Booking Holdings (BKNG) Q3 2024 earnings summary

Executive summary

• Third-quarter revenues reached $8.0 billion, up 9% year-over-year, with room nights booked growing 8% to 299 million, driven by strong demand in Europe and Asia.

• Adjusted EBITDA rose 12% to $3.7 billion, and adjusted EPS increased 16% to $83.89, aided by a 6% reduction in average share count.

• Net income was $2.5 billion, nearly flat year-over-year, while adjusted net income grew 9% to $2.8 billion.

• Strategic initiatives advanced in alternative accommodations, Connected Trip, AI capabilities, and Asian market expansion.

• Merchant revenues increased 26% while agency revenues declined 12%, reflecting a shift to merchant bookings.

Financial highlights

• Q3 2024 total revenues: $8.0B (+9% YoY); net income: $2.5B; adjusted net income: $2.8B (+9% YoY); adjusted EBITDA: $3.7B (+12% YoY).

• EPS (diluted) was $74.34, up 7% year-over-year; adjusted EPS was $83.89, up 16%.

• Operating margin for Q3 2024 was 39.8%; adjusted EBITDA margin reached 45.8%.

• Cash and investments at September 30, 2024, were $16.3 billion.

• Free cash flow for the nine months ended September 30, 2024, was $7.2 billion.

Outlook and guidance

• Q4 2024: room nights growth expected at 6–8%, gross bookings and revenue growth at 7–9%.

• Q4 adjusted EBITDA projected at $1.6–$1.65 billion, up 9–13%.

• Full-year 2024: gross bookings growth about 8%, revenue just below 10%, adjusted EBITDA 13–14% with margin expansion, and adjusted EPS growth in the high teens.

• A cash dividend of $8.75 per share was declared, payable December 31, 2024.