BKNG - Earnings call transcript Q2 2022

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Operator

Good afternoon, everyone and welcome to Booking Holdings’ Second Quarter 2022 Conference Call. Booking Holdings would like to remind everyone that this call may contain forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guaranteed of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from those expressed, implied or forecasted in any such forward-looking statements. Expressions of future goals or expectations and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements.

Safe factors materially cause the earning from please and to of results Holdings’ forward-looking Commission. press list the Exchange filings refer differ at with as to those the most release a as that Booking Booking Booking could actual statements, end well For of statements Holdings’ Holdings’ recent Harbor described Securities in the of whether new obligation by future to undertakes update as law, a forward-looking any required otherwise. result Unless or no statements, information, events Booking publicly Holdings statistical A website, release, copy Investors of together with Booking Holdings’ is Holdings’ www.bookingholdings.com. earnings an press accompanying available financial supplement, Booking For the in section of and Booking now, speakers afternoon, for would this to And I introduce Holdings’ Mr. like Fogel, Glenn Mr. and CEO David Goulden, CFO. Go ahead, gentlemen.

Glenn Fogel

second this am am QX with call. company’s we pre-pandemic levels. Holdings’ first Thank we room quarter announce conference afternoon surpassed quarter our XXXX for in our I Goulden. you another joined and pleased David to reached recovery nights CFO, that I to in by have the welcome milestone being which Booking

significant decline booked in XX% so X.XX from the of shy which second room customers and XXX X% nights nights, just XXXX a an QX the billion increase million versus in represented of QX. quarter, Our improvement room

nights growth very XX% continue these metrics. gross on increase an bookings even a ever in highest for growth, currency We higher and see quarterly strong or our which company’s constant to Both XX% second in the gross ADR accommodation helped room our quarter amounts drive QX bookings were basis. in

improving pace currency room to growth versus the or X% back weeks of for of the month see on just gross XX% slightly comparable bookings growth bookings in half XXXX. moderated bookings night for While a over July about and in in XXXX, to constant growth gross with we the XX% versus the and basis continue room about nights growth

on gross the of for record our point this revenue books we believe of in summer the see through we than XXXX, a bookings is end period quarter, QX, For in the quarter. the which at revenue third the remainder higher result will largest seasonally which

of than about Looking same booking gross fourth and shorter this provide seeing. somewhat been rates Though And we at could solid towards it XXXX point QX the recent higher basis. The have bookings are XX% points. a quarter, these XXXX, impact will growth a that in in the we cancelable about how percentage note the the data see far. so FX trends remains at are which continue which into David bookings limits I will dollars percentage euro high year, Booking.com, our rest than by seeing to that will negatively visibility we on current of rate cautiously window for further optimistic change was XX on point develop. we are are rapidly, in details the this conditions on although

vision. the of cash and attracting industry to any strategic our continue balance navigate to it while to economic macroeconomic consumers’ of growth And consumer and Now, customers we that extremely am payments are position. sheet, of earnings, our key flow solid leading liquidity believe the about and around the predict we end uncertainty margins, of as With progress travel, our near-term to strong economic environment, questions we profile there our attractive desire the trip strength improving and in the connected difficult industry ever platform, accurately year term next is into longer the environment demand while long-term I partners confident near-term making free work our position this recognize high-quality uncertainty and on as is the through travel and year. competitive potential and strong priorities and well-positioned

who growth attracting terms in quarter, platform, as growth Booking.com made year as driven repeat returning to customers. unique very by over surpassed the well customers a previous in In not strong our second in customers our XXXX active of have levels at a customers booking

engagement our directly aim we to points one our higher trip program, of new the continue mix vision app out further several records of our monthly quarter continuing download terms second research strongest Booking.com’s globally and initiatives, booking its platforms benefits behavior on the other see reached than our over through customers OTA the mobile number downloaded build our more quarter, the in desktop ever. in level direct to room web. Consistent in customers through to and building users nights our apps In second our remains customers percentage including quarter platforms loyalty utilize third-party mix in our enhance according compared highest with of to on Our mobile connected app, with customer to about active like is to a driving to booked Genius and the firm. XX% repeat XXXX. QX of increase our first app. set direct mobile XX by which increasing or when We our the were app of

travelers said I as it as vision. of opportunities and center our ultimately, engage more the critical is trip to As allows directly before, platform app the we it a us connected with see

to seen build continue have our we experience app recent on the here. success the will to We efforts enhance

XXXX our our valuable QX. support Booking.com’s to XX% their room developing features For nights, representing strive total incremental in third partners, supply and nights and Alternative about the delivering partner to businesses. of demand to grew platform combination room accommodation by help about products on we versus types a and a in all Booking.com be

increasing additional improving global solution progress made the in quarter, first by coverage. and managers accommodation with adoption the for our launched In market. partners. continue the quarter, focus partners supply alternative enhanced our product U.S. second for alternative insurance on professional U.S. we with We an launched liability we In partner payment accommodation the globally have property our

believe strengthens in have more offering, add continued saw sequential and properties to we attract these largest alternative quarter rolling for option the our partners our expanding policy and started to increase second have which In platform. million we of Finally, features this quarter. alternative third the countries we alternative accommodation important onto since in out the the net option more our XXXX X.X initiatives partners damage Each the to listings accommodation Booking.com. now we properties second in efforts quarter, on accommodation and helps

so increase alternative far the year. growth further supply build half of by encouraged in are move second year we the we this that this aim the have through and we We seen on to accommodation as

