Booking Holdings(BKNG) - 2025 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - In 2024, the company achieved revenue of nearly $24 billion, representing an 11% year-over-year increase [28] - Adjusted EBITDA exceeded$ 8 billion, marking a 17% increase [29] - Adjusted earnings per share rose to over $187, up 23% [29] - The company returned over$ 7 billion to shareholders in 2024 and announced a new $20 billion share repurchase authorization in early 2025 [30] Business Line Data and Key Metrics Changes - The company booked over 1.1 billion room nights across its platforms in 2024 [27] - Merchant gross bookings grew by 27% in 2024, accounting for 63% of total gross bookings, up from 54% in 2023 [32] - The Genius Loyalty program expanded beyond accommodations into other travel verticals, driving incremental bookings [33] Market Data and Key Metrics Changes - The alternative accommodations segment ended 2024 with 7.9 million listings, contributing to strong double-digit growth in room nights [35] - This segment is now more than two-thirds the size of the industry leader, indicating its increasing attractiveness [36] Company Strategy and Development Direction - The company aims to grow annual constant currency gross bookings and revenue by at least 8% and constant currency adjusted earnings per share by at least 15% in a normalized travel environment [30] - The connected trip vision focuses on providing more value to customers and simplifying the travel experience [31] - The integration of AI across various brands is a key strategic priority, enhancing customer experience and operational efficiency [34] Management's Comments on Operating Environment and Future Outlook - The management acknowledges uncertainties in the geopolitical and macroeconomic landscape but emphasizes the resilience of the travel industry [36] - The company remains committed to delivering value and adapting to changing market conditions [37] Other Important Information - The board of directors recommended against a nonbinding stockholder proposal regarding special shareholder meetings, which received 49% support in a previous vote [21][24] Q&A Session Summary Question: What is the board's plan for downstream profits of AI? - The board indicated that significant investment in AI is necessary before realizing downstream profits, with a focus on reinvesting gains into strategic areas for sustainable growth [40][41] Question: Can you provide an example of how Booking uses AI? - The company utilizes AI in various ways, including AI trip planners on Booking.com and personalized services on Kayak, enhancing customer interactions and operational efficiency [42][43] Question: Does talk of annexing Canada have a significant negative impact on travel to the US? - Management noted a decrease in Canadians traveling to the US but highlighted an increase in travel to other destinations like Mexico, indicating resilience in their business model [49][50] Question: How much was spent on share buybacks since 2024, and what is expected to be spent in 2025? - Approximately$ 6 billion was spent on share buybacks in the previous year, with future spending not explicitly disclosed but authorized for continued buybacks [52]