Booking Holdings (BKNG) Q4 2024 earnings summary

Executive summary

• Q4 and full-year 2024 delivered strong financial and operational results, exceeding guidance on key metrics including room nights, gross bookings, revenue, and adjusted EBITDA.

• Room nights grew 13% in Q4 and 9% for the year, with double-digit growth across all major regions, driving gross bookings up 17% in Q4 and 10% for the year.

• Adjusted EBITDA for Q4 was $1.8 billion, up 26% year-over-year and 12% above guidance; adjusted EPS up 30% in Q4 and 23% for the year.

• Strategic initiatives advanced in AI, Connected Trip vision, alternative accommodations, merchant offerings, and Genius loyalty program.

• Transformation program launched to drive organizational agility and cost savings, including workforce reductions and process modernization.

Financial highlights

• Q4 gross bookings grew 17% YoY, revenue up 14% to $5.5B, and adjusted EBITDA margin reached 33.8%, up 320 basis points.

• Full-year 2024 gross bookings reached $166B (+10%), revenue $24B (+11%), adjusted EBITDA over $8B (+17%), and adjusted EPS up 23%.

• Q4 net income was $1.1B, impacted by mark-to-market adjustments and FX gains, excluded from adjusted results.

• Q4 free cash flow was $650M, with $1.4B returned to shareholders via buybacks and dividends.

• Marketing expense as a percentage of gross bookings was 4.2% in Q4, 30 basis points better than last year.

Outlook and guidance

• 2025 targets: at least 8% constant currency growth in gross bookings and revenue, and 15% in adjusted EPS.

• Q1 2025 guidance: room night and gross bookings growth of 5%-7%, revenue growth of 2%-4%, and adjusted EBITDA of $800-$850M, with headwinds from FX and calendar shifts.

• Full-year 2025: expect to expand adjusted EBITDA margins by just under 100 basis points and keep CapEx at about 2% of revenue.

• Board declared a Q1 2025 cash dividend of $9.60 per share, a 10% increase over 2024.

• Board authorized an additional $20B stock repurchase program in January 2025.