Booking Holdings 2025 Q1 Earnings Net Income Declines 57.1%
Wednesday, Apr 30, 2025 8:28 am ET
27min read BKNG Trend
Revenue
Booking Holdings' total revenue for 2025 Q1 rose by 7.9% to $4.76 billion, compared to $4.42 billion in 2024 Q1. The revenue growth was driven by various segments, including merchant revenues, which contributed $2.92 billion, agency revenues amounting to $1.56 billion, and advertising alongside other revenues totaling $280 million. The overall financial performance indicates a steady increase, reflecting a diverse revenue stream across different business segments.
Earnings/Net Income
Booking Holdings experienced a significant decline in earnings per share (EPS), which fell by 55.3% to $10.14 in 2025 Q1 from $22.69 in the previous year. Net income also decreased to $333 million, marking a 57.1% drop from $776 million reported in 2024 Q1. This substantial decline in both EPS and net income reflects challenging market conditions for the company.
Price Action
The stock price of Booking Holdings edged up by 1.22% during the latest trading day, climbed 6.77% during the most recent full trading week, and increased 3.29% month-to-date.
Post-Earnings Price Action Review
The earnings report metrics have positively influenced Booking Holdings' stock price, showing an upward trend as the event horizon broadens. The data indicates a 3-day win rate of 47.62%, a 10-day win rate of 52.38%, and a 30-day win rate of 57.14% following the earnings release, suggesting a higher likelihood of price increases in the short term. Revenue, net income, and diluted EPS appear to be significant drivers of stock movement, with a maximum return of 12.85% over 30 days. Investors may find these metrics valuable when considering the stock's potential post-earnings performance.
CEO Commentary
Glenn Fogel, Chief Executive Officer, stated, "I am pleased to report a good start to 2025. We saw healthy growth in room nights and gross bookings, benefiting from our geographical diversification. Our first quarter revenue of $4.8 billion grew 8% year-over-year, and adjusted EBITDA of about $1.1 billion increased 21% year-over-year. I remain confident in the long-term outlook for the travel industry, driven by consumers' deep desires to experience the world. We will continue to drive our business for the long term while focusing on strategic initiatives such as enhancing AI capabilities and expanding alternative accommodations to deliver value to our travelers and supplier partners."
Guidance
"We currently expect second quarter room night growth to be between 4% and 6%, with gross bookings increasing between 10% and 12%. We expect second quarter revenue growth to be between 10% and 12%, and adjusted EBITDA to be between about $2.15 billion and $2.2 billion. For the full year 2025, we expect constant currency growth of mid to high single digits for gross bookings and revenue, and low to mid-teens for adjusted EPS."
Additional News
In recent developments, Booking Holdings is focusing on integrating AI technology across its platforms to enhance traveler and partner experiences, with notable progress in its AI Trip Planner and AI-powered travel assistant. The company has also seen a significant increase in alternative accommodation listings, reaching 8.1 million, indicating strong demand in this segment. Furthermore, Booking Holdings' Genius loyalty program continues to grow, with over 30% of active travelers in higher tiers, boosting direct booking rates and frequency. These strategic initiatives highlight Booking Holdings' commitment to leveraging technology and diversifying its offerings to maintain a competitive edge in the travel industry.
