• Fourth Quarter Room Nights Growth: 13% year-over-year.
• Fourth Quarter Gross Bookings Growth: 17% year-over-year.
• Fourth Quarter Revenue Growth: 14% year-over-year.
• Fourth Quarter Adjusted EBITDA: $1.8 billion, 26% increase year-over-year.
• Fourth Quarter Adjusted EPS: $41.55 per share, 30% increase year-over-year.
• Full Year Gross Bookings: $166 billion, 10% increase year-over-year.
• Full Year Revenue: $24 billion, 11% increase year-over-year.
• Full Year Adjusted EBITDA: Over $8 billion, 17% increase year-over-year.
• Full Year Adjusted EPS: Over $187 per share, 23% increase year-over-year.
• Alternative Accommodations Listings: 7.9 million, 8% increase year-over-year.
• Alternative Accommodations Room Night Growth: 19% in the fourth quarter.
• Airline Tickets Booked: Almost 50 million for the full year, 38% increase year-over-year.
• Merchant Gross Bookings Mix: 59% of total gross bookings at Booking.com in 2024.
• Cash and Investments Balance: $16.7 billion at the end of the fourth quarter.
• Share Repurchase Program: $6 billion repurchased in 2024, $7.7 billion remaining under authorization.

• Warning! GuruFocus has detected 3 Warning Sign with BKNG.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Booking Holdings Inc (NASDAQ:BKNG) reported a strong finish to 2024 with room nights exceeding expectations, growing 13% year over year.
• Fourth quarter gross bookings grew 17% and revenue increased by 14%, both surpassing prior guidance.
• Adjusted EBITDA for the fourth quarter was $1.8 billion, a 26% increase from the previous year.
• The company achieved significant growth in alternative accommodations, with listings reaching 7.9 million, up 8% from the previous year.
• Booking Holdings Inc (NASDAQ:BKNG) is leveraging Generative AI to enhance customer experience and operational efficiency, with initiatives like Booking.com's AI Trip Planner and Priceline's AI-powered travel assistant.

Negative Points

• The company faces potential risks from increased competition due to the rise of agentic AI platforms that could bypass traditional booking channels.
• There are concerns about the impact of new technologies on the mix between paid and direct traffic, which could affect profitability.
• The transformation program, while aimed at cost reduction, involves difficult decisions such as workforce reductions.
• First quarter 2025 growth is expected to be impacted by the leap year and Easter timing, with room night growth projected between 5% and 7%.
• Despite strong growth, the company acknowledges that the revenue impact from AI advancements may take longer to materialize compared to cost savings.

Q & A Highlights

Q: How does Booking Holdings view the risks associated with competition from agentic AI platforms that could bypass traditional listings? A: Glenn Fogel, CEO, emphasized the company's history of adapting to new technologies and competition. He highlighted Booking Holdings' ability to evolve and leverage its resources, technological expertise, and partnerships to maintain its industry leadership. Fogel expressed confidence in the company's ability to integrate AI and continue to provide value to travelers and partners.

Q: Can you provide more details on the growth of alternative accommodations and regional contributions? A: Ewout Steenbergen, CFO, noted that alternative accommodations are growing faster than traditional ones across all regions. The success is attributed to the comprehensive supply and the ability to offer both traditional and alternative accommodations on the same platform, which travelers appreciate. This integrated offering is a key factor in their competitive advantage.

Q: What is the outlook for the growth of the airline segment within Booking Holdings? A: Glenn Fogel, CEO, expressed excitement about the 52% growth in airline bookings, noting it as an acceleration from previous quarters. He emphasized that while growth may not continue to accelerate indefinitely, the focus will be on enhancing service and integrating flights into the Connected Trip vision to provide more value to travelers.

Q: How does Booking Holdings plan to manage the potential risk of travelers using third-party AI platforms instead of going directly to Booking Holdings? A: Glenn Fogel, CEO, acknowledged the concern but emphasized the importance of partnerships and maintaining proprietary advantages. He highlighted the company's strong brand trust and extensive data as key assets in negotiations and collaborations with AI developers, ensuring mutual benefits and maintaining a competitive edge.

Q: What are Booking Holdings' thoughts on larger M&A deals given recent industry activity? A: Glenn Fogel, CEO, reiterated the company's policy of not commenting on M&A activities unless a transaction is announced. This consistent stance was maintained throughout the call.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.