Earnings call transcript Q2 2023

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Operator

Welcome to Booking Holdings Second Quarter 2023 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 guarantees of future performance and are not 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 earnings 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 release, new Holdings' obligation by future to undertakes undertake in as Investors of law, a and forward-looking any earnings an the required otherwise. result Unless or section available financial no Booking statements, information, Booking events supplement, A together Booking publicly of website, is Holdings' statistical For accompanying Holdings copy with press www.bookingholdings.com.

Booking Fogel afternoon, introduce gentlemen. for And Go ahead, like Holdings and Goulden. now, Glenn to this David speakers I'd

Glenn Fogel

year-over-year to to joined I'm Goulden. Thank robust which helped Holdings' you, this I that CFO, we travel quarterly results strong bookings room the was the in booked by we and quarter demand to million report grew am quarter in today. highest our ever. afternoon The increased welcome nights billion conference second XX% second continue David year-over-year $XX.X the second and are of quarter call. gross X% pleased leisure Booking gross bookings XXX announcing and by drive see the

to about expectations our an and which marketing of of environment. expectations. efficiency results growth QX meaningfully of expectations our as previous top Revenue growth line our helped in exceeded a the nicely our increase and ahead about last the quarter nights adjusted in versus in is room drive better-than-expected billion of XX%. combined favorable EBITDA came strong Both demand bookings year, QX gross $X.X QX prior The of XX% with result outperformed XX% also

about increased Looking estimate growth have reported room to to XXXX. comparison nights QX. in month the from night We for July year-over-year of July room benefiting growth XX% relative seen easier X% at by we July acceleration year-over-year an the we the

our Overall, strong strength of has half we benefited the of and see year continued the have first demand. travel the in to overall performance been very which resiliency pleased from

start solid all-time QX will his period summer the improved David be outlook comments. for believe in with will results the currently we what full new year Our high and to detail travel a discuss combined an year for in which

While encouraging are cost the while enterprise the simultaneously we investments for focused our and important grow near-term outlook means the what to which conscious. for remaining the term on remain and is making necessary business results long strengthen

important advancing travel are and seeing help Connected alternative across and term. into progress our These long our momentum over our initiatives several our relationships direct bookers. more building We strengthen with to integrating further include AI accommodations, technology vision, initiatives, business offerings, continuing Trip which grow will the

Starting and travel is with more vision partners. supplier enjoyable, Connected our easier, and Trip: value the our traveler experiencing a meaningfully personal, this long-term is to in will while customers to is Booking.com. make more a and better delivering booking utilize way future, discrete enhanced at introduce be we not some clear, instead experience point this To and for the to a booker this product

building this realize benefits our see state. will to move we us towards and to another you improvements future allows and long-term approach platform closer step enhancements that this that incremental us time importantly, to while Over are vision,

it greatly is to the fragmented, it travel complicated, current Trip vision and via eventually, travelers experience will be more improve and, that much technology. our Connected than believe should We frustrating

personalize more from the opportunities it Connected side partners provide offerings. Looking the benefit at the that merchandise other as will their travel marketplace, will and also to we supplier of believe our Trip greatly

progress the seen do, to our our build and customer out expect have pleased and with to supplier but Connected platform. much work vision with increased engagement result more so ultimately and it to have in continue we we far Trip We are

the both with incorporating with where extensively years. in our we investing into having have AI at as we well and experience using and envisioned are order interactions in of technology built positioned believe always our we history partners. we an travelers have gained platforms Connected given it valuable AI We Trip to is our from technology This its and for long Across teams optimize experts have a strong center. company, area AI AI

offering we the booking believe technology we be if deliver Trip experience: for applications AI many and responsive an of more booker’s Connected AI platforms, compelling to our to aspects can current that help a manage a different for differentiated on In to their A needs can that trips. we bookers leverage addition our personalized more and would build even more

Generative experience have important technology teams hard our our AI may in play role an been that work Connected delivering our and bookers, Trip to integrate exciting to this into at

early In delivered unveiled its which tools is assistant. example, for XXXX XX booking Summer Release, ways, Penny. new upgrades, over including generative and innovative Priceline travel in AI July, Penny offerings Priceline’s

“end-of-the-funnel” page Penny customer questions positioned where have Priceline’s they when checkout may at can page. answer checkout a currently the on that reached have Penny has on the built related Penny is Priceline the travel

power also and language technology capabilities. large leverages proprietary conversational model to own its and data, technology

rapidly the these chat ability The booking directly in to of interface. on for insights the allows is team Priceline like booker combination make gaining technologies The innovations a

began customers. to in Planner, the US Penny those enhance is to time Summer on further questions, concerns, mobile leveraging AI Release, over and Booking.com rolling behavior by plan time app as Around its to out the Genius interact learnings. Penny as customers. Priceline’s launched valuable same with the Trip The which continues own

create recommend a for day to the travelers the upon start processes. technology the Penny conversational partially every the people the existing large are AI accommodation of options language is discovery their that on trip where sits also AI planning millions learning experience planner to of trips. mall the top funnel, to to travelers trip machine platform for in the their contrast Booking.com's towards planning by of powered planner In processes and foundation models Built

and list recommended planner on including information interface chat The the AI options. Booking.com's properties AI providing live they're interested deep the advances From complete details reservation. accommodation destinations of can rich the travelers bookers to on tap with and trip trip planning any more pricing links the a by view of planner with visual in then

interface approach This to Accretive to and traveler own information a with data recommendations. the degenerative the provide to here leveraging and our our learning with provide allows recommendation our AI on real-time is property own models proprietary marry engine to conversational detail while technology. accurate machine us

valuable with beta interactions trip currently the the planner even relatively bookers Like rollout. the limited Priceline, in insights already is Booking.com team though is gaining still and from a is in

is excited to this are have technology. of at still days ultimately we interact Booking.com and we new Priceline course how and advances new more While it very with much will to want learn early by these customers about

mentioned to examine we plug-ins. taking that all Kayak last our we ensure advantage addition, areas with [ph] of In quarter of were AI will continue company Experian AI-created like [indiscernible] are to And we efficiencies.

