BKNG Q1 2025 Earnings

Call Details

• Call Title: Booking Holdings Inc. Q1 2025 Earnings Call
• Date: April 29, 2025 at 8:30 PM UTC
• Management Team:
  • Glenn Fogel (Chief Executive Officer)
  • Ewout Steenbergen (Chief Financial Officer)

Call Summary

Financial Performance

• First quarter room nights were 319 million, which was the first quarter above 300 million and grew a bit over 7% year over year.
• First quarter revenue was $4.8 billion and grew 8% year over year, which exceeded the high end of guidance by 4 percentage points driven in part by payments revenue.
• Adjusted EBITDA was approximately $1.1 billion and grew 21% year over year.
• Adjusted EPS was $24.81 per share and increased 22% year over year, partly benefited by a 5% lower average share count.
• GAAP net income was $333 million and was impacted by a mark-to-market adjustment on a conversion option premium and an FX remeasurement loss on Euro bonds, with those items excluded from adjusted results.
• Cash and investments ended the quarter at $16.1 billion, down from $16.7 billion at the end of Q4, with $3.2 billion of free cash flow generated in the quarter.

Guidance

• Second quarter room-night growth is expected to be between 4% and 6%, with a slight headwind from the calendar shift of Easter into April.
• Second quarter growth bookings are expected to increase between 10% and 12%, including a couple of percentage points of positive impact from higher flight ticket growth.
• Second quarter constant currency accommodation ADRs are expected to be about flat year over year.
• Second quarter revenue growth is expected to be between 10% and 12%, which includes about a 3 percentage point benefit from the Easter calendar shift.
• Second quarter adjusted EBITDA is expected to be between $2.15 billion and $2.2 billion, which at the high end equates to about 16% year-over-year growth and includes about seven percentage points of year-over-year benefit from the Easter shift.
• Full year 2025 constant currency expectations were widened to mid to high single digits for growth bookings and revenue, low to mid teens for adjusted EPS, and adjusted EBITDA growth of high single digits to low double digits with adjusted EBITDA margin expansion of 50 to 100 basis points.
• Guidance assumptions include recent FX rates with an assumed EUR/USD of 1.14 for the remainder of the quarter and an estimated positive FX impact of about four percentage points for Q2 and about two percentage points for the full year.