Booking Holdings (BKNG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues increased 7% year-over-year to $5.9 billion, driven by higher room nights, strong growth in Asia and Europe, and robust alternative accommodations and direct bookings.

• Room nights booked reached 287 million, up 7% year-over-year, with gross bookings of $41.4 billion, up 4% (6% on a constant-currency basis).

• Net income rose 18% to $1.52 billion, with diluted EPS up to $44.38; adjusted EPS grew 11% to $41.90, aided by share repurchases.

• Alternative accommodations accounted for 36% of global room nights, with listings up 11% to 7.8 million; mobile app bookings rose to 53% of total room nights.

• Strategic focus remains on Connected Trip, expanding merchant offerings, AI capabilities, and enhancing the Genius Loyalty program.

Financial highlights

• Q2 2024 revenue was $5.9 billion (+7% year-over-year), with adjusted EBITDA of $1.9 billion (+7%) and margin expansion; net income margin was 26.0%.

• Adjusted net income exceeded $1.4 billion, with adjusted EPS at $41.90 (+11% year-over-year); free cash flow for Q2 was $2.4 billion.

• Cash, cash equivalents, and investments totaled $16.8 billion at June 30, 2024.

• Gross bookings increased 4%, impacted by FX and lower ADRs, while room nights grew 7%.

• Board declared a $8.75 per share cash dividend, payable September 30, 2024.

Outlook and guidance

• Q3 2024: Room nights expected to grow 3–5%, revenue growth of 2–4%, and adjusted EBITDA flat year-over-year at midpoint.

• Full-year 2024: Gross bookings growth revised to above 6%, revenue growth raised to over 7%, and adjusted EBITDA expected to grow in high single digits.

• Adjusted EPS growth expected above 15% for the year; fixed OpEx growth guidance reduced to low double digits.

• Management remains focused on long-term strategic initiatives and cost efficiency.