from partners our data customers for capital. We financial in our are products and in many benefit and our confident experience our ability our connections our travel-related development and improve supply given to AI human AI years' our company's and to

of we customers equally with businesses, our travelers partners have our and important one our marketplace. each supply two our side Across representing

for alternative and and focus accommodation on their to our strive continues partners, our in be One valuable platform trusted area for us our supply developing supply Booking.com. the value to delivering look accommodation businesses. partner for all of our types partners to incremental a For products be support at and we by side features demand we add help offering to on

accommodation of our nights, XX% for mix all-time points is nights QX This Booking.com's hotel is total room high represented total room than Alternative a which two at the percentage category XX% faster year-over-year nights. quarter than new our second and about room higher grew of in traditional XXXX. about

momentum to about last terms U.S. pleased end million the quarter of alternative reaching both about is growth of of We accommodation the are year. $X which supply globally by X% the in higher QX in than continued listings global second and with see

build to progress We partners for supply particularly U.S. this in continuing the product by the to and travelers aim on improve our

of we leads loyalty. building over in In mobile directly year-over-year. our bookings on important very the us frequency, level time. loyalty, high we our that booking allows For result customers direct our increase increased platforms continue with opportunities increased which is of travelers, travelers in experience better an quarter, mix remain We platform to engage and more see traveler relationships believe will a a direct focused second app as it the spend directly on to and to

shift compared bookings than in our our the the six QX XX% were XXXX all-time about coming and an second mix from in mix apps. About which is quarter our of percentage room terms in of through acceleration mobile of higher booked in QX apps points high to nights

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

In summer record year conclusion, travel travel am season. encouraged what be a far signs the I this of and demand so expect strength we by to of

experience key alike. to a continue offering long-term. execute business on supply priorities position teams and customers well We Our which our delivering innovate focused partners and and strategic for travelers us our our well better remain against the our both our helps for

We are the ever and growth opportunities company. travel ahead the long-term of as in our as confident for

CFO, the turn now our will I call Goulden. over to David

David Goulden

well as indicated. review I'll the are unless our for full a for for QX our basis afternoon. year-over-year as good the and on Glenn thoughts rates you, All quarter results year. second Thank for XXXX growth and otherwise

the think XXXX, We to making will some we be where comparable in references these helpful. are periods

be release. to GAAP regarding Information, results found results can earnings of non-GAAP in reconciliation our

the the We the remarks will website, of earnings to Relations Holdings after post call. our Investor Booking prepared conclusion

second last growth year-over-year our to X% in a room QX in to a was We than travel a better it's on few second to have percentage year. quarter, results, in after blurred quarter our night due Omicron QX comparison again the points rebound were expectations. strong tough which pleased in Now

room the world year-over-year quarter, night to slightly. QX at that and was the up in strong Asia stronger due versus and It's was US of a region Rest remember couple to from XXXX digits. points QX down very XX%. than was Europe last QX was growth Omicron. US and was over our rebound low-double helpful Looking up the up of a by second

Compared global XXXX, was night room to QX. which with growth in QX XX% line was our

versus did our window grew booking major all QX similar Booking.com in further regions versus booking QX, also XXXX second than For QX. of XXXX. Booking.com rate at In expanded quarter, window a versus of XXXX. the The expanded the it

of in mentioned, percentage the represented about second points than nights quarter, the was higher Glenn of our quarter As which total room our XX% mobile XXXX. about apps six

second see quarter direct percentage the direct as increased through to We us XXXX. to of to The coming room the a second relative mix nights channel. our room nights increased an continue of the in our of quarter channel

onset XXXX saw For QX, time the of the in since of levels. our room first nights recover the pandemic, we mix international the to fully

the travel the Our in of parts second higher relaxation in quarter restrictions quarter the new of cancellation were recovery XXXX, second the many XXXX QX strong as benefited world than the following from bookings in rates of post-Omicron.

quarter levels. Our in rates below cancellation second continue XXXX to be the

accommodations tag night was our of combination For growth year-over-year it XXXX our about QX about XX% room XX% mix about alternative growth and alternative at XX%. QX night was XXXX, about room XX% was our recombination higher than in room Booking.com, which was the versus global

X% to increased points point on currency the bookings, partially due one in room of gross was six and due constant currency the flight bookings impact XX% FX gross from movements. percentage QX XX% increase higher basis. a accommodation XX% night constant ADRs negative also by increase couple to higher points The X% from bookings a or than offset year-over-year,

impacted a the currency room regional to negatively accommodation ADRs Asia by lower mix a mix room mix from US. nights constant Our and higher of were of due nights from

year-over-year. about points regional mix, were currency up constant Excluding ADRs nine percentage

booked trading could the ADRs in not of consumers down. the indicate we seen in that second a changes stay quarter, hotel the are star-rating have higher levels that mix of or change Despite being length in

watch to continue these dynamics closely. We

currency the by came in in booked up of were Flight second XX% driven quarter or our XX% tickets nicely on XX% second Booking.com’s Airline constant expansion about year-over-year, the about offering. of continued ahead Revenue expectations, for increasing a quarter basis. the year-over-year,

with a in was revenue bookings of about QX which line XXX percentage expectations. above year, points was gross as about last our basis

