Booking Holdings (BKNG) Q2 2024 earnings summary

Executive summary

• Q2 2024 results exceeded expectations, with room nights booked up 7% year-over-year to 287 million and revenue rising 7% to $5.9 billion, driven by strong growth in Asia, Europe, and alternative accommodations.

• Adjusted EBITDA reached $1.9 billion, up 7% year-over-year, and adjusted EPS grew 11% to $41.90, aided by a 7% reduction in average share count.

• Net income for Q2 2024 was $1.52 billion, up 18% year-over-year, with diluted EPS at $44.38.

• Strategic focus remains on Connected Trip, expanding merchant offerings, AI capabilities, and enhancing the Genius loyalty program, with nearly 30% of active travelers in higher Genius tiers.

• Alternative accommodations room nights grew 12%, now 36% of global mix, with listings up 11% to 7.8 million.

Financial highlights

• Q2 2024 revenue was $5.9 billion, up 7% year-over-year, exceeding guidance; adjusted EBITDA was $1.9 billion, up 7%, with margin expansion.

• Adjusted net income exceeded $1.4 billion, up 3%, and adjusted EPS was $41.90, up 11% year-over-year.

• Gross bookings increased 4% to $41.4 billion, impacted by FX and lower ADRs; free cash flow for Q2 was $2.4 billion.

• Cash and investments at quarter-end were $16.8 billion, up from $16.4 billion in Q1.

• Marketing expense rose 8% year-over-year, at 4.7% of gross bookings and $1.94 billion in Q2 2024.

Outlook and guidance

• Q3 2024 room night growth expected at 3%-5%, with 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 for the full year now expected to exceed 15%.

• FX expected to negatively impact topline growth by about one percentage point.