BKNG - Earnings call transcript Q4 2024

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Operator

Welcome to Booking Holdings' Fourth Quarter 2024 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 Legislation Reform Act of 1995.

These forward-looking statements are not guarantees 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 forward-looking statements.

goals facts similar forward-looking are future other reflected statements. expectations historical than intended or of expressions and something Expressions to identify

actual Commission. Holdings' statements, most the please For cause to Booking the from factors Holdings' of statements refer release described results in Securities as harbor Holdings' as Booking those forward-looking a with materially press to and recent the that in filings safe Exchange differ earnings list Booking could well

obligations no of undertakes update Holdings events Booking is law, by the Investors whether Booking result required any available or a or of For www.bookingholdings.com. statements release section new to forward-looking earnings copy Unless publicly future press of Holdings' in website, otherwise. Booking as A information, Holdings'

would Holdings' And Glenn ahead, like this afternoon, Steenbergen. Booking and gentlemen. to for introduce Fogel speakers Ewout Go now I

Glenn Fogel

quarter Welcome how Thank strong I to another this AI, CFO, about I'm XXth pleased will with generative transformative by a I report experience few in our travel to an be this fourth our I'm report the particularly even potential. a am force will making AI, long-term redefining we And industry incredible successful call. the had a on days, year It's Holdings' I the at century. more company, our excited mark of to joined plan. you. ever closing my strategic of people than world. are quarter time to more out afternoon to pleased XXXX, In we Steenbergen. Booking Ewout year. conference progress am finish a

technologies technology environment, generative is from than In innovation new pushing confident leveraging the dynamic been has and DNA and innovation, of with in and AI this am of we this further of the faster ever. to experience that the pace I start, proprietary to our partners and our given deploy our AI. legacy years positioned nature our well benefit business travelers resources, to of data, are technology Adapting global

I I'll speak quarter cover more about financial our the and first, from last year. AI highlights shortly. full the will briefly But opportunity the

quarter. drive the was Our our all digits in and growth in room across by XX% bookings and high regions, quarter revenue our end fourth grew improvement grew of nights both ranges. of the room growth growth major above guidance XX%, of stronger-than-expected end room year-over-year. XX% The high night expectations seen helped night growth the The double which quarter our fourth prior prior exceeded of each of gross

quarter by lower-than-expected higher $X.X Adjusted was XX% outperformance above prior guidance of our EBITDA of the revenue XX% range than the adjusted fixed billion and driven end fourth XXXX high and of OpEx.

in share the per earnings year-over-year. quarter grew adjusted Finally, XX%

achievements, trip of XXXX, growing accommodations the Looking our back of proud vision, am expanding full and at our advancing expanding innovating I and our connected Genius merchant loyalty AI offerings, alternative our program. enhancing capabilities, further year including our

for our the partners these areas and helping to results our strong while to allowed even drive all Our year. travelers to achievements value more in supplier financial deliver us

increasing faster increased XXXX results line For strong the growing $XX versus XX% $XXX billion, bottom and full while $X grew year-over-year. of our of XX% these top We year, of billion line billion gross achieved adjusted year-over-year. bookings XX% even EBITDA over revenue with

our versus XX% count average up helped year-over-year, full reduction share last the Finally, earnings adjusted per in year. year by X% share was

EPS EBITDA would and about currency adjusted I I our all gross point on the than basis, mentioned. growth year constant bookings, a rates note faster X revenue, percentage that grew reported full just

our targets at least annual these we to XXXX. constant gross constant grow currency our growth least revenue to to earnings to currency X%, that normalized grow a our bookings by in be to proud share exceeded I'm grow by ambition long-term XX%. at in continues least Our adjusted by environment say at constant currency X%. per travel And

At another year the growth for we year EPS. normalized the industry, for demand travel that long-term start and of rates growth revenue on of XXXX, assuming full travel for again globally, to are targeting growth see bookings, we our deliver constant continue healthy currency gross would ambition leisure adjusted

across coming Ewout our aspirations remarks. we our will positioned outlook Given returns experience deliver the the world, for for to growth to and and results, metrics and our remain his of the approach we that provide travel consumers quarter XXXX to details our capital of travel attractive years. confident long-term the are expectations importance fourth to in well key the further in in on the industry people believe

our At early of specific use offerings play to A/B testing AI-powered to more Booking We development the the trip in our agent AI to even driven connected compelling see meet online and one to seamless like early central evolved the of travelers. been believe of role delivering experience innovation and a will in of days and the a the the personalized travel and vertical have into bring always potential AI offering we large-scale first the and a apps smartphone consumer to by to elements of machine from a Internet agents be travelers together partners. connected the mobile Holdings, and other We business, models we sophisticated way of those that using travel agents have agents employers quickly more on learning platform. of truly working consistently as travel of needs with different adoption advent

assistant we'll company work integrate offerings, which opportunities into We Planner our AI with sophisticated travel generative across to includes Trip and are AI Booking.com's called Priceline, and the AI-powered continue our on focused already happy many highly the Penny. AI

being generative are In addition, see while own we're pleased platform, their Salesforce's Agoda and with advances. of Agentforce KAYAK its OpenTable work the to making done AI at use

longer attract technology advancements and we satisfy our life to we have ability this it attract technology, As customers our continue as our incorporate help well businesses. their our confident will travelers on that to and to grow as partners, who are enhance

