01—Abstract
Summary
Summary of the 10-K filed February 23, 2022. Cited figures are marked; the original filing is the authoritative source.
Booking Holdings Inc. (BKNG) reported its 2021 annual results, showing a significant recovery in travel demand following the COVID-19 pandemic.
The company's revenue for the year reached $11.0 billiona, a substantial increase from the previous year, driven by a rebound in bookings across its major brands like Booking.com and Priceline. Strategic priorities for the year included expanding Booking.com's flight product, acquiring Etraveli Group and Getaroom, and enhancing its payments platform.
The company is focused on its 'Connected Trip' vision, aiming to offer a seamless travel experience from booking to execution, leveraging technology and increased brand collaboration. Despite ongoing uncertainties related to travel recovery and new variants, Booking Holdings remains optimistic about long-term travel demand and its position to benefit from the shift towards online booking channels.
02—Key points
Key Highlights
- Revenue for 2021 reached $11.0 billion, indicating a strong recovery from pandemic-induced lows.
- The company completed two strategic acquisitions: Etraveli Group (agreement in November) and Getaroom (December), aiming to expand its offerings and capabilities.
- Booking.com significantly expanded its flight product in 2021, a key component of the 'Connected Trip' vision.
- International revenue constituted approximately 87% of consolidated revenues, highlighting the company's global reach.
- The company continued to invest in its payments platform and capabilities, crucial for a frictionless customer experience.
- Booking Holdings reported approximately 20,300 employees globally as of December 31, 2021, with a continued focus on diversity and inclusion.
- Despite market recovery efforts, the company highlighted significant risks including the ongoing impact of COVID-19, intense competition, and regulatory uncertainties.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 23, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $10.96B$6.80B | +61.2% |
| Operating Expenses | $8.46B$7.43B | +13.9% |
| Operating Income | $2.50B-$631.00M | +495.6% |
| Interest Expense | $334.00M$356.00M | −6.2% |
| Net Income | $1.17B$59.00M | +1874.6% |
| EPS (Basic) | $1.14$0.06 | +1857.9% |
| EPS (Diluted) | $1.13$0.06 | +1856.3% |
| Shares Outstanding (Basic) | 1.03B1.02B | +0.2% |
| Shares Outstanding (Diluted) | 1.03B1.03B | +0.5% |
05—Questions
Frequently Asked Questions
How did the COVID-19 pandemic impact Booking Holdings' business in 2021, and what is the outlook for recovery?
The COVID-19 pandemic continued to impact Booking Holdings' business in 2021, although the company saw a significant recovery in travel demand and bookings compared to 2020. The emergence of new variants created uncertainty, but the company expressed confidence in a strong long-term recovery for global travel demand.
What were Booking Holdings' key strategic initiatives and investments during 2021?
Key strategic initiatives included expanding Booking.com's flight product, acquiring Etraveli Group and Getaroom, increasing internal brand collaboration, building out its payments platform, and launching new features for sustainable and inclusive travel. The company is also focused on its 'Connected Trip' vision.
What is the geographic breakdown of Booking Holdings' revenue, and where does most of its business originate?
The substantial majority of Booking Holdings' business is international, with businesses outside the U.S. accounting for approximately 87% of consolidated revenues in 2021. This is primarily driven by Booking.com, which generates most of its revenue from facilitating accommodation reservations.
What are some of the major risks and challenges facing Booking Holdings, as highlighted in the filing?
Significant risks include the ongoing adverse impact of the COVID-19 pandemic on travel demand, intense competition from online and traditional players (including large tech companies like Google), cybersecurity and data privacy risks, regulatory uncertainties (such as data protection laws and competition regulations), and the ability to attract and retain skilled personnel. Fluctuations in foreign currency exchange rates and market volatility also pose risks.
06—Continue