Expedia Group, Inc. · NASDAQ:EXPE
Expedia — Investor Presentation (December 2010)
56 slides from Expedia's investor presentation, Dec 6, 2010
Slide 1: A complete travel commerce experience
EXPEDIA, INC. A complete travel commerce experience Exhibit 99.1
Slide 2: Forward-Looking Statements
EXPEDIA, INC. 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
Slide 3: Building the world's largest and most intelligent travel marketplace
Expedia, Inc. is building the world’s largest and most intelligent travel marketplace. We generate revenue by addressing the entire travel commerce experience, enabling travelers to research, plan and book their trip, offering service while they travel, and providing the online forums to review hote
Slide 4: 73+ million unique visitors each month
Number of unique visitors to Expedia, Inc. sites worldwide each month 73+ million The world’s largest travel marketplace Source: comScore Sept. 2010, unduplicated
Slide 5: Serving travelers in over countries
Serving travelers in over 60 countries The world’s largest travel marketplace
Slide 6: 160+ booking and travel media sites
160+ booking and travel media sites The world’s largest travel marketplace
Slide 7: Offering hotels in over countries
Offering hotels in over 200 countries The world’s largest travel marketplace
Slide 8: Addressing the entire travel commerce experience: Research & Planning
EXPEDIA, INC. Where to go Pricing and deals Where to stay Best airplane seat Things to do Research & Planning Addressing the entire travel commerce experience
Slide 9: Addressing the entire travel commerce experience: Booking
EXPEDIA, INC. Air Hotel Vacation packages Cruise Rental car Insurance Activities Booking Research & Planning Addressing the entire travel commerce experience
Slide 10: Addressing the entire travel commerce experience: Travel & Sharing
EXPEDIA, INC. Concierge services Destination guides Mobile apps 24-hour customer service Booking Research & Planning Addressing the entire travel commerce experience Traveler forums Hotel reviews Destination videos Travel & Sharing
Slide 11: TripAdvisor website
Signin | RegisterNow! |» 5 PO tripadvisOr” woriss mose rusted eraveladves™ Home Hotels Flights Restaurants Vacation Rentals new‘ Tripideas Write a Review y, hotel name, € [ Search } Over €) million trusted traveler reviews & opinions advertisement t= Hotels Find Hotels Travelers Trust city: iG Z Fli
Slide 12: Million monthly unique visitors
40 million monthly unique visitors TripAdvisor ® is the world’s largest travel community, with the largest collection of traveler reviews and content on destinations and travel accommodations. TripAdvisor Media Network Source: comScore August 2010, unduplicated
Slide 13: Million registered users
20 million registered users TripAdvisor is the world’s largest travel community, with the largest collection of traveler reviews and content on destinations and travel accommodations. TripAdvisor Media Network
Slide 14: TripAdvisor Media Network brands
18 TripAdvisor Media Network brands TripAdvisor is the world’s largest travel community, with the largest collection of traveler reviews and content on destinations and travel accommodations. TripAdvisor Media Network
Slide 15: Operating in countries
Operating in 24 countries TripAdvisor is the world’s largest travel community, with the largest collection of traveler reviews and content on destinations and travel accommodations. TripAdvisor Media Network
Slide 16: Million hotel reviews
40 million hotel reviews TripAdvisor is the world’s largest travel community, with the largest collection of traveler reviews and content on destinations and travel accommodations. TripAdvisor Media Network
Slide 17: Content and advice for all aspects of travel
EXPEDIA, INC. Content and advice for all aspects of travel World’s largest travel community Air travel content & community
Slide 18: Content and advice for all aspects of travel
EXPEDIA, INC. Content and advice for all aspects of travel Traveler content and community sites
Slide 19: Content and advice for all aspects of travel
EXPEDIA, INC. Content and advice for all aspects of travel Travel deals and price comparison
Slide 20: Global market opportunity for online travel media
EXPEDIA, INC. 77% 58% 22% +10% +11% +15% 54% 37% 21% Internet penetration Estimated online advertising growth Estimated online share of consumer travel spending Global online ad market expected to reach ~$100 billion by 2014 Global market opportunity for online travel media Sources: www.internetworl
Slide 21: Serving travelers across the globe
EXPEDIA, INC. Serving travelers across the globe 100% YOY growth in each of the last four quarters TripAdvisor international third-party revenue now ~40%
Slide 22: TTM revenue of $401 million
TTM revenue of $401 million Monetizing travel media Expedia’s robust and fast- growing advertising and media businesses make us unique in the industry, and allow us maximum flexibility as the industry evolves. As of Sept. 30, 2010
Slide 23: An increase of +34% year over year
An increase of +34% year over year Monetizing travel media Expedia’s robust and fast- growing advertising and media businesses make us unique in the industry, and allow us maximum flexibility as the industry evolves.
