Booking Holdings' Q4 2024 Earnings Call: A Strong Finish to the Year

As the travel industry continues to recover, Booking Holdings Inc. (BKNG) has reported a strong finish to 2024, with impressive growth in key metrics and a focus on strategic investments. The company's fourth quarter and full year financial results, released on February 20, 2025, highlight its resilience and ability to capitalize on the rebound in travel demand.



Q4 2024 Highlights

* Room nights grew by 13% compared to 2023, with all major regions experiencing double-digit growth.
* Gross bookings increased by 17% year over year, driven by strong room night growth and a broad-based recovery in travel demand.
* Revenue grew by 14% compared to 2023, surpassing the high end of prior guidance ranges, driven by revenue outperformance and lower-than-expected adjusted fixed operating expenses.
* Adjusted EBITDA increased by 26% compared to the fourth quarter of 2023, driven by revenue outperformance and lower-than-expected adjusted fixed operating expenses.
* Adjusted earnings per share in the quarter grew by 30% year over year.



Full Year 2024 Highlights

* Room nights grew by 9% compared to 2023.
* Gross bookings increased by 10% year over year, or 11% on a constant-currency basis.
* Revenue grew by 11% compared to 2023, or 12% on a constant-currency basis.
* Net income per diluted common share (GAAP EPS) increased by 47% compared to 2023.
* Adjusted net income per diluted common share (Adjusted EPS) increased by 23% compared to 2023.

Strategic Focus on AI and Generative AI

Booking Holdings' strategic focus on AI and generative AI has been a key driver of its success in recent years. The company's legacy of innovation, resources, proprietary data, global business, and years of experience with AI have enabled it to deploy this technology effectively to benefit both travelers and partners. This focus has helped Booking Holdings achieve strong financial results and maintain its market leadership.



Managing Expenses and Fixed Operating Costs

Booking Holdings' approach to managing expenses and fixed operating costs has contributed significantly to its improved profitability and margin expansion in Q4 2024. The company's disciplined expense management and fixed cost discipline are evident in the following key points:

* Total operating expenses decreased by 10% compared to the same period in 2023.
* Adjusted fixed operating expenses increased slower than revenue growth, indicating improved operating efficiency.
* Net income margin and Adjusted EBITDA margin expanded significantly, reflecting the company's improved profitability.
* The company increased its quarterly cash dividend by 10% to $9.60 per share and repurchased $1.1 billion of stock under its authorized stock repurchase program in the fourth quarter of 2024.

Looking Ahead

As Booking Holdings looks to the future, it remains focused on leveraging AI and generative AI to further benefit travelers and partners. The company's long-term ambition in a normalized travel environment is to grow its annual constant currency gross bookings by at least 8% and its constant currency revenue by at least 10%. With its strong financial performance and market leadership, Booking Holdings is well-positioned to continue its growth trajectory and create value for shareholders.

In conclusion, Booking Holdings' Q4 2024 earnings call highlights the company's strong finish to the year, with impressive growth in key metrics and a focus on strategic investments. The company's strategic focus on AI and generative AI, as well as its disciplined approach to managing expenses and fixed operating costs, have contributed to its improved profitability and market position. As the travel industry continues to recover, Booking Holdings is well-positioned to capitalize on the rebound in travel demand and maintain its market leadership.