productivity efficiency, In fixed Whether addition, potential further service, we would AI expense in to we where customer improvements other early partner XXXX. already seeing our efficient and plan areas which of are are build operational contribute has drive developer in we a some more growth to finding benefits of believe or this. we ways working, service, generative to the deceleration on to continue

developments. working of track with approach reflect are leading our I am confident excited this traffic. value also create economic ability the different AI area, our collaborations in consistent this record organizations their in And with field These our for are work commitment be this on all to to sources and in new our agentic of staying We long-standing forefront evolving customer landscape. at with developing to rapidly generative new with to participants

our through deliver unique rewards high-quality partners discover platforms. We be and some travel travelers models to benefits And offering working process. products, trusted that an we use to attractive expect other pricing, that loyalty value another customer payment will our the change believe of with way competitive easy and agentic bookers and way models and will and these us for service

us. bookings, evidenced our be critical is continue complexity, order our have by the in to customers, XXXX. choose to a was trust to travelers to mid-XXs expense importance deliver trusted it and Given and growing we build direct customers in as value continue bookings platform percentage room nights to I'm to see that which travel of of in with encouraged to BXC mix to the of make

positioned. want do I'm customers changes interact I learn how to this so of the now is to We benefits bringing about will will excited to us in continue more the future. and GenAI, all we forms expect even how and we are that with and technology like

on Now trip focusing vision. more our a bit connected

while more the a are planning, We saw and towards in growth year-over-year and steady to over delivering fourth these accelerate travel trip seamless travelers represented We making percentage transactions. our quarter. Booking.com's experience, progress total And supplier connected single-digit simplifying better of to partners. and value high transactions making connected transaction XX% personalized, booking enjoyable the

many component our book. connected important an trips the are of Flights in travelers that

For bookings had year-over-year platforms, our across billion. year, million booked the tickets increased almost gross $XX.X and XX full of XX% airline travelers value a our which

that to our particularly while the platforms these GenAI, coupled delivering supplier enable easier more bring provide and them for continue medium-sized sophisticated opportunities our believe businesses and vertical offering we to easy customers, more them. to not see capabilities who small- complete And technologies. to existing have us businesses, our learning new do making creating this and us booking to and for improve machine customers a We to planning will to access partners' value travel with our data

unlocking bookings total higher our at of mix gross which offering reached in our the at Booking.com. percentage of and expectations XX% is flexibility capabilities of the merchandise gross travelers bookings trip about an connected while verticals. component partners the of year-over-year, at across our XXXX, of increase foundational than points is X XXXX. ability offer vision The merchant expanding start merchant also to more for Merchant Another Booking.com

in see pleased this a that merchant margin believe supplier we EBITDA. adjusted are also to the XXXX. We our journey to offering small are of contributing years transactions while still for line. still reduce our to transactions our was though We Fintech percentage the processing total very early through and our upcoming over of expect and that bottom incremental in contribution cost generated dollars travelers Booking.com's partners

into at behavior. to this connect will we booking extend and program accommodations beyond of Genius We value travel loyalty, direct believe other promote this the customer also of Booking.com program loyalty believe program travel verticals. We frequency as helps elements our more delivers

which We And tiers of active X of in into travelers XXXX. percentage Genius are travelers booked room represent these our a our Levels higher encouraged over more travelers. mid-XXs our XX% of and see moving Booking.com's X, nights to of

higher having and direct booking of X and travelers. booking rest than Level Genius frequency These the rate our X a meaningfully travelers higher

growth We continue to Genius Genius and connected share trip seen all travelers with transactions book the connected XXXX, believe our choose to the receive in more drive have us. we that to to provide steady customers, to in value directly We of that leading of more frequently our elements and them benefits. benefits

that faster acquired grow channel room are the through encouraged to continues to direct booking see channels. than We paid marketing rights

we way experience. our booking choices deliver another in are actively is a great is alternative Providing for and we our supply And supply planning one expanding comprehensive area, travelers accommodations.

fourth our in growth XX% for the to growth in accommodations we continue of up Booking.com, listings more choices end at we accommodation to accommodations last from with see at alternative listings growth the night quarter, quarter. acceleration million, More XX% third which alternative strong of year-over-year QX, of travelers, an contributed year. means room X.X X% reaching which the For believe was about

We see travel accommodation to our were growth to platforms quarter our regions. trusted all independents. which delivering by on valuable businesses, incremental and designed across of in majority the support properties room are demand to of night remain alternative the all of a pleased We developing partner accommodations and success and products features these committed accelerated the small being to

to to including implement certain transformation Ewout In provide want details estate procurement and real systems, reduction, workforce commentary. I program, and announced seeking November savings. our XXXX, organizational his and changes, will processes briefly intention Now in modernizing we initiating discuss expected optimizing further our

process works representatives organizations. reductions reviewing workforce with other of these some We the are and potential of employee councils, in

critical with that drive While along involve areas, workforce operating areas improve these investing organizational to other believe we agility difficult and efficiencies. greater reductions very in some are decisions, steps in

line a drive across help will requirement resources initiatives growth to strategic stronger Ultimately, and global earnings disciplined our over Reallocating top the believe and we key more a manner long competitiveness. term. is durable this in maintain

In conclusion.

