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Booking Holdings Inc. Quarterly Report for Q3 Ended Sep 30, 2015

Filing Date
Filed November 9, 2015
Period End
September 30, 2015
Security
BKNG
One revenue dollarkept$0.39
In the record · 2016–202610-K1110-Q328-K145

BKNG filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 145 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’16May ’16
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Leadership change8-K · Jun ’21Jun ’21
  4. Leadership change8-K · Sep ’25Sep ’25

01—Abstract

Summary

Summary of the 10-Q filed November 9, 2015. Cited figures are marked; the original filing is the authoritative source.

Booking Holdings Inc. (formerly The Priceline Group Inc.) reported its financial results for the third quarter and first nine months of 2015.

The company demonstrated strong top-line growth, with total revenues increasing by 9.4% year-over-year for both periods, reaching $3.1 billiona and $7.2 billion, respectively. Gross profit also saw significant growth, up 12.5% and 13.6% for the respective periods, indicating improved profitability metrics. This growth was largely driven by a robust performance in agency revenues, particularly from its Booking.com platform, which saw a 11.7% and 11.1% increase in agency revenues.

The company's international operations continue to be the primary growth engine, with international gross bookings increasing by 8.3%b and 11.2% on a reported basis for the three and nine months ended September 30, 2015. Despite strong revenue growth, the company's financial results were impacted by the significant strengthening of the U.S. Dollar against major currencies like the Euro. This foreign exchange headwind negatively affected reported international revenues and gross profit.

The company also continued its share repurchase program, authorizing significant amounts for buybacks, and maintained a strong liquidity position with $9.4 billionc in cash, cash equivalents, and investments as of September 30, 2015. Key operational highlights include a substantial increase in accommodation room nights booked, up 22.0% and 24.5% for the three and nine months, respectively.

02—Key points

Key Highlights

  1. Total revenues grew 9.4% to $3.1 billion for the three months ended Sept 30, 2015, and 9.4% to $7.2 billion for the nine months ended Sept 30, 2015.
  2. Gross profit increased by 12.5% for the three months and 13.6% for the nine months ended Sept 30, 2015, with gross margin improving due to a shift towards net revenue recognition models.
  3. International gross bookings showed strong growth of 8.3% and 11.2% for the three and nine months, respectively, underscoring the company's global reach.
  4. Accommodation room nights booked increased significantly by 22.0% for the three months and 24.5% for the nine months ended Sept 30, 2015, highlighting robust demand for accommodations.
  5. The company's significant international cash balance of approximately $8.7 billion as of Sept 30, 2015, provides strong liquidity.
  6. The company repurchased approximately $2.3 billion of its common stock in the first nine months of 2015, demonstrating a commitment to returning capital to shareholders.

03—One dollar

Follow one dollar

Of each $1.00 of revenue in Q3 FY2015, Booking Holdings Inc. kept $0.39.

  1. Revenue$3.10B100.0%
  2. Cost of revenue−$155.6M5.0%
  3. Gross profit$2.95B95.0%
  4. Operating costs−$1.46B47.0%
  5. Operating income$1.49B48.0%
  6. Interest, other & tax−$292.0M9.4%
  7. Net income$1.20B38.6%
Computed from 10-QQ3 FY2015filed November 9, 2015Computed from this filing’s revenue, gross profit, operating income and net income · right columngrey figure: share of revenue

04—Financials

Financial Highlights

Figures from 10-QQ3 FY2015filed November 9, 2015
Revenue$3.10B95.0% Gross MarginNet Income$1.20B38.6% Net MarginEPS (Diluted)$0.94Total Assets$16.61BCash & Equivalents$1.84BFree Cash Flow$1.27B

Financial Statements

Q3 FY2015 against Q3 FY2014

Line itemQ3 FY2015Q3 FY2014Change
Revenue$3.10B$2.84B+9.4%
Cost of Revenue$155.62M$216.52M−28.1%
Gross Profit$2.95B$2.62B+12.5%
Operating Expenses$1.46B$1.30B+12.4%
Operating Income$1.49B$1.32B+12.6%
Interest Expense$41.44M$22.95M+80.5%
Net Income$1.20B$1.06B+12.7%
EPS (Basic)$0.95$0.81+16.8%
EPS (Diluted)$0.94$0.80+16.9%
Shares Outstanding (Basic)1.26B1.31B−3.5%
Shares Outstanding (Diluted)1.28B1.33B−3.6%

05—Questions

Frequently Asked Questions

  1. What was the primary driver of Booking Holdings' revenue growth in Q3 2015?

    The primary driver of Booking Holdings' revenue growth was the strong performance of its agency revenues, particularly from its Booking.com platform, which benefited from a significant increase in accommodation room nights booked. International operations, led by Booking.com, agoda.com, and rentalcars.com, were the main contributors to this growth.

  2. How did foreign currency exchange rates impact Booking Holdings' financial results?

    The significant strengthening of the U.S. Dollar against major currencies like the Euro negatively impacted Booking Holdings' reported international revenues and gross profit. While the company's underlying business grew robustly on a constant currency basis, the reported U.S. Dollar figures showed slower growth due to unfavorable exchange rate movements.

  3. What is the company's liquidity position as of September 30, 2015?

    Booking Holdings maintained a strong liquidity position with $9.4 billion in cash, cash equivalents, and investments as of September 30, 2015. Approximately $8.7 billion of this was held by its international subsidiaries.

  4. Did Booking Holdings engage in share repurchases during the period?

    Yes, Booking Holdings actively repurchased its common stock. In the nine months ended September 30, 2015, the company repurchased approximately $2.3 billion of its common stock under its authorized repurchase programs.

06—Continue

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