Online travel agency Expedia cut its full-year revenue growth forecast on Thursday, as gross bookings were hit by a drag in its vacation rental platform and poor performance in its business-to-consumer segment.
Shares of the company were down about 8 per cent after the bell.
“Given the Vrbo drag and the rate of acceleration in B2C thus far, we are lowering our full-year guidance to a range of mid- to high-single-digit top line growth, with margins relatively in line versus last year,” said CEO Peter Kern.
The company was expecting a boost in profits after the migration of its Vrbo vacation rentals brand to the Expedia platform, which allows travelers to book across Expedia’s brands.
However, Vrbo’s recovery after the re-platforming was slower than anticipated.
Seattle-based Expedia reported a quarterly adjusted profit of 21 cents per share, compared to analysts’ estimate of a loss of 24 cents.
Travelers are flocking to international destinations in Asia and the Middle East as global air connectivity improves and drives up international travel demand, which is expected to remain strong this year even as demand for domestic travel in North America plateaus.
Total quarterly revenue was USD 2.89 billion, up 8 per cent from a year earlier. Analysts, on average, were expecting revenue of USD 2.81 billion, according to LSEG data.
