On the top line, revenues rose 10.8% year/year to $2.32 billion, which fell only slightly short of expectations.
Sales growth was driven primarily by growth in Brand Expedia, EAN and Hotels.com. Domestic revenue increased 4% and international revenue increased 19% (including 9 percentage points of positive foreign exchange impact). International revenue equaled $1.1 billion, representing 46% of worldwide revenue, compared to 43% in the fourth quarter of 2016.
Meanwhile, gross bookings increased $2.4 billion or 14% year-over-year to $19.8 billion in the fourth quarter of 2017.
The rise in bookings, which included 2 percentage points of positive foreign exchange impact, was driven primarily by growth in Brand Expedia, HomeAway, Hotels.com, EAN and Egencia. Domestic gross bookings increased 7% and international gross bookings increased 26% (including 6 percentage points of positive foreign exchange impact). International gross bookings totaled $8.0 billion and accounted for 40% of worldwide bookings, compared with 36% in the fourth quarter of 2016.
Ultimately, following this earnings miss, shares of EXPE tanked and are now over 15% lower.
Also, remember that the company has a new CEO. Dara Khosrowski, the company's prior CEO, left for Uber around Sept 1, 2017. Following this move, the company placed its CFO Mark Okerstrom in the CEO slot.
Today, the company's new CEO said, "I am excited to report that Expedia began 2018 firmly on a path toward faster growth and greater share gains in the $1.6 trillion travel industry. Over the past several months, we have made key organizational changes, aligned our company around common objectives and began executing on a new direction aimed at accelerating the geographic expansion of our global travel platform. We are now operating with a clear focus on our highest priority markets, making concentrated investments across the platform including a step function change in our pace of adding new properties to our marketplace. These efforts combined with the impact of our ongoing cloud migration result in expectations for full year 2018 Adjusted EBITDA growth of 6% to 11%."
Room nights stayed for Brand Expedia, Hotels.com, Expedia Affiliate Network and Egencia combined increased 17% year-over-year in the fourth quarter of 2017, with HomeAway room nights stayed up 30% year-over-year for the same period.
Meanwhile, Expedia, Inc.'s global Core OTA lodging portfolio increased to more than 590,000 properties available as of December 31, 2017, up 69% year-over-year, including 150,000 instantly bookable HomeAway listings.
Separately, concerns remain from the travel industry ad wars between Expedia, Priceline (PCLN) and TripAdvisor (TRIP).
Note that results for Expedia, Inc include Expedia.com, Hotels.com, Expedia Affiliate Network, trivago, HomeAway, Egencia, Orbitz, Travelocity, Hotwire.com, Wotif Group, CheapTickets, ebookers, CarRentals.com, Classic Vacations, Expedia Local Expert, Expedia CruiseShipCenters, SilverRail Technologies, ALICE and AirAsia Expedia, including the related international points of sale for all brands.