Slide 1: Company Overview Q1 2011
Exhibit 99.2 Company Overview Q1 2011 Q111 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. These statements are not guarantees of future performance. These forward-looking statements are based on management’s expectations as of Apri
Slide 3: Global Opportunity
Sources: U.S. Online Travel Overview 10th Edition (November 2010); U.S. Online Travel Overview 8th Edition Update: 2009 – 2010 (April 2009); U.S. Corporate Travel Distribution 4th Edition (July 2009); US Online figure for 2011 assumes ~$40 million in online corporate travel bookings; European Online
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, March 2011 & company data; ² See Appendix B for reconciliation of non-GAAP to GAAP numbers. Adjusted EBITDA is calculated as operating income plus depreciation, restructuring charges, Expedia - the Travel Sector Leader intangibles amortization, stock-based compensatio
Slide 6: Largest Worldwide Audience
Largest Worldwide Audience U.S. Worldwide 1 1 +104% +108% 1 +136% 700 1 1 +80% 600 +136% 500 1 +157% 400 300 200 100 0 UV’s Min Spent Online Page Views UV’s Min SpentOnline PageViews Orbitz Travelocity Yahoo Travel Priceline Source: comScore MediaMetrix, March 2011 1 Denotes Expedia’s percentage dif
Slide 7: Expedia's Virtuous Cycle
Expedia’s Virtuous Cycle Cash flow to invest in Compelling More ad supplier & revenue advertising channel Growth/ User- Scale Better generated supplier content economics Improved More traveler travelers experience Scale drives opportunity to enhance supplier, traveler & advertiser value propositions
Slide 8: Revenue by Product & Geography
Revenue by Product & Geography Product Categories (TTM 3.31.2011) Geographic Split (TTM 3.31.2011) Revenue Revenue Car, Cruise & Other International 13% 39% Advertising & Media 13% Air 11% Domestic Hotel 63% 61% * Hotel & Advertising – >75% of revenue base * Europe & other international markets bene
Slide 9: Product Category - Hotel
Product Category - Hotel Business Overview •Merchant hotel —Expedia merchant of record with no inventory risk —Expedia receives cash upfront from travelers, pays hoteliers several weeks later —Some control over pricing, higher margins & ability to package with other products —1 -3 year contracts wit
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 – 2011 data is for both agency and merchant hotel. Q111 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 Group(leading global collection of •CPC, CPM & subscription based ad models user-generated content sites) •TripAdvisor leverages industry-leadin
Slide 12: Product Category - Air
Product Category - Air Business Overview • Air revenue = 11% of Expedia’s worldwide trailing twelve months revenue - ~95% of airplane tickets sold over Expedia’s online properties are agency transactions, in which Expedia acts as an agent on behalf of a supplier and collects a commission - Customer
Slide 13: Trended Worldwide Air Growth Statistics (y/y)
Trended Worldwide Air Growth Statistics (y/y) Source: Company financial reports Q111 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 12.5%13.7% 12.5%13.8% 12.6%14.0% 12.6%14.1% 12.4%13.9% 12.1%13.6% 11.6%13.1% 12.8% 12.8% 12.9% 13.0% 11.3% 11.2% 11.3% 11.3% 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4
Slide 15: Q111 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 Q111 Results amortization, stock-based compensation, any impairments and certain legal reserves a
Slide 16: Trended Free Cash Flow (TTM)
Trended Free Cash Flow (TTM) ‘10 cash flows improved $millions ‘08 cash flows down due due to higher earnings, to taxes, slowing lower occupancy tax merchant hotel & one- assessment payments time cap ex and lower cash tax payments ‘09 cash flows improved due to higher earnings, merchant hotel recove
Slide 17: Efficiently Managing Dilution
