Financial Performance - Adjusted EBITDA for the fourth quarter reached $2.2 billion, a 19% increase year over year, with full-year adjusted EBITDA exceeding $9.9 billion, up 20% year over year [1][24][36] - Adjusted earnings per share grew 17% year over year, with a full-year adjusted EPS of over $228 per share, reflecting a 22% increase [1][26][37] - Full-year room nights grew by 8% year over year, with fourth-quarter room nights reaching 285 million, a 9% increase [2][27] Growth Metrics - Gross bookings increased by 16% year over year, with constant currency growth at approximately 11% [21][22] - Revenue for the fourth quarter grew 16% year over year, exceeding guidance by four percentage points, with constant currency revenue growth at about 11% [22][24] - The company achieved over 1.2 billion room nights for the full year, with gross bookings and revenue growth of 12-13% respectively [1][36] Strategic Initiatives - The transformation program launched in November 2024 has already enabled approximately $550 million in annual run rate savings, meeting the high end of prior guidance [4][41] - The company is focusing on enhancing AI capabilities to improve traveler and partner experiences, with significant investments in generative AI technologies [14][16] - The connected trip strategy has seen high 20% growth in connected trip transactions, representing a low double-digit percentage of total transactions [7][30] Market Position and Opportunities - Asia remains a key growth area, with low double-digit room night growth and strong demand supported by rising incomes and cross-border travel [10][11] - The Genius loyalty program has shown strong engagement, with level two and three members accounting for over 30% of the active base and 50% of room nights [9][29] - The company continues to invest in product improvements and partnerships to enhance the travel experience and reduce friction for both travelers and partners [11][12] Future Outlook - For 2026, the company targets constant currency top line growth approximately 100 basis points ahead of its long-term growth algorithm, with adjusted EBITDA margins expected to expand by about 50 basis points [6][44] - The first quarter of 2026 is projected to see room night growth between 5-7%, with gross bookings expected to increase by 14-16% [47][48] - The company plans to maintain a disciplined approach to capital allocation, focusing on strategic investments that drive long-term value creation [39][43]

AI Agentic Capabilities Expansion - AI Agentic capabilities for restaurant reservations are now available to all users opted into Labs in the U S [1] Product Update - Expanding access to AI Mode for finding restaurant reservations [1]

Model Performance & Capabilities - ZAI's GLM 4.5% model rivals top closed-source models in reasoning, coding, and agentic capabilities [1] - GLM 4.5% demonstrates advanced problem-solving by successfully simulating and solving Rubik's cubes up to 10x10 [2][3][4][21] - The model can solve the Tower of Hanoi puzzle with up to 10 discs, showcasing its reasoning abilities [5][6][7][24][25] - GLM 4.5% exhibits strong coding skills, creating interactive simulations like Lego building, a 3D solar system, and games like Flappy Bird [8][9][21][22] - Benchmarks show GLM 4.5% outperforming other models in agentic tasks and achieving competitive scores in reasoning and coding [17][18][19] Model Architecture & Variants - GLM 4.5% comes in two versions: a larger 355 billion parameter model with 32 billion active parameters, and a smaller "air" version with 106 billion total parameters and 12 billion active parameters [15] - Both models are hybrid reasoning models, capable of both reasoning and non-reasoning tasks [16] Open Source Landscape - China is at the forefront of open-source AI model development with models like GLM 4.5%, Kimmy K2, and Quen 3 [1][15] - Kimmy K2 is comparable in quality to GLM 4.5% but is 250% larger [20] Tools & Resources - HubSpot offers a free AI decoded guide covering AI models, prompts, and tools [12][13][14]