Slide 24: Percent of EI revenue TTM 12%
Percent of EI revenue TTM 12% Monetizing travel media Expedia’s robust and fast- growing advertising and media businesses make us unique in the industry, and allow us maximum flexibility as the industry evolves.
Slide 25: OIBA margins of >50%
OIBA margins of >50% Monetizing travel media Expedia’s robust and fast- growing advertising and media businesses make us unique in the industry, and allow us maximum flexibility as the industry evolves.
Slide 26: We believe this can be a $1 billion business
We believe this can be a business. $1 Billion Monetizing travel media
Slide 27: A range of opportunities for travel advertisers
A range of opportunities for travel advertisers TripAdvisor Media Network
Slide 28: Cost-Per-Click (CPC)
EXPEDIA, INC. Cost-Per-Click (CPC)
Slide 29: Fast Ways to Free Stays
Fast Ways to FREE STAYS Advisor? evs "ST BEACH HOUSES Bosak 10 (eaaaineess) Best Hawai Travel Oost
Slide 30: Subscription-based Business Listings
EXPEDIA, INC. Subscription-based Business Listings
Slide 31: Total TripAdvisor Gross Revenue
EXPEDIA, INC. A range of opportunities for travel advertisers Total TripAdvisor Gross Revenue (in millions)
Slide 32: hdtel dés 35€ !
hdtel dés 35€ ! C'est le moment de partir découvrir Dublin, Belfast et I'Irlande !
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Slide 34: Slide 34
Slide 35: Expedia booking site
Welcome - Already a member? My Itineraries | My Account | Customer Support | Feo 2k | Search Expedia {s2] MAKE IT A COMBO DEAL © Flight + Hotel © Flight + Car O Flight + Hotel + Car THE FLIGHT YOU WANT THE HOTEL YOU WANT © Activities @ Roundtrip © One way Q Multiple destinations 2 My dates are exits
Slide 36: Leisure booking sites
96 leisure booking sites Nobody matches supply with demand on a global basis at our scale. Booking the trip
Slide 37: Serving travelers in over countries
Serving travelers in over 60 countries Nobody matches supply with demand on a global basis at our scale. Booking the trip
Slide 38: 300+ airlines
300+ airlines Nobody matches supply with demand on a global basis at our scale. Booking the trip
Slide 39: 130K hotels
130K hotels Nobody matches supply with demand on a global basis at our scale. Booking the trip
Slide 40: Unpublished rate booking site
EXPEDIA, INC. Unpublished rate booking site Hotel specialist with over 70 sites in over 60 countries Booking the trip World’s largest OTA, focusing on the whole trip th largest full-service corporate travel management company in the world
Slide 41: Booking the trip
EXPEDIA, INC. Booking the trip Luxury travel provider Offline cruise travel agency with retail presence Leading Chinese OTA Italy-based agency hotel bookings provider Online car rentals consolidator
Slide 42: Estimated Online Penetration
Estimated Online Penetration EXPEDIA, INC. $255B $293B $212B Size of travel market Online penetration 54% 37% 21% Source: PhoCusWright studies spanning 2009 and 2010 Global market opportunity for online travel bookings Estimated Online Penetration
Slide 43: Serving travelers across the globe
EXPEDIA, INC. Serving travelers across the globe
Slide 44: Maintaining the broadest supply portfolio
