EX-99.1 2 ex99133124.htm EX-99.1

Exhibit 99.1

Booking Holdings Reports Financial Results for 1st Quarter 2024

NORWALK, CT – May 2, 2024. . . Booking Holdings Inc. (NASDAQ: BKNG) (the "Company," "we," "our," or "us") today reported its first quarter 2024 financial results:

•Gross travel bookings, which refers to the total dollar value, generally inclusive of taxes and fees, of all travel services booked by our customers, net of cancellations, were $43.5 billion, an increase of 10% from the prior-year quarter.

•Room nights booked increased 9% from the prior-year quarter.

•Total revenues were $4.4 billion, an increase of 17% from the prior-year quarter.

•Net income was $776 million, an increase of 192% from the prior-year quarter.

•Net income per diluted common share (EPS) was $22.37, an increase of 220% from the prior-year quarter.

•Adjusted Net income was $708 million, an increase of 61% from the prior-year quarter.

•Adjusted Net income per diluted common share (Adjusted EPS) was $20.39, an increase of 76% from the prior-year quarter.

•Adjusted EBITDA was $898 million, an increase of 53% from the prior-year quarter.

The section below under the heading "Non-GAAP Financial Measures" provides definitions and information about the use of non-GAAP financial measures in this press release, including Adjusted Net income, Adjusted EPS and Adjusted EBITDA, and the attached financial and statistical supplement reconciles non-GAAP financial results with Booking Holdings' financial results under GAAP.

"We are pleased to report a strong start to 2024 with first quarter year-over-year growth in room nights of 9%, revenue of 17%, and operating income of 76%, all of which were ahead of our prior expectations," said Glenn Fogel, Chief Executive Officer of Booking Holdings. "As we continue our work to deliver a better planning, booking, and traveling experience for our travelers, we are seeing encouraging results at Booking.com with increasing direct mix, higher frequency, and more of our travelers moving into the upper Genius loyalty tiers."

Second Quarter Dividend

Our Board of Directors declared a cash dividend of $8.75 per share, payable on June 28, 2024 to stockholders of record as of the close of business on June 7, 2024.

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Non-GAAP Financial Measures

The Unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operating results.

To supplement the Unaudited Consolidated Financial Statements, the Company uses the following non-GAAP financial measures: Adjusted Net income (loss), Adjusted EPS, Adjusted EBITDA and Free cash flow (Net cash provided by (used in) operating activities less capital expenditures). The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

The Company uses non-GAAP financial measures for financial and operational decision-making and as a basis to evaluate performance and set targets for employee compensation programs. The Company believes that these non-GAAP financial measures are useful for analysts and investors to evaluate the Company's ongoing operating performance because they facilitate comparison of the Company's results for the current period and projected next-period results to those of prior periods and to those of its competitors (though other companies may calculate similar non-GAAP financial measures differently from those calculated by the Company). These non-GAAP financial measures, in particular Adjusted Net income (loss), Adjusted EBITDA and Free cash flow, are not intended to represent funds available for Booking Holdings' discretionary use and are not intended to represent or to be used as a substitute for Operating income (loss), Net income (loss) or Net cash provided by (used in) operating activities as measured under GAAP. The items excluded from these non-GAAP measures, but included in the calculation of their closest GAAP equivalent, are significant components of the Company's consolidated statements of operations and cash flows and must be considered in performing a comprehensive assessment of overall financial performance.

Adjusted Net income (loss) is Net income (loss) with the following adjustments:

•excludes accruals related to the Netherlands pension fund matter (recorded during the year ended December 31, 2023),

•excludes accruals related to a draft decision by the Spanish competition authority,

•excludes accruals related to settlements of certain indirect tax matters,

•excludes the termination fee related to an acquisition agreement,

•excludes gains and losses on equity securities with readily determinable fair values,

•     excludes the impact, if any, of significant gains and losses on the sale of and impairment and credit losses on investments in available-for-sale debt securities and significant gains and losses on the sale of and impairment and other valuation adjustments on investments in equity securities without readily determinable fair values,

•excludes foreign currency transaction gains and losses on the remeasurement of Euro-denominated debt and accrued interest that are not designated as hedging instruments for accounting purposes and debt-related foreign currency derivative instruments used as economic hedges,

•excludes amortization expense of intangible assets,

•excludes interest received on tax payments refunded pursuant to settlement with authorities,

•excludes the impact of net unrecognized tax benefits related to certain income tax matters, and

•     the income tax impact of the non-GAAP adjustments mentioned above and changes in tax estimates, as applicable.

