘08 cash flows down due to taxes, slowing merchant hotel & one- ‘09 cash flows improved time cap ex due to higher earnings, merchant hotel recovery & normalized cap ex Over $1.5B in free cash flow generated in past 3 years Source: Company financial reports Q210
Slide 17: Efficiently Managing Dilution
Efficiently Managing Dilution millions of adjusted diluted shares Q2 / Q3 ‘06 repurchased 20mm shares for $288mm Q107 repurchased 30mm shares for $660mm Q307 repurchased 25mm shares for $725mm Q110 repurchased 8.4mm shares for $188mm 11% reduction in share base since Q107 Source: Company financial r
Slide 18: Capitalization
Capitalization 6/30/10 1 Cash and Cash Equivalents $796 2 Revolving Credit Facility -- 7.456% Notes due 2018 500 8.500% Notesdue 2016 395 2 debt issues with long- term maturities Total Debt $895 (2018 Notes have 2013 Net Debt 99 investor put) 3 Market Value of Equity $6,247 Total Capitalization $6,3
Slide 19: Trended Credit Metrics
Trended Credit Metrics TTM 12.31.05 12.31.06 12.31.07 12.31.08 12.31.09 6.30.10 Leverage Measures 1 Total Debt / TTM Adjusted EBITDA 0.3 0.8 1.5 2.0 1.0 1.0 1 Net Debt / TTM Adjusted EBITDA N/A N/A 0.6 1.1 0.3 0.1 Coverage Measures TTM Adj. EBITDA / TTM Interest N/A 37.5 13.8 10.8 10.3 10.7 1 Expens
Slide 20: Rating Agency Snapshot
Rating Agency Snapshot S&P (Analyst: Andy Liu) Rating Raised To ‘BBB-’ From ‘BB’; Outlook Stable Oct 14, 2009 Note: “The ratings upgrade is based on Expedia's revised financial policy, solid operatingperformance, and strong financial measures.“ “BBB- rating reflects the company's leading market shar
Slide 21: Summary
Summary • Attractive macro tailwind as travel industry shifts online • World’s #1 online provider of travel-related services Leading traffic, supply, scale, bookings, revenue & cash flows Strong and complementary portfolio of brands and products Critical partner to airlines, hotels and other travel
Slide 22: Appendix A
Appendix A Q210 Company Overview 22
Slide 23: Business Model – Income Statement (FY 2009)
Business Model – Income Statement (FY 2009) Customer books travel product or service; total retail value (incltaxes and fees) (Figures in $millions) constitutes “Gross Bookings.” Gross bookings $21,811 • Customer operations • Credit card & fraud expense • Data center & other costs Expedia’s portion
Slide 24: Trended Historical Results
Trended Historical Results (Figures in $millions) Growth 2005 2006 2007 2008 2009 2006 2007 2008 2009 Gross Bookings $15,336 $16,882 $19,632 $21,269 $21,811 10% 16% 8% 3% Revenue 2,119 2,238 2,665 2,937 2,955 6% 19% 10% 1% Cost of Goods Sold & Operating Expenses * 1,492 1,639 1,996 2,239 2,183 10% 2
Slide 25: Appendix B
Appendix B Q210 Company Overview 25
Slide 26: Tabular Reconciliations For Non-GAAP Data
Tabular Reconciliations For Non-GAAP Data Operating Income Before Amortization (figures in $000s) 12 Months 6 Months 3 Months 6 Months 3 Months Ended Ended Ended Ended Ended June 30, June 30, June 30, June 30, June 30, 2010 2010 2010 2009 2009 OIBA $781,345 $362,016 $219,472 $342,203 $ 212,416 Amort
Slide 27: Tabular Reconciliations For Non-GAAP Data
Tabular Reconciliations For Non-GAAP Data Operating Income Before Amortization Year Ended Year Ended Year Ended Year Ended Year Ended (figures in $000s) Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2005 2006 2007 2008 2009 OIBA $ 627,441 $ 599,018 $ 669,487 $ 697,774 $ 761,532 OIBA margin 30% 27% 25
Slide 28: Tabular Reconciliations For Non-GAAP Data
Tabular Reconciliations For Non-GAAP Data Costs & Expenses Year Ended Year Ended Year Ended Year Ended Year Ended (figures in $000s) Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2008 Dec. 31, 2009 Total costs and expenses* $ 1,583,739 $ 1,718,853 $ 2,058,694 $ 2,300,530 $ 2,244,505 Less: stock
Slide 29: Tabular Reconciliations For Non-GAAP Data
Tabular Reconciliations For Non-GAAP Data Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization Year Ended Year Ended Year Ended Year Ended Year Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, (figures in $000s) 2005 2006 2007 2008 2009 Adjusted EBITDA 677,886 647,797 729,013 774,
Slide 30: Tabular Reconciliations For Non-GAAP Data
Tabular Reconciliations For Non-GAAP Data Costs & Expenses 12 Months 12 Months 3 Months 3 Months Ended Ended Ended Ended (figures in $000s) 12.31.08 12.31.09 6.30.09 6.30.10 Cost of revenue 638,709 607,251 148,762 168,571 Less: stock-based compensation (2,252) (2,285) (514) (487) Cost of revenue exc
Slide 31: Tabular Reconciliations For Non-GAAP Data
Tabular Reconciliations For Non-GAAP Data Free Cash Flow (figures in $000s) 6 months 3 months 6 months 3 months ended ended ended ended June 30, 2010 June 30, 2010 June 30, 2009 June 30, 2009 Net cash provided by operating activities 933,333 313,806 844,550 342,546 Less: capital expenditures (73,128
Slide 32: Tabular Reconciliations For Non-GAAP Data
Tabular Reconciliations For Non-GAAP Data Free Cash Flow (figures in $000s) TTM 12.05 TTM 12.06 TTM 3.07 TTM 6.07 TTM 9.07 TTM 12.07 TTM 3.08 TTM 6.08 Net cash provided by operating 859,187 617,440 703,569 831,140 859,228 712,069 737,792 660,510 activities Less: capital expenditures (52,315) (92,631