The quarter saw the company endure a 15% year-over-year decline in revenue, to just under $2.21 billion. That was on the back of gross bookings that cratered by 39% to nearly $17.9 billion. The non-GAAP (adjusted) net loss deepened considerably, to $258 million ($1.83) from Q1 of fiscal 2019's $40 million.
On average, analysts following the stock were anticipating $2.29 billion in revenue, and an adjusted bottom-line loss of only $1.04.
It nearly goes without saying by now that Expedia, a top name in the travel industry, is suffering greatly from the crippling blow the SARS-CoV-2 coronavirus has landed on its sector. Stay-at-home mandates in force throughout the world, not to mention fear of the still-spreading virus, have severely curtailed travel activity.
Expedia is battening down the hatches, shoring up its capital base with $3.2 billion in new funding secured last month. This comprises $2 billion in debt, and a $1.2 billion investment by a pair of private equity firms, Apollo Global Management and privately held Silver Lake Capital Partners.
The company gave itself a bit of a pat on the back in regards to preparing for the impact of the coronavirus on its business. "Fortunately, we were ahead of the game having implemented cost savings measures earlier this year, and with the added pressure from COVID-19 we accelerated and expanded our ambition on improving our long-term cost structure," management said.
In pre-market trading on Thursday, Expedia's shares were up by nearly 4.5%; the previous day they closed 4.2% higher, eclipsing the gains of the broader market, and many top consumer goods stocks.