01—Abstract
Summary
Summary of the 10-Q filed November 3, 2021. Cited figures are marked; the original filing is the authoritative source.
Booking Holdings Inc. reported a significant recovery in its third quarter of 2021, with total revenues increasing by 77.1% year-over-year to $4.7 billiona.
This strong performance was driven by a rebound in travel demand, evidenced by a 43.9% increase in room nights booked compared to the same period in 2020. The company's gross bookings also saw a substantial increase of 77.0%, reaching $23.7 billionb. Despite the overall positive trends, the company continues to navigate the ongoing impacts of the COVID-19 pandemic, with room nights in Q3 2021 still 18% below Q3 2019 levels.
Management expressed optimism about future recovery, anticipating a return to pre-pandemic growth rates as travel restrictions ease and vaccination efforts progress globally. The company also highlighted continued investment in technology and brand marketing to support long-term growth.
02—Key points
Key Highlights
- Total revenues for Q3 2021 surged by 77.1% to $4.7 billion compared to Q3 2020.
- Gross bookings increased significantly by 77.0% to $23.7 billion in Q3 2021, indicating a strong recovery in travel demand.
- Room nights booked increased by 43.9% in Q3 2021 compared to Q3 2020, driven by improvements in Europe and the US.
- Marketing expenses more than doubled year-over-year, reflecting increased investment in capturing recovering travel demand.
- The company's net income for Q3 2021 was $769 million, a slight decrease from $801 million in Q3 2020, but this includes significant investments and potentially unfavorable equity adjustments.
- The company continued to manage its debt, with total debt decreasing to $11.0 billion as of September 30, 2021, down from $12.3 billion at the end of 2020.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2021filed November 3, 2021Financial Statements
Q3 FY2021 against Q3 FY2020
| Line item | Q3 FY2021Q3 FY2020 | Change |
|---|---|---|
| Revenue | $4.68B$2.64B | +77.1% |
| Operating Expenses | $2.66B$2.33B | +14.5% |
| Operating Income | $2.02B$315.00M | +539.7% |
| Interest Expense | $80.00M$98.00M | −18.4% |
| Net Income | $769.00M$801.00M | −4.0% |
| EPS (Basic) | $0.75$0.78 | −4.2% |
| EPS (Diluted) | $0.74$0.78 | −4.6% |
| Shares Outstanding (Basic) | 1.03B1.02B | +0.3% |
| Shares Outstanding (Diluted) | 1.03B1.03B | +0.6% |
05—Questions
Frequently Asked Questions
What was Booking Holdings' revenue performance in Q3 2021?
Booking Holdings reported total revenues of $4.7 billion for the three months ended September 30, 2021, representing a significant increase of 77.1% compared to $2.6 billion in the same period of 2020. This growth was primarily driven by the recovery in travel demand.
How did the company's room night bookings trend in Q3 2021?
Room nights booked increased by 43.9% to 183 million for the three months ended September 30, 2021, compared to 127 million in the prior year's quarter. This indicates a strong recovery in booking volumes, although still below pre-pandemic levels.
What is the company's outlook on the ongoing COVID-19 pandemic's impact?
While the company has seen significant recovery, it continues to expect its business to be adversely impacted by surges in COVID-19 case counts and potential government-imposed travel restrictions. The long-term effects remain uncertain and depend on factors like vaccine distribution, variant impacts, and consumer confidence.
How has the company managed its debt during this period?
Booking Holdings has actively managed its debt. As of September 30, 2021, its total debt was approximately $11.0 billion, a decrease from $12.3 billion at the end of 2020. This included the issuance of new senior notes and the redemption of older ones.
06—Continue