What does Booking Holdings do and what are its main business segments?

What factors drove the changes in Booking Holdings's revenue and profit?

What is Booking Holdings's gross profit margin?

Did Booking Holdings beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Booking Holdings year over year?

What is Booking Holdings's latest dividend and current dividend yield?

What guidance did Booking Holdings's management provide for the next earnings period?

What were the key takeaways from Booking Holdings's earnings call?

- **Record Q3 Growth**: Gross bookings +14%, revenue +13%, and EBITDA +15%, driven by 8% room night growth and AI-powered Connected Trip expansion.
- **AI-Driven Differentiation**: Multi-vertical bookings up 20%, with flights +32% and attractions +90%. AI tools like chatbots and Auto-Reply improve traveler and partner satisfaction.
- **Loyalty Program Dominance**: Genius Levels 2/3 travelers account for 50%+ of room nights, with 850k partners leveraging the program for incremental demand.
- **Asia Expansion**: Alternative accommodations up 10% YoY, with Agoda/Booking.com hybrid model capturing high single-digit industry growth.
- **Cost Efficiency & Reinvestment**: $450M annual savings from Transformation Program, with $170M reinvested in AI and Connected Trip initiatives.

**CEO Summary Section**
- **Q3 Financial Highlights**: Room nights grew 8% YoY to 323 million, gross bookings rose 14%, and revenue increased 13%. Adjusted EBITDA reached $4.2 billion (15% YoY), with adjusted EPS up 19% to $99.50. FX contributed 400-500 basis points to growth rates.
- **Connected Trip Momentum**: Multi-vertical bookings grew mid-20% YoY, with flights up 32% and attractions up 90%. Connected Trip transactions now represent a low double-digit percentage of Booking.com's total transactions.
- **Genius Loyalty Program**: Levels 2 and 3 travelers accounted for 30% of active users and 50%+ of room nights over 4 quarters. Over 850,000 partners participate, driving incremental demand and higher occupancy rates.
- **AI Innovations**: Launches include Agoda's AI-powered chatbot, KAYAK's AI Mode, and Booking.com's natural language search. Smart Messenger and Auto-Reply tools for partners improved satisfaction scores.
- **Asia Growth**: Agoda and Booking.com combine local relevance with global scale, with room nights up 10% YoY in alternative accommodations. Asia is a key long-term growth driver with industry growth expected at high single digits.

**CFO Financial Commentary**
- **Q3 Financials**: Gross bookings of $50 billion (+14% YoY), revenue of $9 billion (+13% YoY), and adjusted EBITDA of $4.2 billion (+15% YoY). Constant currency growth was 10% for gross bookings and 8% for revenue.
- **Cost Efficiency**: Marketing expense as a % of gross bookings declined due to social media ROI focus. Adjusted fixed operating expenses grew 10% YoY, with $70 million in quarterly savings from the Transformation Program.
- **Full Year Guidance**: Room nights +7%, gross bookings +11-12%, revenue +12%, adjusted EBITDA +17-18%, and adjusted EPS +>20%. FX expected to add 3-4 percentage points to reported growth.
- **Strategic Reinvestment**: $170 million reinvested in AI, Connected Trip, and payments, funded by $225 million+ Transformation Program savings. Annual run rate savings now $450 million, targeting $500 million.

**Q&A Highlights**
- **U.S. Acceleration**: B2B and B2C growth driven by direct channel expansion (mid-60% mix) and improved booking window normalization. U.S. room nights grew high single digits, outpacing industry.
- **AI & OpenAI Integration**: Early success with OpenAI's ChatGPT App Store, with travelers using AI tools for faster, personalized booking experiences. AI reduces cancellations and improves customer service efficiency.
- **Asia Strategy**: Agoda's localization and Booking.com's global reach drive 10% YoY growth in alternative accommodations. Merchant gross bookings surpassed $123 billion (+26% YoY).
- **Competitive Position**: Direct channel growth (mid-60% mix) and loyalty program engagement (50%+ room nights from Levels 2/3) create defensibility against new entrants.


