Revenue Analysis
Total and Operating Revenue have shown fluctuations. As of the last quarter ending on 2024-03-31, both Total Revenue and Operating Revenue stood at approximately $2.889 billion, a slight increase from $2.887 billion in December 2023 but a notable decrease from $3.929 billion in September 2023. This signifies a volatility in revenue streams quarter-over-quarter. Gross Profit also fluctuated, dropping from $3.517 billion in September 2023 to $2.531 billion as of March 2024, indicating variations in cost management and/or sales performance.
Cost Management
The Cost of Revenue was noted at $358 million in March 2024, showing a decrease compared to $412 million in September 2023. Operating Expenses followed a similar trend, decreasing from $2.598 billion in September 2023 to $2.573 billion in March 2024. Total Expenses have broadly decreased, moving from $3.01 billion in September 2023 to $2.931 billion in March 2024, indicating a drive towards efficiency and possibly cost-cutting measures.
Profitability Analysis
EBITDA stood at $117 million in March 2024, a stark decrease from $714 million in September 2023. Operating Income was also lower at -$42 million in March 2024, down from $919 million in September 2023. Pretax Income was -$155 million in March 2024, whereas it peaked to $444 million in September 2023. Net Income also severely dropped to -$135 million from $425 million in the same period. These results reflect substantial challenges and potential losses in operational efficiency and profitability.
Cash Flow Indicators
Reconciled Depreciation was $210 million in March 2024, maintaining a level similar to previous quarters. Interest Expense noted a minor increase to $62 million from $61 million in previous periods. These indicators suggest stable but significant cash flow committed towards sustaining operational capacities and debt servicing.
Taxation
The Tax Rate saw an increase to 0.124 in March 2024 from previous rates hovering around 0.21 to 0.312. Tax Provision was lower at -$19 million in March 2024, compared to a positive $77 million in June 2023. This reduction could be attributed to lesser pretax income leading to a negative tax provision after adjustments for various tax effects and credits.
Shareholder Metrics
Diluted EPS was at -$0.99 in March 2024, a drastic fall from $2.87 in September 2023. Similarly, Basic EPS showed a similar trend. The Diluted Average Shares slightly decreased to 135.501 million in March 2024 from 147.748 million in September 2023. Net Income Available to Common Stockholders reflected the earnings figures, with $-135 million in March 2024 versus $425 million in September 2023. These metrics suggest significant negative impacts on shareholder value in the latest quarter.
Conclusion
EXPE has experienced significant volatility in its financial performance across the observed periods, with notable downturns in the most recent quarter. Challenges in maintaining revenue stability, increased operational costs, and a substantial decrease in profitability metrics highlight areas needing immediate attention. Strategic reassessments in operations, cost management, and perhaps an innovation drive in services or market expansion could be necessary to address the current downtrends and stabilize shareholder value.