made talk which priorities connected strategic Let of XX% payment Of me we in trip in of and now level the highest vision. Booking.com’s payments processed gross interrelated our about quarterly the were the our is quarter, ever. our have platform second through progress this, bookings

adopted to from continue of gross have properties payments that our QX increase by total XX% of bookings We our coming adoption partners, property with payments. over

this and bookings experience, services So, larger important hotels, Furthermore, a alternative attractions. more of connected both benefits accommodations, two-thirds across our means seamless travelers payments. and are about of for partners at that booking payment helps believe cars, supplier trip Booking.com’s are flights our we which platform that Booking.com’s vision. our properties and deliver frictionless elements payment-enabled payment believe the via being drive We processed

helpful achieve with I trip, to this connected to talk a to hoping think the vision. what it’s are On reminder we

will make while we more and result, connected and Our share booking and opportunities experiencing believe travel enjoyable over customers drive more the to in customer better our to value we trip to easier, personal loyalty. time a And vision provide strives our a and supplier delivering way engagement, partners. marketing for to as spend increase

increase destination to in than app driving finding the have our looking customers’ booked simple accommodation top engagement past. while looking are the that would solving and more right Booking.com as solving of be customers on a options proactively of A example additional just in suggesting for done platform to by we of a First, our seamlessly travelers travel be of problem attractions can our we something engagement problems and do. the for our

to our to incremental ground our might transportation providing future is business. a And price the from the supplier are discounted able high-value testing because in customer. the a example hotel for specific for is Another transportation we accommodation say that provide airport customer, discounted the be

the believe will can that trip by increase new the over direct encouraged higher we the opportunity In as to record of come our to making discovery the of customers’ engage addressing us through We drive source be of us our results time. our globally year, it our their level ability experience increase work summer process value, to customers’ second again more believe new building travel take our of only travel top of travel that the choose core book U.S. spend being even average. to offering foundation an or even with spend we on share deliver on in that share about believe and to increase a who their flight for Booking.com customers’ mix customer multiple flight us our Booking.com. and X And opportunity share elements are to conclusion, and options in offering of other their our improved am connected customers connected accommodations platform. now. and customers back needs app allows customers, to travel time. to by our place, there flight continues bookers. pre-pandemic, developing improve we annual gives with higher a a are potential a in easier represented in This quarter Even seeing we flight convenience spend. that to spend make suggest we of services customers one and with on We continue estimate with the onto through strong likelihood want Booking.com an including our of customers we trip, to we these spend quarter progress new Second, choice of on opportunities loyalty about over We our I critical flight of an to part basis. Flights This trip total by see bookers XX% vision direct the the we one early of and

Our Through teams areas, position. our connected building the to customers strengthening program, trip Genius the in app, competitive better this and believe offering work, payments and accommodation a progress we vision. are offering, our key making are alternative our towards long-term partners hard including for we working building at Booking.com several while our continue

the our macroeconomic over CFO, ever While turn ahead David environment, call near-term the in uncertainty I as the there as confident is long-term and growth now opportunities for we to will the around travel of are company. Goulden. our in

David Goulden

the third quarter review and Information in XXXX will results results can the regarding release. on so GAAP the Thank for are comparable our be color indicated. All I found seen earnings otherwise reconciliation our in in rates quarter. afternoon. trends some of good you, have period to Glenn provide second non-GAAP results relative growth far we XXXX to for and unless

Now, our first QX and the were call, from for nights XXXX. a nights April, with a room earnings on to second in off growth On a quarter. room was for Room our results May the how quarter XX XX% up quarter the discussed point March. we which XX%, month improvement versus started second improvement quarter point from of night we the XX our increase full of in

between we saw landed for April month. the resulting XX% June room move in room growth into strength in May, nights May. and night of we growth As XX% further

a helped over all about particularly all XX%. from QX in the Rest levels. high improvement regional was and was Mobile apps, Asia U.S. Europe most. XX% bookings, with quarter. room up was mid-teens, of regions total improving Europe in our on up room contributing about with was second QX QX the represents down world single-digits nights For by Asia The of our regions the The from nights up basis, were XX%. and in through

saw in mobile total channel with QX over over increasing second apps direct two-thirds the our versus first was to mix total line of cross-border the by and XXXX quarter. our room to we bookings of room the which be the room stay night QX improvement strong which below and mid and XXXX driven almost improvement room average XXXX. Our quarter In through second the our shorter which XX% in international nights an continued XXXX. room nights we room QX. drove mix nights about XX% overall an to an XXXX growth QX travel and were nights We us coming nights, of QX. window the to in QX was to was versus from The up see for QX continue in XXXX booking increase international in nights compared levels. these international to international of to QX room room in about improvements saw a very single-digits in QX, night rates in of were first And XX%, recovered our also pleased we than long-haul levels, growth have saw international. an from comparable were In Europe We The length bookings bookings see within quarter, encouraging international versus nights nights, these improvement of quarter, room levels on in also most from QX. room in of XXXX longer to domestic growth our cancellation continue QX.

booking levels of The quarter but the cancellation our recall XXXX remained shorter about versus expanded were window than booking XXXX. XXXX QX QX, across in closer QX, all will it major than second in You with In moved Booking.com regions. the to line was rates of window XXXX.

alternative Booking.com, higher accommodation QX Our in QX was XX%, a XX% line low mix our room and growth XXXX. versus nights accommodations night average. points relative of than about rate alternative room average. accommodations mix accommodations was of XXXX our with remains alternative Europe, global was of mix about than higher Within North alternative the percentage in global which XXXX to meaningfully continues and QX our to of of couple In QX the America, be global