of while work and to are initiatives over our These better and back I teams for as our industry, position look delivering to financial advance deliver I they of execution exciting all even generative company's offering and travelers partners. times confident am our our As for continue an the in by results. strong leverage am ability AI technology proud and excellent XXXX, to I our hard strategic

I over Steenbergen. CFO, Ewout now turn our will the to call

Ewout Steenbergen

release. thoughts good rates non-GAAP on Glenn, results review first now our and year-over-year found XXXX. in basis. GAAP year results of provide earnings I afternoon. reconciliation be the All you, Information year full fourth for XXXX quarter and of Thank growth the and to regarding our a results for will can are quarter full the of our and

to We conclusion will be posting a as Booking remarks summary website as well after the presentation Holdings of prepared earnings earnings call. Investor Relations the the our

our let's results. year fourth and Now full move to quarter

guidance our with XX%, from grew quarter fourth Europe. coming end X higher-than-expected by room driven high the regions, by the performance growth in all which stronger-than-expected our nights the largest room exceeded across night percentage Our of impact The points. was

Looking region. the mid-teens. Europe was up World by at up our double Asia about U.S. quarter, digits, and fourth was up XX% room up In XX%. nights growth the about of low was was Rest

are are partners and trip We enhancing the and making our strategic progress to includes increasing the of we accommodations advance This alternative our as travel in mix encouraged continue program our connected our direct experience growing growth, by mobile our through we travelers the towards our for other bookings, build and offering initiatives loyalty strengthening expanding verticals. our and Genius app vision.

percentage Booking.com of overall X XX%, accelerated from The and quarter room For global our quarter alternative point business. accommodation to nights was to alternative at fourth Booking.com, night growth XXXX. our was of fourth accommodations which outpace at mix up XX% the the continue room

to on our increase travelers our continue with We relationships loyalty direct and platforms. strengthen our

full of was our the nights the an range the increased coming mix range, XX% the year us range was in BXC XXXX. year, year-over-year. full mix our direct total mid-XX% room and the direct exclude low in is the which from our improvement through mid-XX% For BXB business, in When to we channel

range of epics in our which was low up nights the quarter The the in mobile range, total XX% room fourth from XXXX. was mid-XX%

significant We mobile received of continue the apps direct through come the to channel. that from see our majority bookings

and travelers X nights loyalty mid-XX% genius in in year-over-year. of and Genius this of was in X range program, booked mix XXXX, tiers the our as Booking.com For mix increased higher the the by room

accelerated the our other at quarter. offerings by and XX%, about tickets quarter fourth airline booked In in fourth were quarter. growth flight driven million verticals, third travel growth XX% in our in was and continued the Booking.com our the ticket platforms XX the Agoda, across growth Airline the from of

flight on was gross bookings Fourth few constant XX% percentage due a year-over-year basis, a than Asia. higher and from higher XX% was of year-over-year from currency quarter nights about an accommodation to increased The which impacted about of points a constant ADRs ADR X the increased growth night points higher XX% and bookings percentage mix increase currency growth room room approximately increase in X%. by to

Excluding currency were regional quarter about versus of XXXX. up mix, X% constant ADRs the fourth

night in X to due offset accommodation high our The currency guidance end as of growth, flight gross growth stronger-than-expected point bookings impact increase well the as in ADRs exceeded and constant of by percentage by ticket from points percentage stronger-than-expected FX. room changes partially about X

in more in quarter was the timing window from than flight XX%. a of the Fourth bookings the of the of and The our driven by as end of timing gross year-over-year, higher fourth impacts was of quarter revenue extended currency was about booking points. high revenue billion as percentage to percentage Constant X guidance was in bookings grew XX% Revenue as acceleration XX.X% expected. due well a growth a mix impact $X.X lower bookings. expected quarter which by exceeded than

was a timing flight the fourth Revenue percentage bookings offset bookings, by revenues to and also quarter due impacts as of of increased increased lower of gross associated mix XXXX payments. with from an than partially

the expect the timing our revenue in fourth We from XXXX. benefit quarter in impact will

partially as ROIs. expense at gross better a variable XXXX, points mix higher of media was expense, fourth brand attractive expense social higher year-over-year. about expense spend the lower bookings by in XX X.X%, basis XX% and due percentage Marketing increased highly offset Marketing channels to marketing is a quarter line which incremental of direct than

which line and higher year as bookings by were higher expected to customer and offset lower with a than was expenses. mix efficiencies last up primarily were expenses a expenses gross expenses operating sales merchant of percentage quarter year-over-year, despite as better Fourth in fixed G&A in service. payment X.X%, other due IT Adjusted was X%

about managing high versus XXXX. per higher very the fixed in leverage grew points, of by by benefited Adjusted fixed been by Adjusted EBITDA of largely the from was of year, the up year Throughout range billion Adjusted share guidance expenses expenses. expenses. XX.X% a adjusted margin due our average the also lower share last operating was on fourth $XX.XX end than XXX X% to and fourth and of fixed revenue marketing quarter adjusted carefully was quarter focused of EPS XX% the XX% primarily up and $X.X year-over-year we driven have operating of XX% basis our better-than-expected growth from and the EBITDA this expenses. above count

the income euro convertible fourth the from option mostly our adjustment was was adjusted impacted basis, billion and premium were remeasurement a $X.X This by net conversion items XXXX. a quarter note mark-to-market our excluded gains in May results. Both to GAAP bonds. of on offset FX On was by due our

full that basis, high the at night pleased year up room to looking X% regional growth we When full a single our nights from room saw On we grew year-over-year. XXXX year, report are digits. Europe

