BKNG Q3 2024 Earnings

Call Details

• Call Title: Booking Holdings Inc. Q3 2024 Earnings Call
• Date: October 30, 2024 at 8:30 PM UTC
• Management Team:
  • Glenn Fogel (Chief Executive Officer)
  • Ewout Steenbergen (Chief Financial Officer)

Call Summary

Financial Performance

• Travelers booked just under 300 million room nights across our platforms in Q3, an increase of 8% year over year.
• Revenue in Q3 was $8 billion, up 9% year over year.
• Adjusted EBITDA was $3.7 billion in Q3, up 12% year over year and reported to be 9% above the high end of prior guidance.
• Adjusted EBITDA margin in Q3 was 45.8%, up by a bit more than one percentage point year over year.
• Adjusted EPS was $83.89, up 16% year over year and benefited from a 6% lower average share count versus Q3 2023.
• On a GAAP basis, net income was $2.5 billion and was negatively impacted by a $365 million accrual related to potential Italian indirect tax matters, partially offset by a $250 million reduction to the U.S. repatriation tax liability.
• Cash and investments at quarter end were $16.3 billion, down from $16.8 billion at Q2-end after approximately $2.0 billion of capital return, ~$1.1 billion of debt repayment, and ~$2.3 billion of free cash flow generation in the quarter.

Guidance

• Q4 room-night growth is expected to be between 6% and 8% year over year.
• Q4 gross bookings are expected to grow between 7% and 9% year over year.
• Q4 constant currency accommodation ADRs are expected to be approximately flat year over year.
• Q4 revenue growth is expected to be between 7% and 9% year over year.
• Q4 adjusted EBITDA is expected to be approximately $1.6 to $1.65 billion, representing growth of 9% to 13% year over year.
• Full-year gross bookings outlook was increased to about 8%, up from the prior expectation of faster than 6%.
• Full-year revenue growth outlook was raised to just below 10%, versus prior guidance of faster than 7%.
• Full-year adjusted EBITDA growth is expected between 13% and 14%, and full-year adjusted EPS is expected to grow in the high teens.
• Company expects full-year adjusted fixed OPEX to grow around 10%, which management stated is lower than prior expectation, and expects a slightly negative FX impact on full-year top-line growth.