$XX by gross XX% XXXX see QX gross billion The better versus bookings of basis. mix on a we QX or QX XXXX than encouraging region. However, XX% increased percentage XX% in that about did constant currency bookings from XX an increase from increase versus in in points ADRs was XX% due higher the flight to to XX% offset XX of improvement constant and accommodation booking movements. the – group room FX currency partially impact the night due few across percentage points increase growth a strong points also FX from negative

in most about X from especially destinations. currency from regional ADR high-demand, and all constant regions, mix increases accommodation accelerated by in and rate about being stay Europe of QX notably to ADRs indicate across hotel in points growth seen Europe. in higher have XX% due primarily are or QX we change mix changes in of XX% in America, rates consumers Our currency XX versus start the to rate down. not the percentage Despite Constant quarter, second XXXX a higher benefited percentage that levels North booked the could in ADRs our trading length points in leisure-oriented from that of

primarily We was were tickets XXXX will $X.X and XX% continue our which XXXX revenue expected by Booking.com’s up differences these closely. was driven than basis. second more Airline gross between revenue driven stronger XXXX, second XXXX, by base small to expectations gross bookings a expansion the watch versus Consolidated a QX XXX% booked the up XX% was basis points due below currency platform. and down in continued bookings bookings about about billion, than the up recognition percentage the a we in of in to Fly up quarter of QX. dynamics constant about on Revenue XX% as quarter for versus timing versus XXX

decreased Our in by which is gross points take highly is Marketing our XX% expectations, line XXXX QX rates basis underlying due Marketing travel accommodation ROIs higher versus of about about XXXX. environment. high-intent expected a a expense QX bookings than expense, as marketing QX were percentage item, in expense than versus mainly variable which with XXXX, to XX increased levels. better a

expenses and basis percentage platform our XX% were direct our third-party higher QX, due Sales merchant through XX than bookings XXXX, points, and points. versus XXXX. we QX XX% call a other up were costs. were of volume basis processed expenses from payments gross in up gross mix our XX% better a sales QX with of Booking.com’s QX bookings bookings XXXX about of XX up in was higher other than up of Compared slightly gross expectations as higher center little expected. to Additionally, a and

slower-than-expected If better Our Adjusted to more in billion in our up than versus IT $X.X aggregate fixed G&A and XXXX terms EBITDA due a in meaningfully expenses normalize which our in QX to were was would X% quarter, ramp-up than second better primarily is in QX were EBITDA the impact expectations. expenses. expectations, for our of second have we higher on negative the revenue quarter, than adjusted timing our been XXXX.

U.S. In impacting addition, EBITDA our the to in translation dollars. of FX changes negatively rates are the

versus were a in XX% if of Our about $XXX million line QX On in about EBITDA FX with XXXX. $X been income is which a and QX million higher we had operating income results basis, EPS XX% billion would down Non-GAAP QX. have income share, $XXX QX non-GAAP $XX net net of of in GAAP of XXXX.

Now, cash and on our position. liquidity to

balance cash cash working The investment by of deferred receivable. versus by accounts free included increase flow and $X.X $XX.X share increase our in ending our $X.X flow, ending current due increase free bookings in repurchases $XX.X billion merchant up QX from QX offset billion billion offset a in other liabilities, billion, Our our was partially driven cash the $X.X of in balance change in by benefit about in the partially to QX. billion of primarily capital

the have return pullback to and shareholders We continue our pace capital recently our increased of price. in more repurchase to the share given

another July, to billion In of in which million $X.X repurchase billion. QX, shares $X.X of $X over addition our the brings outstanding just $XXX about our year-to-date to in share repurchases authorization to we the our billion repurchased month of and

back when from our we Given we in our now complete repurchasing share repurchases, about pace January. will we authorization increased started believe years of in recent the X current

Juliet were Russia, from currency or Compared July July and X%, negative Belarus America showing In just X% strong bit second partly increased we fluctuated over Growth up occurred July, the Now in quarter. In comp by a were some regions versus in about and about in and change. help pressure. about ADR growth July, reached of constant with June, in XX% all the XXXX. were recent moderated of room rates third levels, impacts gross smallest remained gross in flights, offset bookings excluding nights the versus Ukraine. with for trends month half growth the up QX the on XX%. the room including XXXX July, in Europe FX up bookings North July that in commentary room night quarter level the restore in Ukraine. and Growth strength of environment, up third excluding the of night in U.S. QX, thinking remainder same continue the for continues July. Rest be low and was the in in digits we up up quarter about rest well XX%, as fourth Russia, for continued ADRs the our was was growth at price in and there mid-single bookings. single about do the to flight be saw Belarus assumes and world Asia XXXX. expect double-digits, down realized as to the When of and the all versus We was will we at growth XX%. digits, low volatility strength

expect to QX a it to the gross the in QX. less between XX% for due including booking fourth the growth in be quarter difference percentage few night We pressure and was points room of FX factors, level more the growth than