XXXX underlying Our with take line levels. in be rates accommodation to continue

efficiency of to Marketing increased gross variable paid expense year-over-year. expense in part of to ongoing our Performance about highly XX than increased improve QX percentage our ROIs channels as X% line, expense, mix higher in and XXXX our efforts direct to a was higher a marketing which of the due marketing points business. lower year-over-year due ROIs a is spend. Marketing bookings basis

paid basis than a was expected spend, the was being expected Relative was channels, into the as combined our expectation, more was about than to due as merchandising than recognized. well quarter QX the window to points primarily better in bookings gross in our which ROIs as in at better and last expectation. booking XX expanded which lower time of merchandising year, percentage merchandising our by Marketing will lower push which than periods is impacted future revenue we expense this

and percentage Sales QX, compared XX% bit other in with were in bookings of a as year, of our better XX Booking.com’s platform were XXXX. up points our gross payments than up about from QX expenses expectation. processed a bookings gross XX% last basis about About through

expectation to up aggregate which some into from impact later IT XX% in phasing lower was of including our due in year. quarter, the below expenses fixed IT more Our the spend year-over-year, in expenses were

manage continue expenses carefully. to fixed very We more our

Adjusted XX% efficiencies stronger topline, the was EBITDA lower the currency to well expected a and IT was expenses. marketing second $X.X quarter, basis. EBITDA in and the have was year-over-year, up than above billion our XX% and would merchandising, due constant expectation been which Adjusted in up on

points margins versus by adjusted Our percentage EBITDA increased XXXX. X about QX

Non-GAAP was EPS share, non-GAAP up the net $XX.XX billion which in of quarter per $X.X second year-over-year. income XX% of resulted in

billion count QX basis, second the XX% XXXX of was QX GAAP Our in a share average had quarter. X% On XXXX. net the income below $X.X and we below quarter in

our liquidity position. to Now cash on and

and the cash generated the million balance flow QX cash to XXXX $XX.X issuances quarter due debt in and the $X.X by we ending $XX.X second offset $X.X billion in in share up of ending billion billion Our was repurchases billion balance our investment completed versus of in of the the QX quarter. free $X.X of May

remain far shares, of count. our and beginning take down no The when In year, our the complete four the the to billion billion combined authorization from repurchases of the in we at of of year downturn we the share this environment. represented the which repurchases half our first discussed full years the repurchased X% of in $X.X to earlier comfortable we year. We assuming this so $XX share travel within started XXXX end billion our $XX with year program billion $XX major the ability from year

XX% we of our saw quarter Now night growth thoughts in from on X% third to for up the year-over-year room XXXX. In QX. about of July,

and we Looking mid major over World up across our up Asia regions, in of single-digits. mid-teens; July saw up US up about XX%; Europe rest the XX%;

with night When our US XX% similar at versus comparing XXXX. growth recovered July the region versus a XXXX range to in XX% QX. was in room growth most over The growth was

to growth growth Our up comments part harder prior double assumption night August assuming quarter and in third comparables be low September. for the the digits that made year room year-on-year moderation some in July will in due from

versus and of XXXX XXXX. third on the You'll September July in August that recall XXXX XX% quarter XXXX room X% and our in commentary was from night growth

due In the fewer to the rest addition, in first year bookings stays of in for booking will that we window but of expanded the QX, last-minute in expect be stayed QX. there half

positive continued points impact QX gross basis grow from due bookings nights seven faster movements. to expect few from points about and few of the We growth a a on bookings year-on-year a flight FX points to room

constant a line accommodation points couple with be expect pressure from QX the currency in in of We of mix. to regional including ADRs changes about XXXX

half this XX% slightly from impact revenue in to to positive part due timing QX of expect year the from and gross be bookings first a expanded due percentage above a to increased in year booking from payments. as We window the of revenue last around more

received be by We partially expect a flights of year. is we related of earlier to these increased will higher in which offset spend some the mix and merchandising bookings

We percentage bookings expect be gross QX expense year. as last of a marketing than to lower

QX of year. bookings than to We gross a expect percentage as combined and in slightly lower be marketing merchandising last

expenses be mix. about bookings bookings basis We percentage to year other a due expect points gross sales primarily of gross higher as and to higher QX last XX

to from fixed higher higher more QX, the in taxes indirect our and expenses in impact due expenses IT including expenses, personnel and expect G&A. year-over-year about related phasing to higher XX% We QX grow of

in and the more seven major changes a The expenses about growth between is includes points in The by XX% in growth expenses fixed our our from and year-over-year difference more FX mainly fixed percentage QX FX. XX% growth in driven one. in QX

expect we EBITDA around -- account, adjusted to year. be QX expect we XX% adjusted than into higher all last Taking

bookings are currently the over expectation from that XX%, We previous strong the year. we've to expect grow bookings commentary our teens for our for updating gross low of growth. seen, we slightly up full Given level

in expect mix. including a constant couple year full changes We pressure the up the currency mid-teens room of for combination night points ADRs of and slightly year, growth from regional were in

is a in from currently we year bookings gross the window. The XX our of from down expanded benefit this in rate basis booking basis year expected take by of full our rate increase. less driven percentage expectation including to due points We reduction and XX expect also by due higher revenue as points growth earlier year-over-year to about of previous timing a to increase

of our to Also, XXXX as currently in XXXX. earlier gross similar merchandising, to flights the to than We drove slightly mix it bookings from expected expect expectation for higher which be year. compared as stronger below a of previous marketing a performance, to percentage in be

to channels. fixed by XX% to grow in higher ROIs expectations which our XX%. pressure. from expense previous higher We as of tied FX personnel in our and of The some indirect the more additional start expenses paid year revenues expectation increase due are driven to to at components up around variable overperformance by expectation about primarily well the taxes primarily in versus driven our off as improvements generally is expectation expect is our the The currently

fixed to year our more to rate than We very expect more continue and next grow fixed expenses expenses this at our manage lower year. appreciably carefully an

