Expedia Group, Inc. (NASDAQ:EXPE) announced financial results today for the fourth quarter ended December 31, 2021.

"While we experienced yet another significant travel disruption from Covid this quarter, we were pleased to see that the impact was less severe and of shorter duration than previous waves. Notably, the travel industry and traveling public prove more resilient with each passing wave, and we continue to expect a solid overall recovery in 2022, barring a change in the trajectory of the virus," said Peter Kern, Vice Chairman and CEO, Expedia Group. "As we put more of the pandemic behind us, we focus on a brighter year ahead. We are increasing our speed of innovation for travelers, our breadth of tools to help power the travel ecosystem, and our effectiveness and efficiency as a company. This is a big year of delivery for Expedia Group, and we look forward to helping drive a robust revival of our industry and great traveler experiences."

Key Highlights

Total revenue was $2.3 billion, down 17% compared to the fourth quarter 2019 and total gross bookings were $17.5 billion, down 25%, the lowest quarterly decline in 2021 despite the impact of Omicron.
For the fourth quarter 2021, net income was $276 million and adjusted net income was $167 million. Adjusted EBITDA was $479 million, the highest fourth quarter in the company's history.
On February 1, Expedia Group provided notice to the holders of its 2.5% Senior Notes due June 2022, that the Company will redeem all of the €650 million of outstanding aggregate principal in March 2022.

Financial Summary & Operating Metrics ($ millions except per share amounts) - Fourth Quarter 2021⁽¹⁾

	Expedia Group, Inc.
Metric	Q4 2021	Q4 2020	Δ Y/Y
Stayed room night growth	74%	(61)%	NM
Gross bookings	$17,463	$7,567	131%
Revenue	2,279	920	148%
Operating income (loss)	163	(463)	NM
Net income (loss) attributable to Expedia Group common stockholders	276	(412)	NM
Diluted earnings (loss) per share	$1.70	$(2.89)	NM
Adjusted EBITDA⁽²⁾	479	(160)	NM
Adjusted net income (loss)⁽²⁾	167	(376)	NM
Adjusted EPS⁽²⁾	$1.06	$(2.64)	NM
Free cash flow⁽²⁾	142	(513)	NM

⁽¹⁾All comparisons are against comparable period of 2020 unless otherwise noted.

⁽²⁾"Adjusted EBITDA" (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization), "Adjusted net income (loss)," "Adjusted EPS" and "Free cash flow" are non-GAAP measures as defined by the Securities and Exchange Commission (the "SEC"). See "Definitions of Non-GAAP Measures" and "Tabular Reconciliations for Non-GAAP Measures" on pages 12-20 herein for an explanation and reconciliation of non-GAAP measures used throughout this release. Expedia Group does not calculate or report net income by segment.

Financial Summary & Operating Metrics ($ millions except per share amounts) - Full Year 2021⁽¹⁾

	Expedia Group, Inc.
Metric	2021	2020	Δ Y/Y
Stayed room night growth	35%	(55)%	NM
Gross bookings	$72,425	$36,796	97%
Revenue	8,598	5,199	65%
Operating income (loss)	186	(2,719)	NM
Net income (loss) attributable to Expedia Group common stockholders	(269)	(2,687)	(90)%
Diluted earnings (loss) per share	$(1.80)	$(19.00)	(91)%
Adjusted EBITDA⁽²⁾	1,477	(368)	NM
Adjusted net income (loss)⁽²⁾	257	(1,242)	NM
Adjusted EPS⁽²⁾	$1.65	$(8.78)	NM
Free cash flow⁽²⁾	3,075	(4,631)	NM

⁽¹⁾All comparisons are against comparable period of 2020 unless otherwise noted.

