Booking Holdings (BKNG) Q4 2024 earnings summary

Executive summary

• Q4 and full year 2024 delivered strong financial and operational results, with revenue up 14% in Q4 and 11% for the year, and profitability exceeding guidance.

• Room nights grew 13% in Q4 and 9% for the year, driving gross bookings up 17% in Q4 and 10% for the year.

• Adjusted EBITDA for Q4 was $1.8 billion (+26% YoY), and adjusted EPS up 30% in Q4 and 23% for the year.

• Strategic investments in AI, alternative accommodations, merchant offerings, and loyalty programs supported growth and operational efficiency.

• Disciplined expense management and long-term initiatives, including the Connected Trip vision and Generative AI, remain a focus.

Financial highlights

• Q4 gross bookings up 17% YoY, revenue up 14% to $5.5B, and adjusted EBITDA margin reached 33.8%.

• Full year 2024: gross bookings $166B (+10%), revenue $24B (+11%), adjusted EBITDA $8.3B (+17%), adjusted EPS up 23%.

• Q4 net income was $1.1B (+383% YoY), with net income margin at 19.5%.

• Marketing expense as a percentage of gross bookings was 4.2% in Q4, 30 basis points better than last year.

• Q4 free cash flow was $0.6B, with $1.4B returned to shareholders via buybacks and dividends.

Outlook and guidance

• 2025 targets: constant currency growth of at least 8% for gross bookings and revenue, and 15% for adjusted EPS.

• Q1 2025 guidance: room night and gross bookings growth of 5%-7%, revenue growth of 2%-4%, and adjusted EBITDA of $800-$850 million.

• Board declared a Q1 2025 cash dividend of $9.60 per share, a 10% increase over 2024.

• Board authorized an additional $20B stock repurchase program in January 2025.

• Full year 2025: expect to expand adjusted EBITDA margins by just under 100 basis points and keep CapEx at about 2% of revenue.