We of adjusted continue versus percentage by to expand couple to margin expect points a XXXX. EBITDA our

with the results please In and to business We'll can year-to-date in our QX. into closing, are Q&A. now move moved we open pleased the you Adam, momentum we the lines? that

Operator

UBS. Your of Walmsley Instructions] comes with question Lloyd line from first [Operator the

Your line is open.

Lloyd Walmsley

Thanks. Great. if can. Two I

do Wondering color about you rolled with think Do First doing. are more you the travel at what how think change of on you guys brings space? that guys you guys strategically with search AI search trip new Google the some some for traffic in direct flows traffic, or out. and doing engines are when you the think like you that players thanks balance look this might planners what other how Gen have their like experience that

you're second Is making improve within that one be would great. there and marketing ROI Thanks. making to of improvements a give Any can you you then commentary or targets function mentioned marketing? ROI efforts efficiency. other just changes just higher And

Glenn Fogel

first talk don't marketing and why about about let one Lloyd, ROIs. I then and David take the AI I'll

while very and run. first it's nobody the answer, technology new long true knows to going play That's yet it's a answer, how one. how is out there's in an So the which that's easy generative AI

continue we partners it's us. we to internally to that what though travelers too see along and going know supply internally be to very to might can for how come everything do it's don't out, we to better we our experiment even helpful very with Two, know explore our to things do important

that that. will We we were for got the from will to do map. have experts couple a the certain benefit that a things example think to quickly that quickly engines we able changes. that road is changes things like I Google they're provides A came of of history am can as agile great technology and saw there for these but it like when mobile fairly good very be what be including adapt good they though kinds are is adapt nobody able out search knows. And company advantage adjust big from coming and and I doing companies Every out,

as new think same the AI type hopefully this I benefits technology that Generate comes will of out. we get

mention didn't mention But one all mentioned in companies, thing prepared remarks was, didn't I but the I the Agoda. I

to things all is Agoda can we more So some efficient in types type doing use good Gen very of terms systems. internally co-pilot of with code become AI how

things So phone Kaya. different how doing we're there bottom the having doing from that with doing see of line directions from from it I'm at Trip the really and AI ChatGPT different are table the open that. one. works. Doing of price playing tops way The we're all Booking.com's happy plug-ins how lots that that's Planner that

and able each to less from emphasis these able should more doesn't should all you put to where learn put what brands from being being we other, where different things do works, the what So work, emphasis.

don't will future capital us. may a that over have not how to think it plays advantage could about play of into to help put We'll are knows course, very, I -- And experts could scale if and us ROIs. the know that out. the this into other something for the I want David, market what how very talk basically the affect nobody an regulations to have you going many that exciting And everybody. that be companies is see

David Goulden

you, I question. will. Thank Sure. thanks for Lloyd the Yeah.

design recovery market. well. top that a our still to And So our lean year change to all, see clarify numbers in line you quite we're from in our let's travel a leading approach relative not in to is can first recovering market. in We're this of doing this through travel

optimization more our of components that going within we as in we've hasn't changed the it seeing look still spend will into and total year XXXX, a What ways be you're to all what little this of and where hand-in-hand that's comment. that in that investment lead-in is done for would kind merchandising not with higher say it than than marquee I happening. expected envelope, we optimize bit goes So was marketing

direct large at things looking we're for that marketing incrementality a return very spend. But to testing and or across channels like consistently

billion You spent quarter see we $X.X that about marketing. the on during

that money spectrum. large spending we're of amount across So it's that a

looking spend, channels of different ways different to always are approaches. and different at optimize kind We

our our leaning But context take effort the with really do it's the COVID. to to spend. more So to looking within the to market improve continues recover and efficiency as marketing again, in ongoing share of we're from still

Operator

of with next line question Mahaney comes Mark Evercore. Your from the

open. is line Your

Mark Mahaney

Okay. Two questions please.

think I you is any short First noticed rural the could stay, a of CFO I the monetization and when you're I'm the to urban. to that's Glenn, the bit on if versus going be you that but ask cost AI those think be little changes more AI mean, which side financial And a you could say over versus more more likely impacted could on time? do you from on And by suburban type be think the had demand? longer do more could of on in have wanted travel the application you question both, any specifics And to of AI, a which Gen and lot. you about more have Dave, then, efficiency perspective, or -- Thanks you business impact has have on AI Gen think side? be that if that's -- the sure

