Booking Holdings Q4 EPS surges 409%, while reports record $5.5bn revenue

Overview

Booking Holdings delivered a strong Q4 2024, fueled by robust travel demand, margin expansion, and increased direct bookings. The company reported $5.5bn in revenue and record-high gross bookings of $37.2bn, reflecting strong traveler spending. GAAP net income surged 383% YoY, driven by revenue growth and improved marketing efficiency, while adjusted EBITDA grew 26%. Booking also raised its quarterly dividend by 10% and expanded its share buyback authorization by $20bn, signaling confidence in its long-term profitability.

CEO Glenn Fogel stated: “We remain very focused on investing appropriately in our business for the long term, including leveraging and deploying Generative AI technology to drive greater value for our travelers and partners.”

Q4 2024 vs. Q4 2023:

• Room nights recorded a value of 261m (+13% YoY), supported by strong demand across alternative accommodations.
• Gross bookings increased to $37.2bn (+17% YoY), reflecting travel recovery and pricing strength.
• Revenue was certainly on an upward trend, registering a value of $5.5bn (+14% YoY).
• GAAP net income experienced impressive growth to $1.1bn (+383% YoY), driven by revenue growth and cost optimizations. Net income margin was 19.5% in Q4 2024 (compared to 4.6% in Q4 2023)
• In the same way, GAAP EPS rose to $31.95 (+409% YoY), while adjusted EPS was $41.55 (+30% YoY).
• Operating expenses decreased to a value of $3.74bn (-10% YoY), while adjusted fixed operating expenses grew slower than revenue at 9% in Q4 2024.
• Adjusted EBITDA reached to $1.8bn (+26% YoY), reflecting disciplined cost control, with adjusted EBITDA margin of 33.8% (vs. 30.6% in Q4 2023).
• Free cash flow declined to a value of $0.6bn (-49% YoY), impacted by timing of cash collections. However, quarterly dividend raised 10% to $9.60 per share.
• Stock buybacks was $1.1bn in Q4 2024, with $7.7bn in remaining authorization.

Full-Year 2024 performance:

• Room nights recorded a value of 1.1bn (+9% YoY), showcasing steady travel demand.
• Gross bookings continued their expansion trend, reaching an impressive value of $165.6bn (+10% YoY).
• Total revenue rose to $23.7bn (+11% YoY), with high-teens percentage growth in room nights at Booking.com, highlighting increasing traveler preference for non-traditional stays.
• Net income increased to $5.88bn (+37% YoY), with GAAP EPS of $172.69 (+47% vs. 2023) and adjusted EPS of $187.10 (+23% vs. 2023).
• Adjusted EBITDA reached a value of $8.3bn (+17% YoY).
• Free cash flow rose to $7.9bn (+13% YoY), thus reflecting the company’s strong liquidity. The company will have $20bn additional share buyback program approved in January 2025.

Booking Holdings anticipates another strong year in 2025, driven by sustained travel demand, AI-driven personalization, and strategic investments in direct channels. The company expects low double-digit growth in gross bookings and revenue, supported by global travel recovery and expanded direct customer engagement. Operating margins are set to improve, benefiting from marketing efficiencies and cost discipline. Additionally, AI investments will enhance traveler experiences, while share buybacks and dividend growth remain key priorities, reinforcing Booking’s commitment to shareholder returns.

In after-hours trading, immediately after the results were published, BKNG shares experienced a price increase of approximately +4%, attributed to the fact that the company’s main results beat Wall Street analysts’ estimates.

Author: Ionuț-Adrian Lazar