⁽²⁾"Adjusted EBITDA" (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization), "Adjusted net income (loss)," "Adjusted EPS" and "Free cash flow" are non-GAAP measures as defined by the Securities and Exchange Commission (the "SEC"). See "Definitions of Non-GAAP Measures" and "Tabular Reconciliations for Non-GAAP Measures" on pages 12-20 herein for an explanation and reconciliations of non-GAAP measures used throughout this release. Expedia Group does not calculate or report net income by segment.

Discussion of Results

The results for Expedia Group, Inc. ("Expedia Group" or "the Company") include Brand Expedia®, Hotels.com®, Expedia® Partner Solutions, Vrbo®, Egencia®, trivago®, HomeAway®, Orbitz®, Travelocity®, Hotwire®, Wotif®, ebookers®, CheapTickets®, Expedia Group™ Media Solutions, CarRentals.com™, Expedia® Cruises™, and Traveldoo®. Results include the related international points of sale for all brands and the immaterial impact of Bodybuilding.com since the Liberty Expedia Holdings, Inc. transaction in July 2019. In May 2020, Expedia Group completed the sale of Bodybuilding.com. In October 2020, we completed the sale of SilverRail™, in April 2021, we completed the sale of Classic Vacations®, and in November 2021 we completed the sale of Egencia®. All amounts shown are in U.S. dollars.

Gross Bookings & Revenue

Revenue by Segment ($ millions)

	Fourth Quarter								Full Year
		2021			2020		Δ%			2021			2020		Δ%
Retail	$	1,730		$	702		146	%	$	6,821		$	3,993		71%
B2B		481			186		159	%		1,460			942		55%
Corporate (Bodybuilding.com)		—			—		—			—			59		NM
Expedia Group (excluding trivago)	$	2,211		$	888		149	%	$	8,281		$	4,994		66%
trivago		99			38		162	%		423			280		51%
Intercompany eliminations		(31	)		(6	)	421	%		(106	)		(75	)	44%
Total	$	2,279		$	920		148	%	$	8,598		$	5,199		65%

For the fourth quarter of 2021, total gross bookings and total revenue both increased significantly compared to the fourth quarter of 2020. Booking trends for lodging, air, and other travel products all declined sequentially from the third quarter due to seasonality as well as the impact of the Omicron variant in the latter part of the quarter.

Both Retail and B2B segment revenue increased significantly compared to the fourth quarter of 2020. Gross bookings and revenue growth reflect an improvement in travel demand compared to the fourth quarter of 2020.

Product & Services Detail

Revenue by Service Type ($ millions)

	Fourth Quarter						Full Year
		2021		2020	Δ%			2021		2020	Δ%
Lodging	$	1,713	$	793	116	%	$	6,449	$	4,051	59%
Air		65		38	68	%		254		105	141%
Advertising and media		152		83	85	%		603		405	49%
Other		349		6	NM			1,292		638	103%
Total	$	2,279	$	920	148	%	$	8,598	$	5,199	65%

As a percentage of total revenue in the fourth quarter of 2021, lodging accounted for 75%, advertising and media accounted for 7%, air accounted for 3%, and all other revenues accounted for the remaining 15%.

Lodging revenue increased in the fourth quarter of 2021 driven by a significant increase in room nights stayed and to a lesser extent average daily rate ("ADR") growth, which drove higher revenue per room night, compared to the fourth quarter of 2020.

Air revenue increased in the fourth quarter of 2021 driven by an increase in air tickets sold as a result of improved demand compared to the fourth quarter of 2020.

Advertising and media revenue increased in the fourth quarter of 2021 due to growth from both trivago and Expedia Group Media Solutions.

Other revenue increased significantly in the fourth quarter of 2021 due to growth from both car and travel insurance products and as a result of other revenue being negatively impacted in the fourth quarter of 2020 by contra-revenue related to customer claims created during COVID in connection with third-party insurance.

