Expedia Group, Inc.

Good day, everyone, and welcome to the Expedia Group Q3 2025 Financial Results teleconference. My name is Alex, and I'll be the operator for today's call. If you wish to ask a question at the end of the presentation, please press star followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2 to cancel your request. For opening remarks, I will now turn the call over to VP Investor Relations, Rob Befegny. Please go ahead.

Good afternoon. And welcome to Expedia Group's third quarter 2025 earnings call. I'm pleased to be joined on today's call by our CEO, Ariane Gorin, and our CFO, Scott Schenkel. As a reminder, our commentary today will include references to certain non-GAAP measures. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in our earnings release. Unless otherwise stated, all growth rates are on a year-over-year basis, and any reference to expenses excludes stock-based compensation. We will also be making forward-looking statements during the call, which are predictions, projections, and other statements about future events. These statements are based on current expectations and assumptions, which are subject to risk uncertainties that are difficult to predict. Actual results can materially differ due to factors discussed during this call and in our most recent Forms 10-Q, 10-K, and other filings with the SEC. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. This call is being webcast on the investor relations section of our website at ir.expediagroup.com. Replay will be archived on our site for 30 days. A slide deck containing financial highlights has also been posted on our IR website. For today's call, Ariane will begin with a review of our third quarter results and an update on our progress against our strategic priorities. Then Scott will provide additional details on our third quarter financial performance and guidance. After prepared remarks, we will turn the call over to the operator to begin the Q&A portion of the call. And with that, let me turn the call over to Ariane.

Thank you, Rob, and thank you all for joining us today. Our third quarter results exceeded both our top and bottom line expectations, reflecting an improved demand environment, disciplined execution, and progress on our strategic priorities. We grew bookings 12% and revenue 9%, while expanding our EBITDA margin meaningfully. We're building solid momentum across the company, with clear proof points that our strategy is working. The market was healthy in the quarter with an acceleration in the U.S. and continued strength in the rest of the world. We saw longer lengths of stay and longer booking windows, both signs of a stronger consumer. Based on our results to date and ongoing trends, we're raising our full year guidance, which Scott will cover shortly. In the third quarter, we grew booked room nights 11% and expanded our hotel share globally. In the U.S., room nights were up high single digits, our fastest growth in over three years. Nights were up low double digits in EMEA and high teens in the rest of the world, including over 20% in Asia. We drove continued momentum in B2B and in advertising. B2B bookings increased 26%, marking our 17th consecutive quarter of double-digit growth, while advertising revenue was up 16%. Our consumer brands grew booking 7%, with double-digit growth outside the U.S. and particular strength in Europe. Expedia remained our largest and fastest-growing brand, while Hotels.com and Vrbo both improved sequentially, boosting year-over-year growth in room nights and bookings. Our strong performance was supported by progress in advancing each of our three strategic priorities, all of which continue to be accelerated by AI. I'll begin with our first priority, delivering more value to travelers. Our brands are personalized travel companions that are with travelers at every step of their journey, from trip planning to booking, adding and changing, and beyond. A year ago, we set out to sharpen the value propositions of our three big brands. We've better aligned product, supply, marketing, and loyalty for each brand, and it's paying off. On product, we release new features to drive better traveler experiences. For Vrbo, we made it easier for travelers to find the property that's just right for them, with new recommendation experiences and improved property comparison tools. On Expedia, we launched new design flows in the lodging search and post booking paths. Coupled with enhanced recommendation models, these have led to double digit growth in vacation rentals and record attach rates. Since the beginning of the year, we've integrated AI into our products at key moments that matter. From AI filters to property Q&A, guest review summaries, and our service agent. And these features are driving engagement, and getting even more effective with time. On supply, we provide travelers a broad assortment of inventory to choose from at competitive prices, and we're constantly improving both. Last quarter, we sourced more great deals for our travelers than ever before. We tripled the number of properties funding deals in our summer sales. And on Vrbo, over 20% of our bookings were on partner-funded promotional rates. a new capability we launched in the spring. Both of these illustrate the power of our flywheel. Supply partners participate more deeply in our marketplace. We deliver more value to travelers, and in turn, we drive incremental demand back to these same partners. Loyalty is another powerful way we deliver value to travelers. With OneKey, travelers get both immediate discounts and earn OneKey cash for future trips. Active members were at mid-single digits, and across the board, OneKey is driving more repeat and more direct bookings, growing fastest with silver members and above. We recently launched two important loyalty capabilities on Vrbo and Hotels.com. For Vrbo, we introduced member deals, giving our members access to better rates. And on Hotels.com, we introduced Save Your Way, a high-value program that gives travelers flexibility to choose how and when they save. Turning to our second priority, investing where we see the greatest opportunities for growth. B2B had another fantastic quarter. We grew share with existing partners and added new partners. We released new tools to help our partners more easily identify promotional rates and also launched a new AI-powered trip planner. Specifically in our travel agency business, we've grown the number of agencies we work with, expanded our agent loyalty program and added features like new payment options, all of which have contributed to over $3 billion of bookings year to date. Looking ahead, we see further opportunity across our B2B business and we'll continue investing to drive growth. On advertising, We delivered a strong quarter with a record number of active partners, and we continue to be one of the highest returning channels for our advertisers. We're using AI to make our ads more relevant while also injecting it into partner tools like our new ad portal that has improved targeting and measurement capabilities. Finally, on growth opportunities, AI-driven search is transforming the way travelers discover and plan their trips. We're moving fast and deliberately to ensure our brands show up wherever travelers are. We're making good progress on answer engine optimization, even as traffic today remains small. And we're forging tight partnerships with leading tech companies like Google, OpenAI, and Perplexity. We were a launch partner with ChatGPT's apps and will continue to experiment with new GenAI experiences. Beyond the volume that comes from them, These early integrations are keeping us at the leading edge of evolving technology and customer behavior. Learnings we're bringing directly back into our broader business. No matter where a traveler starts their discovery journey, we're confident that they'll ultimately choose to book with the brand they trust and know will be with them along their whole journey, including when something doesn't go as planned. This remains a key differentiator for our business. Moving to the third pillar of our strategy, driving operating efficiencies and margin expansion. We expanded margins by over two points in the quarter, thanks to our continued operational discipline and volume leverage. I'm particularly pleased that we delivered our fourth consecutive quarter of improved marketing productivity in our consumer business. AI provides an opportunity for step function improvement in our team's efficiency and effectiveness over time. We're already seeing the benefits in our product, technology, and customer service teams, from enhancing developer productivity to improving resolution speed on servicing, to highlight just a couple of examples. We've created expert squads that we're embedding across our teams to accelerate adoption, and we see a lot of potential ahead. In closing, we delivered a strong third quarter. The demand environment improved, and we advanced our priorities. While we saw continued momentum in October, we're keeping a close eye on economic indicators and remaining focused and agile amidst a dynamic macro environment. As we enter the final quarter of the year, we have real confidence in our ability to execute and create value for all of our stakeholders. I want to thank our team for their hard work, thank our partners for their trust in us, and with that, I'll turn it over to Scott.