On May 8, Expedia (NASDAQ:EXPE) released earnings for the first quarter ended March 31.

  • For the full story behind Expedia's earnings report and recent acquisitions, read our earnings Take.
  • Revenue increased 11.5% to $550.5 million, while profit jumped 49%. Adjusted earnings per share of $0.18 fell slightly short of analyst expectations of $0.20.  
  • Europe's gross bookings increased 32% year over year, driving a large portion of revenue growth. Domestic bookings, on the other hand, remained almost stagnant with only a 1% increase.
  • To continue increasing its international presence, Expedia launched a full-service site dedicated to Spain.
  • Expedia has a three-star rating in Motley Fool CAPS. Fellow traveler Priceline.com (NASDAQ:PCLN) -- which also reported earnings Tuesday-- holds a three-star rating as well.  

(Figures in millions, except per-share data.)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$550.5

$493.9

11.5%

Net Profit

$34.8

$23.3

49%

EPS

$0.11

$0.06

83.3%

Diluted Shares

323.7

365.2

(11.3%)

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

78%

75.8%

2.1

Operating Margin

12.2%

5.3%

6.9

Net Margin

6.3%

4.7%

1.6

*Expressed in percentage points

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$637.7

$509.0

25.3%

Accounts Rec.

$289.9

$199.5

45.3%

Inventory

N/A

N/A

N/A

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$812.6

$669.3

21.4%

Long-Term Debt

$500.0

$0.0

N/A

The balance sheet reflects the company's health.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

$538.1

$451.9

19.1%

Capital Expenditures

$18.3

$13.0

40.6%

Free Cash Flow

$519.7

$438.9

18.4%

Free cash flow is a Fool's best friend.

Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.