Costs and Expenses ($ millions)

	Costs and Expenses						As a % of Revenue
	Fourth Quarter						Fourth Quarter
		2021		2020	Δ%		2021		2020		Δ (bps)
Generally Accepted Accounting Principles (GAAP) Expenses - Expedia Group
Cost of revenue	$	395	$	276	43	%	17.3	%	30.0	%	(1,268	)
Selling and marketing - direct		878		347	153	%	38.5	%	37.7	%	80
Selling and marketing - indirect		166		159	5	%	7.3	%	17.3	%	(1,000	)
Selling and marketing		1,044		506	106	%	45.8	%	55.0	%	(920	)
Technology and content		274		240	14	%	12.0	%	26.1	%	(1,412	)
General and administrative		183		123	50	%	8.0	%	13.3	%	(521	)
Total GAAP costs and expenses	$	1,896	$	1,145	66	%	83.2	%	124.4	%	(4,121	)

Adjusted Expenses - Expedia Group
Cost of revenue*	$	390	$	273	43	%	17.1	%	29.6	%	(1,251	)
Selling and marketing - direct		878		347	153	%	38.5	%	37.7	%	80
Selling and marketing - indirect*		148		148	—	%	6.5	%	16.1	%	(963	)
Selling and marketing*		1,026		495	107	%	45.0	%	53.9	%	(883	)
Technology and content*		248		224	10	%	10.8	%	24.4	%	(1,358	)
General and administrative*		133		104	30	%	5.9	%	11.2	%	(534	)
Total adjusted costs and expenses	$	1,797	$	1,096	64	%	78.9	%	119.1	%	(4,025	)

Adjusted Expenses - Expedia Group (excluding trivago)**
Cost of revenue*	$	387	$	271	43	%	17.5	%	30.5	%	(1,302	)
Selling and marketing*		1,001		481	108	%	45.3	%	54.2	%	(891	)
Technology and content*		236		211	11	%	10.6	%	23.8	%	(1,320	)
General and administrative*		125		98	31	%	5.7	%	10.9	%	(516	)
Total adjusted costs and expenses excluding trivago	$	1,749	$	1,061	65	%	79.1	%	119.4	%	(4,030	)

Note: Expedia Group reclassified certain prior period information to conform to the current period presentation primarily related to the classification of licensing and maintenance costs within operating expenses. Some numbers may not add due to rounding.

*Adjusted expenses are non-GAAP measures. See pages 12-20 herein for a description and reconciliation to the corresponding GAAP measures.

**Expedia Group (excluding trivago) figures exclude both trivago costs and expenses and trivago revenue when calculating 'As a % of Revenue.'

Cost of Revenue

For the fourth quarter of 2021, total GAAP and adjusted cost of revenue both increased 43%, primarily due to increased expenses from significantly higher transaction volumes including merchant fees and to a lesser extent customer service costs.

Selling and Marketing

For the fourth quarter of 2021, total GAAP and adjusted selling and marketing expense increased 106% and 107%, respectively, primarily driven by a $531 million increase in direct costs as marketing spend increased in response to improved travel demand compared to the fourth quarter of 2020. Total GAAP and adjusted indirect costs, increased 5% and were flat, respectively. The year-over-year increase in GAAP indirect costs was also driven by higher stock-based compensation.

Technology and Content

For the fourth quarter of 2021, total GAAP and adjusted technology and content expense increased 14% and 10%, respectively, primarily due to an increase in personnel and related costs as a result of the previously announced compensation change, which shifted discretionary bonus to salary. The year-over-year increase in GAAP technology and content expense was also driven by higher stock-based compensation.

General and Administrative

For the fourth quarter of 2021, total GAAP and adjusted general and administrative expense increased 50% and 30%, respectively, primarily due to an increase in personnel costs related to the previously announced compensation change which shifted discretionary bonus to salary. The year-over-year increase in GAAP general and administrative expense was also driven by higher stock-based compensation.

