Segment Information

3 Months Ended

Mar. 31, 2025

We have the following reportable segments: B2C, B2B, and trivago. Our B2C segment provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia.com, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. Our B2B segment fuels a wide range of travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management and financial institutions, who leverage our leading travel technology and tap into our diverse supply to augment their offerings and market Expedia Group rates and availabilities to their travelers. Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its hotel metasearch websites. trivago is a separately listed company on the Nasdaq Global Select Market and is therefore required to separately report its own financial results, which may differ from the segment information included herein.

Our chief operating decision makers ("CODMs") are our Chief Executive Officer and our Chairman. We determined our operating segments based on how our chief operating decision makers manage our business, make operating decisions and evaluate operating performance. Our primary operating metric is Adjusted EBITDA. Adjusted EBITDA for our B2C and B2B segments includes allocations of certain expenses, primarily related to our global travel supply organization and the majority of costs from our product and technology platform, as well as facility costs and the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue. We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such as accounting, human resources, certain information technology and legal to our reportable segments. We include these expenses in Corporate and Eliminations. Our allocation methodology is periodically evaluated and may change.

Our CODMs use Adjusted EBITDA to allocate resources for each segment predominantly in the annual budget and forecasting process. The CODMs consider budget-to-actual variances on a monthly basis using Adjusted EBITDA when making decisions about allocating capital and personnel to the segments. The CODMs also use Adjusted EBITDA to assess the performance for each segment and in the compensation of certain employees.

Our segment disclosure includes intersegment revenues, which primarily consist of advertising and media services provided by our trivago segment to our B2C segment. These intersegment transactions are recorded by each segment at amounts that approximate fair value as if the transactions were between third parties, and therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation. The elimination of such intersegment transactions is included within Corporate and Eliminations in the table below.

Corporate and Eliminations also includes unallocated corporate functions and expenses. In addition, we record amortization of intangible assets and any related impairment, as well as stock-based compensation expense, restructuring and related reorganization charges, legal reserves, occupancy tax and other, and other items excluded from segment operating performance in Corporate and Eliminations. Such amounts are detailed in our segment reconciliation below.

The following tables present our segment information for the three months ended March 31, 2025 and 2024. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision makers.


	Three months ended March 31, 2025
	B2C		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	1,956	$	947	$	85	$	—	$	2,988
Intersegment revenue	—		—		46		(46)		—
Revenue	$	1,956	$	947	$	131	$	(46)	$	2,988
Less: (1)
Cost of revenue	312		38		4
Selling and marketing - direct	1,115		577		111		(46)
Other segment items (2)	312		116		21		132
Adjusted EBITDA	$	217	$	216	$	(5)	$	(132)	$	296
Depreciation	(135)		(44)		(1)		(28)		(208)
Amortization of intangible assets	—		—		—		(11)		(11)


Stock-based compensation	—		—		—		(98)		(98)

Restructuring and related reorganization charges	—		—		—		(26)		(26)
Realized (gain) loss on revenue hedges	(15)		(8)		—		—		(23)
Operating income (loss)	$	67	$	164	$	(6)	$	(295)	(70)
Other expense, net									(147)
Loss before income taxes									(217)
Provision for income taxes									20
Net loss									(197)
Net (income) loss attributable to non-controlling interests									(3)
Net loss attributable to Expedia Group, Inc.									$	(200)


	Three months ended March 31, 2024
	B2C		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	1,986	$	833	$	70	$	—	$	2,889
Intersegment revenue	—		—		40		(40)		—
Revenue	$	1,986	$	833	$	110	$	(40)	$	2,889
Less: (1)
Cost of revenue	312		39		4
Selling and marketing - direct	1,096		501		93		(40)
Other segment items (2)	363		121		22		123
Adjusted EBITDA	$	215	$	172	$	(9)	$	(123)	$	255
Depreciation	(133)		(34)		(1)		(27)		(195)
Amortization of intangible assets	—		—		—		(15)		(15)


Stock-based compensation	—		—		—		(104)		(104)
Legal reserves, occupancy tax and other	—		—		—		(20)		(20)
Restructuring and related reorganization charges	—		—		—		(48)		(48)
Realized (gain) loss on revenue hedges	13		4		—		—		17
Operating income (loss)	$	95	$	142	$	(10)	$	(337)	(110)
Other expense, net									(45)
Loss before income taxes									(155)
Provision for income taxes									19
Net loss									(136)
Net loss attributable to non-controlling interests									1
Net loss attributable to Expedia Group, Inc.									$	(135)

___________________________________

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODMs, exclusive of stock-based compensation. Intersegment expenses are included within the amounts shown.

(2) Other segment items for each reportable segment primarily includes selling and marketing - indirect, technology and content and general and administrative expenses as well as the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue for our B2C and B2B segments.

Revenue by Business Model and Service Type

The following table presents revenue by business model and service type:


	Three months ended March 31,
	2025		2024
	(in millions)
Business Model:
Merchant	$	2,046	$	1,964
Agency	652		678
Advertising, media and other	290		247
Total revenue	$	2,988	$	2,889
Service Type:
Lodging	$	2,289	$	2,228
Air	107		115
Advertising and media - EG(1)	174		145
Advertising and media - trivago	85		70
Other(2)	333		331
Total revenue	$	2,988	$	2,889

____________________________

(1)Includes Expedia Group (“EG”) Media Solutions, which is responsible for generating advertising revenue on our global online travel brands.

(2)Other includes revenue from insurance, car rental, activities and cruise revenue, among other revenue streams, none of which are individually material.

Our B2C and B2B segments generate revenue from the merchant, agency and advertising, media and other business models as well as all service types. trivago segment revenue is generated through advertising and media.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Expedia Group, Inc. 10-Q