10-QPeriod: Q3 FY2017

Booking Holdings Inc. Quarterly Report for Q3 Ended Sep 30, 2017

Filed November 7, 2017For Securities:BKNG

Summary

Booking Holdings Inc. (formerly The Priceline Group Inc.) reported strong financial performance for the nine months ended September 30, 2017. Total revenues grew 17.7% year-over-year to $9.9 billion, driven by a significant 22.4% increase in agency revenues, primarily from accommodation bookings. Gross profit also saw robust growth of 20.2% to $9.7 billion, with international operations accounting for the majority of this increase. The company demonstrated solid profitability, with net income increasing substantially year-over-year to $2.9 billion for the nine-month period. The company continues to expand its global footprint, notably through the acquisition of Momondo Group for $555.5 million. While reporting strong operational growth, Booking Holdings is also navigating various legal and regulatory challenges, including competition reviews in Europe related to price parity clauses and ongoing litigation regarding travel transaction taxes. The company maintains a healthy liquidity position with significant cash and investments, and a substantial portion is held by international subsidiaries.

Financial Highlights

53 data points
Beta

Revenue

$4.43B

98.8% Gross Margin

Net Income

$1.72B

38.8% Net Margin

EPS (Diluted)

$1.38

Total Assets

$25.79B

Cash & Equivalents

$2.85B

Free Cash Flow

$1.81B

Financial Statements
Beta
Revenue$4.43B
Cost of Revenue$54.18M
Gross Profit$4.38B
Operating Expenses$2.28B
Operating Income$2.10B
Interest Expense$66.34M
Net Income$1.72B
EPS (Basic)$1.40
EPS (Diluted)$1.38
Shares Outstanding (Basic)1.22B
Shares Outstanding (Diluted)1.25B

Key Highlights

  • 1Total revenues increased by 17.7% to $9.9 billion for the nine months ended September 30, 2017.
  • 2Gross profit grew by 20.2% to $9.7 billion for the nine months ended September 30, 2017.
  • 3Net income for the nine months ended September 30, 2017, was $2.9 billion, a significant increase from the prior year's $1.5 billion.
  • 4Accommodation room night reservations saw strong growth of 18.6% and 22.2% for the three and nine months ended September 30, 2017, respectively.
  • 5The company acquired Momondo Group for $555.5 million on July 24, 2017.
  • 6Cash and cash equivalents, short-term and long-term investments totaled $18.4 billion as of September 30, 2017.
  • 7The company is subject to various legal and regulatory investigations and litigation, particularly concerning competition practices and travel transaction taxes.

Frequently Asked Questions

For the nine months ended September 30, 2017, Booking Holdings reported total revenues of $9.9 billion, a 17.7% increase year-over-year. Gross profit increased by 20.2% to $9.7 billion. Net income for the period was $2.9 billion, a significant improvement from $1.5 billion in the prior year's comparable period.

Revenue growth was primarily driven by a 22.4% increase in agency revenues, which was largely attributable to strong performance in accommodation room night reservations. International operations, particularly Booking.com, were the primary contributors to this growth.

As of September 30, 2017, Booking Holdings had $18.4 billion in cash, cash equivalents, short-term and long-term investments. A substantial portion ($15.9 billion) is held by international subsidiaries, which the company intends to reinvest internationally. The company also repurchased $1.1 billion of its common stock during the nine-month period.

Yes, the company is involved in several significant legal and regulatory matters. These include ongoing competition reviews in Europe concerning 'price parity' clauses with accommodation providers and various lawsuits related to the payment of travel transaction taxes in the U.S. The company believes it is in compliance with relevant laws and is contesting these matters, but the outcomes are uncertain and could impact future results.