Core Insights - Booking Holdings (BKNG) reported fourth-quarter 2024 earnings of $41.55 per share, exceeding the Zacks Consensus Estimate by 16.58% and reflecting a year-over-year increase of 29.8% [1] - The company's revenues reached $5.47 billion, surpassing the Zacks Consensus Estimate by 5.50% and showing a year-over-year growth of 14.4% [2] - BKNG's investments in AI-driven tools contributed to enhanced user experience and operational efficiency, leading to a 33.2% appreciation in stock price over the past six months [3] Financial Performance - Merchant revenues were $3.33 billion, accounting for 61% of total revenues, and increased by 35.1% year over year [4] - Agency revenues were $1.86 billion, representing 34.1% of total revenues, but decreased by 9.9% year over year [4] - Advertising & Other revenues totaled $271 million, making up 5% of total revenues, with a year-over-year increase of 9.7% [4] - Adjusted EBITDA for the quarter was $1.8 billion, up 26.2% year over year, with an adjusted EBITDA margin of 33.8%, expanding by 320 basis points [7] Booking Metrics - Total gross bookings amounted to $37.2 billion, reflecting a year-over-year increase of 17.3% [6] - Merchant bookings were $24.2 billion, up 31.7% year over year, while agency bookings totaled $12.9 billion, down 2.7% year over year [6] - Booked room nights reached 261 million, representing a 13% increase year over year [5] Balance Sheet and Cash Flow - As of December 31, 2024, cash and cash equivalents stood at $16.16 billion, an increase from $15.78 billion as of September 30, 2024 [8] - Total debt rose to $16.59 billion from $16.21 billion in the previous quarter [8] - Free cash flow was reported at $0.6 billion, down from $2.3 billion in the previous quarter [8] Future Guidance - For the first quarter of 2025, Room Night Growth is anticipated to be between 5% and 7% [9] - Gross Bookings growth is expected to be in the range of 5% to 7% [9] - Revenue growth for the first quarter is projected to be between 2% and 4%, with adjusted EBITDA expected to be between $800 million and $850 million [9]

Core Insights - Booking Holdings reported fourth-quarter results that exceeded expectations, leading to a rise in its stock price during premarket trading [2][7] - The company achieved $5.47 billion in revenue for Q4 2024, surpassing the $5.19 billion forecast by analysts [2] - Adjusted earnings per share (EPS) were $41.55, significantly higher than the $36.70 consensus [3] Financial Performance - Gross bookings reached $37.2 billion, exceeding the $34.5 billion estimate from analysts [3] - All key metrics, including bookings, revenue, and adjusted EPS, showed year-over-year growth [3] Corporate Actions - Booking announced a new $20 billion stock buyback program, in addition to the remaining $7.7 billion from the previous program [4] - The quarterly dividend was increased by 10% to $9.60 per share, up from $8.75 a year ago [4] Future Outlook - The company anticipates revenue growth of 2% to 4% year-over-year in Q1, with gross bookings expected to rise by 5% to 7% [5] - For the full year, mid-single digit percentage increases are expected for both revenue and gross bookings, while adjusted EPS is projected to grow in the low double-digit percentage range [5] Analyst Reactions - Analysts from Jefferies and JPMorgan raised their price targets for Booking stock to $5,400 and $5,750, respectively, following the earnings report [6] - Travel demand was noted to remain strong, and the company plans to increase its social media advertising spend, particularly on Meta Platforms [6] - Booking shares rose approximately 3% on the day of the report and have increased roughly 35% over the past year [6]

