Can BKNG's Solid Q4 Earnings Beat and Robust View Push the Stock Higher?

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]