In the event the Company reports a GAAP Net income but an Adjusted Net loss, dilutive shares that are included in the GAAP weighted-average number of diluted common shares outstanding are excluded from the non-GAAP weighted-average number of diluted common shares outstanding. In the event the Company reports a GAAP Net loss but an Adjusted Net income, anti-dilutive shares that are excluded from the GAAP weighted-average number of diluted common shares outstanding are included in the non-GAAP weighted-average number of diluted common shares outstanding.

In addition to the adjustments listed above regarding Adjusted Net income (loss), Adjusted EBITDA excludes depreciation expense, interest expense, and to the extent not included in the adjustments listed above, interest and dividend income, and income tax expense (benefit).

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We evaluate certain operating and financial measures on both an as-reported and constant-currency basis. We calculate constant currency based on the predominant transactional currency in each country, converting our current-year period results in currencies other than U.S. Dollars using the corresponding prior-year period monthly average exchange rates.

The attached financial and statistical supplement includes reconciliations of our financial results under GAAP to non-GAAP financial information for the three months ended March 31, 2024 and 2023. We are not able to provide a reconciliation between forward-looking Adjusted EBITDA and GAAP Net income (loss) because we cannot predict certain components of such reconciliation without unreasonable effort as they arise from events in future periods.

Information About Forward-Looking Statements

This press release contains forward-looking statements, which reflect the views of the Company's management regarding current expectations based on currently available information about future events. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, such as: adverse changes in market conditions for travel services; the effects of competition; the Company's ability to manage growth and expand; adverse changes in relationships with third parties on which the Company depends; success of the Company's marketing efforts; rapid technological and other market changes; the Company's ability to attract and retain qualified personnel; impacts of impairments and changes in accounting estimates; and other business and industry changes. Other risks and uncertainties relate to cyberattacks and information security; taxes; laws and regulations; the Company's facilitation of payments; foreign currency exchange rates; the Company's debt levels and stock price volatility; and the success of the Company's investments and acquisition strategy. For a detailed discussion of these and other risk factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements included in this press release, refer to the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequently filed Quarterly Reports on Form 10-Q. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

We will be posting our prepared remarks to the Booking Holdings investor relations website after the conclusion of the earnings call.

About Booking Holdings Inc.

Booking Holdings (NASDAQ: BKNG) is the world's leading provider of online travel and related services, provided to consumers and local partners in more than 220 countries and territories through five primary consumer-facing brands: Booking.com, Priceline, Agoda, KAYAK and OpenTable. The mission of Booking Holdings is to make it easier for everyone to experience the world. For more information, visit BookingHoldings.com and follow us on X @BookingHoldings.

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For Press Information: Leslie Cafferty communications@bookingholdings.com

For Investor Relations: John Longstreet ir@bookingholdings.com

#BKNG_Earnings

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Booking Holdings Inc.

CONSOLIDATED BALANCE SHEETS

(In millions, except share and per share data)

						March 31, 2024						December 31, 2023
						(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents						$	15,629					$	12,107
Short-term investments (Available-for-sale debt securities: Amortized cost of $363 and $580, respectively)						362						576
Accounts receivable, net (Allowance for expected credit losses of $157 and $137, respectively)						3,296						3,253
Prepaid expenses, net						737						644
Other current assets						452						454
Total current assets						20,476						17,034
Property and equipment, net						805						784
Operating lease assets						663						705
Intangible assets, net						1,553						1,613
Goodwill						2,815						2,826
Long-term investments						443						440
Other assets, net						973						940
Total assets						$	27,728					$	24,342
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable						$	3,268					$	3,480
Accrued expenses and other current liabilities						4,774						4,635
Deferred merchant bookings						5,328						3,254
Short-term debt						3,462						1,961
Total current liabilities						16,832						13,330
Deferred income taxes						287						258
Operating lease liabilities						556						599
Long-term U.S. transition tax liability						515						515
Other long-term liabilities						152						161
Long-term debt						13,438						12,223
Total liabilities						31,780						27,086
Commitments and contingencies
Stockholders' deficit:
Common stock, $0.008 par value, Authorized shares: 1,000,000,000 Issued shares: 64,252,207 and 64,048,000, respectively						—						—
Treasury stock: 30,185,788 and 29,650,351 shares, respectively						(43,330)						(41,426)
Additional paid-in capital						7,330						7,175
Retained earnings						32,304						31,830
Accumulated other comprehensive loss						(356)						(323)
Total stockholders' deficit						(4,052)						(2,744)
Total liabilities and stockholders' deficit						$	27,728					$	24,342

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Booking Holdings Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share data)

