Expedia returned to profitability in the third quarter, boosted by Vrbo vacation rentals amid increased demand for summer travel. The company’s shares rose 11%.
The Seattle-based company posted net income of $ 362 million in the three months ended September, compared with a loss of $ 221 million a year earlier, the company said. Earnings per share excluding some costs were $ 3.53, according to data compiled by Bloomberg, higher than analysts’ estimates of $ 1.63. Revenue rose 97% to $ 2.96 billion, beating analysts’ forecasts.
“With early positive signs in the fourth quarter and many countries announcing new discoveries for international travelers, we are increasingly confident that the recovery will continue,” said CEO Peter Kern.
Expedia follows other online travel companies in its recovery from the early days of the COVID-19 crisis, when travel was largely stopped. Airbnb reported record sales and revenues, while Booking Holdings, which owns Priceline and several other tourism-related companies, reported a successful third quarter with gross bookings up 77% from a year earlier.
The arrival of the delta option in early summer did cause some pullback in travel plans, executives said, but pent-up demand ultimately took over in many markets. However, Expedia acknowledged that “the travel recovery continued to be unstable.”
Gross orders more than doubled to $ 18.7 billion, but fell short of Wall Street analysts’ estimate of $ 20.7 billion.
Expedia is up 19% this year, slightly behind Airbnb but well ahead of Booking.