Booking.com it than booking in similar QX. about pressure to In bookings window overall in July, FX remained the by was gross expect strong XX% QX. We XXXX,

in opportunity some and bookings to of XX market with percentage commentary to prior be a to and XXXX about into consistent for lean us mix flights due as QX a about impact gross an basis from XXXX due of in revenue in merchandising, the FX lower recovering our QX to than the in rates. investments points travel expect increase We

to expect remain underlying We take our accommodation stable. rates

QX XXXX season. QX marketing during gross expense travel increasing of expect invest be as a peak expect and percentage we bookings the to capturing We will demand as slightly above in awareness

center bookings partnership QX as in it about be impact with XX was higher higher percentage expense sales call to Majorelle. the due and of gross gross We booking expect higher third-party including to basis QX costs, a points XXXX mix our other of and than

to fixed XXXX than tied The personnel-related year. QX higher revenue environment. meaningfully will to to about a We in aggregate expect G&A versus driven of year-on-year work which by expenses in about hybrid increased higher up last as sales XX% our taxes, and G&A more are dual expenses increase IT be with up as personnel both XX% well is QX due and return

saw we in We expenses similar QX slightly account, to this XXXX. expect above rate adjusted be EBITDA QX. we increase at Taking all expect year-over-year a IT QX would to into to what

that a period on bookings. for QX these still books cancelable window a of gross is QX bookings we XXXX euro higher points gross these We QX the Booking.com expectation I and lot QX, QX The At the with basis. of a our in a the was this will at our current they the percentage for a expectations time rates. XX% bookings what travel in is high could QX our over about impacted we would As for than about conditions but our QX, XX to recognize XX summer. into percentage Please in growth negatively rates, window dollar this booking happen that we it visibility versus booking there which points change than XXXX, note rates FX-neutral lower. EBITDA shorter shorter on higher exchange noted of at growth by beyond On comparison rapidly. Booking.com’s basis, expect of than will changes interest is the that know QX be FX expect XXXX were booking time. are for be XXXX in EBITDA trends limits on basis. amount The reported gross reduces period percentage are

XXXX. expect to maintaining margin higher year we in EBITDA we in be XXXX EBITDA the for few February still margin a and May, are provided commentary than full We and points

timing, If than year a points year. be our As the the our year. guidance a for higher EBITDA reminder, EBITDA timing margins expectations not full would mainly adjusted for it impacts few for the the of for were impact EBITDA margins and

we marketing saying We spend be flights revised marketing allocation expect for has higher the As was with and our now higher-than-anticipated same to merchandising. rates progressed, our bookings to expect This of our as year growth spend investments in it gross the the and mix now to along more impact, year between about as range. XXXX and merchandising, negative a the take some expect on FX be will we merchandising. mid means XX% of we’re in

underlying about in same accommodation we that strategic remain Our have We take conclusion, by priorities as on we July. seen and were In results XXXX. our – remain for our encouraged we’re the levels right XXXX. the rates sorry, above for approach by the our is XXXX QX and strong growth confident customer in continued XXXX acquisition focus

We will your Michelle? take questions. now

Operator

first comes Mark Mahaney ahead. Evercore. Thank from Your [Operator Please you, Instructions] question sir. of go

Mark Mahaney

increase what’s in you reasonable May two ask the do number? June doesn’t what please: secondly, then macro QX, was a room that seeing per Long-term, past, XX% way this could so the like If long-term, is? customer? on me And it – the from deceleration do Is of your is sound to and – XX%? one questions, it this you’re one spend And night, issues. near-term continuing then into just it annual Let how think to short-term. you that Glenn, share increase, best

So growth? to become environment? why So in a growth it of is – you. fade and that become in normal really is had is Thank room that’s Or just comps starting just more this what’s seeing starting travel that to now the night you’ve more deceleration that we’re material a your of interpretation issue? and recovery

Glenn Fogel

Thank And you, themes. question Mark. some actually has interrelated

When being the a say I able And April very, recovered bit spoke quarter time, a to month first have and we we full start let’s I’m we’ve going now am. we well. I were happy beyond how very with, little to done where about repeat So talked last that XXXX. were

are saying constant on travelers That’s making And cancellations strong some we on And repeat, there of to XX% strong. have recovery world the and it that pretty that people come how yes, crowds countries that we things. bookings, the we somewhat see but X And done basis. been hours difficult. We point I currency with hard is in moderation, some some airports. about about a airport, know We hear you As July there the around more out, travel, yet. very the been all yet still fully not is there. are know gross before inhibiting the know we and read these you it’s will

will things are have certainly now straight up a we is a are been that’s is ups but And the know because long talking and will don’t without Hard We lot know run. that can continue all is and tremendous is that what what is then why is something do a recovery linear our how run long hypothesize your believe is the in X war, have be. mill Russia, the travel fairly volatility There people as there understood, economic continue things would know and Belarus. steady So, will out, of This we David in about share But downs. some deceleration? we about is it line not They We the what increase. recovery. get get, can pandemic. of in see going idea certain that even believe this years. we the the more the last we still question future, that all what and say to and opportunity that. I we the And pointed in travel run going to Look, uncertainty up. to and to why increase there is short I that into first downs, about

we things the so our connected share and about. seeing talked I building And payments. we’re that us think I We we How trip. things customers it services our to. job gain Our our get out do about has customers of we’re products share talk their app get I share see do the more to that better. improved. about is continue of and lot doing. All about to a making improve all that? that talk get talk talk We we higher and current

Now we – look, average. the is individual should that the XX go? what what is talk Somebody ultimate this

so. certain, know of certainly are not it, yet. the our customers world, a less our some in that Some is what we I alternative were we’ve accommodations, the it mentioned kind I’m looking And And huge be want customers, customers for. getting some parts to in past of amount where of depends product on

We’re that better. that working make on to

I’m this we other for say, do That’s Booking.com So of get and better going share. sometimes stay. an type uncertain use competitor to customers type can this of stay, I’m use and going to more some area

So and x say, is the anything come continue say, and but absolutely to in that? going path, that and we’re the you to I’m want David, will growing we’re share, to my on run. to not long and to do goal percentage that I are we come back going add back right

David Goulden

No.

