By Dhirendra Tripathi
Investing.com – Expedia stock (NASDAQ:EXPE) traded 3.7% higher in premarket Friday after its combined package of hotel and flight bookings brought it back to profits in the fourth quarter, overcoming a resurgent virus.
Adjusted profit was $167 million against a loss of $376 million in the same period last year, as people took their chances and travelled. Gross booking jumped 131% to go well past $17 billion, against the backdrop of improving business sentiment and the easing of restrictions around much of the country.
Lodging, which contributes three-fourths to the company’s revenue, grew the strongest as people stayed at the properties longer, a trend also being seen at Airbnb (NASDAQ:ABNB) which suggests that the shift to remote work reduces people's dependence on fixed locations. Expedia guests also paid more for every night on an average basis. Lodging revenue was up 116% at $1.7 billion.
Total revenue climbed 148% to $2.28 billion, also boosted by strong growth in airline bookings and advertising at Trivago and Expedia Group Media Solutions. More air tickets were booked as economies reopened and business travel staged a recovery - albeit one that appears to have encountered fresh headwinds again since January.
Adding to the company’s topline was an unexpected boost under ‘other revenue’ from both car and travel insurance products. That item booked $349 million in revenue in the fourth quarter compared to a negligible $6 million in the same period last year.
Adjusted profit per share was $1.06 and easily beat estimates.