Expedia

(EXPE) - Get Report

said its earnings shot past analyst expectations in the second quarter as a strategy to package is online airfares with hotel rooms paid off in spades.

Despite the seemingly positive report, the company's shares were down 9.6% to $43.75 in the Instinet late session.

The company saw revenues rise to $145 million from $78 million and GAAP earnings soar to $19.1 million, or 29 cents per share, compared with a loss of $4.4 million, or 9 cents per share, a year earlier. The Bellevue, Wash., company posted an adjusted profit of $29.2 million, or 45 cents a share, topping the 41-cent consensus.

The company also reported record gross bookings of $1.33 billion, up better than $530 million from a year ago.