Expedia Group Inc (NASDAQ:EXPE) stock fell 8.04% (As on February 10, 11:41:40 AM UTC-4, Source: Google Finance) after the company missed Wall Street estimates for fourth-quarter profit, hit by a spike in cancellations and bad weather near the end of the quarter. Total gross bookings across travel products rose 17% from the year-earlier period to $20.5 billion. The company said it has seen an increase in direct costs related to partner commissions and increased marketing spends in retail channels. For the fourth quarter of 2022, total gross bookings increased 17%, compared to the fourth quarter of 2021, as gross bookings for lodging and air grew. As a percentage of total revenue in the fourth quarter of 2022, lodging accounted for 77%, advertising and media accounted for 7%, air accounted for 4%, and all other revenues accounted for the remaining 12%. Lodging revenue increased 18% in the fourth quarter of 2022, compared to the fourth quarter of 2021, driven by a significant increase of 19% in room nights stayed and average daily rate (“ADR”) growth of 3%. Air revenue increased 44% in the fourth quarter of 2022, compared to the fourth quarter of 2021, driven by an increase of 47% in revenue per ticket. Advertising and media revenue increased 15% in the fourth quarter of 2022, compared to the fourth quarter of 2021, due to growth in Expedia Group Media Solutions. Other revenue decreased in the fourth quarter of 2022, compared to the fourth quarter of 2021, due to declines in car revenue.

EXPE in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.26, missing the analysts’ estimates for the adjusted earnings per share of $1.67, according to Refinitiv data. The company had reported the adjusted revenue growth of 15 percent to $2.62 billion in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $2.7 billion. For the three months ended December 31, 2022, consolidated net cash used in operating activities was $182 million. Consolidated free cash flow used totaled $359 million, a decline of $501 million compared to the prior year primarily due to a decrease in cash provided by operating activities, driven by changes in working capital. Cash, cash equivalents and short-term investments totaled $4.1 billion at December 31, 2022 compared to $4.6 billion at September 30, 2022. Restricted cash and cash equivalents, which primarily consist of traveler deposits for Vrbo bookings, was $1.8 billion at December 31, 2022 and at September 30, 2022.