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- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BKNG

BKNG fundamentals

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