Mark Mahaney

Glenn. Thank you,

Operator

Your next comes from of of Justin Post Please question ahead. America. go Bank

Justin Post

like looks bookings-to-ad That’s from It ratio you. your spend XX.X% XX.X%. Thank about up Great. was in QX.

year does be about of that bit in Do better and And Thank company your those is to think repeating. to keep share Can you. for going merchandising? to gaining and that’s but spending getting it is think next getting be rates about customers the take the have customers? market shifting a share the you impacting like in U.S. maybe more think could little in some you’ll you there, explain just to confidence and this repeat So then trying nights merchandising strategy result second, looks room it rate. appear investing able you you how those you progress And why right

Glenn Fogel

Yes.

pointed to money dynamic. marketing because appropriate learning, our people the it your it believe I spend David last these make going type use in today clearly, merchandising to buy looking point the right what what back? and think trying performance we’re applies And actually, the best now best you’re return long now what now. the that of all obviously, bring to going how get at they of factored or that’s haven’t use to how back to to to And to machine back? money, science markets again, the spend return a dynamic. come doing we while, obviously, we’re of to looking, market that do markets we to All the of our our So out we’re And the run of get in our for cannot? again they terms into Are whether money use our that used our use is work best some a And going in the now is we is important but going and more them one is get and terms market part of sure that dollars, long-term decision they To Or point toward money go is Do that’s are right it? try part, or we’re euro direct correctly. be we not? we things in do are question come company. return. our And the leaning platform that we again, whatever, is to around are the get other when something company. coming is, they earlier the to the of the what of make by money? now. else best And for in the and to whether in we’re put calculations want pay factor it’s value any decide to right types which back actually way to from getting come they These word right the

Justin Post

thank follow-up, rates? seeing higher repeat repeat rates? higher And maybe you transition, are the know it’s you but early Great, you. I in are seeing a

Glenn Fogel

for that believe rates Well, comfortable we’re repeat are appropriate the and money we’re spending, with say the to How we spending about I’m we’re that? going how it.

Justin Post

Great. Great, thank you.

Operator

next comes ahead. Please of UBS. Lloyd Your Walmsley question from go

Lloyd Walmsley

Thanks.

the Thanks. guys a make Are payments that translation about So share? other past medium-term thinking expect nights for recognizing it? talked you of in FX ambition? XXXX services? you secondly, those kind to it there? profitability in harder than to about the roll were timing room what value-added can starting to you or out, balance update outlook any in Does then that merchandising, faster that? maybe but you the And there margin, process latest macro looking around is is the and I with And thought have What’s using guys with guess, still the grow doing what your of kind ‘XX. margin to turning is latest

David Goulden

Lloyd, Yes. of both me those. let take

our We growing about to get XXXX. our with back the upon be don’t with is, strategy, talked when So will level, gets fully that recovered expect marketplace, goal and to things more in forward back part which know growth product, we about out statement would our yet. case? still based view moving very payments, your XXXX, of whenever the at to more point we Glenn we trip, connected building question. a But is were stabilized and the we doing having fast is absolutely a time, second more your market that to That’s be that also that comprehensive a the when the much question gets than back that our to that in offering have

So is there. goal absolutely out that

is goal on when environment. line the be XXXX than the fully top recurrent Our line into normalized market we’re growing were to in bottom faster we a and

do that. that we believe can So we

pleased the terms the are we’re In continue on with be where making. of payments progress platform, we that we to

aggregate platform we We seeing expect in to returns platform very payments XXXX. to start our close to positive run the payments to expect year. this breakeven some And in

of core be of some Some through the scale. would bit that from just in more better will starting economics a of to come payments, in processing and introduce that

working later experimenting Those in own options FX currently two payment-oriented right pay now. now, we’re different the products our that offerings. with first for buy the currently out, are type rolling customers, of on currency-type markets paying experimenting we’re your Some solutions, we’re

We expect payments from position us and getting that platform things return next relative will to the some that a also roll positive it a in top out of of a in add will on XXXX into And move to XXXX. more little bit combination fully year.

Lloyd Walmsley

Okay, thank you.

Operator

Your ahead. next question comes from Kevin Kopelman of Cowen. go Please

Kevin Kopelman

lot. a Thanks Great.

that Just second allows you follow-up in into QX? has high-intent outperform to that a seeing in the of Can and the that then environment. QX question, trended quarter talked how I add you have dig that? And on the you Exactly ROIs marketing about there quick were into follow-up. kind

Glenn Fogel

he of – kind up. Did broke you guys

David Goulden

How part, does that I then out? into turn cut last No. missed the and you Kevin.