EXPEDIA, INC. Maintaining the broadest supply portfolio Hotel • >130,000 hotels offered making up ~60% of EXPE worldwide annual revenue (TTM) • ~55% merchant model hotels • ~25% agency model hotels • Expedia accounts for 7% of room nights in the Top 20 U.S. markets Air • Air revenue ~12% of EXPE wor
Slide 45: Collaboration & Integration = Growth
EXPEDIA, INC. Collaboration & Integration = Growth Global supply team serves booking brands Booking sites in over 60 countries Enters new markets TripAdvisor’s first advertisers Drives traffic to booking sites Customer volume and reach = value to suppliers
Slide 46: Huge worldwide market opportunity as travel dollars move online
EXPEDIA, INC. There is a huge worldwide market opportunity as additional travel dollars move online around the world. Taking flight off an extended runway Worldwide travel market $>760 billion <40% online penetration Worldwide Internet penetration 29% 445% growth rate Expedia 9.30 TTM leisure revenu
Slide 47: Virtuous Cycle
EXPEDIA, INC. Virtuous Cycle The bigger and better we get, the bigger and better we get.
Slide 48: Diverse revenue streams
EXPEDIA, INC. Diverse revenue streams Geographic Split (TTM 9.30.10) Revenue Product Categories (TTM 9.30.10) Hotel 63% Revenue Air 12% Advertising & Media 12% Car, Cruise & Other 13%
Slide 49: Solid performance
EXPEDIA, INC. Solid performance… • Positive top-line growth • 3Q10 YOY revenue growth two times faster than 2Q10 YOY revenue growth • Continue to generate substantial revenue, profits and free cash flow 13% 8% 16% 10% 24% 3% 15% 14% 32% See Appendix A for reconciliation to GAAP number
Slide 50: Stable supplier economics
EXPEDIA, INC. Stable supplier economics Trended Revenue Margin (TTM)
Slide 51: Generating cash, returning it to shareholders
EXPEDIA, INC. Since 2006 generated $2.9B in free cash flow and returned $2.1B to shareholders through share repurchases and dividends Generating cash, returning it to shareholders Trended Free Cash Flow (TTM)
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Slide 53: Appendix A - Non-GAAP Items
EXPEDIA, INC. Appendix A - Non-GAAP Items Operating Income Before Amortization (“OIBA”) is defined as operating income plus: (1) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans; (2) acquisition-related impacts, including (i) amortization of
Slide 54: Appendix A - Non-GAAP Items: OIBA
EXPEDIA, INC. Appendix A - Non-GAAP Items (figures in $000s) 3 Months Ended 3 Months Ended 3 Months Ended 31-Mar-10 30-Jun-10 30-Sep-10 OIBA $142,544 $219,472 $293,650 Amortization of intangible assets (9,028) (8,344) (8,126) Stock-based compensation (18,892) (14,651) (13,021) Restructuring charges
Slide 55: Appendix A - Non-GAAP Items: Adjusted Net Income
EXPEDIA, INC. Appendix A - Non-GAAP Items Source: Company reports (figures in $000s) 3 Months Ended 3 Months Ended 3 Months Ended 31-Mar-10 30-Jun-10 30-Sep-10 Net income attributable to Expedia, Inc. $ 59,395 $ 114,261 $ 176,550 Amortization of intangible assets 9,028 8,344 8,126 Stock-based compen
Slide 56: Appendix A - Non-GAAP Items: Free Cash Flow
EXPEDIA, INC. Appendix A - Non-GAAP Items Free Cash Flow (figures in $000s) 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 30-Sep-10 Total Net cash provided by operating activities $617,440 $712,069 $520,688 $676,004 $937,717 $3,463,918 Less: capital expenditures (92,631) (86,658) (159,827) (92,017) (113,3