Glenn Fogel

smiling number want order to I'll I do do first to Hi, gave it. both. the you Mark, it say I'm and But in because two

the always I is how question up that a last signals because I'm is in smoke something and a changing. mentioned this about So looking for the -- lot call comes

something ratings, star that some what for things areas length what stay. people any now. Or may shifting yet. previously people those be always I of areas. sort right And to expensive at not are was a look that is always do for that see of or key travel, people And in I going terms seeing are the more of do cheaper looking happening. in signal of trading see early I that's lower that than And travel warning we're of some are down not

answer terms to things. the the mentioned question. if our guesses. we the the in knows dollars the putting sense give of are investment good of we us I interesting answer area our all question, most in the These them going best people into should where we it's of these But AI, And, just be the knew put have a a very first return. is of nobody things to In course,

at come to where work to where is back. it's to So want very put this see see put we the stage spread around what's to to see work, and return people bets the important and more coming to going money

been of our what's pushing has the what always DNA and see better One in better works other experiment, company of working than keep areas.

to doing of So for good And a experimentation. we we're really that's time going lot returns the best think where different I to sense some are. be on go have going before a

run, in first -- And going But you think to to benefits the give which I long question, correct not the ask everybody. things all of course, both things and mentioned how you're tremendous are if is to much? yet. that known

Mark Mahaney

Okay.

Operator

line the of Bank with next America. comes Post of from question Your Justin

is line open. Your

Justin Post

for strong very then from ROI bit you competitors? quarter you're in seeing spend. maybe a marketing I Obviously, little talk or to very take able crowded in question. hotels there? bookings And my taking a direct interesting for very thought at about marketing Thanks Asia, And are share Great. was what comment your some

can way you is traffic marketing your -- the direct talk more or spend, it how be about up? you are that's helping you with So getting judicious that

Glenn Fogel

So I'll question. I'll to the about let you give David speak into color second if more out Asia. any leave want marketing

nice Asia. the took to see obviously, a July That's Asia of Very the even great. So, that's accelerating year-over-year to second pleased dropped yes, later. time quarter recover And, nicer function see We're restrictions more with a to comp. and very like doing that. numbers

some getting we're benefit So out of that.

there more they're for not And time a confusion much in far and producing we're by significant an the of behind China way expect just in recovery there is in for us China don't some I time, significant recovery and outbound no terms outbound everybody probably. player

other people and when There happening of did going US, good in were similar right done way we to it's did there factors people wanted we doing them good. is same that for there. parts They're have travel. overall to job, of the Europe very it. lot results wanted are And world and a where a seeing the are So There the in a very sure They're out there. we're trial we we the making there.

into you And give to any David want question? that color marketing more if

David Goulden

Yes.

I Justin, going so think to I'm first fair my answer, it. of I gave color amount a in repeat not

You did some is makes on And using getting but mix of it That into spend across place helps increasing areas well. looking when as do yes commented direct about so. I efficiency at direct as obviously helped earlier. pockets to our talked this of our from ask as we're total continues about looking we also just marketing the the and

Justin Post

Great. Thank you.

Operator

comes the line of next Kevin Kopelman Cowen. Your with TD question from

line is open. Your

Kevin Kopelman

Great. Thanks vacation efforts the you. rental progress lot. in on us that Could an where you at just Thank a market on and you're America update give your initiative? North

Glenn Fogel

Kevin. Hi

to the more of focused So, which our we're way specifically X% is Booking.com on. call reduced are is to advance very then continuing pleased we that I the was growth area. But company I'm alternative globally we'll all US where -- America terms in we number. think XX% the less about talked define the while overall we that faster XX% the about it for We the overall a talk accommodations North area are being that

for things day you are things And talked great. on and to for improve many grind many, times say, is what supply need and had need so we're doing I'm not that We we are that as doing Booking.com, we space called they overnight. about are focus we know seen awareness platform. time many, I'm I make all importance and homes, something for improve that last okay, we is of bring too manage but their out got we index. in by willing then different the and we're to This about sure making know that's [indiscernible] properties people thing saw then improving us. to. said last have you That's certain you're on to day, an the the that in again side both to that's the times About things doing the is talked in I got have areas me. We've the apartments, areas you those that area We on talked We list things now. This it about I that not probably. call, seeing many is up own the people product. we people to be will who people that we're And the do being to know other glad and it last side sorry, it the we're doing sure and time step-by-step our who this progress. under a we're properties

we thing progress the not are road. to good Yes? for is But So, that's No, close yet. there we're upside even down us there? the all and making the

I away as keep good invest to continue to on area. we're and plugging continue it we returns at in going the So think experience to we'll

Kevin Kopelman

Great. Thank you.

Operator

Your next with question of the comes Doug Anmuth from line JPMorgan.

Your line is open.

Doug Anmuth

in happening growth just to that's impact about you do apps. in Thanks big the through you're better users? for the biggest you quarter? the seeing share the Can taking of loyalty outsized app switching frequency an in talk your then impacts room of terms XX% mobile connected you And and can Anything among booked of of think those nights questions. the of And trip? how terms where

Glenn Fogel

actually I'm So sure what doesn't. that or David does I'll one area of the leave reveal in wants second he not to specifics. if

trip the that. of on a things couple Regarding connected

that our right are numbers at we're doing material show showing off just that, of that. start the let's and start to now. too small So trip trip The we're now connected producing Connect what a right it's not not right -- numbers increases because good is the in

-- building place. it orange until in we're in piece is every Imagine

Right You're the arch. arch. a build from in this advantage of now not getting lot

parts the see effect. up big you are showing that but not So

which example for and element build you product, we're number. – about happy out get that attractions, like have to really like have things year-over-year doing XX% we're producing other part a It shows that's a And areas then that's So the that tickets good the right product. I mean one things a like good flight we'll is greater in have the gets sure really is the flights course, to then payments. the And of glue out. growth we that going. like airport things Building of and an win from benefits your they'll that. to to working hotel thing to all give enable to you correctly. give whole that suppliers both the have our opportunity to airport from make types That's the And benefits to the the We're those able value important very or home traveler things to to so flight deal.

happy they're and from in number things do really and payments growth the up great to there we see last that to XX% we're year. are need These progress making

is on in are good So worked producing elements all being the QX. that these not returns what's very but

says, That's me. that encouraging side potential the we road. the at all down future have flip The look really to

this So if terms repeat? app progress it the I'm And QX's with be happy about I'm that's misthought where to numbers. anything the mobile we're I talk David very you there but should glad is know produced making thing that not in we don't of want are.