Asia was and XXXX. booked digits, U.S. about nights was up up room high European digits. of World bookers of mid-single half Rest single was in the mid-teens. up the represented

long-term low drive that gross and double-digit increases Asian and bookings, in were adjusted were revenue nights about helped in X/X percentage. The annual bookers bookers U.S. room growth were a growth above ambition. our EPS

flights. XX.X% slightly positive payments, XXXX bookings a mix an increased offset and and due a constant increased on of gross with as were full associated was respectively, basis. X XX.X% XX% in rates XXXX, revenues revenue Our Revenue higher year to mostly gross up point and a which impact in from was both increased of growth versus about by percentage bookings XX%, percentage currency

to stable year-over-year. be Our underlying continue accommodation take rates

X.X%, higher by XXXX significant more by became driven a X.X% higher and which marketing in down of higher partially channel in from in and offset percentage social brand gross XXXX direct XXXX. marketing expenses a as us bookings slightly Marketing mix, lower was ROIs, performance in media, spend for

Our adjusted our at X% low than many the was expectation operating taken were growth full of year. better the XXXX, year source fixed management was throughout start XXXX, versus for expenses leverage to mid-teens to actions which up due and a of

billion than XX% strategic adjusted in to investing while more on about more and was billion, year profitable basis. XX% margins up growth adjusted and We're currency generated EBITDA initiatives. a up full which proud EBITDA Our delivering than $X $X.X was year-over-year expanding constant in XXXX, have

was margin higher our adjusted EBITDA Adjusted was our the and EBITDA XX%, which ahead of points at basis XXX of year. in than margin the expectations XXXX start

Our with every real the includes we very report doing adjusted along cost expense, impact that EBITDA profit this compensation of stock-based of as other a margins, metric is business.

adjusted Our per year-over-year was currency up and constant was full share, a over year EPS $XXX XX% about basis. which on XX% up

X% was Our than year the share our count full lower repurchase program. XXXX, share in to average impact due of

our on Now to position. cash and liquidity

quarter fourth of repurchases due ending $X.X billion the $XX.X quarter return, of up dividends. cash ending was third and our by about to billion, in billion cash investments billion, November offset debt Our quarter, balance in in flow free raised $X.X about and versus generated balance $XX.X and share $XXX capital including of partially of million about

our primarily Free flow bookings pressured balance. from in fourth reduction by $XXX seasonal working in quarter changes capital, deferred merchant by driven in cash about the was the million

billion of under share of paid XXXX For with $X or $X.X program $X.X about standing authorization. in quarterly start dividends. early $XX the repurchased Since repurchase year, XX% ended cash our We XXXX, billion out our billion at billion repurchase have almost we stock existing and shares restarting the full remaining our XXXX. of stock in of repurchased we about

business on ratings. we As maintaining remain investing and strong our returning investment-grade our strategically capital we look while ahead, in to shareholders focused credit

consistently per share our $XX We ability actions earnings XX% along return cash are repurchase generation our shareholders billion cash that quarterly to to repurchases dividend capital dividends. new authorization, power, today pleased These to our in flow of share. Board announce free our strong confidence and reflect our with increase approved and both Directors a a to through share

to Moving the our quarter. for first thoughts

April first the the to XXXX rates. We headwind February expect Also, quarter comparison Easter expect from our shift we profitability to growth a to tailwind and to to percentage in day growth point XXXX revenue larger about a small a XXXX the March and in extra headwind in in calendar first room and and bookings of to be growth to be quarter. nights X growth

quarter X%, room X% the night be a first from into calendar includes of which We benefit shift April. between slight Easter to expect growth and

first X impact X about currency to X% between FX, and from growth, of benefit of offset constant X%, calendar in the points expect shift a We slight X% increase higher which higher accommodation percentage Easter. about points flight positive bookings by gross of quarter percentage impact ADRs includes and changes from ticket about from

April. be X expect between quarter We of the first about in calendar into and X%, which X% changes revenue about X FX Easter to and growth of headwind points percentage percentage points includes a shift from

We be in impact expect at Easter shift X% EBITDA from and of down high which points of percentage million the changes first $XXX end, FX. $XXX X impact includes between quarter points and percentage year-over-year XX about adjusted about the about from year-over-year to million

our at seasonally the timing, bookings, the for Normalizing and of low and expectation is year. for changes quarter for ranges. revenue first leap double-digit the year, the historically, high our growth gross in Easter quarter our EBITDA lowest each fourth quarter EBITDA impacts that is for end Note FX those of of the adjusted

rates growth for We're per well have these We are our Turning we and believe will and points of targeting gross rates product to positioned adjusted FX changes stronger X.X the business constant revenue investments impact gross a growth better made percentage to by and about long-term of by growth for XXXX. our reach a rates, build given and ambition the At to for percentage adjusted recent growth, XX% about reported achieve we year full we would X% and for revenue EPS. share. and least at adjusted EBITDA earnings bookings bookings full growth our foundation FX partners. points in X for and currency our that for offering levels expect growth year travelers

full increase gross revenue and digits. both mid-single As basis single to a reported increase currency high expect year bookings result, and a digits we on to constant

leverage expect marketing drive our We to in expenses.