									Three Months Ended March 31,
															2024						2023
Merchant revenues															$	2,388					$	1,752
Agency revenues															1,763						1,782
Advertising and other revenues															264						244
Total revenues															4,415						3,778
Operating expenses:
Marketing expenses															1,610						1,517
Sales and other expenses															678						570
Personnel, including stock-based compensation of $144 and $113, respectively															826						722
General and administrative															186						262
Information technology															187						137
Depreciation and amortization															137						120
Total operating expenses															3,624						3,328
Operating income															791						450
Interest expense															(219)						(194)
Interest and dividend income															243						228
Other income (expense), net															122						(181)
Income before income taxes															937						303
Income tax expense															161						37
Net income															$	776					$	266
Net income applicable to common stockholders per basic common share															$	22.69					$	7.07
Weighted-average number of basic common shares outstanding (in 000's)															34,206						37,621
Net income applicable to common stockholders per diluted common share															$	22.37					$	7.00
Weighted-average number of diluted common shares outstanding (in 000's)															34,706						37,983

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Booking Holdings Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

						Three Months Ended March 31,
						2024						2023
OPERATING ACTIVITIES:
Net income						$	776					$	266
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization						137						120
Provision for expected credit losses and chargebacks						89						54
Deferred income tax benefit						(35)						(340)
Net losses on equity securities						16						133
Stock-based compensation expense						144						113
Operating lease amortization						40						41
Unrealized foreign currency transaction (gains) losses related to Euro-denominated debt						(167)						26
Changes in assets and liabilities:
Accounts receivable						(185)						158
Prepaid expenses and other current assets						(98)						118
Deferred merchant bookings and other current liabilities						2,123						2,038
Other						(136)						162
Net cash provided by operating activities						2,704						2,889
INVESTING ACTIVITIES:
Proceeds from sale and maturity of investments						218						1,683
Additions to property and equipment						(130)						(88)
Other investing activities						(19)						(9)
Net cash provided by investing activities						69						1,586
FINANCING ACTIVITIES:
Proceeds from the issuance of long-term debt						2,959						—
Payment on maturity of debt						—						(500)
Payments for repurchase of common stock						(1,856)						(2,150)
Dividends paid						(299)						—
Proceeds from exercise of stock options						6						105
Other financing activities						(26)						(17)
Net cash provided by (used in) financing activities						784						(2,562)
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents						(28)						8
Net increase in cash and cash equivalents and restricted cash and cash equivalents						3,529						1,921
Total cash and cash equivalents and restricted cash and cash equivalents, beginning of period						12,135						12,251
Total cash and cash equivalents and restricted cash and cash equivalents, end of period						$	15,664					$	14,172
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes						$	164					$	311
Cash paid during the period for interest						$	136					$	142

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Booking Holdings Inc.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(In millions, except share and per share data) (1)

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED EPS												Three Months Ended March 31,
																		2024						2023
			Net income															$	776					$	266
(a)			Accruals related to settlements of indirect tax matters															—						39
(b)			Net losses on equity securities															16						133
(c)			Foreign currency transaction (gains) losses on the remeasurement of certain Euro-denominated debt and accrued interest															(167)						26
(d)			Amortization of intangible assets															55						55
(e)			Interest received on refunded tax payments															—						(31)
(f)			Tax impact of Non-GAAP adjustments															27						(48)
			Adjusted Net income															$	708					$	440
			GAAP and Non-GAAP weighted-average number of diluted common shares outstanding (in 000's)															34,706						37,983
			Net income applicable to common stockholders per diluted common share (EPS)															$	22.37					$	7.00
			Adjusted Net income applicable to common stockholders per diluted common share (Adjusted EPS)															$	20.39					$	11.60

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA															Three Months Ended March 31,
																					2024						2023
			Net income																		$	776					$	266
(a)			Accruals related to settlements of indirect tax matters																		—						39
(g)			Depreciation and amortization																		137						120
(g)			Interest and dividend income																		(243)						(228)
(g)			Interest expense																		219						194
(b)			Net losses on equity securities																		16						133
(c)			Foreign currency transaction (gains) losses on the remeasurement of certain Euro-denominated debt and accrued interest																		(167)						26
(g)			Income tax expense																		161						37
			Adjusted EBITDA																		$	898					$	586
			Net income as a % of Total Revenues																		17.6		%				7.0		%
			Adjusted EBITDA as a % of Total Revenues																		20.3		%				15.5		%

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RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW															Three Months Ended March 31,
																					2024						2023
			Net cash provided by operating activities																		$	2,704					$	2,889
(h)			Additions to property and equipment																		(130)						(88)
			Free cash flow																		$	2,574					$	2,800
			Net cash provided by operating activities as a % of Total Revenues																		61.3		%				76.5		%
			Free cash flow as a % of Total Revenues																		58.3		%				74.1		%

(1) Amounts may not total due to rounding.