David Goulden

Yes. Thank you.

So ask to going Doug, question? you're the

Doug Anmuth

No, go ahead.

David Goulden

in usage of a in an channel on directly. of is what's are get us when So differences mentioned, in terms a too the in frequency happening can a very that's to our you to think mobile interact position into we app. to to increasing with loyalty app and come ways relative in direct frequency can those come become now and loyalty. with sickest direct three and is and strictly channel But loyalty of those us frequency today and is of They and best – directly through desktop about the three of There terms definitely high And They the the think is surprisingly, not you it the terms has thing. come which as a can people on out a not of device app obviously is good device. but we're a why percentage your of app.

Glenn Fogel

traveling in to other connected looking we past the down of of one much other stuff potential pocket. traveling And this importance parts the I'm in sorts real have all Well that then to travel want that going to have better is I advice, your opportunities the the that. down one add road things is of and this because things ones to is There's all want deals have the pocket. really believe in important in that travel along some get top road. Doug app the a to you're is your agent of with the is you the throw you for all one that's that thing important when AI It's trip. are agent of and Doug, the the the phone, the on Gen your people they're they experience had than what And

Doug Anmuth

Thank you, Glenn and David.

Operator

Horowitz line comes of Lee next Your question Deutsche Bank. from with the

open. is line Your

Lee Horowitz

thanks. Great,

mix commentary direct towards walk a direct the then booking us secondly, quarter-on-quarter? I and XXXX margins in you guys Your take helpful. to actually business help Thanks improvement doing are remain we so guess And into where and lower-margin you forward? replicated much. impressive. can time unpack over run levels? mix any be would improvement growth your back allow direct offset should there on Something we Just mix being are drove specific how in getting margins quarter? the you may drove that over terms for point of to acceleration direct time that starters fully in that thus going And that what mix towards your

Glenn Fogel

I'm making election. do greatest wrong improving customer to or margins in service direct big them thing going other that providing great mix. with the seems people talk I've That's I we it's I'll but that just we're the believe because going is I'll used back The go let a it for helps. are some something about easier most to I to do like and talk it prices. retail retailers, online wants talk goes I Lee. product. continue some come not to the We're use about to general Hi, fix use quarter-after-quarter And it not the best and reason it use. giving he David may do whether it. need list they I be decide new better. because it. to why select selection, We're And reason there we're I because to the ones cash. our where to the

with And incrementally in I what the believe that's people out the here. reason, a better to as direct that brand. customers why we And a when building is end, what they product, come are building the loyal that's wins slowly interest mix. people we're believe, in trust That's back are

that you add direct you what our where terms to in that? not can margins, to thing profile. the what sure add come I'm to also of profile, think in I that's margin anything may if biggest the want for EBITDA David, me. you people to margin do run about talk and And want long

David Goulden

were were have payments when we not we're business. in having really in where of margins, we've business. significant to we from Lee, lower margin they we're mix business we within accommodations obviously than back moving is businesses way a large XXXX. to before, our helpful had mentioned very we're where next in improve continue Yes. for trying walk little about XXXX, And price but a that kind them go a we bit believe We of the can And the they talking that business, here towards course, XXXX, are we core direct business. all life businesses to is all have that

direct mix do it it's talked from of offset the expect but are the some So, to that margins obviously, of walk we've back us pressure XXXX. gains, to we business. can what where we That's lead our have in can about the to one improvement now. But continued don't believe factors not

Lee Horowitz

you. Helpful. Thank

Operator

comes Eric from the Sachs. Your line with Sheridan of Goldman question next

open. is line Your

Eric Sheridan

goals out that trip. for supply, do connected any year? for experiences comments. about Thank called against and factor investment diversify elements so you're how the feeling to of Would build growth, in those you about you against XXXX, taking your get respect Thanks your growth how looking much more beyond questions. love elements to long-term next earlier the update so with shared in much. Maybe broader into accommodations And to out of continuing local and/or out as supply

Glenn Fogel

Hi, Eric.

is important out important thing alternative to in the we've always how thing priorities. supply the mentioned build terms it continue of and accommodations, our there. to important the is So numerous -- What's times, most

to have a have talked the of have talked listing to number the the in US, about large -- yet the We come though, accommodations, that's the you top we that right true. right right type in important. That's in locations. have done times very And they listings, the will priority. not many something it's getting places, That's buy. so in you and past, right of I've we

an in as not and attractions, you it's we're of getting now, critical time, best things, giving important important the down sure return. the energy, us is a priority, combination. high When as the like not it's they're place to money effort most one as ultra making ship something right but spending That's the

We attractions, from have third-party connections. good

key the We ones. have

accommodations out next the And it will that someday, I types the be on along this have for right have and the platform. right important we're make to number to and further going buck, year, we for bigger bang year which now, build But want to sure our for sure is that. being of alternative right the

Eric Sheridan

Thank clear. Super you.

