• Revenue: $4.8 billion, an 8% year-over-year increase.
• Adjusted EBITDA: Approximately $1.1 billion, a 21% year-over-year increase.
• Adjusted Earnings Per Share (EPS): $24.81, a 22% year-over-year increase.
• Room Nights: 319 million, over 7% year-over-year growth.
• Alternative Accommodations Room Night Growth: 12% year-over-year.
• Gross Bookings: Increased 7% year-over-year, or about 10% on a constant currency basis.
• Cash and Investments: $16.1 billion at the end of the first quarter.
• Free Cash Flow: Approximately $3.2 billion generated in the quarter.
• Airline Tickets Booked: Over 16 million, a 45% year-over-year increase.
• Attraction Tickets Growth: 92% year-over-year increase.

• Warning! GuruFocus has detected 6 Warning Signs with SAGE.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Booking Holdings Inc (NASDAQ:BKNG) reported a strong start to 2025 with room nights exceeding 300 million for the first time in a single quarter, growing over 7% year over year.
• First quarter revenue of $4.8 billion grew 8% year over year, and adjusted EBITDA increased 21% year over year, both exceeding the high end of prior guidance ranges.
• The company is making significant progress in integrating AI technology across its platforms, enhancing both partner and traveler experiences.
• Booking Holdings Inc (NASDAQ:BKNG) saw a 12% growth in alternative accommodations room nights, with listings reaching 8.1 million, indicating strong demand in this segment.
• The Genius loyalty program continues to expand, with over 30% of active travelers in higher tiers, leading to higher direct booking rates and booking frequency.

Negative Points

• There is geopolitical and macroeconomic uncertainty, which could impact consumer demand and travel patterns.
• The US market showed some signs of weakness, with a decrease in length of stay and a shift in travel patterns, indicating cautious consumer spending.
• Marketing expenses increased by 10% year over year, and the company is experiencing lower ROIs in some performance marketing channels.
• The company widened its full-year guidance range due to uncertainties in the geopolitical and macroeconomic environment.
• Despite strong growth in attractions and flights, these segments are still developing and contribute minimally to the overall financial impact.

Q & A Highlights

Q: Glenn, can you talk about what drives your confidence that travel vertical specific agents will prove to be valuable over time and how they'll compare to agents on broader-based platforms? A: Glenn Fogel, CEO, explained that both broad and narrow AI applications have their place. Large platforms like OpenAI provide broad capabilities, while Booking Holdings can leverage its data and personalization to create a more tailored experience. The company is seeing an increase in direct bookings, indicating that their approach is working well.

Q: Ewout, you mentioned the shift in travel patterns. Can you talk more about how Booking is benefiting from geographic diversification and whether you're seeing any shift toward lower-cost alternatives or shorter booking windows into the summer travel season? A: Ewout Steenbergen, CFO, noted stable global demand despite some shifts in travel patterns, such as Europeans traveling less to the US. Booking's global diversification allows it to capture growth opportunities elsewhere. The company is seeing stable length of stay globally, with a slight decrease in the US, and a healthy increase in future bookings.

Q: Glenn, is there anything new about the strategy for attractions, and when will agentic tools like Priceline's Penny be more widely available? A: Glenn Fogel highlighted the 92% growth in attractions as part of their connected trip vision. The company is building out various travel verticals, including attractions, to enhance the travel experience. Agentic tools are still in beta, and while they are improving, it will take time before they are fully integrated and widely available.

Q: Are you changing any focus competitively about where you're aiming some of your incremental growth investments due to shifts in the broader environment? A: Ewout Steenbergen stated that Booking Holdings is not making short-term changes to its investment strategy. The company continues to focus on long-term growth areas like alternative accommodations, flights, and the connected trip vision. They are prepared to shift investments if opportunities arise due to market changes.

Q: Can you explain the reasoning for widening the annual guidance range despite stable trends? A: Ewout Steenbergen explained that while current trends are stable, there is significant uncertainty in the geopolitical and macroeconomic environment. The widened guidance range reflects the potential for various outcomes, but the high end remains unchanged if uncertainties do not materialize.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.