			Notes:
(a)			Accruals related to settlements of certain indirect tax matters are recorded in General and administrative expenses and excluded from Net income to calculate Adjusted Net income and Adjusted EBITDA.
(b)			Net losses on equity securities with readily determinable fair values are recorded in Other income (expense), net and excluded from Net income to calculate Adjusted Net income and Adjusted EBITDA.
(c)			Foreign currency transaction (gains) losses on the remeasurement of Euro-denominated debt and accrued interest that are not designated as hedging instruments for accounting purposes are recorded in Other income (expense), net and excluded from Net income to calculate Adjusted Net income and Adjusted EBITDA.
(d)			Amortization of intangible assets is recorded in Depreciation and amortization expenses and excluded from Net income to calculate Adjusted Net income.
(e)			Interest received on tax payments refunded pursuant to a settlement with authorities is recorded in Interest and dividend income and Income tax expense, as applicable, and excluded from Net income to calculate Adjusted Net income.
(f)			Reflects the tax impact of Non-GAAP adjustments above which are excluded from Net income to calculate Adjusted Net income.
(g)			Amounts are excluded from Net income to calculate Adjusted EBITDA.
(h)			Cash used for additions to property and equipment is included in the calculation of Free cash flow.
			For a more detailed discussion of the adjustments described above, please see the section in this press release under the heading "Non-GAAP Financial Measures" which provides definitions and information about the use of non-GAAP financial measures.

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Booking Holdings Inc.

Statistical Data

Units Sold in millions and Gross Bookings and Total Revenues in billions(1)

(Unaudited) 

Units Sold																																																																																				1Q22						2Q22						3Q22						4Q22						1Q23						2Q23						3Q23						4Q23						1Q24
Room Nights																																																																																				198						246						240						211						274						268						276						231						297
Year/Year Growth																																																																																				99.7		%				56.3		%				31.5		%				39.5		%				38.3		%				8.8		%				14.9		%				9.2		%				8.5		%
Rental Car Days																																																																																				15						16						16						14						19						20						20						15						21
Year/Year Growth																																																																																				53.0		%				22.4		%				24.9		%				27.6		%				22.7		%				24.0		%				20.0		%				10.7		%				10.7		%
Airline Tickets																																																																																				5						6						6						6						8						9						9						9						11
Year/Year Growth																																																																																				69.1		%				31.4		%				45.1		%				61.5		%				73.3		%				58.3		%				56.6		%				45.8		%				33.1		%
Gross Bookings(2)																																																																																				1Q22						2Q22						3Q22						4Q22						1Q23						2Q23						3Q23						4Q23						1Q24
Merchant																																																																																				$	11.0					$	15.1					$	14.5					$	13.3					$	19.9					$	21.1					$	22.3					$	18.4					$	25.8
Agency																																																																																				16.3						19.4						17.6						14.0						19.5						18.6						17.5						13.3						17.8
Total																																																																																				$	27.3					$	34.5					$	32.1					$	27.3					$	39.4					$	39.7					$	39.8					$	31.7					$	43.5
Gross Bookings Year/Year Growth (Decline)
Merchant																																																																																				240.6		%				126.5		%				64.6		%				85.9		%				81.0		%				39.9		%				53.5		%				38.7		%				29.3		%
Agency																																																																																				87.1		%				27.2		%				18.4		%				18.2		%				19.7		%				(4.5)		%				(0.4)		%				(5.3)		%				(8.9)		%
Total																																																																																				128.7		%				57.3		%				35.6		%				43.6		%				44.5		%				14.9		%				24.0		%				16.1		%				10.4		%
Constant-currency Basis(3)																																																																																				138		%				71		%				50		%				56		%				51		%				15		%				20		%				13		%				10		%
																																																																																				1Q22						2Q22						3Q22						4Q22						1Q23						2Q23						3Q23						4Q23						1Q24
Total Revenues																																																																																				$	2.7					$	4.3					$	6.1					$	4.0					$	3.8					$	5.5					$	7.3					$	4.8					$	4.4
Year/Year Growth																																																																																				136.3		%				98.7		%				29.4		%				35.8		%				40.2		%				27.2		%				21.3		%				18.1		%				16.9		%
Constant-currency Basis(3)																																																																																				144		%				114		%				44		%				47		%				46		%				27		%				16		%				15		%				17		%

 

(1)Amounts may not total due to rounding.

(2) Gross bookings is an operating and statistical metric that captures the total dollar value, generally inclusive of taxes and fees, of all travel services booked by our customers, net of cancellations.

(3) Year-over-year growth percentages for prior quarters presented on a constant currency basis have been recast to reflect the predominant transactional currency in each country.

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