Expedia Group, Inc. · NASDAQ:EXPE
Expedia — Investor Presentation (February 2017)
23 slides from Expedia's investor presentation, Feb 9, 2017
Slide 1: Investor presentation February 9, 2017
Investor presentation February 9, 2017 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 2016. 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; gross bookings excludes HomeAway. 2Monthly visits b
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 $1.3T global market
Huge opportunity in $1.3T global market Notes: Expedia’s share of travel market defined as gross bookings during 2016. Travel market size estimates based on Phocuswright data for 2017. Sources: Phocuswright estimates and Expedia data. Global leader with significant headroom for further growth 50% of
Slide 6: World's largest, diversified travel platform
World’s largest, diversified travel platform 6 Notes: Expedia, Inc. data shown as of 12/31/16. 1Monthly visitors based on data for Brand Expedia (including Travelocity and Wotif), Hotels.com, Orbitz, HomeAway, trivago and Hotwire combined during 2016. 2Offline travel agents based on number of sales
Slide 7: Scale advantages in demand generation
Scale advantages in demand generation 7 Notes: 1Direct selling & marketing spend for 2016 is a non-GAAP measure. See Appendix for non-GAAP to GAAP reconciliation. Hundreds of billions of predictive calculations performed annually to inform marketing decisions driving direct selling & marketing spend
Slide 8: Scale advantages in innovation
Scale advantages in innovation 8 Notes: 1Employees in technology roles as of 12/31/16. 2Adjusted technology & content spend for 2016 is a non-GAAP measure and excludes depreciation and stock-based compensation. See Appendix for non-GAAP to GAAP reconciliation. 50 100 450 775 1,300 1,375 1,450 2010 2
Slide 9: Building scale advantage across spectrum of travel products
Building scale advantage across spectrum of travel products 9 Notes: 1Activities includes packages and tours. 2Y/Y growth rates shown for 2016 Expedia, Inc., excluding eLong, for air tickets sold, hotel room nights stayed, rental car days, activity transactions, cruise gross bookings. 3Brand Expedia
Slide 10: Scale advantages in supply
Scale advantages in supply 10 Notes: 1Supply growth shown excluding eLong for all years presented; 2015 excludes 20K 3rd party properties removed, resulting in net increase of 53K. 2Lodging Partner Services headcount as of 12/31/16. Sources: Property counts shown per TripAdvisor and Booking.com webs
Slide 11: Unmatched portfolio of leading travel brands with global reach
Unmatched portfolio of leading travel brands with global reach 11 Notes: All stats shown as of 2016. 1trivago revenue includes intercompany. Core OTA Lodging ~$17B gross bookings A leading hotel specialist globally, in 65+ countries A leading hotel metasearch company, in 55 countries Metasearch ~$83
Slide 12: Air shoppers drive growth opportunities across product categories
Air shoppers drive growth opportunities across product categories 12 Notes: 1Monthly air shoppers and annual air searches shown for 2016. 2Air attach revenue shown for Brand Expedia, including AirAsia joint venture. 2013 2014 2015 2016 Air attach revenue2 CAGR: 32% 75M+ monthly air shoppers1 15B+ an
Slide 13: Expedia loyalty programs drive repeat & create competitive differentiation
Expedia loyalty programs drive repeat & create competitive differentiation 13 Notes: All metrics provided are as of 12/31/16. • 21M+ members • Available in 32 countries • 7M+ members • Members booked 90%+ more hotels than non-members • 27M+ members • Available in 65+ countries
Slide 14: Investments in mobile drive growth & engagement
Investments in mobile drive growth & engagement 180M+ cumulative app downloads1 Over 45% of traffic arrives via mobile3 14 App users repeat >2x more frequently than average user2 Notes: 1Cumulative app downloads as of 12/31/16 for all Expedia, Inc. brands. 2Brand Expedia average over 2016. 3Mobile t
Slide 15: Consistent financial execution
Consistent 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 103 120 150 203 246 2012 2013 2014 2015 2016 33 38 48 60 72 2012 2013 2014 2015 2016 3.9 4.6 5
Slide 16: Solid track record of capital allocation
Solid track record of capital allocation 16 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 • Opportunistic M&A 2014 – 2016 • Solid financial performance
Slide 17: Appendix
Appendix
Slide 18: 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 19: Non-GAAP / GAAP reconciliation: Revenue
Non-GAAP / GAAP reconciliation: Revenue Notes: Numbers may not sum due to rounding. $ Millions 2012 2013 2014 2015 2016 Core OTA revenue $3,621 $4,069 $4,905 $5,877 $7,084 trivago revenue - 216 414 548 836 Egencia revenue 291 365 400 400 462 HomeAway revenue - - - 20 689 Intercompany eliminations -
Slide 20: Adjusted EBITDA reconciliation
$ Millions 2012 2013 2014 2015 2016 Core OTA adjusted EBITDA $1,068 $1,172 $1,387 $1,600 $1,966 trivago adjusted EBITDA - 18 4 3 35 Egencia adjusted EBITDA 54 60 61 68 81 HomeAway adjusted EBITDA - - - 4 175 Unallocated overhead costs (318) (359) (401) (510) (641) Adjusted EBITDA excluding eLong $80
Slide 21: 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 TOTAL Cash provided by operations $826 $1,237 $763 $1,367 $1,368 $1,564 $7,125 Capital expenditures (208) (236) (309) (328) (787) (749) (2,617) Free c
Slide 22: Non-GAAP / GAAP reconciliation: Direct selling & marketing expense
Non-GAAP / GAAP reconciliation: Direct selling & marketing expense Notes: Numbers may not sum due to rounding. $ Millions 2016 Direct selling & marketing expense $3,530 Indirect selling & marketing expense 762 Total adjusted selling & marketing expense $4,292 Stock-based compensation 47 Depreciation
Slide 23: Non-GAAP / GAAP reconciliation: Adjusted technology & content expense
Non-GAAP / GAAP reconciliation: Adjusted technology & content expense Notes: Numbers may not sum due to rounding. $ Millions 2016 Total adjusted technology & content expense $810 Stock-based compensation 64 Depreciation 361 Technology & content expense attributable to Expedia, Inc. $1,235 23