Booking Holdings(US:BKNG)2024-05-02 21:18Financial Performance - In Q1 2024, global room nights increased by 9% year-over-year, driven primarily by strong travel demand in Europe and Asia[134]. - Room nights increased by 8.5% to 297 million in Q1 2024 compared to 274 million in Q1 2023, driven by strong travel demand in Europe and Asia[165]. - Total gross bookings rose by 10.4% to $43.535 billion in Q1 2024 from $39.427 billion in Q1 2023, with merchant gross bookings increasing by 29.3%[166]. - Merchant revenues increased by 36.3% to $2.388 billion in Q1 2024, while agency revenues decreased by 1.1% to $1.763 billion[176]. - Total revenues rose by 40% for the three months ended March 31, 2023, year-over-year; excluding foreign currency effects, revenues increased by approximately 46% on a constant-currency basis[221]. Marketing and Booking Trends - The mix of room nights booked on mobile apps rose to approximately 51% in Q1 2024, up from 46% in Q1 2023, indicating a shift towards mobile bookings[145]. - The percentage of gross bookings generated on a merchant basis increased to 59% in Q1 2024, up from 51% in Q1 2023, impacting operating margins due to associated expenses[146]. - Total marketing expenses in Q1 2024 were $1.6 billion, a 6% increase year-over-year, reflecting healthy demand and marketing investments[147]. - The mix of room nights booked for alternative accommodation properties increased to approximately 36% in Q1 2024, up from 33% in Q1 2023[151]. Expenses and Cost Management - Personnel expenses rose by 14.5% to $826 million in Q1 2024, influenced by a 7% increase in employee headcount from approximately 22,400 to 24,000[181]. - Marketing expenses increased by 6.1% to $1.610 billion in Q1 2024, while as a percentage of total revenues, it decreased from 40.2% to 36.5%[177]. - General and administrative expenses decreased by 29.1% to $186 million in Q1 2024, primarily due to a reduction in travel transaction taxes[184]. - Information technology expenses increased by 36.8% to $187 million in Q1 2024, driven by higher cloud computing and software maintenance costs[186]. - Depreciation and amortization expenses rose by 14.1% to $137 million in Q1 2024, mainly due to increased depreciation of computer equipment[188]. Cash Flow and Financing - Cash, cash equivalents, and investments totaled $16.4 billion as of March 31, 2024, with approximately $9.6 billion held by international subsidiaries[196]. - Net cash provided by operating activities was $2.7 billion for Q1 2024, compared to $2.9 billion in Q1 2023, reflecting a net income increase to $776 million[210][211]. - Deferred merchant bookings reached $5.3 billion at March 31, 2024, indicating cash payments received in advance of service completion[204]. - The company repurchased shares for $1.9 billion during Q1 2024, with a remaining authorization of $12.2 billion for share repurchases[199]. - Net cash provided by financing activities was $784 million in Q1 2024, primarily from long-term debt issuance of $3.0 billion[214]. - The company issued senior notes totaling €2.8 billion ($3.0 billion) in March 2024 for general corporate purposes, including share repurchases[198]. Future Outlook - For Q2 2024, the company expects year-over-year growth in room nights between 4% and 6%, gross bookings between 3% and 5%, and revenues between 4% and 6%[159]. - The company anticipates operating income to be slightly lower in Q2 2024 compared to Q2 2023, partly due to the negative impact from the shift in Easter timing[159]. - The company anticipates continued growth and aims to manage market risks related to interest rates and foreign currency exchange rates[218]. Tax and Interest - The effective tax rate for Q1 2024 was 17.1%, significantly higher than 12.4% in Q1 2023, mainly due to lower discrete tax benefits and higher international tax rates[201]. - Interest and dividend income increased to $243 million for the three months ended March 31, 2024, up 6.4% from $228 million in 2023[191]. - Interest expense rose to $219 million, a 12.9% increase from $194 million in the prior year, primarily due to the issuance of senior notes[191]. Foreign Currency Exposure - Foreign currency exchange rate fluctuations did not materially impact total gross bookings or revenue growth in Q1 2024 compared to Q1 2023[156]. - The company faces exposure to foreign currency exchange rate movements, particularly with Euros and British Pounds Sterling, which significantly impact financial results[221]. - The company designates certain portions of Euro-denominated debt as a hedge against foreign currency exposure related to specific subsidiaries[221].