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Breaking Down Expedia’s 4Q16 Revenues

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Feb. 13 2017, Updated 5:05 p.m. ET

Revenue by segment

Expedia’s (EXPE) revenues grew 22.5% YoY in 4Q16 to $2.09 billion. Expedia’s revenues are divided into four segments: Core OTA, Trivago, Egencia, and HomeAway.

Core OTA revenues rose 12.6% year-over-year or YoY to $1.7 billion. Trivago (TRVG) revenues rose 66.4% to $183 million. Egencia revenues rose 8.4% to $116 million. Part of Egencia growth came from the Orbitz business, which migrated onto the Egencia platform. Also, while volume growth remained strong, pricing was weak. HomeAway’s revenues rose 730% to $166 million.

Core OTA contributed to 81% of the revenue for the quarter, Trivago contributed 8%, Egencia contributed 5%, and HomeAway contributed 6% of Expedia’s 4Q16 revenue.

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Revenue by channel

The merchant business contributed 56% of total revenues, the agency business contributed 27%, and advertising contributed 9%. The remaining 8% came from HomeAway. The merchant business grew 12.1% YoY. The agency business grew 14.6% YoY and the advertising business grew 36.7% YoY.

Revenue by product

Hotels still contribute the largest share, 61%, of EXPE’s revenues in 4Q16. Air travel contributed 9%, and media and advertising contributed 9%. HomeAway accounted for 8% of revenues while the remaining 13% came from other revenues. Hotel revenues grew 13% YoY, driven by a 15% growth in room nights, offset by a 2% decline in revenue per room night. Air business revenues grew 6% YoY, driven by 6% growth in air ticket volumes (13% excluding Orbitz).

Revenue by geography

International revenues grew 23.9% YoY, driven by 18% growth in room nights stayed and domestic revenues grew 22.6% YoY, driven by 11% growth in room nights. International sales formed 43% of Expedia’s revenue and remaining 57% came from domestic revenues.

Investors can gain exposure to Expedia by investing in the First Trust Dow Jones Internet ETF (FDN), which invests 2.7% of its holdings in Expedia. It also holds 1.9% in TripAdvisor (TRIP) but has no holdings in Priceline (PCLN) or Ctrip International (CTRP).

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