Booking Holdings Inc. (BKNG) Bundle
A Brief History of Booking Holdings Inc.
Company Overview
Booking Holdings Inc. (BKNG), headquartered in Norwalk, Connecticut, is a leading online travel agency that facilitates travel services and reservations through its various brands including Booking.com, Priceline, and Agoda. As of 2024, the company operates in a highly competitive landscape, catering to a global audience with a wide array of travel-related services.
Financial Performance
For the third quarter of 2024, Booking Holdings reported a net income of $2.517 billion, a slight increase from $2.511 billion in the same quarter of 2023. The year-to-date net income for the nine months ended September 30, 2024, reached $4.814 billion, up from $4.067 billion in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (in billions) | $2.517 | $2.511 | $4.814 | $4.067 |
| Total Revenues (in billions) | $7.994 | $7.341 | $18.268 | $16.581 |
| Operating Income (in billions) | $3.179 | $3.103 | $5.826 | $5.226 |
| Basic EPS | $75.37 | $70.62 | $142.38 | $111.09 |
Gross Bookings
In the third quarter of 2024, total gross bookings amounted to $43.447 billion, representing a 9.1% increase from $39.813 billion in Q3 2023. The breakdown of gross bookings for the nine months ended September 30, 2024, shows a total of $128.413 billion compared to $118.932 billion in the previous year.
| Gross Bookings | Q3 2024 (in billions) | Q3 2023 (in billions) | YTD 2024 (in billions) | YTD 2023 (in billions) |
|---|---|---|---|---|
| Merchant Gross Bookings | $28.362 | $22.271 | $79.952 | $63.320 |
| Agency Gross Bookings | $15.085 | $17.542 | $48.460 | $55.612 |
| Total Gross Bookings | $43.447 | $39.813 | $128.413 | $118.932 |
Market Trends and Challenges
Booking Holdings has witnessed a robust recovery in travel demand, particularly in Europe and Asia. The company reported an 8.1% increase in room nights booked in Q3 2024 compared to the previous year, totaling 299 million room nights. Furthermore, rental car days reserved increased by 16.2%, and airline tickets sold surged by 38.7% year-over-year.
Stock Performance and Share Repurchases
As of September 30, 2024, Booking Holdings has repurchased shares costing $5.308 billion year-to-date, including $1.776 billion in Q3 alone. The company has a remaining authorization of $8.8 billion under its stock repurchase program, which is expected to be completed by 2026.
| Share Repurchase Activity | Q3 2024 (in millions) | Q3 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|---|---|
| Total Shares Repurchased | 466 | 870 | 1,439 | 2,926 |
| Total Amount Spent | $1,776 | $2,625 | $5,308 | $7,961 |
Dividends
In 2024, Booking Holdings declared cash dividends totaling $885 million. A new dividend of $8.75 per share was declared in October 2024, payable on December 31, 2024.
Taxation
The effective tax rates for the three and nine months ended September 30, 2024, were 12.3% and 16.0%, respectively, compared to 20.3% and 19.8% for the same periods in 2023, primarily benefiting from the Netherlands Innovation Box Tax.
Conclusion
Booking Holdings continues to adapt to the dynamic travel landscape, leveraging its extensive platform to enhance user experience and capture market share.
A Who Owns Booking Holdings Inc. (BKNG)
Major Shareholders
As of 2024, Booking Holdings Inc. (BKNG) has a diversified shareholder base consisting of institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| Vanguard Group, Inc. | 8.7% |
| BlackRock, Inc. | 8.2% |
| State Street Corporation | 4.9% |
| FMR LLC (Fidelity) | 4.5% |
| Invesco Ltd. | 3.3% |
| Other Institutional Investors | 30.2% |
| Individual and Retail Investors | 36.2% |
| Insider Ownership | 0.2% |
Insider Ownership
Insider ownership remains relatively low, with executives and board members collectively holding approximately 0.2% of the total shares outstanding. This minimal insider ownership reflects a common trend among large publicly traded companies.
Institutional Ownership Trends
Institutional ownership of Booking Holdings has been on an upward trajectory. As of September 30, 2024, institutional investors held approximately 70% of the total shares, indicating strong confidence in the company's business model and growth prospects.
