Expedia.com Expedia, Inc. Reports Record First Quarter Financial Results

BELLEVUE, Wash. – May 1, 2003 – Expedia, Inc. (NASDAQ: EXPE) today announced gross bookings of $1.8 billion and net revenue of $198.8 million for the first quarter ended March 31, 2003. Gross bookings rose 63% year-over-year and net revenue rose 71%.
The company reported net income for the quarter of $26.9 million, or 20 cents per diluted share, on 132.0 million shares, more than quadrupling net income of $6.6 million, or 5 cents per diluted share, for the year-ago period. Pretax adjusted earnings were $59.4 million, or 45 cents per share, versus $33.0 million, or 27 cents per share. Adjusted earnings were $39.5 million, or 30 cents per share, compared with $24.3 million, or 20 cents per share. EBITA rose to $57.1 million, or 43 cents per share, from $30.5 million, or 25 cents per share.

Adjusted earnings exclude non-cash marketing expenses resulting from USA Interactive in-kind marketing contributions, USA Interactive merger-related expenses and non-cash charges for amortization of intangibles and equity compensation.

“Like other companies in the travel industry, our business was affected by war-and terrorism-related concerns during the quarter,