Booking Holdings Inc. (BKNG) Q3 2025 Earnings Call Transcript

- **Revenue Surge**: Q2 revenue up 16% YoY to $6.8 billion, driven by 8% room night growth and strong global demand.
- **AI-Driven Efficiency**: GenAI reduces customer service costs, with voice agents improving resolution times by 30%.
- **Connected Trip Growth**: Transactions up 30% YoY, integrating flights, attractions, and ground transport for seamless travel.
- **Asia Expansion**: Low double-digit growth in Asia, with Agoda and Booking.com leading market share gains.
- **Updated Guidance**: Full-year EBITDA up mid-teens, EPS high teens, with 125 basis points margin expansion.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue reached $6.8 billion, up 16% YoY, driven by 8% growth in room nights and 13% increase in gross bookings. FX contributed 4 percentage points to growth.
- **Regional Performance**: Europe and Asia saw strong growth (high single and low double digits), while the U.S. grew modestly but outpaced industry trends. Asia's long-term outlook remains robust with low double-digit growth expectations.
- **Strategic Initiatives**: 
  - **Alternative Accommodations**: 10% YoY room night growth, 8.4 million listings globally.
  - **Genius Loyalty Program**: 30% of travelers are Levels 2/3, booking 50% of room nights, with higher direct booking rates.
  - **Connected Trip**: 30% YoY growth in transactions, integrating flights, attractions, and ground transport.
  - **AI Investments**: Enhancements to Penny (Priceline), KAYAK.ai, and OpenTable Concierge improve personalization and customer service efficiency.

**【CFO Financial Commentary】**
- **Q2 Financials**: Adjusted EBITDA of $2.4 billion (+28% YoY), EPS of $55.40 (+32% YoY). Transformation program delivered $45 million in savings, with $150 million annual target.
- **Q3 Guidance**: Room nights 3.5-5.5% YoY, gross bookings 8-10%, revenue 7-9%. FX to add 4 percentage points to growth.
- **Full Year Outlook**: Low double-digit gross bookings and revenue growth, EBITDA up mid-teens, EPS high teens. EBITDA margin expansion of 125 basis points vs. prior 50-100 basis point target.

**【Q&A Highlights】**
- **U.S. Market**: Growth cautious due to shorter booking windows and lower ADRs, but improving sequentially.
- **AI Impact**: GenAI reduces customer service costs, enhances traveler experience, and diversifies traffic sources.
- **Connected Trip**: Payments and loyalty programs (e.g., Genius benefits) drive incremental partner revenue and customer retention.
- **Asia Momentum**: Agoda and Booking.com lead with localized strategies, flights and attractions growth outpacing hotels.
- **LLM Exploration**: Early-stage collaboration with hyperscalers to leverage generative AI for travel inspiration and booking efficiency.

Booking Holdings Inc. (BKNG) Q2 2025 Earnings Call Transcript

- **Revenue & Profit Growth**: Q1 2025 revenue +8% YoY to $4.8B, adjusted EBITDA +21% to $1.1B, driven by AI-enabled Connected Trip expansion.
- **AI Impact**: AI tools boost conversion rates 10-20%, with Connected Trip bookings up 35% YoY.
- **Market Resilience**: Global demand stable despite U.S. softness; Europe/Asia room nights +high-single digits offset U.S. low-single digit growth.
- **Financial Strength**: $16.1B cash, 16%+ EBITDA growth in Q2, and mid-single-digit 2025 guidance reflect disciplined execution.
- **Risks**: Geopolitical uncertainty and U.S. macro trends could impact 2H25, but diversified portfolio positions Booking to gain share.

**【CEO Summary Section】**
- Q1 2025 revenue grew 8% YoY to $4.8 billion, exceeding guidance, driven by 7% YoY room nights growth to 319 million. Adjusted EBITDA rose 21% to $1.1 billion.
- Emphasized AI advancements, including GenAI for property responses and AI Partner Assistant, enhancing traveler experience and partner support.
- Connected Trip transactions grew 35% YoY, with flights up 45% and attractions bookings surging 92% YoY.
- Global diversification mitigated U.S. demand softness, with Europe and Asia room nights up high-single digits.