Share Repurchase Programs
Booking Holdings has implemented a significant share repurchase program. As of September 30, 2024, the company had repurchased approximately $5.3 billion worth of its shares as part of an ongoing initiative to return value to shareholders. The remaining authorization under this program is approximately $8.8 billion.
Recent Financial Performance
For the nine months ended September 30, 2024, Booking Holdings reported a net income of $4.8 billion, showcasing robust financial health and potential for future growth. The company’s total revenues reached $18.3 billion, reflecting a year-over-year increase.
Market Capitalization
As of late September 2024, Booking Holdings' market capitalization stood at approximately $94 billion, positioning it as a major player in the online travel industry.
Dividend Payments
In October 2024, the Board of Directors declared a cash dividend of $8.75 per share, payable on December 31, 2024, indicating the company’s commitment to returning profits to shareholders.
Conclusion
Booking Holdings Inc. maintains a diverse ownership structure, with significant institutional investment and active share repurchase programs, signaling strong market confidence and ongoing financial health.
Booking Holdings Inc. (BKNG) Mission Statement
Our mission is to make it easier for everyone to experience the world. We aim to provide consumers with a best-in-class experience offering the travel choices they want, with tailored language, payment, and other options, seamlessly connecting them with our travel service provider partners. We offer these services through five primary consumer-facing brands: Booking.com, Priceline, Agoda, KAYAK, and OpenTable.
Financial Overview
As of September 30, 2024, Booking Holdings Inc. reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Gross Bookings | $43.447 billion | $39.813 billion | 9.1% |
| Merchant Gross Bookings | $28.362 billion | $22.271 billion | 27.3% |
| Agency Gross Bookings | $15.085 billion | $17.542 billion | (14.0%) |
| Total Revenues | $7.994 billion | $7.341 billion | 8.9% |
| Net Income | $2.517 billion | $2.511 billion | 0.2% |
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue sources were as follows:
| Revenue Type | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Merchant Revenues | $10,806 | $8,467 | 27.6% |
| Agency Revenues | $6,660 | $7,346 | (9.3%) |
| Advertising and Other Revenues | $802 | $768 | 4.5% |
| Total Revenues | $18,268 | $16,581 | 10.2% |
Key Operating Metrics
Booking Holdings' operating metrics for the three and nine months ended September 30, 2024, are as follows:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Room Nights (in millions) | 299 | 276 | 8.1% |
| Rental Car Days (in millions) | 23 | 20 | 16.2% |
| Airline Tickets (in millions) | 13 | 9 | 38.7% |
Market Trends and Strategic Focus
In the first quarter of 2024, global room nights increased 9% year-over-year, driven primarily by healthy travel demand in Europe and Asia. In the second quarter, the growth rate decreased to 7%, and in the third quarter, it rebounded to an 8% increase.
Booking Holdings is focused on enhancing its "Connected Trip" vision, which aims to provide a seamless travel experience through innovation and a user-friendly platform. The company has seen a significant increase in mobile app usage, with the mix of room nights booked on mobile apps reaching mid-fifties percentage as of Q3 2024, up from low-fifties percentage in Q3 2023.
Cash and Investments
As of September 30, 2024, Booking Holdings had:
| Item | Amount (in billions) |
|---|---|
| Cash, Cash Equivalents, and Investments | $16.3 |
| Deferred Merchant Bookings | $4.9 |
| Remaining Authorization for Share Repurchase | $8.8 |
During the nine months ended September 30, 2024, the company repurchased shares for an aggregate cost of $5.3 billion and paid cash dividends of $885 million. The Board declared a cash dividend of $8.75 per share, payable on December 31, 2024.
How Booking Holdings Inc. (BKNG) Works
Business Overview
Booking Holdings Inc. operates primarily through its online travel reservation services, which include brands such as Booking.com, Priceline, Agoda, KAYAK, and OpenTable. The company generates revenue through various channels, predominantly through accommodation bookings, travel-related services, and advertising.
