What happened

Shares of online travel agent company Expedia Group (NASDAQ:EXPE) took a huge hit on Thursday, falling more than 25% as of 12:45 p.m. EST.

The stock's slide follows Expedia's third-quarter update, which featured worse-than-expected non-GAAP (adjusted) earnings per share and a lowered outlook for full-year adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).

A young couple walking through a hotel portico with wheeled suitcases

Image source: Getty Images.

So what

Expedia Group said its total revenue rose 9% year over year to $3.56 billion, missing analysts' average forecast for revenue of $3.58 billion. Non-GAAP earnings per share fell 7% year over year to $3.38 -- well below a consensus estimate for $3.80.

One of the factors weighing on the quarter's results was a 10% year-over-year decrease in average revenue per ticket as the result of "reclassification of certain partner fees to other revenue and a shift in product mix," management said in the third-quarter earnings release.

Now what

Thanks to a reduced outlook for profitability from Expedia's online hotel booking website, Trivago, and home-lodging platform, VRBO, Expedia CEO Mark Okerstrom said on the company's third-quarter earnings call that it now expects full-year adjusted EBITDA to increase 5% to 8%, down from an earlier forecast for 12% to 15% growth.