Online travel giant Expedia (NASDAQ:EXPE) reported record revenues and profitability for Q3 FY2023, reflecting an 8.57% year-on-year (YoY) increase to $3.93 billion, surpassing analyst estimates. The company's non-GAAP earnings per share (EPS) also saw a significant rise from last year's $2.98 to $5.41 per share, again beating predictions.
The firm's booked room nights increased by 7.7 million YoY, totaling 89.3 million. Despite a decrease in free cash flow from the previous quarter's $923 million to -$1.59 billion, the GAAP gross margin rose to 89.5%.
Expedia CEO Peter Kern attributed this robust performance to the resilience of travel demand and strategic execution, leading to substantial growth in both B2B and B2C revenue sectors.
While Expedia has seen a remarkable average annual revenue growth of 50.7% over the past three years, this quarter's YoY growth was a more modest 8.57%. Analysts are projecting an 8.99% sales growth over the next 12 months, slightly above this quarter's performance.
Originally a division of Microsoft (NASDAQ:MSFT), Expedia is a major player in the online travel marketplace and contributes to more than half of industry reservations.
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