Efficiently Managing Dilution millions of adjusted diluted shares 2007 repurchased 55mm shares for $1.4b 2010 repurchased 20.6mm shares for $489mm 15% reduction in share base since Q107 Source: Company financial reports Q111 Company Overview 17
Slide 18: Capitalization
Capitalization 3/31/11 1 Cash and Cash Equivalents $953 2 Revolving Credit Facility -- 5.950% Notes due 2020 750 7.456% Notes due 2018 500 3 debt issues with long- 8.500% Notes due 2016 395 term maturities Total Debt $1,645 (2018 Notes have 2013 Net Debt 692 investor put) 3 Market Value of Equity $6
Slide 19: Trended Credit Metrics
Trended Credit Metrics TTM 12.31.07 12.31.08 12.31.09 12.31.10 3.31.11 Leverage Measures Total Debt / TTM Adjusted EBITDA ¹ 1.5 2.0 1.0 1.7 1.7 Net Debt / TTM Adjusted EBITDA ¹ 0.6 1.1 0.3 1.0 0.7 Coverage Measures TTM Adj. EBITDA / TTM Interest 13.8 10.8 10.3 9.4 8.5 Expense¹ TTM Free Cash Flow / T
Slide 20: Rating Agency Snapshot
Rating Agency Snapshot S&P (Analyst: Andy Liu) Rating ‘BBB-’ on CreditWatch with negative implications April 7, 2011 Research Update: “The CreditWatch placement is based on the company’s plan to split off its TripAdvisor unit…we believe it will reduce Expedia’s growth rate, EBITDA margin, and discre
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 Important partner to airlines, hotels and other travel
Slide 22: Appendix A
Appendix A Q410 Company Overview 22
Slide 23: Business Model – Income Statement (FY 2010)
Business Model – Income Statement (FY 2010) Customer books travel product or $ in millions service; total retail value (incl taxes and fees) constitutes “Gross Bookings.” Gross bookings $25,962 • Customer operations Expedia’s portion of the gross Revenue 3,348 • Credit card & fraud expense booking g
Slide 24: Trended Historical Results
Trended Historical Results (Figures in $millions) Growth 2006 2007 2008 2009 2010 2007 2008 2009 2010 Gross Bookings $16,882 $19,632 $21,269 $21,811 $25,962 16% 8% 3% 19% Revenue 2,238 2,665 2,937 2,955 3,348 19% 10% 1% 13% Cost & Expenses * 1,639 1,996 2,239 2,183 2,514 22% 12% (3%) 15% OIBA*** 599
Slide 25: Appendix B
Appendix B Q111 Company Overview 25
Slide 26: Tabular Reconciliations For Non-GAAP Data
Tabular Reconciliations For Non-GAAP Data Operating Income Before Amortization 3 Months 3 Months Ended Ended (figures in $000s) Mar 31, Mar 31, 2010 2011 OIBA $ 142,544 $ 129,258 Amortization of intangible assets (9,028) (7,951) Stock-based compensation (18,892) (17,272) Legal reserves and occupancy
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, 2006 2007 2008 2009 2010 OIBA $ 599,018 $ 669,487 $ 697,774 $ 761,532 $ 830,721 OIBA margin 27% 25% 24
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, 2006 Dec. 31, 2007 Dec. 31, 2008 Dec. 31, 2009 Dec. 31, 2010 Total costs and expenses* $ 1,718,853 $ 2,058,694 $ 2,300,530 $ 2,244,505 $ 2,573,529 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) 2006 2007 2008 2009 2010 Adjusted EBITDA 647,797 729,013 774,574 864,
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) 12.31.09 12.31.10 3.31.10 3.31.11 Cost of revenue 607,251 692,832 158,030 177,842 Less: stock-based compensation (2,285) (2,401) (789) (810) Cost of revenue exc
Slide 31: Tabular Reconciliations For Non-GAAP Data
Tabular Reconciliations For Non-GAAP Data Free Cash Flow (figures in $000s) 3 months 3 months ended ended Mar 31, 2010 Mar 31, 2011 Net cash used in operating 619,527 729,090 activities Less: capital expenditures (29,675) (51,079) Free cash flow 589,852 678,011 Q111 Company Overview 31
Slide 32: Tabular Reconciliations For Non-GAAP Data
Tabular Reconciliations For Non-GAAP Data Free Cash Flow (figures in $000s) TTM 6.07 TTM 9.07 TTM 12.07 TTM 3.08 TTM 6.08 TTM 9.08 TTM 12.08 TTM 3.09 Net cash provided by operating 831,140 859,228 712,069 737,792 660,510 514,242 520,688 458,913 activities Less: capital expenditures (97,576) (82,671)