Booking Holdings(US:BKNG)2022-11-01 16:00Revenue and Growth - Total revenues for the three months ended September 30, 2022, were $6.05 billion, reflecting a 29.4% increase from $4.68 billion in the same period of 2021[232]. - Total gross bookings for the three months ended September 30, 2022, reached $32.12 billion, a 35.6% increase from $23.68 billion in the same period of 2021[225]. - For the three months ended September 30, 2022, room nights reserved increased by 31.5% to 240 million, rental car days increased by 24.9% to 16 million, and airline tickets increased by 45.1% to 6 million compared to the same period in 2021[224]. - The company observed a long-term trend of increasing share of room nights booked for international travel, although it remained below 2019 levels[173]. - The company expects room night growth of about 10% for the fourth quarter of 2022 relative to the fourth quarter of 2019[191]. Marketing and Expenses - Total marketing expenses for the nine months ended September 30, 2022, were $4.7 billion, 66% higher than the same period in 2021[179]. - Marketing expenses for the three months ended September 30, 2022, were $1.80 billion, a 30.3% increase from $1.38 billion in 2021, representing 29.6% of total revenues[235]. - Marketing efficiency in Q3 2022 was in line with Q3 2019, despite lower performance marketing ROIs due to increased direct bookings[181]. - Sales and other expenses for the three months ended September 30, 2022, were $540 million, a 79.3% increase from $302 million in the same period in 2021, and represented 8.9% of total revenues[237]. - Merchant transaction costs increased by $138 million for the three months and $448 million for the nine months ended September 30, 2022, compared to the same periods in 2021, driven by improved travel demand trends[239]. Financial Performance - The company recorded net losses of $336 million for the three months ended September 30, 2022, related to investments in equity securities, compared to net losses of $1.0 billion in the same period of 2021[293]. - The percentage of total revenues as a percentage of gross bookings was 18.8% for the three months ended September 30, 2022, down from 19.7% in the same period of 2021[234]. - The company recognized an impairment charge of $184 million for its investment in Yanolja during the three months ended June 30, 2022, resulting in an adjusted carrying value of $122 million[204]. - Goodwill impairment charges of $1.1 billion were recognized related to the OpenTable and KAYAK reporting unit, with a carrying value of goodwill at $973 million as of September 30, 2022[212]. - Operating profit for the fourth quarter of 2022 is anticipated to be lower than the fourth quarter of 2019, primarily due to negative foreign exchange rate fluctuations[193]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2022, was $4.4 billion, an increase from $2.5 billion in the same period of 2021, reflecting a 76% year-over-year growth[279][280]. - Net cash used in investing activities for the nine months ended September 30, 2022, was $1.0 billion, primarily due to investments in corporate and government debt securities[281]. - Net cash used in financing activities for the nine months ended September 30, 2022, was $5.4 billion, significantly higher than $1.2 billion in 2021, mainly due to $4.3 billion in common stock repurchases[283]. - The company had $11.8 billion in cash, cash equivalents, and investments as of September 30, 2022, with approximately $9.3 billion held by international subsidiaries[264]. - Deferred merchant bookings reached $2.3 billion at September 30, 2022, up from $906 million at December 31, 2021[265]. Market Conditions and Trends - Room nights increased by 16% in Q2 2022 compared to Q2 2019, and by 8% in Q3 2022 compared to Q3 2019[165]. - Global average daily rates (ADRs) increased approximately 28% in Q3 2022 compared to Q3 2019, driven by higher ADRs in Europe and North America[175]. - Cancellation rates improved in Q1 2022 compared to Q1 2019, with a higher share of room nights booked with flexible cancellation policies[170]. - The share of room nights booked for alternative accommodation properties was approximately 30% in Q3 2022, consistent with Q3 2021 and up from Q3 2019[183]. - The U.S. Dollar strengthened by about 15% against the Euro and British Pound Sterling for the three months ended September 30, 2022, impacting financial results when translated into U.S. Dollars[189]. Personnel and Operational Costs - The competitive labor market and inflationary pressures are increasing personnel expenses, which may adversely affect operational results[200]. - Personnel expenses for the three months ended September 30, 2022, were $636 million, a 7.6% increase from $591 million in the same period in 2021, representing 10.5% of total revenues[240]. - General and administrative expenses for the three months ended September 30, 2022, increased by 45.6% to $262 million from $179 million in the same period in 2021, representing 4.3% of total revenues[243]. - Stock-based compensation expense for the three months ended September 30, 2022, was $101 million, compared to $85 million in the same period in 2021[242]. - Information technology expenses for the three months ended September 30, 2022, were $129 million, a 17.9% increase from $109 million in the same period in 2021[246].