Furthermore, revenue came in at $1.93 billion, falling behind the consensus estimate of $1.95 billion, but increasing 13.2% year-over-year (YoY).
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The company reported earnings per share, excluding a few items, of $2.07, compared with analysts’ average estimate of $2.02, according to data compiled by Bloomberg.
The company’s shares shot upward after Expedia reported its third quarter results.
Expedia stock was up 7% near 136 in afternoon trading in the stock market today.
The value of bookings on Expedia sites was $15.4 billion in the quarter, a 21% rise from a year ago when excluding a business the company recently sold, eLong.
During 3QFY15, the leading travel service company added 14,000 additional properties to its expansive portfolio, which now has an astonishing 271,000 properties available on Expedia’s sites.
The earnings report also highlighted the $1.3 billion acquisition of Orbitz in September. Mr. Okerstrom believes that the Orbitz Worldwide Inc.’s addition will allow Expedia to see meaningful boost in savings and revenues.
The results saw the company’s share rise by nearly 8%, pushing it to $137.20 in after-hours trading.
Khosrowshahi said the integration of Orbitz will take place over the next nine months.
When asked on the analyst call about Airbnb’s impact, Expedia CEO Dara Khosrowshahi called it “immaterial”.
“I think incrementally, it will become a more important part of our mix next year and going into the following years”, he said.
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Cowen and Co analyst Kevin Kopelman said in a research note Thursday that AirBnB could pose a greater threat to the likes of Expedia by 2018, if AirBnB reaches its revenue targets.
