Expedia Group Inc (NASDAQ:EXPE) stock rose 8.74% (As on August 9, 11:23:23 AM UTC-4, Source: Google Finance) after the company’s revenue and profits came in higher than consensus expectations for the three months to June, though Expedia did warn of “softening” travel demand in the months ahead. Total gross bookings came in at $28.8 billion, also up 6% year-over-year. Total gross bookings were $28.8 billion, an increase of 6% compared to 2023. Lodging gross bookings were $20.7 billion, an increase of 8% compared to 2023. Hotel bookings were up 11% compared to 2023. Room nights growth accelerated to +10% with Brand Expedia at nearly 20% growth. Total room nights grew at the fastest rate since the first quarter of 2023. B2B revenue was $1.0 billion, an increase of 22% compared to 2023. Net income was $386 million and adjusted net income was $469 million. Adjusted EBITDA was $786 million, an increase of 5% with 15 basis points of margin contraction compared to 2023. Adjusted EBIT was $475 million, an increase of 8% with 21 bps of margin expansion compared to 2023. In particular, the company signalled the vacation rental business returned to modest growth in the second quarter after decelerating the past few periods, which had weighed on Expedia’s results.

EXPE in the second quarter of FY 24 has reported the adjusted earnings per share of $3.51, beating the analysts’ estimates for the adjusted earnings per share of $3.18. The company had reported the adjusted revenue growth of 6 percent to $3.56 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $3.53 billion.

Additionally, the company has repurchased approximately 9.2 million shares for $1.2 billion year-to-date.

According to Expedia, the company saw “a more challenging macro environment and a softening in travel demand” throughout July. This led the company to revise expectations downwards, with chief financial officer Julie Whalen noting full-year bookings and revenue growth was now expected at 4% and 6% respectively and at the low end of its previous guidance. The company also expects third-quarter gross bookings and revenue to increase in the range of 3% to 5% compared with a year ago. This is the second time the company has cut its full-year guidance this year on softer-than-expected demand. It had reduced guidance in May to mid- to high single-digit growth.