Summary
Booking Holdings Inc. (BKNG), formerly priceline.com Incorporated, reported strong financial performance for the first quarter ended March 31, 2011, demonstrating robust growth driven by its international operations, particularly Booking.com and Agoda. Total revenues surged by 38.5% year-over-year to $809.3 million, fueled by a significant 64.8% increase in agency revenues. Gross profit also saw a substantial rise of 58.5% to $505.8 million, with a notable improvement in gross margin to 62.5%. The company's international gross bookings grew an impressive 79.0%, highlighting the increasing importance of its global reach. The company maintained a strong liquidity position with $1.7 billion in cash, cash equivalents, and short-term investments as of March 31, 2011. While facing ongoing legal challenges primarily related to hotel occupancy taxes, the company has established a reserve and continues to defend its position. Management expressed confidence in the company's ability to fund operations and capital expenditures, though it also noted potential risks from intense competition, currency fluctuations, and evolving market dynamics.
Financial Highlights
51 data points| Revenue | $809.32M |
| Cost of Revenue | $303.51M |
| Gross Profit | $505.81M |
| Operating Expenses | $351.75M |
| Operating Income | $154.06M |
| Interest Expense | $7.71M |
| Net Income | $104.79M |
| EPS (Basic) | $2.12 |
| EPS (Diluted) | $2.05 |
| Shares Outstanding (Basic) | 49.32M |
| Shares Outstanding (Diluted) | 51.16M |
Key Highlights
- 1Total revenues increased by 38.5% to $809.3 million for the first quarter of 2011, compared to the prior year period.
- 2Gross profit increased by 58.5% to $505.8 million, with gross margin improving to 62.5%.
- 3Agency revenues saw a substantial increase of 64.8%, driven by international growth.
- 4International gross bookings grew by 79.0%, indicating strong performance in global markets.
- 5The company ended the quarter with a healthy cash position of $1.7 billion in cash, cash equivalents, and short-term investments.
- 6Online advertising spend increased significantly by 63.7% to support business growth.
- 7The company is actively managing foreign currency risk through derivative contracts and has a substantial portion of its cash held by international subsidiaries.