Financial Data and Key Metrics Changes - Fourth quarter room nights grew 13% year-over-year, exceeding prior expectations [7][36] - Fourth quarter gross bookings increased by 17% and revenue grew by 14%, both above the high end of prior guidance [7][44] - Adjusted EBITDA for the fourth quarter was $1.8 billion, a 26% increase year-over-year, and adjusted earnings per share grew 30% [8][48] - For the full year, gross bookings reached $166 billion, up 10%, and revenue was $24 billion, up 11% [10][51] - Adjusted EBITDA for the full year was over $8 billion, increasing 17% year-over-year [53] Business Line Data and Key Metrics Changes - Alternative accommodations room night growth accelerated to 19% in the fourth quarter, outpacing overall business growth [29][38] - The mix of merchant gross bookings reached 59% of total gross bookings at Booking.com, an increase of about 9 percentage points year-over-year [23] - Airline ticket bookings grew 52% in the fourth quarter, with almost 14 million tickets booked across platforms [42][88] Market Data and Key Metrics Changes - Room night growth by region in the fourth quarter: Europe up low double digits, Asia up mid-teens, Rest of World up about 20%, and the US up about 10% [36][37] - The global mix of alternative accommodation room nights at Booking.com was 33%, up 1 percentage point from the previous year [39] Company Strategy and Development Direction - The company is focused on leveraging generative AI to enhance traveler experiences and operational efficiency [5][14] - The connected trip vision aims to simplify the travel planning and booking experience, with a strong emphasis on integrating various travel elements [19][20] - The Genius loyalty program is being expanded beyond accommodations to other travel verticals, promoting customer loyalty and direct booking behavior [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for the travel industry, anticipating healthy demand for leisure travel globally [12][61] - The company expects to achieve its long-term growth ambitions for gross bookings, revenue, and adjusted EPS in 2025 [61][62] - Management acknowledged the competitive landscape but emphasized the company's ability to adapt and innovate [71][75] Other Important Information - The company announced a new $20 billion share repurchase authorization and a 10% increase in quarterly cash dividends [58] - A transformation program is underway to reduce complexity and increase agility, with expected annual cost reductions of approximately $400 million to $450 million [64][66] Q&A Session Summary Question: Risks associated with competition from agentic platforms - Management acknowledged the competitive risks but emphasized the company's adaptability and ongoing partnerships with major players in AI [70][76] Question: Growth in alternative accommodations - Management noted that alternative accommodations are growing in all regions and attributed growth to the quality of the platform and product offerings [78][80] Question: Airline growth and future potential - Management expressed optimism about maintaining strong growth in the flight business, focusing on providing better service and value to travelers [86][90] Question: Managing long-term risks with partnerships - Management highlighted the importance of maintaining proprietary data and the potential for partnerships to lower customer acquisition costs [97][101] Question: Interest in larger M&A deals - Management reiterated a consistent stance of not commenting on M&A activities unless a transaction is announced [104][105] Question: Trends in marketing expenses - Management expects continued marketing leverage driven by increased direct traffic and higher performance marketing ROIs [106][110] Question: Impact of AI on revenue and cost avoidance - Management discussed the potential for AI to drive cost savings in customer service and improve operational efficiency [112][115]

Core Insights - Booking Holdings' long-term strategy is centered around the transformative potential of generative artificial intelligence (GenAI) as articulated by CEO Glenn Fogel [1][2] - Fogel believes GenAI will redefine travel experiences, enabling personalized planning and seamless journeys for travelers [2] Company Developments - Booking.com is implementing GenAI to improve customer experience with features like the Smart Filter tool and Property Q&A, which provide tailored accommodation results and specific property details [3] - The company is also experimenting with GenAI reviews to summarize customer feedback [3] Operational Efficiency - Fogel highlighted that the development of AI agents will integrate various travel elements into a connected platform, enhancing operational efficiency and customer service [4] - Early benefits of GenAI in customer service have already been observed, with plans to expand these initiatives [4] Industry Trends - The vision of Booking Holdings aligns with industry trends, as a report indicates that 52% of customers expect AI to assist in interactions, and 44% believe it will enhance guest engagement [4] Financial Performance - In the fourth quarter, Booking Holdings reported a 13% growth in room nights and a 17% increase in gross bookings, totaling $37.2 billion, with revenue rising 14% to $5.5 billion [5] - For the full year, room nights increased by 9%, gross bookings grew by 10%, and revenue rose by 11% to $23.7 billion [5] Strategic Initiatives - The company is focused on strategic initiatives such as the "connected trip" vision, advancements in AI, and the expansion of the Genius loyalty program [6] - The Genius loyalty program is seeing positive progress, with 30% of travelers moving into higher tiers, which correlates with increased booking and frequency rates [7] Customer Experience Enhancement - Fogel noted that agentic models will transform how customers interact with the platform, providing unique value through loyalty benefits, high-quality customer service, and a trusted payment process [8] - The emphasis is on delivering value and maintaining trust to ensure customers choose Booking Holdings for their bookings [8]

