Booking Holdings(US:BKNG)2021-05-06 04:32Financial Data and Key Metrics Changes - In Q1 2021, reported room nights declined 54% compared to Q1 2019, which was a 6% improvement from Q4 2020 [8][33] - Consolidated revenue for Q1 was $1.1 billion, a decrease of 61% versus 2019, with revenue declining more than gross bookings due to timing differences [44][46] - Adjusted EBITDA loss was $195 million in Q1, with a GAAP net loss of $55 million, aided by an income tax benefit of $223 million [49][50] Business Line Data and Key Metrics Changes - The US was the strongest performing major country in Q1, showing positive room night growth compared to 2019, driven by domestic bookings [15][35] - Airline tickets booked in Q1 were up 49% versus 2019, indicating strong growth in the flights business [42] - The average daily rates (ADR) for accommodations only declined 1% versus 2019, benefiting from a higher mix of North America [43] Market Data and Key Metrics Changes - Domestic room nights represented about 85% of reported room nights in Q1, consistent with Q4 2020 and significantly up from 2019 [37] - Europe remained the least recovered region in Q1, with trends softening towards the end of March due to rising COVID cases [36] - In April, room night declines were about 43% versus 2019, with the US showing strong recovery while Asia experienced worsened declines [54][56] Company Strategy and Development Direction - The company is focused on strengthening the Booking.com brand in the US and expanding its alternative accommodation offerings [17][18] - The Connected Trip vision aims to provide a multi-product offering, including flights, ground transportation, and attractions, supported by a payment network [21][24] - The company intends to remain carbon neutral in its operations and is committed to sustainability initiatives [29] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding the full recovery of travel, emphasizing that recovery will vary by region [30][65] - The company is encouraged by signs of recovery in some countries but remains cautious due to ongoing COVID-19 challenges [30][66] - Future growth is expected to be driven by increased bookings and a focus on market share, despite potential margin pressures [69][74] Other Important Information - The company ended Q1 with a cash and investment balance of $16.4 billion, benefiting from a recent euro bond offering [51] - Marketing expenses decreased 61% versus 2019, reflecting a shift towards a higher direct mix and improved ROI in paid channels [46][95] Q&A Session All Questions and Answers Question: Can you give us any updates or your thoughts on mix between US, Europe and Asia? - Management noted that historically, Europe accounted for about 50% of bookings, with Asia at 20% and the US at 30%. The US has seen an increase in its share due to recovery [77] Question: Did you see a rapid increase in bookings last summer when cases came down? - Management observed that when cases decrease and vaccination rates increase, bookings tend to rise, as seen in the US and Israel [78] Question: Can you provide more color on share gains and US bookings? - Management expressed satisfaction with Q1 results in the US, indicating that they are performing well but do not have complete industry-wide numbers yet [80] Question: How much did Q1 improve versus Q4 in the US? - Management confirmed significant sequential improvement in the US, with positive room night growth for each month of Q1, particularly strong in March [85] Question: What is the outlook for alternative accommodations post-COVID? - Management believes that alternative accommodations will remain part of consumers' consideration set, leading to a potential long-term increase in their mix [91] Question: Can you discuss the mix of agency versus merchant bookings? - Management noted a slightly lower mix of merchant bookings in Q1 compared to the previous year, attributing this to the demand for flexibility during the crisis [111]