Sales came in at $2.61 billion, up from $2.51 billion a year earlier. Wall Street was looking for $2.69 billion, according to data compiled by Bloomberg.

Expedia has been struggling to chase rivals Airbnb and Booking Holdings in the fast-growing and lucrative market for short-term rentals with its HomeAway and Vrbo services. The company has been investing to increase the profile of these two businesses, but Expedia still lags behind the roughly 6 million global listings in alternative accommodation that Airbnb and Booking each have.