Booking Holdings (BKNG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues increased 7% year-over-year to $5.9 billion, driven by strong room night growth and higher demand in Asia and Europe, with adjusted EBITDA and EPS exceeding guidance.

• Net income rose 18% to $1.52 billion, with diluted EPS up 27% to $44.38; adjusted EPS grew 11% to $41.90, aided by a 7% reduction in average share count.

• Room nights booked reached 287 million, up 7% year-over-year, with alternative accommodations now 36% of the global mix and 12% room night growth in this segment.

• Merchant gross bookings increased 22% while agency gross bookings declined 16%, reflecting a continued shift to merchant transactions.

• The Genius Loyalty program saw nearly 30% of active travelers in higher tiers, driving higher direct bookings and frequency.

Financial highlights

• Q2 2024 revenue: $5.9 billion (+7% year-over-year); adjusted EBITDA: $1.9 billion (+7% year-over-year); adjusted net income: $1.4 billion (+3% year-over-year); adjusted EPS: $41.90 (+11% year-over-year).

• Net income margin was 26.0% and adjusted EBITDA margin was 32.4% for Q2 2024.

• Free cash flow for the first half of 2024 was $4.95 billion, representing 48.2% of total revenues.

• Cash, cash equivalents, and investments totaled $16.8 billion at June 30, 2024.

• Gross bookings increased 4% to $41.4 billion, impacted by FX and lower ADRs.

Outlook and guidance

• Q3 2024: Room nights expected to grow 3–5% year-over-year; gross bookings and revenues to grow 2–4%; adjusted EBITDA guidance of $3.25–$3.35 billion, about flat year-over-year.

• Full year 2024: Gross bookings growth expected above 6%, revenues to grow more than 7%, adjusted EBITDA to grow in high single digits, and adjusted EPS growth above 15%.