Booking Holdings(US:BKNG)2025-10-28 21:08Revenue Growth - Total revenues increased by approximately 13% in Q3 2025 compared to Q3 2024, with about 4% of this growth attributed to changes in foreign currency exchange rates[138] - Total revenues for the three months ended September 30, 2025, were $9.008 billion, a 12.7% increase from $7.994 billion in 2024; for the nine months, revenues increased by 12.6% to $20.568 billion from $18.268 billion[156] - Total gross bookings increased year-over-year by 14% and 11% for the three and nine months ended September 30, 2025, respectively, with a constant currency increase of approximately 10% for both periods[193] - Merchant revenues increased year-over-year while agency revenues decreased for the nine months ended September 30, 2025, due to a shift from agency to merchant revenues at Booking.com[185] Booking Metrics - Global room nights increased by 8% year-over-year in Q3 2025, consistent with the growth rate in Q2 2025 and higher than the 7% growth in Q1 2025[118] - For the three months ended September 30, 2025, room nights reserved increased by 8.2% to 323 million compared to 299 million in 2024, while for the nine months, it increased by 7.7% to 951 million from 883 million[151] - The mix of total gross bookings generated on a merchant basis increased to 72% in Q3 2025, up from 65% in Q3 2024[127] - The mix of room nights booked for alternative accommodation properties was approximately 36% in Q3 2025, an increase from 35% in Q3 2024[132] - Booking.com had approximately 4.4 million total properties listed as of September 30, 2025, up from approximately 3.9 million a year earlier[131] Expenses and Costs - Total performance and brand marketing expenses were $2.3 billion in Q3 2025, reflecting a 9% increase compared to Q3 2024[128] - Marketing expenses for the three months ended September 30, 2025, were $2.340 billion, an increase of 8.8% from $2.151 billion in 2024; for the nine months, they increased by 9.8% to $6.256 billion from $5.700 billion[159] - Sales and other expenses for the three months ended September 30, 2025, increased by 17.2% to $1.022 billion from $872 million in 2024[160] - Personnel expenses rose by 9.0% to $945 million for the three months ended September 30, 2025, and by 1.3% to $2.534 billion for the nine months ended September 30, 2025[162] - General and administrative expenses decreased by 55.9% to $254 million for the three months ended September 30, 2025, and by 31.9% to $595 million for the nine months ended September 30, 2025[163] - Information technology expenses increased by 24.9% to $242 million for the three months ended September 30, 2025, and by 17.2% to $661 million for the nine months ended September 30, 2025[164] - Depreciation and amortization expenses increased by 2.9% to $160 million for the three months ended September 30, 2025, and by 8.7% to $472 million for the nine months ended September 30, 2025[165] Financial Position - As of September 30, 2025, the company had $17.2 billion in cash, cash equivalents, and investments, with approximately $11.1 billion held by international subsidiaries[173] - Deferred merchant bookings amounted to $6.3 billion at September 30, 2025, primarily consisting of cash payments received from travelers[174] - The company has a remaining share repurchase authorization of $23.9 billion as of September 30, 2025, and declared a cash dividend of $9.60 per share payable on December 31, 2025[177] - Net cash provided by operating activities for the nine months ended September 30, 2025 was $7.919 billion, an increase from $7.602 billion in 2024[185] - Net cash used in financing activities for the nine months ended September 30, 2025 was $8.248 billion, compared to $4.347 billion in 2024, primarily due to debt repayments and stock repurchases[188] Impairments and Fair Value - The company recognized a goodwill impairment charge of $180 million for the KAYAK reporting unit for the three and nine months ended September 30, 2025, resulting in an adjusted carrying value of $203 million[145] - The estimated fair value of KAYAK's trade names and supply agreements was $103 million and $76 million, respectively, as of September 30, 2025[147] - A hypothetical 100 basis point decrease in interest rates would have resulted in an increase of approximately $1.1 billion in the estimated fair value of outstanding debt as of September 30, 2025[192] - A hypothetical 10% decrease in the fair values of investments in equity securities would have resulted in a loss of approximately $65 million before tax[194] Cancellation and Efficiency - The cancellation rate in Q3 2025 was lower than in Q3 2024, positively impacting marketing efficiency despite potential revenue reversals from cancellations[123] - The mobile app accounted for a mid-fifties percentage of room nights booked over the trailing twelve months ended September 30, 2025, up from a low-fifties percentage a year earlier[126]