Expedia quarterly earnings came up short of Wall Street expectations Thursday but said recent acquisitions it has made of HomeAway a platform for vacation rentals and Orbitz have started to pay off to the bottom line.
Expedia is the parent company of Travelocity and Hotels.com. It posted $183 million in profit equal to $11.7 per share for its most recently ended quarter. That figure missed estimates by analysts of earnings per share of $1.36 by a large margin.
Nevertheless, revenue was up 23% to end the quarter at $2.08 billion, which just beat analyst’s estimates for revenue of $2.07 billion.
Share price of the giant in online travel moved down 4% prior to making a recovery to its closing price on the day during trading after hours.
During the just ended quarter, travelers dished out $16.1 billion for bookings, which was up 8% from the same three-month period one year ago and stayed 15% longer at hotels they had booked.
Mobile investments have driven much of its growth as app users that return to the site twice the number of times as average users.
Close to 1 in 3 Expedia transactions booked in 2016 occurred via a mobile device and over 45% of online traffic was also from mobile devices.
Expedia’s most recent history has included a number of acquisitions of well known companies in the travel industry, including Orbitz and HomeAway. The new companies under its umbrella contributed $764 million and $688 million worth of revenue respectively in 2016.
Trivago, which has its own IPO through Expedia in December and maintains a stake of 65% in, ended last year strong with an increase in revenue of 65% from the same three-month period one year ago.
Shares of Trivago were up 17% in trading after hours on Thursday.
Hotels represent the majority of business for Expedia and represented 61% of its revenue worldwide in 2016. However, its packages as well as tours arm has grown quickly with an increase of 35% in its bookings.
Hotels were followed in second by flights and the car reservations, which grew by 32% and 30% in bookings during 2016 respectively, said a prepared statement released by Expedia.
Expedia is the largest travel company online by booking and represents 13% of the total travel market of the U.S.
Its operations are in Asia, Europe and Latin America and its biggest competitors are TripAdvisor and Priceline.
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