Booking Holdings Inc. Quarterly Report for Q1 Ended Mar 31, 2018

Summary

Booking Holdings Inc. reported strong financial results for the first quarter of 2018, with total revenues growing 25.2% year-over-year (18% on a constant-currency basis) to $2.9 billion. This growth was primarily driven by an 18.4% increase in agency revenues and a substantial 45.6% increase in merchant revenues, signaling a shift towards a merchant-based model for accommodation bookings. Net income surged by 33.3% to $607.2 million, leading to a diluted EPS of $12.34, up from $9.11 in the prior year period. The company also announced significant stock repurchase activity, authorizing an additional $8 billion buyback program and repurchasing $731.6 million of its common stock in the quarter. Investments in marketing, both performance and brand, increased to support growth, with performance marketing up 12.6% and brand marketing up 25.5%. The company's balance sheet remains strong, with over $16 billion in cash and investments, providing ample liquidity for future operations and strategic initiatives.

Key Highlights

• 1Total revenues increased by 25.2% year-over-year to $2.9 billion, with 18% growth on a constant-currency basis.
• 2Net income increased by 33.3% to $607.2 million, translating to diluted EPS of $12.34, up from $9.11 in Q1 2017.
• 3Accommodation room night reservations grew by a strong 13.2%, indicating robust demand in the core business.
• 4Merchant revenues saw significant growth of 45.6%, highlighting a strategic shift towards a merchant-based booking model.
• 5The company authorized an additional $8 billion stock repurchase program and repurchased $731.6 million of its common stock in the quarter.
• 6Marketing expenses increased across both performance (12.6%) and brand (25.5%) categories to support business growth.
• 7The company's cash and investments position remained strong at over $16 billion as of March 31, 2018.

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