Shares of Expedia (EXPE +17.58%) climbed more than 17% on Friday after the online travel agency delivered strong third-quarter financial results and lifted its full-year sales forecast.
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Demand for travel is rising
Expedia's revenue rose 9% to $4.4 billion. The travel marketplace operator's total gross bookings jumped 12% to $30.7 billion, fueled by robust growth in booked room nights in international markets and a reacceleration of its U.S. business.
"Notably, we grew room nights in the U.S. at the fastest pace in over three years," CEO Ariane Gorin said in a press release.
NASDAQ: EXPE
Key Data Points
Expedia's business-to-business (B2B) segment was particularly strong. B2B revenue grew 18%, driven by a 26% jump in gross bookings.
During a conference call with analysts, Gorin said Expedia gained market share as it won new corporate partners and existing clients spent more on its platform. Gorin credited a new artificial intelligence (AI)-powered trip planner and tools that help businesses reduce their travel costs as reasons for the gains.
Better still, Expedia's profit margins expanded as its revenue grew. Its adjusted net income leaped 19% to $962 million. Stock buybacks helped to drive Expedia's adjusted earnings per share higher by 23%.
Expedia sees more gains ahead
These strong results and encouraging ongoing travel trends prompted Expedia to boost its full-year sales outlook. Management now expects revenue growth of 6% to 7%, up from a previous forecast of 3% to 5%.