Kevin Kopelman

you Sorry, the dig so looked quarter second how into in you what and that and the the if quarter. drivers could into were the that high-intent environment has third how – described

David Goulden

you. Thank

take me that, Glenn, color. some Let add

in of a ROIs and It’s please get as in factor biggest single that. in spend. the quarter the single there multiplicity no to would our income that because that And we second leverage of some on than our environment things. kind see a high-intent expectation to statement. obviously led characterize It’s the better So is it marketing QX we line

the upon variables. many As you know, many, calculation ROI different of based is

the ones with made the cancellation versus strengthening difference positive ROIs. some and were the in rate helped of XXXX. we of what Some that lower saw also expecting a quarter, having stays second a We to length versus

just that booking meaningful still were season we And I’d is. of the factors be ones room the are of people a The It And state helped high we And is a third But biggest mean canceling. that a recovering. lot and the us. weren’t as market some as going of ADR to from trends intent. There point on part quarter, those had other always environment. three also impact environment. we of in travel what people, they volume point ROI a In overall by said, view. be as lot well. of to the certainly to That’s still expect out

going a mind be like and a see. linear. since of not to to opportunity line is like not quarter, number in bookers have which As Bear come they Glenn automatically the up still be last years they there’ll said, And their is an positively, what trend it’s couple certainly people But last back. we may to we platform. the of made attract booking, think for

existing customers to in the got we’ve some a travel peak is season. customers. So There opportunity the regain new win

of So still the in our said we would we do season. to as is plan the lean start at

for a marketing little we them total, than P&L a high year did and the expect, We we third our in on turn up quarter. of have both but still be little that on impactful pretty to in to full on leaning in will more, the the be been less merchandising

Kevin Kopelman

level in important, on as would mix? this about then is thinking at? quick And looking of how mix, And Great. that is it’s of gotten more the the as a should percentage follow-up you kind you’re you something merchandising a be disclosing? consider What the we – the

David Goulden

first part question. the Again, missed the I of

did as apologize. think I Glenn, I well.

Kevin Kopelman

Apologies.

Thanks. give it a big what are it And you the mix us you or could is would disclosing? you then become as something merchandising, of So, it’s more how in consider sense could be envisioning? –

David Goulden

selectively. Yes. Thank question, Obviously, merchandising. that the it’s you. use I got something we

will year something further a is Obviously, leaning are year will just – this we of it We into think it recovering like this marketplace, as we as grows. think marketing. about disclosure in something but that

in and quite may As things recovered, heavily. have lead not have to when we

So, we kind of also see this may fluctuate.

probably does is some flavor We rates. way of it upon flavor impacting this it’s give in give as it nothing how more but rate, you take And on have a bit have to an bit out. impact obviously you point at more it to a future to Yes, the broken not to in disclose the take time.

Glenn Fogel

believe up generally one it’s our of hot the do say we we types own incremental way and do things a value less feel something connected in for where a that for to and to at maximum a is in providing the getting talk marketing suppliers another thing in market remarks customers. they run, will value appropriate partners. be price. going I be of in in start our terms and when in be would offers can them When a feels opportunity we to one of I us for merchandise. sell we little opportunity to my everybody an able provide to supplier more to interesting, of providing scientific I their in very to all merchandise of if is mentioned really us prepared going are But particularly different turn analysis where trip, offer about general, that’s sorts And about platform their to important and will And what maximizing that them. of use values helpful

David Goulden

of customers, if trip. our the we through we elements just the buying the trip, incentives lot moment, And elements benefits mentioned, merchandises providing pricing other high-value of they or merchandise. Glenn are connected more gives as to activity, us of a accommodation but out that total the final, as ways at our to type more are looking build At

we how well. as of mix merchandise on the also So, change will time our side over

Kevin Kopelman

it. Appreciate

Operator

next question Stanley. Morgan go from of Brian ahead. comes Nowak Your Please

Brian Nowak

my taking guys. questions. for Good evening Thanks

to unique around U.S. adoption? there? Like some the follow-up talk Are Genius couple a numbers that so having you what an of about just company? this many and drivers of of growth the you maybe for just first U.S. to XX% on. know it, then or even second just Thanks. are you in the of is you rates outsized us I And on sort you numbers. the the driver? business I are the at sort are impact XX% talking the merchandising growth Can funnel about growth a growth guys and Is us Maybe and Pretty cross-border one. strong travel drivers seeing wanted that to about is across in one what So, July. talk said seeing key sort entire the disproportionate Is point. travel versus you of you two gave helpful intra-continental seeing the the U.S. of type are one, air

Glenn Fogel

Sure.

bit take first details give to one. one. on little sort let me you can the know in do he want So, that second talked second what and a of the David one, I

share felt something of some beginning good to very improve that. And do would be make a On we now I just one, in the we that that we to have for we the the the priority doing get years And under-indexed are U.S. that was we would. better a it several ago, is but U.S. are see said point We us now be more hard upon will I better That it. us for that product, first in to strategic should

the has We are well. mentioned, something just is very seeing I that that you and these kind happy rates that team executed that of growth am

spend different bullet, Now many tremendous there a what is can of And things the all share. different worked things some so can so silver to talking different call of yourself. lot higher through the about improve can It’s have been done that get it things. we is I all no number teams. of silver a by bullet. seen you – There this the people rest the of by And out is have we being

You see brand marketing. our

are in app. things we doing see of You terms the that

us being see terms out. in You of payments

terms assuming but do of come people needs travelers better the the we out say We done, continue suppliers, about alternative enough part not to more shape things really in What have day, relationships States starting areas want more be done a started can’t way, every fits is that’s been you can connected is about up to Booking.com and things work up through. and all And I but is blocking has something Not those achieving tackling in that. have is we what payments something in to the offer a to in doing myself glad see lot the can those have those is to states. to to I lot do the help results this It’s the And for that part, by and and There accommodations have and I so the next are. or repeat working the next with form. And that supply we any and together we we this part. come well, got all to space, so and know and been upon and to there. is trips. improve we enough obviously, Booking.com there. I better the it, that the in – And flights something that am that their us, biggest important

but done be going where are to is to we continue. an lots So, more area that there,

to we working on growth what is the far. hard I priorities, have of As people, am to to our we so one it’s be – the made that said, one here I And of see show it. the happy are things progress able