Additionally, we at revenue adjusted prior expect in last faster start to grow expenses our than for commitment which with communicated line year. fixed XXXX, we the operating of

EBITDA of As to a basis digits. on expect points result, we percentage grow a low adjusted constant a couple double increase faster than revenue currency and to

expect in our EBITDA and continue below We adjusted basis margin deliver to to expand margins slightly XXXX points. XXX growth

We currency double constant to full on grow mid-teens. our digits and adjusted EPS to grow a expect low basis year

Finally, focused CapEx capital on similar to XXXX. X% managing we expect about will we of be and remain that our expenditures revenue

Turning which to we transformation new November. program, our announced in

$XXX cost ultimately XXXX. agility Our be we realized our run approximately versus of to estimate organizational XXXX will the complexity base after savings we produce to million intention increase and to rate is expect majority to these of annual reduce and changes implement which million reductions $XXX certain expense

about program, will results. full related line, in costs of our By expected transformation cost. order similar to to savings. our have adjusted million these in We from $XXX provide that excluded a the incur be will the transformation expect variable coming in report over Embedded we XXXX, rate be be rate X the certain million the that aggregate we to run majority in cost year cost XXXX transformation $XX estimate to years already X which In to of the to savings cost of expect these expense annual savings. we and over run the end we we guidance separately costs will transparency, in actioned is

the Beyond drive transformation expect program, in ongoing additional our we operations. to efficiencies

for will growth With investments the $XXX EBITDA returns. for adjusted our we in our value support years incremental our expanding such capabilities, to These these contribute million We savings baseline still our creation year. potential in our priorities these future our margins strategic and be investments progressing and reinvesting efficiencies, to are long-term advancing the vision, attractive above as in XXXX created by connected areas while the deliver capacity offering. revenue investments GenAI trip fintech see for and expanding about

pleased are for as partners. fourth long-term with and technological full we generative AI. outlook advancements XXXX. such connected year conclusion, trip shareholders, Thank and for and In for through travelers our our of about enhancing first work amazing the you the all our to our results vision deliver across of the speed We're our quarter quarter offering the and offerings, dedication to colleagues agility product value to and innovation, their new and my drive tech company and excited

lines? now With you that, the Operator, will questions. we open will take please your

Operator

[Operator Deutsche Instructions] of from question Your first is line the Lee Horowitz with Bank.

Lee Horowitz

if of helpful. then platforms? hotels. there. do associated on products from competition greater building circumvent could. on the booking aimed Agentic Maybe and have listings that We Any have to with starting perhaps massive investment with details could I how guess, you all risks be follow-up, Glenn the there one functional you out more at I on thoughts guys generative But would AI AI. for And rolling pockets Thanks direct the agents contextualize go

Glenn Fogel

a thanks Lee, I'm been been going the cetera, time I've going first, Sure. rare And I've to for mentioned who been me to I was it et going it. get et to the of surprised else will hasn't question. not they're somebody hotels, it's was And XX were here our going at that was the then we my websites, be and here cetera, in that brought business. to take is to almost away disintermediated as remarks, years. someone rid prepared people it fact et Google us, by go to build if cetera. direct And there. now,

How out, of people for So still surprise question. able achieve appropriate to and asking business? been achieve what your me a quarter is are century? it are And going that new does impact able to not technology comes to that an be you've you to going

is this ability our company AI, -- data. knowledge, about would something change evolve, of, I our technologies. adapt, is we capital great resources, people about that management terms I we the we our the of technological say as our think things winner these of tremendous one It's lot And our things all how that people, make a One so use of important sure in are team of Agentic of of to ability new the the many, the can to in many

specific. lot vertical a specific coming and that the One all this was of to leading of mentioned working will maintain industry. we how agent, the about going of up not a travel with sure having out different spell I'm playbook things that we There on. things make model domain we're we a the

But working we've are separately. the past, all of things the we're and to not it, to we with be major together we by the to trying but also, elsewhere, will instead able say we I I in as only working players do together of mentioned, better that and talked that this the do that and Valley would ourselves, do I question, recognize in be that about

new was AI, is continue of to is good excited even And adapt being of models. a incredibly the I better believe create it go in this example past. able AI generative and forward that I'm than about something and that AI past to -- Agentic world

the better than us these that that of turn actually opportunities ability something it is into has was are it things before. for someone incredible to All like

question. Ewoutn we So not new, hear Lee. that I be I will but a anything? winner It's you, this. believe in hear I

Ewout Steenbergen

Yes.

