Acquisitions and expansion have contributed to a healthy growth in revenue, though they’ve also meant increased expenses.
Expedia’s stock price rocketed nearly 14 percent in after-hours trading Thursday after it reported quarterly earnings that pleased investors.
The Bellevue online travel company reported its revenue grew 39 percent to $1.9 billion, largely a result of the company’s expanding portfolio of acquisitions. Expedia bought rival Orbitz last year and snagged HomeAway, an Airbnb competitor, in December.
Analysts expected Expedia to report revenue of $1.84 billion, according to Bloomberg data.
The acquisitions and expansion mean Expedia’s expenses increased, causing its quarterly loss to increase significantly, the company said in reporting the first-quarter earnings results Thursday. The company’s expansion into Seattle, where it plans to move its corporate headquarters in a few years, also took a bite out of its earnings.
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Expedia reported a loss of $121.9 million for the quarter, a big swing from the $44.1 million profit it reported in the same period last year.
HomeAway started charging travelers a fee ahead of schedule, and the impact of the extra cost hasn’t had a material effect on bookings, Chief Financial Officer Mark Okerstrom said in a phone interview.
“No negative implications on the business so far and really things are tracking very, very nicely,” Okerstrom said. HomeAway contributed $142 million in revenue during the quarter.
Expedia said $30 million during the quarter went to “restructuring and related reorganization charges” related to acquisitions. About $25 million more throughout the rest of the year will go toward the same purpose, the company said.
Expedia shares closed the regular trading day — before its quarterly results were released — at $106.99, down 78 cents, or 0.8 percent. In after-hours trading, shares rose to $118.50 and as high as $121.65.