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10-QPeriod: Q2 FY2021

Booking Holdings Inc. Quarterly Report for Q2 Ended Jun 30, 2021

Filed August 4, 2021For Securities:BKNG

Summary

Booking Holdings Inc. (BKNG) reported its financial results for the second quarter and first half of 2021, demonstrating a significant recovery from the COVID-19 pandemic's impact. Total revenues for the second quarter of 2021 surged by 243.2% year-over-year to $2.16 billion, driven by the substantial improvement in travel demand. This recovery was particularly strong in accommodation, rental car, and airline ticket bookings, with gross bookings increasing by an impressive 851.7% in Q2 2021 compared to Q2 2020. Despite the strong top-line growth, the company reported a net loss of $167 million for the quarter, compared to a net income of $122 million in the prior year's period, impacted by increased operating expenses, including marketing and personnel costs associated with returning government assistance. The first half of 2021 saw total revenues increase by 13.1% to $3.30 billion, with a net loss of $222 million. The company's liquidity remains robust, with $11.2 billion in cash and cash equivalents at the end of June 2021. Management expressed optimism regarding the ongoing recovery in travel demand, particularly in Europe and the United States, while acknowledging continued uncertainties related to COVID-19 variants and potential travel restrictions.

Financial Statements
Beta
Revenue$2.16B
Operating Expenses$2.22B
Operating Income-$56.00M
Interest Expense$81.00M
Net Income-$167.00M
EPS (Basic)$-4.08
EPS (Diluted)$-4.08
Shares Outstanding (Basic)41.05M
Shares Outstanding (Diluted)41.05M

Key Highlights

  • 1Total revenues increased significantly by 243.2% year-over-year to $2.16 billion in Q2 2021.
  • 2Gross bookings saw a substantial increase of 851.7% year-over-year in Q2 2021, indicating a strong rebound in travel demand.
  • 3The company reported a net loss of $167 million for Q2 2021, a decrease from the net income of $122 million in Q2 2020, primarily due to higher operating expenses.
  • 4Operating expenses increased across the board, with marketing expenses rising 368.4% and personnel expenses up 51.9% year-over-year in Q2 2021, partly due to the return of government assistance.
  • 5Cash and cash equivalents stood at a healthy $11.2 billion as of June 30, 2021, providing strong liquidity.
  • 6Investments in equity securities, particularly Meituan and DiDi, contributed significantly to 'Other Income (Expense), net', with net gains on equity securities totaling $391 million in Q2 2021.
  • 7The company is actively managing its debt, with total debt decreasing slightly to $12.3 billion at June 30, 2021, and has repaid significant portions of its senior notes.

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