Operator

from comes Jed question of line the next Oppenheimer. Your with Kelly

Your line is open.

Jed Kelly

Great. my Hi. questions. for taking Thanks

going Just business. US to back the

your about does capture US. that that that's including highlighted competitors? over talk does number traveling is your in how relative of Europe, amount the And Americans that trending to the mid-single-digit or road you European in to Can growth You lights?

Glenn Fogel

not I'm I'll mean sure to you competitors about Yeah. us I let you versus David, talk terms in or go of both those. on want what not.

David Goulden

Yes.

clarify. me Let

a about all, a basis. when geography talking on we're book about we these basis regions of on First talk

June, that got really small So one including we in growth when April decline in saw back the being just was declared yes, to actually, made relate moving well. the in by back really you we in And May. April the getting in to why that May particularly growth strong was overseas, as rebound year. and those old those very Glenn we're it And we're time last growth were is July the we mentioned player a the then travelers the to QX. seeing that which By months growth. a comparisons after does Omicron We capture mid-single-digit to bookings in are reasons U.S. U.S. of

there. little a got funky on we bit comparison So a of

to points. for single just would we that market, We're in the in versus any doing in We we're the a see of significantly we against can kind look on data how basis pans doing us marketplace. XXXX. at compared closer think I out relative year of well early the perhaps call point longer-term mentioned positive market how out. over kind to U.S. July that when to up growth quarter. a Market XXXX not you at well look So XX. to maybe the to It's market XX% the too is I like of ahead breakeven slightly any

a relative So to to we have as period we'll ends. doing tend and and time of the in better at look we're on longer the how it view U.S. the over exactly, year as develops the the market year

our with As programs mentioned, we're pleased of Glenn there. many

marketplace. of U.S. to to upside us push We continue into also the more lot there's a know for

Glenn Fogel

you. Thank

Operator

next the Alex Your Redburn. from with comes line question of Brignall

Your line is open.

Alex Brignall

must year-on-year. I are up X.X% divided the on have the big Thank by have Obviously, you. growth guys. the taken one only question. year revenue change full just a being guidance. Glen Hi,

see you has forward bookings just on and on the the you also EBITDA. So brings that some talk presumably year? could the how next about impact margin marketing little map has Obviously forward dynamic the pulling therefore trajectory no longer-term impact and forward? you will that it can a about bit talk on But XXXX going

David Goulden

me let take Alex Yes, that.

mean bit are I causing were business. the things both call what rates from to guidance as a our number factors where little I out of of called that take take in good And two before. to yes, we there are kind remarks happening actually, us So to the call within the down prepared you

means is first be timing this and compared all this is get business the not to booking steel we year. on the which from gate that recovery thought has where growing that the we'd faster going window the to benefit So year we're

will that of recovery Some into year. delayed next be timing

back well of positive expect putting as we that year. flight a as we is out as piece to more transactions. connected a fact with and get across pressure But customers capabilities more building will Glenn growing faster thing as on the work next that get positive opportunities than that's because good that of bit The a reduction are So said, should back also little margin. we is our

one would will recovery, the now two of we So back main more the we thought will timing are those happen which dynamics, year over which this of terms happen two years. in get likely

Alex Brignall

really That's helpful David. you. Okay. Thank

below which your As things a the revenue come is the changed that's some line dollars marketing obviously above of turned revenue line. into have the follow-up, one merchandising that of dollars,

really think why model. is divided seems dilute terms like meaningful so were revenue that gross in that accommodation flights and things profitability increase not not payments of we return sort If is to by business EBITDA mix. bigger outside line core and there reason of very bookings, very, your it any hard And that or should see direct of of if the you to business pre-COVID the a of improvement to all if businesses

EBITDA So bookings is if in be divided I that COVID. gross just think it should than was before reason there accommodation why future by less profitable the any

David Goulden

bigger of pressures in do the Asia help revenue different obviously the we seeing like become because the obviously bigger. but some line. way contra accommodation margins looking That's slightly a diet The mix of overcome business. the of obviously seems at becomes merchandising Obviously, impacting revenue EBITDA slightly will you're it than alternatives right

core flights the that impact in model a business the rough particularly terms major factor XXXX-ish when in accommodations on which think in the of talked were back newer mix will can we've become will to payments for and of large businesses driven quite the by some neither the overall EBITDA business then XXXX. the margins business, I region it be long-term the So of in and the get where was assume about

stick What more, further a think that have is and to say I on long-term the I which would and than XXXX your to will for I I we've I model. to will drive the that is very think the and in line important step growing we're that faster is think about And and very line overall help we've that the what point bottom we the made thinking XXXX. the committed did top convinced back bottom to is larger as line business overall line that is our compared top commitment it

Alex Brignall

of crucial the guess I to to incremental businesses it's as business. So core additional your think

David Goulden

our look yes. model That's out the building the think to about future last EBITDA, way to at

Alex Brignall

much. very you Thank

Operator

Your Ron Josey next question of from comes with the Citigroup. line

line Your open. is

Ron Josey

trip for per question. increase we all trips year to the helpful Glenn, Great. Thanks that gaining I customer. customer. see a of you. taking this And goals ago, launch, talked see as share well increases just of the and maybe of hear rise, And AI planners as quarter. to back go everything to Any wanted the stats you us spend bookings updated talk we the bookings about progress Thank there? to growing annual take really connected annual about per spend just direct share

Glenn Fogel

So Ron, let question. me try, understand the

spend customer is saying that, You're annual the per right?

