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