Booking holdings Q3 2024 $BKNG (-1.19%)

Financial performance

• Revenue: For the nine months ended September 30, 2024, total revenue was $18.268 billion, compared to $16.581 billion for the same period in 2023, an increase of approximately 10.2%.
• Net profit: Net income for the nine months ended September 30, 2024 was $4.814 billion, an increase from $4.067 billion in 2023.
• Adjusted EBITDA: For the period, adjusted EBITDA was $6.458 billion, compared to $5.648 billion in 2023, an increase of 14.3%.

Summary of the balance sheet

• Total assets: As of September 30, 2024, total assets were $27.978 billion, an increase from $24.342 billion as of December 31, 2023.
• Total liabilities: Total liabilities increased to $31.631 billion, compared to $27.086 billion at the end of 2023.
• Shareholders' deficit: Shareholders' deficit was $3.653 billion as of September 30, 2024, compared to $2.744 billion at the end of 2023.

Details of the income statement

• Operating income: Operating income for the nine months ended September 30, 2024 was $5.826 billion, compared to $5.226 billion in 2023.
• Marketing expenses: Marketing expenses increased to 5.7 billion dollars from 5.34 billion dollars in the prior year.

Cash flow overview

• Net cash flow from operating activities: For the nine months ended September 30, 2024, net cash generated from operating activities was $7.602 billion, compared to $5.998 billion in 2023.
• Free cash flow: Free cash flow for the same period amounted to 7.249 billion dollars, an increase from 5.746 billion dollars in 2023.

Key figures and profitability ratios

• Net profit margin: Net income as a percentage of total revenues was 26.4% for the nine months ended September 30, 2024.
• Adjusted EBITDA margin: Adjusted EBITDA as a percentage of total revenue was 35.4%.

Segment information

• Overnight stays sold: These increased by 8.1% year-on-year in the third quarter of 2024.
• Gross bookings: Total gross bookings for the third quarter of 2024 amounted to USD 43.4 billion, showing year-on-year growth of 9.1%.

Competitive position

The company continues to show strong growth in room nights and gross bookings, indicating a robust competitive position in the travel services market.

Risks and opportunities

• Risks: The company faces risks in connection with market conditions for travel services, competition and exchange rates.
• Opportunities: The continued growth in overnight stays and gross bookings offers opportunities to increase revenue.

Summary of findings

Booking Holdings Inc. has shown a strong financial performance in the first nine months of 2024, with significant year-on-year increases in revenue, net profit and adjusted EBITDA. The balance sheet shows an increase in both assets and liabilities, with a notable shareholder deficit. The company maintains a strong competitive position and shows growth in key metrics such as room nights sold and gross bookings. Nevertheless, it faces risks related to market conditions and exchange rates. Overall, the company's financial position appears robust, supported by strong cash flow generation and profitability metrics.

Positive aspects

• Sales growth: Total revenue for the nine months ended September 30, 2024 increased by approximately 10.2% to $18.268 billion compared to the same period in 2023. This demonstrates the company's ability to capture market demand and increase its sales.
• Increase in net profit: Net income for the same period increased to $4.814 billion, up from $4.067 billion in 2023, indicating strong profitability and effective cost management strategies.
• Adjusted EBITDA growth: Adjusted EBITDA for the nine months ended September 30, 2024 reached $6.458 billion, representing year-over-year growth of 14.3%. This underscores the operational efficiency and ability to generate earnings before interest, taxes, depreciation and amortization.
• Strong cash flow: Net cash provided by operating activities was $7.602 billion for the nine months ended September 30, 2024, compared to $5.998 billion in 2023, demonstrating the robust cash generation capability that is important for investment and growth.
• Overnight stays and gross bookings: Overnight bookings increased 8% and gross travel bookings increased 9% year-over-year in the third quarter of 2024, indicating strong demand and a solid market presence.

Negative aspects

• Shareholders' deficit: The shareholder deficit increased to $3.653 billion as of September 30, 2024, up from $2.744 billion at the end of 2023, which could raise concerns among shareholders about the company's long-term financial health.
• Increased liabilities: Total liabilities increased to $31.631 billion, up from $27.086 billion at the end of 2023, which could indicate higher financial obligations and pose risks if not managed carefully.
• Marketing spend: Marketing expenses increased to $5.7 billion, up from $5.34 billion the previous year. If not managed effectively, these costs could weigh on profit margins.
• Provisions for tax matters: The company recorded a provision of $365 million related to the proposed settlement of certain Italian indirect tax matters, which could impact financial results and lead to further uncertainty.
• Foreign exchange risks: Due to its global operations, the Company faces risks related to foreign currency exchange rates, which could negatively impact financial performance and complicate profitability in international markets.