Ron Josey

Yes. So of percentage share travel spend.

getting or something. we ago think like I a about year XX% talked

Glenn Fogel

right. Yes

use this, don't they always about I'm So clearly us. happy is part of the our issue customers, that

for brand that other out thing we a domestic we example not bit building that. of they we're Sometimes competitor. And one. Part use is there's like. having which more that unfortunately that a internationally go by That's as for And talked that product want. will they see about. is thing, see than the -- post on it little We this a things they I'd go one and

somebody to to The us travel for come for come any key thinks that that will that to develop really the us is will loyalty us. reason they thing that

the them what with with the connected part anyone is it course learn payment, than Bring So permission all else. the bring it trip. about and of -- we customer more developing together of their with this all want providing with more may they then together the

all back So for us to they will this. come always

What out. not. we be that course do the making still we could these so alternative this have in have believe we those accommodations he the see all believe finish some we'll Things like we have the actually of of in could But one. people it end all end long enough hope that And building of continue off can get I it to I wants to I substantially that to we in improve though sure from areas customers as the we're that run. time

don't about ways I don't They use for use that card. to It's payment Many like we don't around that that them do. They many it comfortable other I product want traveler we using sure got sure to to Make other the they space. on can And That's payment how with we making And that. system it. have they on They use now. use Visa to pay. world customer be can know think want go Mastercard. the high things. right talked be? I'm I things going to a [indiscernible] payment substantially we've guess we us. they have better so and just that than do could and not need at what are on

Ron Josey

Glenn. you, Thank

Operator

from comes question next Wedbush. Devitt of with line Your Scott the

is line open. Your

Scott Devitt

Thanks for I two my taking had please. questions.

the that in of I elevated love And discussion on may in September your been wondering relative but August, market Glenn just the and talk that first? the travel the program I'm comps. thoughts lot to one, months you're of you're there's shift current related competing loyalty be in first travel saying of There's now wondering because you I'd month was can travel about shoulder April, remote then don't prices. just secondly you now anything just market? And shoulder your of how new When programs offering a it Thank around necessarily to month you. Genius? to perspective of I guys on terms I May, hear what thinking The in a see to hear terms in speak trends. work in

Glenn Fogel

Sure.

to a to be world There's boy areas and easy. have is that's shoulder at a year when now and a yes, easy be all. how And So, circling the life are that comp area against. and Omicron like the things later it understand was and confusing it's some that's there was you And it hitting. -- right to then used not used to and peak

confusing. very it So very, gets

As the or opened it's up David last but in look they area was COVID they year out pointing had last could year. more something just actually something, much numbers in how that understandable

travel the Here's have normalized what I is. next ease hope a things understanding back year to turned seasonality of that more the thing.

idea they're also However, much that this there's a and come more. as and not traveling new to is offices in going thing of then, the people

to I cetera. that's a up see throughout to and week what make is. going So they're think using this Monday used why season, travel that a et they're these the to help which et end year that out. to more. can't able whole of or people shoulder Friday are more What perhaps in areas where but don't the where I That's use cetera evening any know. people -- doing are that change more weekends that. And we'll is, But traveling uncertainty using more time out for longer travel may more the spread find I be now out

So I'm not much. going to worry about it too

we we of that's run long the hope what products, about how near-term in going long in trends spend I'm of and the improve it. or years to have to to see And the is use of lots to sure is, globally. seasonality how signals not. we are the should try going be are couple going I'm we That's you lots in on what What do do continue not to win. guesses to way the next for in that. run marketing terms the the because of what much is we

I question forgot though. You it another had I believe

Scott Devitt

Yeah.

Just Genius the now in Genius on your thoughts product for the market? and computing

Glenn Fogel

there… So

Scott Devitt

… is There

Glenn Fogel

Yeah.

one came of to there that travel with So to that's nice All different joined different out way to And loyalty old plans it. for but is what me, with when we're if another enough actually plan. lots first are to comes company I new loyalty I we I'm a and all Genius. out look the American doing way actually our sure. now Airlines the things truth interesting for whatever on love beyond back

and think great even I it's do more a it. with pod to going we're

together us work. partner program that it what's our I making within along to both really any And is so is with to wonderful that type it actually that the for good good traveler, about sure really the of our of that that partners a that's with improving of incrementally of should done in something course good of benefit that's is we use way being give things customer loyalty doing One way think a job [indiscernible]. for we've

up how the need to that's We've Now to we three more can we've give tiers. it win good that give be so to gain for merchandise transaction. they something will that started enable out we're the that we're and to on actual continue and things to any where more going benefit to And improved more supplier talked and opportunity benefits it just do. from now about traveler

concern the don't really customers, for we to right lots to the road connected I both will opportunity we're too much important that down give benefits both to will on and give our worry more continue incremental more things about as travelers or executing the sides. the suppliers. us are things trip add is that sure of that's there the benefit doing making a develop else And -- what on somebody

Scott Devitt

Yeah. Thank you and congratulations.

Glenn Fogel

you. Thank

Operator

the I over will closing Glenn now back to turn remarks. Fogel, call for

Glenn Fogel

for everybody participating. thank like I'd Well, to

results We are very had. you pleased the very, with

thank to continue our on much, for our our good our of everybody's night. employees long-term and want the partners, appreciate company. Thank of shareholders. and to course We build I customers, vision course So dedicated we you support, the very as

Operator

all concludes for you that joining. gentlemen, and today's Ladies call. Thank

disconnect. now Goodbye. may You

Booking (BKNG) 3 Aug 232023 Q2 Earnings call transcript