	Costs and Expenses						As a % of Revenue
	Full Year						Full Year
		2021		2020	Δ%		2021		2020		Δ (bps)
Generally Accepted Accounting Principles (GAAP) Expenses - Expedia Group
Cost of revenue	$	1,522	$	1,649	(8	) %	17.7	%	31.7	%	(1,401	)
		3,499		1,728	103	%	40.7	%	33.2	%	746
		722		799	(10	) %	8.4	%	15.4	%	(698	)
Selling and marketing		4,221		2,527	67	%	49.1	%	48.6	%	48
Technology and content		1,074		1,068	1	%	12.5	%	20.5	%	(805	)
General and administrative		705		589	20	%	8.2	%	11.3	%	(313	)
Total GAAP costs and expenses	$	7,522	$	5,833	29	%	87.5	%	112.2	%	(2,472	)

Adjusted Expenses - Expedia Group
Cost of revenue*	$	1,500	$	1,637	(8	) %	17.4	%	31.5	%	(1,403	)
		3,499		1,728	103	%	40.7	%	33.2	%	746
		626		751	(17	) %	7.3	%	14.5	%	(717	)
Selling and marketing*		4,125		2,479	66	%	48.0	%	47.7	%	29
Technology and content*		957		999	(4	) %	11.1	%	19.2	%	(811	)
General and administrative*		522		513	2	%	6.1	%	9.9	%	(378	)
Total adjusted costs and expenses	$	7,104	$	5,628	26	%	82.6	%	108.3	%	(2,563	)

Adjusted Expenses - Expedia Group (excluding trivago)**
Cost of revenue*	$	1,484	$	1,624	(9	) %	17.9	%	32.5	%	(1,459	)
Selling and marketing*		3,942		2,357	67	%	47.6	%	47.2	%	39
Technology and content*		908		945	(4	) %	11.0	%	18.9	%	(797	)
General and administrative*		493		484	2	%	6.0	%	9.7	%	(372	)
Total adjusted costs and expenses excluding trivago	$	6,827	$	5,410	26	%	82.4	%	108.3	%	(2,589	)

*Adjusted expenses are non-GAAP measures. See pages 12-20 herein for a description and reconciliation to the corresponding GAAP measures.

**Expedia Group (excluding trivago) figures exclude both trivago costs and expenses and trivago revenue when calculating 'As a % of Revenue.'

Net Income (Loss) Attributable to Expedia Group and Adjusted EBITDA*

Adjusted EBITDA by Segment ($ millions)

	Fourth Quarter							Full Year
		2021			2020		Δ%		2021			2020		Δ%
Retail	$	481		$	13		NM	$	1,782		$	298		498%
B2B		97			(52	)	NM		110			(190	)	NM
Unallocated overhead costs		(119	)		(117	)	1%		(454	)		(462	)	(2)%
Expedia Group (excluding trivago)	$	459		$	(156	)	NM	$	1,438		$	(354	)	NM
trivago⁽¹⁾		20			(4	)	NM		39			(14	)	NM
Total Adjusted EBITDA	$	479		$	(160	)	NM	$	1,477		$	(368	)	NM

Net income (loss) attributable to Expedia Group common stockholders⁽²⁾	$	276		$	(412	)	NM	$	(269	)	$	(2,687	)	(90)%

⁽¹⁾trivago is a separately listed company on the Nasdaq Global Select Market and, therefore, is subject to its own reporting and filing requirements which could result in possible differences that are not expected to be material to Expedia Group.

⁽²⁾ Expedia Group does not calculate or report net income (loss) by segment.

* Adjusted EBITDA is a non-GAAP measure. See pages 12-20 herein for a description and reconciliation to the corresponding GAAP measures.

Note: Some numbers may not add due to rounding.

Depreciation and Amortization

Depreciation and amortization decreased 6% in the fourth quarter of 2021. The decrease was primarily due to the completion of amortization related to certain intangible assets or sold entities.

Restructuring and Related Reorganization Charges

In connection with the restructuring actions announced in February 2020 to simplify our businesses and improve operational efficiencies, as well as the acceleration of further actions to adapt our business to the current environment, we recognized $1 million in restructuring and related reorganization costs in the fourth quarter of 2021. Restructuring and related reorganization charges were $25 million in the fourth quarter of 2020.