David Goulden

talk international vis-à-vis Thanks, that full was is look travel, numbers we Glenn. probably Brian, we growth come to International, first Yes. total about. have in the place on got yes, XXXX. that QX best saw the in the because quarter quarter travel to international

So, digit international mid-single was travel a in growth. QX, in total

better-than-average saw to of still were domestic quarter but was XXXX in within in travel within XX Asia, strong, it so travel in up down to – – almost mid-single Europe first levels. travel, was your still the was course, international international travel, Of to the strong, and international Obviously, we room growth within saw digits, growth very etcetera. And we the travel but was point, regional recovered aggregate aggregate. back nights And was still points. the long-haul return

I think an quarter. So, move it’s the through trends encouraging as we

most mentioned, I As travel overall the of that improvement. terms in improvement QX of to international from QX, drove

Brian Nowak

Thank you both.

Operator

next ahead. Anmuth JPMorgan. of comes from Your Doug Please question go

Doug Anmuth

sustainability market. And elaborate less can payments. Thanks little around how for then, as and little and you hot I taking things potentially more to David, thoughts think on a strength bit a just just I you a my questions. get your the just about said, in want bit of interesting? kind Glenn, ADR ask

dilutive kind of some of are how ‘XX. you in year, kind from said returns through talk think just working there breakeven to you I about margin Thanks. positive perspective? the initial you nature a this close Can

Glenn Fogel

I all huge. lower when happening that the is Obviously, a you couple what’s around about last we happened drop in different that you in not It the try talked than rates, usually too. the average-type occupancy very same the rooms everywhere. that fill here. it’s it’s interesting a that say, Asia, Yet, is margin to to line global would up with thoughts would in world, interesting, the ADR, differences But because had very ADRs. of look let’s ADR. bottom People have lower end time when industry, So, thing. up not travel about States, the In been in was those what’s almost Europe,

in yet these – not Are us that is change rates, down these going service know doing come future? going they to now are to at the have to been ADRs are come hoteliers question with good saying, at one. interesting are. going an if happen what’s Well, ADRs of And things down, the or to a we some does your back past. are still occupancy that’s come demand States, back point, for certainly rooms. the can’t now from see my see back for we going they historical going to You have what example, I continue all all drop, in how been look, in highs, even the And

we and flexibility have that that great. to So, there The high, knows printed, going I to That’s ADRs what’s cost. happening on in I and well is just doing seen It’s fill in trying doing have with am work do know better of everything. the as happen numbers the or we ourselves, when or are want when to better by going But labor higher nobody ADRs them. this you not future. I don’t is fill also is, which try we though, know, not some straight the need out to find And truth places. is are labor of to the role a because they of to to for We we that. really get help did people dropping And beds more the the better hard because than we demand, is make our depth to that’s the way and sure we that’s continue right. that suppliers them are industry worked at suppliers really And are to ADRs did think pandemic of to heads these them do. and we going we the demand, with the are in what coming them. the with most there putting price –

I tell in tell execute you can So, under scenario. to will either I you, happen what’s continue can’t well to going future. we the

David Goulden

than dilutive anything good to will future year to going and EPS The to profit the that And both margin We are less the story. businesses is because Doug, we they I incremental EBITDA payments, business incremental we going don’t have think they in contributors earlier revenue that significant are point EBITDA that’s some means be It profitable talked streams having going think without. than faster a not growing those And about flights dollar are I rates. are will result newer to that average in of current the view. the be I – new for have during to growth new. payments on fact that margin a from of would be be we business. for but the that’s think dollars will And faster growth, thing will a

So, I few in had the think we times nothing new. a it’s part hopefully conversation year the early of and a

thought We and into are progress the we payments able getting talked be XXXX. go making might we to into we position

I So, that view as encouraging.

Doug Anmuth

both. you, Thank Great.

Operator

question go Khan from Naved next Please comes Truist. Your of ahead.

Naved Khan

look room then it about get your trends from that? the a And the that is on XXXX, night how – is to impact you a on back U.S. Is maybe Glenn, XXXX, past, that heat do think year, any this much that. Thanks I in cancellations think think has Hi. should at you thoughts bookings. us I hurt heat flight growth, Yes. shared? there And factor have just we contribution or how the that I if wave waves the give lot. happened. just go July room? of And in just the

Glenn Fogel

can these I first first go question but not Again, it’s back is all answer in very how and big second and that very that numbers. So, one because I nice, working, to heard I want a are pleased with at well, one we again. the get driver that

be very overall part – of had doing. not Helping addition BXB time happy but too, of I We do the a our specificity, is It’s others I area. area. the am So we part the the very This – that David would work is how It build of long to doing guys, element. I helpful a it’s it’s great. out our BXB I not is are us and strategic with let sort before. that very will pleased. that part of in one one am good. – love nice. competitive say for our to partnership business business just business I

I there. on get…? am something will So, that’s want do you David, – that I to say and let

David Goulden

Sorry. a U.S. incremental the Fine. growth few of It’s points only in

Glenn Fogel

Yes.

can to? flight sure we you what go back question can, if Could say first you So, the I I am because said. you think I cancellations. not heard

Naved Khan

wave any the that from either July or Europe is really if impact give seeing in there Yes. about we flight the numbers, some cancellations It’s are color. heat just in us

Glenn Fogel

have I it Oh, now. got

Okay.