Group 1 - Booking Holdings reported $5.47 billion in revenue for Q4 2024, a year-over-year increase of 14.4% [1] - The EPS for the same period was $41.55, compared to $32.00 a year ago, indicating significant growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $5.19 billion by 5.50%, and the EPS also surpassed the consensus estimate of $35.64 by 16.58% [1] Group 2 - Key metrics indicate that Booking Holdings' gross bookings totaled $37.20 billion, exceeding the average estimate of $34.34 billion [4] - Agency gross bookings were reported at $12.90 billion, above the estimated $12.11 billion, while merchant gross bookings reached $24.20 billion, surpassing the estimate of $22.28 billion [4] - Units sold for room nights were 261 million, exceeding the estimate of 249.35 million, and airline tickets sold were 14 million, above the estimate of 12.36 million [4] Group 3 - Revenue from the agency segment was $1.86 billion, slightly below the average estimate of $1.94 billion, representing a year-over-year decline of 9.9% [4] - Advertising and other revenues were reported at $271 million, exceeding the estimate of $256.63 million, with a year-over-year increase of 9.7% [4] - Merchant revenue was $3.34 billion, significantly above the estimate of $2.99 billion, reflecting a year-over-year increase of 35.1% [4] Group 4 - Over the past month, shares of Booking Holdings have returned +10.6%, outperforming the Zacks S&P 500 composite's +2.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Booking Holdings reported quarterly earnings of $41.55 per share, exceeding the Zacks Consensus Estimate of $35.64 per share, and showing an increase from $32 per share a year ago, resulting in an earnings surprise of 16.58% [1] - The company achieved revenues of $5.47 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.50%, and up from $4.78 billion year-over-year [2] - Booking Holdings has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - The earnings surprise for the previous quarter was 7.63%, with actual earnings of $83.89 per share compared to an expected $77.94 [1] - The current consensus EPS estimate for the upcoming quarter is $20.14 on revenues of $4.64 billion, and for the current fiscal year, it is $207.62 on revenues of $25.12 billion [7] Market Position - Booking Holdings shares have increased by approximately 2.9% since the beginning of the year, while the S&P 500 has gained 4.5% [3] - The Zacks Industry Rank places the Internet - Commerce sector in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current estimate revisions trend for Booking Holdings is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Core Insights - Booking Holdings exceeded analysts' expectations in its latest earnings release, showcasing strong financial performance driven by robust travel demand and strategic investments in technology [1][2] Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were $41.55, surpassing the estimate of $36.08, and reflecting a 30% increase from $32.00 in Q4 2023 [3] - Q4 revenue reached $5.47 billion, exceeding the forecast of $5.19 billion, and representing a 14.4% year-over-year growth from $4.8 billion [3] - Gross bookings increased by 17.3% to $37.2 billion compared to $31.7 billion in Q4 2023 [3] - Net income surged to $1.1 billion, a significant increase of 383% from $222 million in the same quarter last year [3] - Adjusted EBITDA rose by 26% year-over-year to $1.8 billion, aided by a 10% reduction in operating expenses [6] Business Model and Strategy - Booking Holdings operates multiple travel service platforms, with Booking.com as its primary brand, focusing on a diverse revenue mix from merchant, agency, and advertising streams [4] - The company is advancing its "Connected Trip" initiative, aiming to provide comprehensive travel itineraries to enhance customer loyalty and satisfaction [4][9] - Significant investments in artificial intelligence (AI) are being made to improve user experience and operational efficiency, including AI-driven trip planning tools [5] Key Developments - Room nights, a critical performance metric, increased by 13% to 261 million, indicating a strong rebound in customer volume [7] - Alternative accommodations saw a high-teens percentage increase in bookings, enhancing the company's competitive position against rivals like Airbnb [7] - A 10% increase in quarterly dividends to $9.60 per share and $1.1 billion in stock repurchases reflect the company's confidence in its financial outlook [8] Future Outlook - Management has outlined an optimistic outlook for 2025, driven by ongoing advancements in AI and expanded digital travel offerings, although no specific guidance was provided [10][12] - Continued investment in strategic initiatives, particularly in enhancing AI tools, is expected to drive future growth and improve customer service [12] - The company remains focused on leveraging its diverse brand portfolio to cater to varying market needs worldwide [12]