Financial Performance
For the nine months ended September 30, 2024, Booking Holdings reported:
- Net income: $4.814 billion
- Total revenues: $18.268 billion
- Comprehensive income: $4.834 billion
Gross Bookings
Gross bookings for the three and nine months ended September 30, 2024, were as follows:
| Type | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Merchant Gross Bookings | $28,362 | $22,271 | $79,952 | $63,320 |
| Agency Gross Bookings | $15,085 | $17,542 | $48,460 | $55,612 |
| Total Gross Bookings | $43,447 | $39,813 | $128,413 | $118,932 |
Revenue Breakdown
For the three and nine months ended September 30, 2024, the revenue breakdown was as follows:
| Source | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Merchant Revenues | $4,972 | $3,945 | $10,806 | $8,467 |
| Agency Revenues | $2,753 | $3,135 | $6,660 | $7,346 |
| Advertising and Other Revenues | $269 | $261 | $802 | $768 |
| Total Revenues | $7,994 | $7,341 | $18,268 | $16,581 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 were as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Marketing Expenses | $5,700 |
| Sales and Other Expenses | $2,370 |
| Personnel Expenses | $2,501 |
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024 was $7.602 billion, resulting from:
- Net income of $4.814 billion
- Adjustments for non-cash items totaling $1.3 billion
- A favorable change in working capital of $1.5 billion
Debt and Equity Management
As of September 30, 2024, Booking Holdings had:
- Cash, cash equivalents, and investments totaling $16.3 billion
- Deferred merchant bookings of $4.9 billion
- Outstanding debt with cumulative interest to maturity of $3.9 billion
Market Trends
Booking Holdings anticipates a year-over-year growth in gross bookings of approximately 8% for the full year 2024, with revenue growth expected to be just below 10%. The company expects operating income to be higher than in 2023.
How Booking Holdings Inc. (BKNG) Makes Money
Revenue Streams
Booking Holdings Inc. generates its revenues primarily through online travel reservation services. As of September 30, 2024, approximately 90% of the company’s revenues stem from online accommodation reservation services, while revenues from other sources, including online travel reservations and advertising, account for less than 10% each.
Gross Bookings
For the three months ended September 30, 2024, the total gross bookings were $43.4 billion, representing an increase of 9.1% compared to the same period in 2023. The breakdown is as follows:
| Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Increase/Decrease (%) |
|---|---|---|---|
| Merchant Gross Bookings | $28,362 | $22,271 | 27.3% |
| Agency Gross Bookings | $15,085 | $17,542 | (14.0%) |
| Total Gross Bookings | $43,447 | $39,813 | 9.1% |
Revenue from Merchant and Agency Services
In Q3 2024, the revenue from merchant services was $4.97 billion, an increase of 26.0% year-over-year, while agency revenues decreased to $2.75 billion, marking a 12.2% decline.
Advertising and Other Revenues
Booking Holdings also earns revenue from advertising. For the three months ended September 30, 2024, advertising and other revenues totaled $269 million, reflecting a year-over-year increase of 3.4%.
Operating Metrics
Key operating metrics for Booking Holdings include:
| Metric | Q3 2024 | Q3 2023 | Increase/Decrease (%) |
|---|---|---|---|
| Room Nights | 299 million | 276 million | 8.1% |
| Rental Car Days | 23 million | 20 million | 16.2% |
| Airline Tickets | 13 million | 9 million | 38.7% |
Marketing and Sales Expenses
Marketing expenses for Q3 2024 were $2.15 billion, an increase of 6.4% compared to the previous year. These expenses represented 26.9% of total revenues.
Sales and other expenses also rose to $872 million, up 8.2% year-over-year.
Net Income
For the three months ended September 30, 2024, net income was $2.52 billion, compared to $2.51 billion for the same period in 2023.
Cash Flow and Financial Position
As of September 30, 2024, Booking Holdings reported cash, cash equivalents, and investments totaling $16.3 billion. The net cash provided by operating activities for the nine months ended September 30, 2024, was $7.6 billion.
Conclusion on Revenue Growth
Booking Holdings expects year-over-year growth in gross bookings to be about 8% for the full year 2024, with revenues projected to grow just below 10%.
Booking Holdings Inc. (BKNG) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Booking Holdings Inc. (BKNG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Booking Holdings Inc. (BKNG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Booking Holdings Inc. (BKNG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.