Let that me the other with build X perspective. Glenn gave on answer

be, with sound choice are an probably able because of very large be they As choices. to trying of partnering have to there themselves? as that give are course, us doing these returns to incredible amount they prove today language in already we they complexity more CapEx large could spending models very very very expenditures. is the we out monetization One of opportunities, know, them all these likely travel which, clear order going is are important will figure Or developers to numbers. be capital what of are And is on

the that perspective well. all mentioned, arguments economic Glenn the is as argument has important really, of So very top from on our

Lee Horowitz

you rate guess that think your seeing the just teens to I sense. if resonating accommodations in our follow-up contributions could a really outpace guys consistent you maybe is I a guys do the point? do most consumer the regions a are in alternative to what alternative at sort to Or strongly share more allows where with you a unpack bit you clear of competitors you invest 'XX? on you maybe this point. business on growth regional behind gainers in fairly are And biggest perhaps basis, 'XX? accommodations. Makes it's And so expect wonder

Ewout Steenbergen

in think I accommodations regions world first brief a the to see is, Lee, answer compared Yes. growth in all higher your the alternative in the the accommodations. part question, we traditional to

that particular is accommodations we importantly, together why part offer their second travelers. of really the that fast? we situation. supply, question are so with travelers of And your terms can expansion compare best offer, the we in and do pick on platform proposition of And proposition great the that growing in we to has have to accommodations the I alternative think the accommodations and can ultimately most option traditional and that total

absolutely is travelers we're something that what we our back that hearing is all platform. have like on that combined And that

of of why So those the our our are growing a really product. and platform couple quality are reasons we the faster,

Glenn Fogel

area the for quarters be of to it's X/X. compare last I mean number done XX it homes we're potentially X/X, than terms a good to shout because and in in a out That's a the to our I lot Yes. leader the XX more than now. to you night has to the long room mean, space, the who opportunity so we're of such more a wonderful and leader out team not do work small.

You don't really because their #X know nights experiences together. the and their room puts

it's but -- least So at X/X.

like not it's we're So tiny.

something something to really it's ability just competitive and from, that The wonderful. incredible lot but So people product. is achieve able us a now be a come think we'd of to was of that do didn't

Operator

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

Mark Stephen Mahaney

Okay.

airlines to and then Let's like I'd about see, ask operator.

the airline don't years something the it a or you've that's I had bit talked think, I you -- like call, know, On growth that. had, you the X.X that the in, fastest about but growth little on

markets in? you what the airline of terms still of sense in So do maybe much offering the in Like a could the growth just to forward, are just the roll out have us product talk many we give more -- the think as be a attach you higher inning growth of portfolio? airline the booking like is how about going rate how or

you what that together? you partnership the get on you'd about a how come expect operator disclose economics, out anything have, forward? did And experience you bit do talk the of that little going then And to could

Glenn Fogel

it's Yes, numbers. those very flight about Glenn. Mark, Sure. excited

look growth from was XX% I the I think an quarter back, previous it before. quarter even was from an and the at it XX%. acceleration acceleration

I to see continue is our and just linear that to should not markets. do maintain more accelerate, that do trend. to by think to do going it's continue going nice I in projecting lot that to a really areas, to I done I accelerate, be a increase way, business, in just not don't a accelerate, and believe will in adding it's flight that going think So we be strong think growth lot. it's anybody there's not a obviously happen. to But that's

insurance giving the trip, them part wants traction. that a airport just of service What or types ground in giving use connected not providing other all do And it perhaps them given so better the to terms it's a traveler includes is, it's can or flight. the it we bringing transportation is to they provide. us all And that hotel, the of value just not in discount a ways a versus other of our can traveler, together the a

agent connected they It's something lives that agent the that travel creating a that which flight. starts wanted, planning phone. provides and the start when traveler And always really trip value with in travel different, pocket their is in is your idea travel people has that something the that that and that many is your this pocket, in

So this we growth idea, our new strong want that going and rate then, of better it. to people get of that's them much in. actually But not is once and in do how what That's we're to they're verticals, a in, a flights, give that's they're them all a something And lot way telling to maintain do. other course, the we just and more value.

a the area, we're be right you just of talk now. honest in very, works. the respected with not beneficial just to working learn. that in AI. I and terms mutually things disclose know of we'll think Now I how be early. to How going operator, think This with us, about and industry. surprised. is I'll learning purpose do we you much be don't it has there'll as a to very that travel don't any perfectly area started though, it? knows economics, very What an and be together is about can partner We It's lot about who of a that lot both may

we anything you Look, now little Got XXXX get and we'll again, horrible. start the cluncky somewhere, not it. our it site it's it. I started. way but was back God, past. will anybody and then. the in better, bought I've and upon it And too, and easiest going XXXX. My It's to and go It's thing, back build but at already back this look from improve used a amazing stuff

Operator

is the question from Nowak of Brian Morgan line with Stanley. next Your

Brian Nowak

have on you. one I for for -- Agentic Glenn,

Just want to ask a question.

emerging to supply. operator overall think a and X, and next-generation or years traffic? about other travelers impact the players could mix or opposed it to paid any negative access that about Gemini to managing do percentage those using So you as your risk between you these partnering larger when differentiated direct some of going of travel of you a start players, direct sort long-term How like you XX with potentially has next think X, give products and of the potential people maybe the on them your

Glenn Fogel

with is people type that to else what going an you're to is parties how work anyone something any of with work, still to obviously be of share to how think to what the we'll the about is to able a yourself, Well, to you're plays out see putting together things out. proprietary a someone lots that of use, between be negotiation maintain powers lot going economic involved with it of going different you're and the that in when something agreement that's terms this, in parties going to

position AI to data I'm consumers the travel deal. have, who network resource big of have, which the also we for people putting us, is a be different bring worldwide to it's lot we that together people, Agentic up. there'll be they're so And with trust the the ways new the to People together of when very a they that trust. say are they you that it with that do ecosystem, a just believe with in a for that come we the in we they're pleased I it obvious are do it money somebody players lot do to I aware this and world throw of just don't in at do will issues of anybody. well. ways there different often just all of have, to to parties to the going be want lot enough willing They them of

things help brand we a for more. is the players terms very, And have have So us And who in good very other position we with that trusted. discussions advantage am All of a Ewout, other this some that I to bring. together may positive expertise going have having are of those you in forward.