Interest and Other

Consolidated interest income increased $2 million in the fourth quarter of 2021. Consolidated interest expense decreased $18 million in the fourth quarter of 2021 primarily as a result of lower interest related to high-cost senior notes outstanding in the prior year, extinguished in March 2021 and lower interest related to our prior year revolving credit facility draw down, which we fully repaid in December 2020.

Consolidated other, net included a loss of $13 million compared to a gain of $80 million in the fourth quarter of 2021. The gain in the fourth quarter of 2020 was primarily due to a mark-to-market gain on minority equity investments.

Gain on Sale

Gain on sale in the fourth quarter of 2021 was $401 million, primarily from the sale of Egencia. The loss in the fourth quarter of 2020 was $12 million, which was related to the sale of SilverRail.

Income Taxes

The GAAP effective tax rate was 16% in the fourth quarter of 2021, compared to 21% in the fourth quarter of 2020. The change in effective tax rate was primarily due to the change in a pretax income, as well as discrete items.

The effective tax rate on pretax adjusted net income was 22% in the fourth quarter of 2021 compared to 19% in the fourth quarter of 2020. The change in effective tax rate was primarily due to the change in a pretax adjusted net income and discrete items.

Preferred Stock

The preferred stock dividend related to the preferred equity issued in May of 2020 was $3 million in the fourth quarter of 2021.

In October 2021, Expedia Group redeemed the remaining 50% of the outstanding Series A Preferred Stock at a price equal to 103% of the Preference Amount, plus accrued and unpaid distributions as to the redemption date using cash on-hand.

Balance Sheet, Cash Flows and Capitalization

For the three months ended December 31, 2021, consolidated net cash provided by operating activities was $285 million. Consolidated free cash flow totaled $142 million, an improvement of $655 million compared to the prior year primarily due to an increase in cash provided by operating activities from higher adjusted EBITDA.

Cash, cash equivalents and short-term investments totaled $4.3 billion at December 31, 2021 compared to $5.0 billion at September 30, 2021. The sequential decrease was driven by the redemption of the outstanding Series A preferred stock.

Restricted cash and cash equivalents, which primarily consist of traveler deposits for Vrbo bookings, was $1.7 billion at December 31, 2021 compared to $1.6 billion at September 30, 2021. Prepaid expenses and other current assets was $827 million at December 31, 2021 compared to $838 million at September 30, 2021. Deferred merchant bookings totaled approximately $5.7 billion at December 31, 2021, including approximately $800 million in deferred loyalty rewards, compared to $5.8 billion at September 30, 2021, including approximately $790 million in deferred loyalty rewards.

At December 31, 2021, Expedia Group had stock-based awards outstanding representing approximately 11 million shares of Expedia Group common stock, consisting of options to purchase approximately 5 million common shares with a $129.17 weighted average exercise price and weighted average remaining life of 4.0 years, and approximately 6 million restricted stock units ("RSUs").

On February 1, 2022, Expedia Group provided notice to the holders of the Company's 2.5% Notes due 2022 that the Company will redeem all of the €650 million of outstanding aggregate principal amount of such notes on March 3, 2022. The redemption price for the notes will be equal to 100% of the aggregate principal amount thereof plus accrued and unpaid interest thereon through the redemption date.

EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share data)
(Unaudited)

	Three months ended December 31,						Year ended December 31,
		2021			2020			2021			2020

Revenue	$	2,279		$	920		$	8,598		$	5,199
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below) (1)		395			276			1,522			1,649
Selling and marketing (1)		1,044			506			4,221			2,527
Technology and content (1)		274			240			1,074			1,068
General and administrative (1)		183			123			705			589
Depreciation and amortization		199			212			814			893
Impairment of goodwill		14			—			14			799
Intangible and other long-term asset impairment		6			3			6			175
Legal reserves, occupancy tax and other		—			(2	)		1			(13	)
Restructuring and related reorganization charges		1			25			55			231
Operating income (loss)		163			(463	)		186			(2,719	)
Other income (expense):
Interest income		4			2			9			18
Interest expense		(84	)		(102	)		(351	)		(360	)
Loss on debt extinguishment		—			—			(280	)		—
Gain (loss) on sale of business, net		401			(12	)		456			(13	)
Other, net		(13	)		80			(58	)		(77	)
Total other income (expense), net		308			(32	)		(224	)		(432	)
Income (loss) before income taxes		471			(495	)		(38	)		(3,151	)
Provision for income taxes		(76	)		104			53			423
Net income (loss)		395			(391	)		15			(2,728	)
Net (income) loss attributable to non-controlling interests		(9	)		8			(3	)		116
Net income (loss) attributable to Expedia Group, Inc.		386			(383	)		12			(2,612	)
Preferred stock dividend		(3	)		(29	)		(67	)		(75	)
Loss on redemption of preferred stock		(107	)		—			(214	)		—
Net income (loss) attributable to Expedia Group, Inc. common stockholders	$	276		$	(412	)	$	(269	)	$	(2,687	)

Earnings (loss) per share attributable to Expedia Group, Inc. available to common stockholders:
Basic	$	1.80		$	(2.89	)	$	(1.80	)	$	(19.00	)
Diluted		1.70			(2.89	)		(1.80	)		(19.00	)
Shares used in computing earnings (loss) per share (000's):
Basic		153,537			142,446			149,734			141,414
Diluted		161,920			142,446			149,734			141,414

(1) Includes stock-based compensation as follows:
Cost of revenue	$	5		$	3		$	22		$	12
Selling and marketing		18			11			96			48
Technology and content		26			16			117			69
General and administrative		50			19			183			76

EXPEDIA GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in thousands and par value)

	December 31, 2021			December 31, 2020
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,111		$	3,363
Restricted cash and cash equivalents		1,694			772
Short-term investments		200			24
Accounts receivable, net of allowance of $65 and $101		1,264			701
Income taxes receivable		85			120
Prepaid expenses and other current assets		827			654
Total current assets		8,181			5,634
Property and equipment, net		2,180			2,257
Operating lease right-of-use assets		407			574
Long-term investments and other assets		1,450			671
Deferred income taxes		766			659
Intangible assets, net		1,393			1,515
Goodwill		7,171			7,380
TOTAL ASSETS	$	21,548		$	18,690

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, merchant	$	1,333		$	602
Accounts payable, other		688			496
Deferred merchant bookings		5,688			3,107
Deferred revenue		166			172
Income taxes payable		16			50
Accrued expenses and other current liabilities		824			979
Current maturities of long-term debt		735			—
Total current liabilities		9,450			5,406
Long-term debt, excluding current maturities		7,715			8,216
Deferred income taxes		58			67
Operating lease liabilities		360			513
Other long-term liabilities		413			462
Commitments and contingencies
Series A Preferred Stock: $.001 par value, Authorized shares: 100,000; Shares issued: 1,200 and 1,200; and outstanding: 0 and 1,200		—			1,022
Stockholders' equity:
Common stock: $.0001 par value; Authorized shares: 1,600,000		—			—
Shares issued: 274,661 and 261,564; Shares outstanding: 150,125 and 138,074
Class B common stock: $.0001 par value; Authorized shares: 400,000		—			—
Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 5,523
Additional paid-in capital		14,229			13,566
Treasury stock - Common stock and Class B, at cost; Shares 131,813 and 130,767		(10,262	)		(10,097	)
Retained earnings (deficit)		(1,761	)		(1,781	)
Accumulated other comprehensive income (loss)		(149	)		(178	)
Total Expedia Group, Inc. stockholders' equity		2,057			1,510
Non-redeemable non-controlling interests		1,495			1,494
Total stockholders' equity		3,552			3,004
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	21,548		$	18,690

EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)

	Year ended December 31,
		2021			2020
Operating activities:
Net income (loss)	$	15		$	(2,728	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property and equipment, including internal-use software and website development		715			739
Amortization of stock-based compensation		418			205
Amortization of intangible assets		99			154
Impairment of goodwill, intangible and other long-term assets		20			974
Deferred income taxes		(145	)		(488	)
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net		105			2
Realized (gain) loss on foreign currency forwards		16			(80	)
(Gain) loss on minority equity investments, net		29			142
Loss on debt extinguishment		280			—
(Gain) loss on sale of business, net		(456	)		13
Provision for credit losses and other, net		32			135
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:
Accounts receivable		(721	)		1,781
Prepaid expenses and other assets		(224	)		(188	)
Accounts payable, merchant		777			(1,320	)
Accounts payable, other, accrued expenses and other liabilities		138			(400	)
Tax payable/receivable, net		10			(57	)
Deferred merchant bookings		2,642			(2,576	)
Deferred revenue		(2	)		(142	)
Net cash provided by (used in) operating activities		3,748			(3,834	)
Investing activities:
Capital expenditures, including internal-use software and website development		(673	)		(797	)
Purchases of investments		(201	)		(685	)
Sales and maturities of investments		23			1,161
Cash and restricted cash divested from sale of business, net of proceeds		(60	)		(21	)
Other, net		(20	)		79
Net cash used in investing activities		(931	)		(263	)
Financing activities:
Revolving credit facility borrowings		—			2,672
Revolving credit facility repayments		—			(2,672	)
Proceeds from issuance of long-term debt, net of issuance costs		1,964			3,945
Payment of long-term debt		(1,706	)		(750	)
Debt extinguishment costs		(258	)		—
Net proceeds from issuance of preferred stock and warrants		—			1,132
Redemption of preferred stock		(1,236	)		—
Purchases of treasury stock		(165	)		(425	)
Payment of dividends to common and preferred stockholders		(67	)		(123	)
Proceeds from exercise of equity awards and employee stock purchase plan		503			319
Other, net		(8	)		(21	)
Net cash provided by (used in) financing activities		(973	)		4,077
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		(177	)		61
Net increase in cash, cash equivalents and restricted cash and cash equivalents		1,667			41
Cash, cash equivalents and restricted cash and cash equivalents at beginning of year		4,138			4,097
Cash, cash equivalents and restricted cash and cash equivalents at end of year	$	5,805		$	4,138
Supplemental cash flow information
Cash paid for interest	$	342		$	313
Income tax payments, net		74			108

Expedia Group, Inc.

Trended Metrics

(All figures in millions)

The supplemental metrics below are intended to supplement the financial statements in this release and in our filings with the SEC, and do not include adjustments for one-time items, acquisitions, foreign exchange or other adjustments. The definition, methodology and appropriateness of any of our supplemental metrics are subject to removal and/or change, and such changes could be material. In the event of any discrepancy between any supplemental metric and our historical financial statements, you should rely on the information filed with the SEC and the financial statements in our most recent earnings release.

	2019		2020								2021								Full Year				Y/Y Growth
	Q4		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4			2020		2021	Q421	2021
Gross bookings by business model
Agency	$	11,956	$	9,823	$	1,363	$	3,530	$	3,405	$	6,737	$	10,362	$	8,855	$	8,325	$	18,121	$	34,279	144%	89%
Merchant		11,289		8,062		1,350		5,101		4,162		8,685		10,453		9,870		9,138		18,675		38,146	120%	104%
Total	$	23,245	$	17,885	$	2,713	$	8,631	$	7,567	$	15,422	$	20,815	$	18,725	$	17,463	$	36,796	$	72,425	131%	97%

Revenue by segment

Expedia Group Reports Fourth Quarter 2021 Results