**【CFO Financial Commentary】**
- GAAP net income $333 million; Non-GAAP EPS $24.81, +22% YoY. Revenue/GB ratio 10.2%, driven by payments growth.
- Marketing expense +10% YoY, but ROI maintained via social media and optimized traditional channels.
- Adjusted fixed costs down 3% YoY, benefiting from $17M tax accrual reversal.
- Q2 guidance: room nights 4-6% growth, gross bookings 10-12%, EBITDA $2.15-2.2B (+16% YoY at high end).
- Full-year 2025: constant currency growth mid-high single digits for GB and revenue, EPS low-mid teens, with FX +2% boost.

**【Q&A Highlights】**
- **AI Strategy**: Travel-specific agents (e.g., KAYAK.ai) show early promise, with GenAI improving search speed and conversion rates.
- **Market Trends**: Stable global demand despite U.S. length of stay decline; Canada-Mexico travel offsets U.S. inbound weakness.
- **Competitive Edge**: Direct mix 65%+ (B2C), up from 60% YoY, driven by mobile app bookings.
- **Genius Program**: Levels 2-3 travelers account for >50% of bookings, with higher direct rates and frequency.
- **Risks**: Geopolitical uncertainty may impact consumer spending; U.S. macro trends bifurcated by hotel star rating.
- **Cash Position**: $16.1B cash, with $3.2B Q1 free cash flow supporting $2.1B cap return (shares + dividends).

Booking (BKNG)-29 Apr 25-2025 Q1 Earnings call transcript

- **Q4 2024 Financial Highlights**: 13% room night growth, 14% revenue growth, $1.8B adjusted EBITDA (26% YoY). Full-year gross bookings up 10% to $166B, adjusted EBITDA up 17% to $8.1B.
- **AI-Driven Strategy**: Integrating AI trip planners and agents to enhance connected trip experiences, targeting 8%+ constant currency growth in 2025.
- **Shareholder Returns**: $6B in 2024 share buybacks, new $20B repurchase program, and 10% dividend hike announced.
- **Alternative Accommodation Leadership**: 19% Q4 growth in alternative room nights, 7.9M listings globally, outpacing traditional accommodations.
- **Flight Growth Acceleration**: 52% YoY airline ticket bookings, integrating flights into seamless travel itineraries powered by AI.

**【CEO Summary Section】**
- Booking Holdings reported 13% year-over-year growth in room nights for Q4 2024, driven by double-digit growth across all regions. Revenue grew 14%, exceeding the high end of guidance, with adjusted EBITDA of $1.8 billion, up 26% YoY. Full-year gross bookings reached $166 billion, up 10%, with adjusted EBITDA of $8.1 billion, up 17% YoY. CEO Glenn Fogel emphasized AI integration, such as Booking.com's AI trip planner and Priceline's Penny, as key to future growth. The company targets 8%+ constant currency growth for gross bookings, revenue, and 15%+ EPS growth in 2025.

**【CFO Financial Commentary】**
- Q4 2024 revenue was $5.5 billion, up 14% YoY, with adjusted EBITDA margin of 33.8%, up 320 basis points YoY. Full-year adjusted EPS was $187.39, up 23% YoY. CFO Ewout Steenbergen highlighted $1.2 billion in free cash flow for the year and announced a $20 billion share repurchase program with a 10% dividend increase. The company expects 2025 constant currency growth of 8%+ for gross bookings and revenue, with adjusted EPS up 15%+.

**【Q&A Key Highlights】**
- **AI Competition Risk**: CEO Glenn Fogel stated the company's data advantage and partnerships with AI leaders will maintain dominance. CFO Ewout Steenbergen added that AI collaboration costs are offset by monetization opportunities.
- **Alternative Accommodation Growth**: 19% Q4 growth in alternative room nights, driven by global supply expansion. Europe led regional growth, with travelers valuing direct booking flexibility.
- **Flight Booking Expansion**: 52% YoY growth in airline tickets, integrating flights into connected trip experiences. The company plans to leverage AI for personalized travel itineraries.
- **Merchant Model Efficiency**: Merchant gross bookings mix at 59% in 2024, contributing incremental EBITDA. Payment innovations like local currency options enhance traveler convenience.
- **Transformation Program**: $400-450 million annual cost savings by 2025, reinvesting $170 million in AI and connected trip initiatives. 2024 savings of $35 million were realized.


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