Booking Holdings Inc (BKNG) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and ...

GuruFocus News
4 min read

In This Article:

  • Revenue: $8 billion, grew 9% year over year.

  • Adjusted EBITDA: $3.7 billion, increased 12% year over year.

  • Adjusted Earnings Per Share (EPS): $83.89, up 16% year over year.

  • Room Nights Booked: Just under 300 million, an increase of 8% year over year.

  • Alternative Accommodations Room Night Growth: 14% in Q3.

  • Gross Bookings: Increased 9% year over year.

  • Marketing Expense: Increased 6% year over year, 5.0% of gross bookings.

  • Adjusted Net Income: Over $2.8 billion, up 9% year over year.

  • Cash and Investments: $16.3 billion at the end of Q3.

  • Free Cash Flow: $2.3 billion generated in the quarter.

  • Airline Tickets Booked: Increased 39% year over year.

  • Rental Car Days Booked: Increased 16% in Q3.

  • Adjusted EBITDA Margin: 45.8%, up more than 1 percentage point from last year.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Booking Holdings Inc (NASDAQ:BKNG) reported an improvement in topline trends, particularly in Europe, with room nights, gross bookings, and revenue exceeding expectations.

  • The company achieved a 9% increase in revenue year over year, reaching $8 billion, and a 12% increase in adjusted EBITDA to $3.7 billion.

  • Alternative accommodations at Booking.com saw a 14% growth in room nights, with listings reaching 7.9 million, up 10% from last year.

  • The connected trip transactions increased by over 40% year over year, representing a high-single-digit percentage of Booking.coms total transactions.

  • Booking Holdings Inc (NASDAQ:BKNG) continues to see strong growth in Asia, with room night growth in the region up low-double digits, and the company remains optimistic about its long-term outlook in Asia.

Negative Points

  • The company faces challenges in the US market, with room night growth only in the low-single digits, indicating a need for further improvement.

  • Despite progress, Booking Holdings Inc (NASDAQ:BKNG) acknowledges that its platform is still more complex for property managers compared to competitors, particularly in the US.

  • The company is cautious about the impact of global geopolitical uncertainties on future bookings and performance.

  • There is a noted decrease in constant currency accommodation ADRs, negatively impacted by a higher mix of room nights from Asia.

  • Booking Holdings Inc (NASDAQ:BKNG) is still in the early stages of integrating AI technology, and the financial impact of these initiatives remains uncertain.

Q & A Highlights

Q: How do you expect AI to impact your financials, and what factors could affect bookings in Q4? A: Glenn Fogel, CEO, emphasized AI's transformational potential for improving traveler experiences and partner services. However, it's too early to quantify financial impacts. For Q4, CFO Ewout Steenbergen noted robust trends, easier comps due to last year's Middle East conflict, and minimal impact from events like hurricanes. They expect continued strength from August and September trends, with some bookings potentially pulled forward from Q4 to Q3.

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