Booking Holdings (BKNG) Q3 2024 earnings summary

Executive summary

• Third-quarter revenue reached $8 billion, up 9% year-over-year, with room nights and gross bookings exceeding guidance, driven by strong performance in Europe and Asia.

• Adjusted EBITDA was $3.7 billion, up 12% and 9% above guidance; adjusted EPS grew 16% year-over-year, aided by share repurchases and a 6% reduction in average share count.

• Alternative accommodations and Connected Trip initiatives showed robust growth, with alternative accommodation room nights up 14% and Connected Trip transactions up over 40% year-over-year.

• AI and GenAI integration advanced across brands, improving customer experience, operational efficiency, and partner engagement.

• Net income was $2.5 billion, flat year-over-year, impacted by a $365 million accrual for Italian tax settlement and a $250 million U.S. tax benefit.

Financial highlights

• Room nights booked reached 299 million, up 8.1% year-over-year; gross bookings grew 9%, outpacing room night growth due to higher flight bookings.

• Revenue grew 9% year-over-year to $8 billion; adjusted EBITDA margin was 45.8%, up over 1 percentage point year-over-year.

• Adjusted net income exceeded $2.8 billion, up 9% year-over-year; adjusted EPS was $83.89, up 16%.

• Airline tickets booked rose 39%, and rental car days increased 16% year-over-year.

• Free cash flow for Q3 was $2.3 billion; for nine months, $7.2 billion.

Outlook and guidance

• Q4 room night growth expected between 6% and 8%; gross bookings and revenue to grow 7%–9%.

• Q4 adjusted EBITDA expected between $1.6 billion and $1.65 billion, up 9%–13%.

• Full-year gross bookings expected to rise about 8%, revenue just below 10%, and adjusted EBITDA to grow 13%–14%.

• Adjusted EPS for the full year anticipated to grow in the high teens.

• Management expects continued progress on strategic initiatives and cost efficiency.