Ewout Steenbergen

is other Yes. And think of Brian, one perspective the to following.

So are agents, agents. vertical over agents, to And by agents that many, multiple Horizontal agents task very specific be developers with going we many see developed. will time.

are from cost down them where perspective, from create advantage many acquisition providers an will some acquisition. will that today. working If in come advantage of of will cost us with together an many about give parties actually, are terms there economics the because that and think we of us, For

an building, plus we're that all travel-specific time, over are partnerships that much economic that our help us the the for perspective actually all relationships developing company. we very own with actually, overall the agent believe could this we So from vertical

Operator

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

Kevin Kopelman

space? the activity interest in your M&A deals recent given your larger Could on updated interest or Great. you us lack in give thoughts of

Glenn Fogel

said we single comment calls, same except transaction on the as the the every one, way. to about you then keep don't it conference M&A. we discuss we know, XX Well, a have this M&A, don't we'll when just answers, I same discuss, of is

Kevin Kopelman

merchandising? ask color us ad safe you Could give doing assume that leverage that if this to more Fair it you're on trends Can was Okay. the you direct you're with your to And down seeing? you you're it enough. you and about can traffic up? go also what continue brand there spend, I You on touch Is costs? year. mentioned expecting expect mentioned to

Ewout Steenbergen

Kevin. Absolutely,

XXXX, able direct you running benefit overall. same performance we marketing trends continue so marketing more Higher where the ROIs is More a achieve past. the the recent seen year that by traffic driven have to time. that in expect are that much leverage has we clearly over to expertise So and full all we optimization are on the company built algorithms based for the

of a also channels. I excited of how we then much for to social is the big This development like out And area are call would media us. about very investment

particularly lot where working the We and together social of with our media of built some very have relationship. a meta expertise we large have technology channels, in close space this a

and really built can I to creative come leads based companies very how from personalized much both have of is perspective, from a sides very as this is on but both feed. as say way don't that competitive monetize we bespoke because content a teams about this well prospecting model both terms leads both and much our very too their want where effective that remarketing in from

to how been social that. to have we we out, but is incremental find figure do respect new, channels So that with can ROIs to that something out is measure able media

much with ROI. And ultimately anyhow we a that therefore, not traveler us, this incremental traveler that that spending an more confident incremental to have booked it's very are is but comes attractive really therefore, would we're So us.

all with means of about that the combination to of leverage positive very the the outlook that we So marketing and for company. respect enthusiastic are continued

Operator

question UBS. with next of Ju line is the Stephen from Your

Stephen Ju

in to your on AI. a dig little on So thoughts Glenn, more I bit wanted

revenue. drive help other in your that can I that can help other think I about prepared products side, heard cost products And more avoidance. in remarks on the

seems companies, help like other may avoidance -- seems and we So deliver to cost take some more things part efforts. easier revenue might that as to the it talk

of impact start where positioned the I line? So seeing, do top bottom terms we can noticeable to see you guess, when in yourself either or

Glenn Fogel

and anybody as away start call. he That's terms let's the a has summarization of have Ewout who a right opportunity disclose in Well has some agent something a question, CS that so seeing the do of talked that customer, a automatically, can but service a is spending, summarizing is Simple what where a simple agent Even amount a to area I'm . with we that. wants But many as of very the what in savings. something away. example, benefits to large to talk good customer going there's of you little voice were end seeing about going the at to what but in for what let benefits. bit. already about to of I'm we're -- customer in the significant Last great cost achieve bit talking do there's of time to making part. not service, we goes little the it call, thereby clearly an operation terms

as few to a to as the terms in agent. capabilities with AI in is wait things will thing answering And phone. just develop important is agent cost the somebody hold phone. waiting are get services, we then answer to for service one be customer customer are there, be wonderful of the not think having and but an on is The this won't The we frustrating there touch a that

helpful and of one it their is the our agent very agentware we sales that and things they're with it's big I ] thing fact, in things OpenTable in some for the [ with like coming a statement. mentioned that up the area. that call, saying in doing not -- income are Salesforce In an interactions

area. one just that's So

everybody have efficiencies coding Of course, you the talks about. that

they're our a same are more the hopefully work some developers time, areas. road You in as all the significant amount down lot benefits and get of able to do different

want to let how in or talk him sure that. of much Ewout you So disclose to say what is I'm I'll for the going terms wants not numbers to not.

the rules revenue I what showing in this. the again, of resources having as expertise mean On knowledge, not increases, the a yes, slower not little in the you're be to see And is involved of it's in it's great is the doing. going of already the but one terms industry when you're a knowledgeable with you side, we're the simple to things to do the world up it and benefit complexity you to a to booking. travel. press worry things about, worry even AI. the to you using things if have you that of not you're button, It's AI, as only make mean, deal just regulatory the the travel get with got I to sure legal about not as simply have it's a about

in Europe, example, there's For the EU AI Act.

