01—Abstract
Summary
Summary of the 10-Q filed May 6, 2011. Cited figures are marked; the original filing is the authoritative source.
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 milliona, 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 billionb 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.
02—Key points
Key Highlights
- Total revenues increased by 38.5% to $809.3 million for the first quarter of 2011, compared to the prior year period.
- Gross profit increased by 58.5% to $505.8 million, with gross margin improving to 62.5%.
- Agency revenues saw a substantial increase of 64.8%, driven by international growth.
- International gross bookings grew by 79.0%, indicating strong performance in global markets.
- The company ended the quarter with a healthy cash position of $1.7 billion in cash, cash equivalents, and short-term investments.
- Online advertising spend increased significantly by 63.7% to support business growth.
- The company is actively managing foreign currency risk through derivative contracts and has a substantial portion of its cash held by international subsidiaries.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2011, Booking Holdings Inc. kept $0.13.
- Revenue$809.3M100.0%
- Cost of revenue−$303.5M37.5%
- Gross profit$505.8M62.5%
- Operating costs−$351.7M43.5%
- Operating income$154.1M19.0%
- Interest, other & tax−$50.0M6.2%
- Net income$104.0M12.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2011filed May 6, 2011Financial Statements
Q1 FY2011 against Q1 FY2010
| Line item | Q1 FY2011Q1 FY2010 | Change |
|---|---|---|
| Revenue | $809.32M$584.39M | +38.5% |
| Cost of Revenue | $303.51M$265.28M | +14.4% |
| Gross Profit | $505.81M$319.12M | +58.5% |
| Operating Expenses | $351.75M$231.21M | +52.1% |
| Operating Income | $154.06M$87.91M | +75.2% |
| Interest Expense | $7.71M$4.81M | +60.5% |
| Net Income | $104.01M$53.88M | +93.1% |
| EPS (Basic) | $0.08$0.05 | +82.8% |
| EPS (Diluted) | $0.08$0.04 | +93.4% |
| Shares Outstanding (Basic) | 1.23B1.16B | +6.5% |
| Shares Outstanding (Diluted) | 1.28B1.27B | +0.6% |
05—Questions
Frequently Asked Questions
What was the primary driver of Booking Holdings' revenue growth in Q1 2011?
The primary driver of Booking Holdings' revenue growth in the first quarter of 2011 was its international operations, particularly the Booking.com and Agoda brands. Agency revenues saw a significant increase of 64.8%, reflecting strong performance in these global markets.
How did the company's international operations perform in Q1 2011?
International operations performed exceptionally well, with international gross bookings increasing by 79.0% year-over-year. This growth was primarily attributed to increased hotel room night reservations for Booking.com and Agoda.
What is the company's current liquidity position?
As of March 31, 2011, Booking Holdings maintained a strong liquidity position with $1.7 billion in cash, cash equivalents, and short-term investments.
What are the significant risks and contingencies mentioned in the filing?
The company faces ongoing legal proceedings, primarily related to hotel occupancy and other taxes, for which it has established a reserve. Other significant risks include intense competition, fluctuations in currency exchange rates, dependence on the travel industry, potential system failures, and evolving search engine dynamics. The company is actively managing these risks.
06—Continue