Expedia books $183M in profit for Q2 as it prepares to open new Seattle headquarters

Expedia will move into a new waterfront campus in Seattle starting in October. (Expedia Rendering)

Expedia posted healthy revenue and earnings growth for Q2 2019, sending the stock up 2 percent in after-hours trading on Thursday.

Revenue: Revenues for the quarter increased 9 percent to $3.15 billion, beating analyst estimates of $3.12 billion.

Earnings: The travel giant booked profits of $183 million, or $1.77 per share, above Wall Street expectations of $1.67 per share. Expenses grew 7 percent from the same quarter last year to $2.8 billion.

Gross bookings: The sum of what customers spent across rooms, flights and other travel across Expedia’s brands — known as gross bookings — grew 9 percent to $28.3 billion for the quarter. Domestic gross bookings increased 11 percent and international gross bookings grew 7 percent.

Expedia’s core travel agency business yielded the largest increase in gross bookings, rising 11 percent to $23.3 billion.

While gross bookings on vacation home rental platform Vrbo only grew 2 percent in the period, the platform saw revenues swell 17 percent to $347 million. The Vrbo segment also includes HomeAway, the Airbnb competitor that Expedia acquired in 2015 for $3.9 billion.

Expedia’s stock is up 22 percent so far this year.

The Bellevue, Wash.-based company is gearing up to move into a brand-new 40-acre campus in Seattle that will cost the company around $900 million. The waterfront headquarters are a drastic change from Expedia’s downtown high-rise in neighboring Bellevue and will feature design elements inspired by nature with plenty of green space and natural light.

Expedia’s contract dispute with United is still ongoing and could result in Expedia no longer being able to offer United flights on its platforms starting Sept. 30, when the contract expires.

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