I – the to hot, these long somebody about talked in that. goes talk things, at the But looking run. as that yes, because what hypothesis, it people – and important to Air definitely And at talked say see it this be – the long Macassar, that. yes, we in actually the talking hypothesis. know in In And And travel won don’t trying one soon we about, lot there. strong we all doing And of say [ph] going played a and as definitely to to that we when beginning some it’s There at variability. achieving probably versus so There back So, because we past, am the not up certainly, see in we I people and the May it’s Force the a I have because that another mind, my are there about from was explain build want month. that out. run, I business? that ended Are went potential can’t calling bookings the are away down. in probably are them May so too. are tease in just run, continue There waited. factor is I people would many volatility not month of levels we And would have I and were much. played is there the there true. And am certainly pandemic for it’s that. right heats how to the that as me fact, I take change, we People going That’s they one things are January the long non-linearity is of to was. did cancellation and open want July well, down, look and

emphasize we has disappeared. at there is not like, you Everybody at you looking where as are mind nowhere look really but are that. travel it’s more guess back isn’t yet. forward a from can’t And whatever yourself, which recovery share near lot we did It’s When this they places you lot I a of is. totally lots living better and mentioned Asia, just again, recovery continues, they important XXXX more is recovery the pandemic recovery, it will I not China, is product, used countries not full in a the at where yet. on Asia. is at from pandemic in traveling places better come So to Look all, like Japan, is there done service the where of my to as help creating but In what’s to would all. like room in we that just executing, are a get we everybody a of

Naved Khan

you for Thank your Great. thoughts.

Operator

next from comes Wolfe Deepak Mathivanan go Please ahead. question Research. Your of

Unidentified Analyst

can booking This any hotels consumer Jack wanted accommodations my in taking alternative for Deepak. as guys between on sort to Halpert are Thanks. shifts question. your demand just things talk normalized is seeing Thanks you about a ask, you the of COVID? bit for I and from

Glenn Fogel

lot come not. And about or knows that’s formerly It’s to we have I a the mix we how is they improvement little That’s way previous alternative is seeing. this type we I or home places the Well, we and search to in are little to make pleased to now how will the accommodations talked business to mentioned actually because than of buy the what saw opportunity bit our in better couple points about think hotels. versus terms and we more site U.S. a of important have share better XXXX right share it an of accommodations want low one our still I percentage accommodation, talked we a the there. steady we We anybody of are calls, both think bit they that providing thinking the what way of we to though on we accommodations, and different we to at I yet there? choice both. are are is, see am a sure And lot of to a avail, question internal But and stay, and is services. or in know, but offer improving. emphasize I they going there know switch hotel – I by know we with advantage hotels this able right to It’s not uncertainty. I think where the they people that whatever be going pleased it is, from offering apartment is are is are offering to potential to they going and path. and more back they going terms done in a the that’s are travelers we different your a the higher us by types that a because people of why these had information mix general, don’t the think be look back

what’s So, going I happen back. I in going terms guess. people’s know behavior to of can don’t

they at people never I have that because enjoyed a to who I am going home think before, that continue look home. it. are offer that fine get we they to And with

What by that says, get okay as make of would products – it’s sure I have you of don’t here as you of. gave make what’s be me to I good things So, some anybody like and rid course, I all that, if nobody ever brand top home do, something else’s to happening. That’s want are our be that’s is yet.

Unidentified Analyst

it. Got much. so Thanks

Operator

next ahead. Horowitz of Please Bank. question Deutsche Lee comes from go Your

Lee Horowitz

relative are I how rates and on your Can think here? expectations pacing if hotel about the those for at And how on one you product Two, I could. your if costs, improve then to you attach questions. continuing all to comment Thanks for could. from air just

this the how into this Just a much. given of demand the you environment? you us cost do beyond kind sustainable directional normalized of have about costs year, commentary growth more on think Thanks level fixed so fixed for looking given year,

Glenn Fogel

we one. changed, will then of it’s to new same. what booking, the saying have are is David your of same percentage And the much And in bookers I I attaching that book I we I we said the the which what past and is the accommodation. in we do flight first pretty it we that for David, flight an book encouraging said see percentage the take an are because on them say Well, an will will first who the accommodation a are meaningful said, side? customers, let second past hasn’t And what one. a and

David Goulden

my On and current cost is in product tech And pressured etcetera, wage Yes. with and inflation and that folks, personnel. base our engineers. the inflation, the marketing side, people element obviously, has the fixed recent people, years, for technology in obviously particularly rates been

believe been We get to than growing we pressure moment, while. the obviously looking But short-term for right this can that’s grow that when our we under we from of to, leverage the So, time getting the line than faster situation we faster bottom little used are believe we to fixed in used start the at state are get share, we at costs. line top gaining we facing pressures. some post-COVID to we where back a that and steady

Lee Horowitz

you. Okay. Thank

Operator

to and closing now Mr. back the turn Ladies I will remarks. Glenn for conference Fogel gentlemen,

Glenn Fogel

you. thank Well,

our And on in We thank want last at customers, to dedicated partners, support after we night. continue are situation So, and difficult our shareholders. our we very as for you long-term and where company. our the to the are the Thank I everyone appreciate pleased greatly years, vision X.X employees build to our arrive good today. we

Operator

to and like disconnect Ladies your afternoon. lines. your to would gentlemen, thank ask call for their concludes and you this please participation this conference for everyone We

Booking (BKNG) 4 Aug 222022 Q2 Earnings call transcript