U.S. online travel services company Expedia missed analysts’ quarterly profit estimate on higher marketing expenses, sending its shares tumbling 19 percent in after-hours trading on Thursday.
And discouraging remarks from Chief Executive Officer Mark Okerstrom likely didn’t help the tumble.
The year “did not end up as we had planned from a financial perspective,” Okerstrom said during a conference call with investors.
The company, whose brands include Expedia.com, Hotels.com, Hotwire, said selling and marketing costs jumped 16 percent to $1.12 billion in the fourth quarter.
“We are now operating with a clear focus on our highest priority markets, making concentrated investments across the platform …,” Okerstrom said in a statement.
This is the first full quarter under Okerstrom, who succeeded Dara Khosrowshahi after he left to take the top job at car-ride provider Uber Technologies.
Expedia’s HomeAway vacation rental business, a rival to Airbnb, reported a 16 percent jump in revenue to $193 million in the fourth quarter, compared with analysts’ average estimate of $225.4 million, according to Thomson Reuters I/B/E/S.
On an adjusted basis, Expedia earned 84 cents per share in the quarter, falling well short of analysts’ average estimate of $1.15, according to Thomson Reuters.
Bellevue, Washington-based Expedia said gross bookings rose 13.6 percent to $19.8 billion.
Net income attributable to Expedia declined to $55.2 million, or 35 cents per share, from $79.5 million, or 51 cents per share, a year earlier. (http://bit.ly/2EcS9rE)
The company’s revenue rose to $2.32 billion in the three months ended Dec. 31, from $2.09 billion.
Trivago GmbH, majority owned by Expedia, reported a bigger-than-expected fourth-quarter loss on Wednesday as the hotel search platform spent more on sales and marketing.
–CNBC’s Chloe Aiello contributed to this report.