BKNG Q1 2020 Earnings

Call Details

• Call Title: Booking Holdings Inc. Q1 2020 Earnings Call
• Date: May 7, 2020 at 8:30 PM UTC
• Management Team:
  • Glenn Fogel (Chief Executive Officer)
  • David Goulden (Chief Financial Officer)

Call Summary

Financial Performance

• Reported room nights declined 43% year-over-year in Q1 2020.
• Reported room nights exceeded 100% decline in March 2020 as cancellations outpaced new bookings in that month.
• Gross bookings declined 51% year-over-year in Q1 2020.
• Average daily rates for accommodations decreased about 15% year-over-year on a constant currency basis in Q1 2020.
• Consolidated non-GAAP revenue for Q1 was $2.3B, a 21% year-over-year decline.
• Adjusted Q1 EBITDA was $290M, down 60% year-over-year.
• GAAP operating loss was $308M in Q1, which included a $489M impairment of goodwill related to OpenTable and Kayak.
• Q1 GAAP net loss was $699M and included $307M of pre-tax losses on equity investments and a $100M impairment on strategic investments.

Guidance

• Company will not provide quarterly guidance like it normally does for the foreseeable period.
• Preliminary April color disclosed that newly booked room nights were down over 85% year-over-year in April 2020.
• Revenue in April was expected to decline more year-over-year than newly booked room nights due to prior cancellations and widespread hotel closures.
• Marketing expense is expected to remain significantly below 2019 levels for the remainder of the year.
• Domestic travel is expected to rebound before international travel according to the company commentary.
• Company emphasized that many April bookings were made with flexible cancellation policies and may still be cancelled.
• Company cautioned that early localized reopenings could be disrupted by resurgences of infections.