Financial Performance - For the year ended December 31, 2024, Booking Holdings reported revenues of $23.7 billion, classified into "merchant," "agency," and "advertising and other" revenues[16]. - Cash dividends of $1.2 billion were paid during the year ended December 31, 2024, with a declared cash dividend of $9.60 per share payable on March 31, 2025[184]. - The company’s financial performance is influenced by worldwide political and economic conditions, including inflation and interest rate changes[22]. - The total gross bookings generated on a merchant basis was 63% in 2024, an increase from 54% in 2023[205]. - Total marketing expenses were $7.3 billion in 2024, a 7% increase compared to 2023[206]. - The company expects the Transformation Program to deliver about $400 to $450 million in annual run rate savings over the next three years[211]. Operational Highlights - Booking.com achieved record annual room nights in 2024, with a year-over-year flight ticket growth of 38%[14][19]. - The mix of room nights booked on the mobile app increased to a low-fifties percentage in 2024, up from a high-forties percentage in 2023[204]. - The mix of total room nights booked directly by consumers was a mid-fifties percentage in 2024, showing year-over-year growth[207]. - Booking.com had approximately 4.0 million total properties on its website at December 31, 2024, up from approximately 3.4 million at December 31, 2023[207]. - The mix of room nights booked for alternative accommodation properties was approximately 35% in 2024, up from approximately 33% in 2023[208]. Strategic Initiatives - The company aims to improve and expand its flight offerings at Booking.com and Agoda, enhancing opportunities for consumers to discover and book Connected Trips[14]. - Booking Holdings is focused on increasing brand awareness in key markets, particularly the U.S., through high-profile sponsorships[14]. - The company is investing in the development of the Connected Trip, which requires increased investments and may adversely impact results until expected returns are realized[77]. - The company aims to enhance the traveler experience through its "Connected Trip" vision, focusing on personalized online travel planning and booking[203]. Technology and Innovation - Booking Holdings is integrating generative artificial intelligence (Gen AI) technology into its offerings to enhance value for consumers and partners[14]. - The company continues to invest in Gen AI to improve internal productivity and enhance consumer and partner experiences[23]. - The company is seeking to incorporate Gen AI into its business, which may increase risks related to harmful content and legal liabilities[81]. Workforce and Diversity - As of December 31, 2024, the company employed approximately 24,300 employees, with about 99% being full-time employees[40]. - Approximately 46% of the company's employees were women, with 26% of technology positions and 34% of leadership roles filled by women[43]. - The company operates in over 220 countries and offers services in over 40 languages, emphasizing the importance of a diverse workforce[42]. Market and Competition - The company faces intense competition from both online and traditional travel services, including significant players like Google and Airbnb[57][59]. - The company derives a substantial portion of its gross bookings from international markets, which have historically shown significant year-over-year growth[63]. - The company faces intense competition for skilled employees, particularly in technology roles, which could adversely affect its ability to innovate and grow[84]. Risks and Compliance - Risks related to cybersecurity, data privacy, and operational infrastructure are critical for the company's business[51]. - The company has experienced cyberattacks, which have not had a material impact on the integrity of its systems or data security, but the evolving nature of these threats poses ongoing risks[95]. - The handling and storage of personally identifiable data are subject to complex regulations, with potential fines under the GDPR reaching up to €20 million or 4% of annual global revenues, whichever is greater[98]. - The company is subject to various competition and consumer protection laws globally, which may evolve and increase regulatory scrutiny as it expands its business[120]. - The company is involved in investigations regarding its contractual parity arrangements, which may be deemed anti-competitive, potentially leading to fines and restrictions on business practices[122]. Economic Factors - Economic and political uncertainties can negatively impact transaction growth rates, cancellation rates, and average daily rates (ADRs)[54]. - The company’s stock price is highly volatile, influenced by market perceptions and operational performance[158]. - The company may face additional tax liabilities due to audits and disputes, which could adversely affect its financial condition and cash flows[107]. - Changes in international tax laws and the introduction of digital services taxes could increase the complexity and costs of tax compliance, impacting the company's results of operations[110].

Financial Results - Booking Holdings Inc. reported its financial results for Q4 2024, with a consolidated statement of operations included in the press release[6] - The press release was issued on February 20, 2025, detailing the earnings for the fourth quarter and the full year ended 2024[8] Balance Sheet - The company’s consolidated balance sheet as of December 31, 2024, is available in the financial and statistical supplement attached to the press release[6]

Core Viewpoint - Booking Holdings will release its fourth quarter and full year 2024 financial results on February 20, 2025, at approximately 4:00 p.m. ET [1] Group 1: Financial Results Announcement - The financial results will be available through a press release on the company's Investor Relations website [1] - A conference call to discuss the financial results is scheduled for February 20 at 4:30 p.m. ET, which will be webcasted [2] - Audio replays of the conference call will be accessible on the website for seven days following the event [2] Group 2: Company Overview - Booking Holdings is the leading provider of online travel and related services, operating in over 220 countries and territories [2] - The company operates five primary consumer-facing brands: Booking.com, Priceline, Agoda, KAYAK, and OpenTable [2] - The mission of Booking Holdings is to facilitate global travel experiences for consumers and local partners [2]