going you've you're that. fit to So got anything make to sure is building

generative say revenue be to the Ewout, then to great savings, an yes, that to slower I The disclose. that but knowledge works, that's context won't the database of put a is and want awareness the amount what obviously I on. a on is is by and it all model thing And what opportunity I the don't little advantage. incredible data And can a But huge. into than being and really just AI that having it's go I have, cost able got use you perhaps travel. time. know going this a be work understanding doesn't then used of what we

Ewout Steenbergen

numbers more of about is some percentage mentioned. like would where of point I Stephen, in But actually course, does is the results. speak the sometimes to being then show up question actually to actual then, that it out savings

first and fourth So to our expenses other me quarter. sales point for the you let

is what here bookings with fourth flat compared efficiencies that expenses, of bookings percentage payment happening higher growth the quarter X% service. beneath see our but of that customer And bookings, of gross in by have offset of our related merchant were deferred you our growth those the to is What is there as around a XXXX. of is, we --

efficiencies. gross seen has basically So percentage advantage growing already expenses we as merchant bookings despite of generative point the terms a flat of business is that fact actual of in results S&O a the the our have AI that clear in

give we of coming in I a from that in achieve multiple of terms million, be AI is that year savings will of company. the that example in other The $XXX able of can transformation generative the that already efficiencies to with parts part XXXX program is meaningful

XXXX. So it showing is target that already numbers the up clearly quarter in our have we in the well savings fourth for as as

Operator

question today Post come will Bank line final of America. with the Justin of Our from

Justin Post

year. little Glenn, bookings. merchant that the more to the how a on kind then transforming but for just And love little you your time? faster I'd rates? that's better nights. translate seem some confident repeat very Obviously, bit shift. room QX, I'd better or to in talk decel merchant ask margins how over growth loyalty, of And business way on bit comment a might mix to Can like about Obviously, higher about you

then So you those nights about were And pacings, talk of summer if QX? in borrowed some maybe booking can.

Glenn Fogel

Sure, and I'll let then Ewout second. Justin. the take take first, the I'll

the things, of questions we when very important. lot getgo connected have very, so seems Booking.com, you first you're And first are the from key doing clean started that. in why of program getting a On there's foundational model achieve to the vision, was so the that of trip simple, one, one agency need and platform to payments, of right, the merchant why out we that an

to We they important important being way of of for very have total mentioning, terms terms of continue that give benefits the very It's now bookings. want That's and obviously, our of to in share in pay. they customers. them as the numbers able giving the amount our you're also to increase just to the

lot in A the own want supplier of don't it. side They payment who And don't want Some the way aren't don't traveler take other that lot international wants Mastercard. way give to the was. doesn't a one the to the really pay. way, traveler people side -- on use in of on to the pay to understand use had want pay other Visa. of people them some another their the They

hotel for the of Alipay using small easy somebody So take China, example, Alipay. in is France doesn't the example is out

that the that. we, with Fortunately, payment, that person we as in merchant middle, can do

example. for money everybody, But for there's It's and cheaper interchange expensive middle. we be the us. made a less the us charges, can talked win-win traveler, money et it's come makes for products, given make new the cetera, with of it charges, it That's to all the cheaper So be one up FX that could and the then things new in supplier you about. we for

has And paying own Ewout mentioned, the in thing. currency type your

things. So of a different lot

thing. Here's the

So we XXXX. did transaction said $XXX we of total billion in value

continued Now of total continues so not on payment, all done as was it that volume up to grow agency, our to but increase. it's was

nights points? that. providing to you I'll But And what we returns, everybody And to What time, get of of of forward lot estimates the on that, be some question. able their how make else there's let basis to is, guesses his marketplace.n sides on room ways the very of question and as make ways, both percentage a good The out can same that a of many better profit? there's Ewout, should lot own at services

Ewout Steenbergen

specific Justin, with respect to with you room let quarter, out and first bit give night. zoom the guidance our then me a I a will answer for more respect to first little

me for the year, of we bookings, EBITDA, having with Easter, and let shows growth FX, double-digit out normalized revenue to leap first, for first So growth respect impacts normalized quarter, the low that low double-digit means that guidance are point and growth. and

why a few room X%. there's X% on elements nights, to specifically So it's

the fourth October comps Looking The first little X back of fourth quarter the XXXX. in easier XXXX. effect particularly the attacks to were a to the in of quarter, due bit

that the So also the expansion drove of bit the booking higher little growth window. a of and

little then of the bit first leap year, headwind the from quarter impact year this have, compared we a of the to for ago. year And of a

to guiding specific couple as quarter. to why guidance, So we're on good we we our year a going be X% company. see it's constant a hitting for for But algorithm are the normalized, are full of to long-term the really those what currency think you X%. is again, basis, And said, elements I a

a a the year, So the very momentum. the think, out coming we for about for outlook We're trends and fantastic a, encouraged company of the of quarter I company. for lot underlying with healthy of see lot

Operator

over I today's to... call hand now will back

Glenn Fogel

thank you.

our truly everyone's our employees are thank we and towards and our partners, customers, much, for I dedicated want to our our support company's So night. stockholders, long-term I say as grateful you work just good very vision. we Thank realizing

Operator

you call. concludes joining. Thank This for today's

lines. You may now disconnect your

Booking (BKNG) 20 Feb 252024 Q4 Earnings call transcript