Expedia Group, Inc. · NASDAQ:EXPE
Expedia — Investor Presentation (February 2018)
20 slides from Expedia's investor presentation, Feb 8, 2018
Slide 1: Investor presentation February 8, 2018
Investor presentation February 8, 2018 Exhibit 99.2
Slide 2: Safe harbor
Safe harbor 2 Forward-looking statements. This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on management’s expectat
Slide 3: Expedia, Inc. at a glance
Expedia, Inc. at a glance 3 Notes: Expedia, Inc. results shown for 2017. 1Gross bookings is an operating and statistical metric that captures the total dollar value, generally inclusive of taxes and fees, of travel services booked by our customers. 2Monthly visits based on data for Brand Expedia, Ho
Slide 4: Key investment highlights
Key investment highlights 4 Operating the world’s largest, diversified travel platform2 Harnessing significant scale and technological advantages3 Leading brands with proprietary channels4 Strong financial performance on solid trajectory5 Track record of successful M&A and smart capital allocation6
Slide 5: Huge opportunity in $1.6T global market
Huge opportunity in $1.6T global market Notes: Expedia’s share of travel market defined as gross bookings during 2017. Travel market size estimates based on Phocuswright data for 2018. 2018 data includes addition of alternative accommodations and activities, which was not included in prior years. So
Slide 6: World's largest, diversified travel platform
World’s largest, diversified travel platform 6 Notes: Expedia, Inc. data shown as of 12/31/17, unless otherwise noted. 1Monthly visitors based on data for Brand Expedia, Hotels.com, Orbitz, Travelocity, Wotif, HomeAway, trivago and Hotwire combined during 2017. 2Offline travel agents based on number
Slide 7: Unmatched portfolio of leading travel brands with global reach
Unmatched portfolio of leading travel brands with global reach 7 Notes: All stats shown as of 2017. 1Includes bookings from Hotels.com and Expedia Affiliate Network (EAN). 2trivago revenue includes intercompany. Core OTA Lodging ~$20B gross bookings1 A leading hotel specialist globally, in 65+ count
Slide 8: Expedia loyalty programs drive repeat & create competitive differentiation
Expedia loyalty programs drive repeat & create competitive differentiation 8 Notes: All metrics provided are as of 12/31/17. • 26M+ members • Available in 32 countries • 8M+ members • Members booked 80%+ more hotels than non-members • 35M+ members • Available in 65+ countries
Slide 9: Investments in mobile drive growth & engagement
Investments in mobile drive growth & engagement 250M+ cumulative app downloads1 Over 50% of traffic arrives via mobile3 9 Approximately 1 in 3 transactions booked via mobile2 Notes: 1Cumulative app downloads as of 12/31/17 for all Expedia, Inc. brands. 2Based on Expedia, Inc. transactions in 2017. 3
Slide 10: HomeAway is a world leader in vacation rentals
HomeAway is a world leader in vacation rentals 10 Notes: 1Source: Phocuswright. 2Calculated using HomeAway data for periods prior to Expedia, Inc.’s acquisition in December 2015. $120B market opportunity1 2016 41% 53% 6% Transactional Subscription Other 68% 27% 5% 2017 Transitioning the business mod
Slide 11: HomeAway transition progressing well
HomeAway transition progressing well 11 Easier to search, book and pay online Great selection with 1.5 million online bookable listings worldwide Peace of mind through Book with Confidence Guarantee Benefits to travelers:Benefits to homeowners: Marketplace tools allow owners and property managers to
Slide 12: Strong financial execution
Strong financial execution Notes: All figures shown excluding eLong. 1Non-GAAP measure. See Appendix for non-GAAP to GAAP reconciliation. Room nights M Revenue1 $B Gross bookings $B Adjusted EBITDA1 $M 120 150 203 269 2013 2014 2015 2016 2017 38 48 60 78 2013 2014 2015 2016 2017 4.6 5.6 6.6 8.8 10.1
Slide 13: Solid track record of capital allocation
Solid track record of capital allocation 13 2011 2012 2013 2014 2015 2016 2017 2018 2011 – 2013 • Improving financial performance fueled by organic investment in tech • Working capital for agency hotel build out • $1.2B share repurchases • trivago majority investment of ~$632M (Expedia’s ownership i
Slide 14: Data center investments shrink as cloud migration builds momentum
Data center investments shrink as cloud migration builds momentum • Scalability and speed • Cost effectively improves site performance during peak traffic periods • Accelerates growth into new countries or markets • Provides flexibility for possible future acquisitions • Resiliency gains simplify an
Slide 15: New Seattle headquarters of Expedia, Inc.: Building for the future
New Seattle headquarters of Expedia, Inc.: Building for the future 15 Sources: Images courtesy of ZGF Architects and Surface Design. Key facts • 40 acres on Seattle waterfront • Initial build out of ~1.2M sq. ft. • Secured approvals to build up to 1.9M total sq. ft. over 15 years • New construction
Slide 16: Appendix
Appendix
Slide 17: Non-GAAP definitions
Non-GAAP definitions Expedia, Inc. (excluding eLong). Expedia sold its ownership interest in eLong, Inc. on May 22, 2015. In order to allow comparison with prior periods for the ongoing Expedia businesses, Expedia, Inc. (excluding eLong) gross bookings, revenue, Adjusted EBITDA, operating income (lo
Slide 18: Non-GAAP / GAAP reconciliation: Revenue
Non-GAAP / GAAP reconciliation: Revenue Notes: Numbers may not sum due to rounding. $ Millions 2013 2014 2015 2016 2017 Core OTA revenue $4,069 $4,905 $5,877 $7,084 $7,881 trivago revenue 216 414 548 836 1,166 Egencia revenue 365 400 400 462 521 HomeAway revenue - - 20 689 906 eLong revenue 164 178
Slide 19: Non-GAAP / GAAP reconciliation: Adjusted EBITDA
$ Millions 2013 2014 2015 2016 2017 Net income attributable to Expedia, Inc. $233 $398 $764 $282 $378 Net income (loss) attributable to noncontrolling interests (16) (25) (42) (21) (7) Net income 216 373 723 261 371 Provision for income taxes 84 92 203 15 45 Income before income taxes 301 465 926 27
Slide 20: Non-GAAP / GAAP reconciliation: Free cash flow
Non-GAAP / GAAP reconciliation: Free cash flow Notes: Numbers may not sum due to rounding and include eLong. $ Millions 2011 2012 2013 2014 2015 2016 2017 TOTAL Cash provided by operations $826 $1,237 $763 $1,367 $1,368 $1,564 $1,799 $8,924 Headquarters capital expenditures - - - - (233) (26) (68) (