The B2B segment revenue increased by 25% year-over-year, indicating successful strategic initiatives in this area. This growth is attributed to increased lodging revenue within the B2B segment.

Room nights booked grew 7%, while Average Daily Rates (ADRs) decreased 3%. This suggests a shift towards volume-driven growth as ADRs normalize after a period of significant increases.

Expedia continues to allocate marketing spend towards loyalty programs, paid app downloads, and brand awareness. The launch of One Key, a unified loyalty program, aims to drive greater retention, repeat, and direct business.

In February 2024, Expedia committed to restructuring actions, resulting in $48 million in charges during Q1. These actions are intended to recalibrate resources as the company's organizational and technological transformation nears completion.

Expedia has completed the migration of core B2C brands onto a unified Brand Expedia technology front-end infrastructure. This is expected to enable more scalable services and efficient operations.

Expedia is shifting from a transactionally focused approach to building direct customer relationships through loyalty programs and brand awareness. This is reflected in the allocation of marketing spend.

Inflation, rising interest rates, currency fluctuations, energy price volatility, and geopolitical conflicts are cited as factors contributing to an increasingly complex business environment. These factors may lead to volatility in future operational results.

Broad, sustained negative economic impacts could put strain on Expedia's suppliers, business, and service partners. This increases the risk of credit losses and service level or other disruptions.

Expedia is involved in ongoing tax disputes with the IRS related to transfer pricing for the 2011-2016 tax years, with potential for significant adjustments to U.S. taxable income and associated interest payments.

The online travel industry faces competition from online travel agencies, search engine companies, metasearch companies, and direct distribution efforts by airlines and lodging companies.

The increasing popularity of the sharing economy has led to the emergence of competitors like Airbnb and Booking.com, bringing incremental alternative accommodation inventory to the market.

Airlines and lodging companies are aggressively pursuing direct online distribution of their products and services, potentially impacting Expedia's market share.

Cost of revenue decreased by $56 million, primarily due to lower costs associated with transactional efficiencies.

Technology and content expense increased $24 million, primarily due to higher personnel costs from increased average salaries and lower capitalized salary rates, as well as higher stock-based compensation.

Adjusted EBITDA margin increased due to revenue growth and transactional efficiencies, indicating improved operational performance.

The company is focused on developing configurable technical capabilities that support various travel products while using simpler, standard architecture and common applications and frameworks.

The company is improving product offerings with machine learning and artificial intelligence capabilities, which should drive greater retention, repeat, and direct business.

Technology and content expense increased $24 million during the three months ended March 31, 2024, compared to the same period in 2023, primarily due to higher personnel costs from increased average salaries and lower capitalized salary rates, as well as higher stock-based compensation of $6 million period over period.

Expedia repurchased 4.3 million shares for $606 million under the 2023 Share Repurchase Program, with $4.2 billion remaining authorized for repurchase.

Depreciation increased $18 million primarily as a result of increased depreciation related to capitalized website development costs.

Cash and cash equivalents and short-term investment balances were $5.7 billion and $4.3 billion at March 31, 2024 and December 31, 2023, respectively.

Legal reserves, occupancy tax and other for the three months ended March 31, 2024 primarily included our donation as part of a public-private partnership project to revitalize public parks along the Elliot Bay waterfront in Seattle.

The company has witnessed a healthy but more normalized travel demand in the beginning of 2024, as consumers continue to prioritize spend on travel and experiences over other discretionary spending.

Increased usage and familiarity with the internet have continued to drive rapid growth in online penetration of travel expenditures.

The company generally experiences seasonal fluctuations in the demand for our travel services. For example, traditional leisure travel bookings are generally the highest in the first three quarters as travelers plan and book their spring, summer and winter holiday travel.