10-QPeriod: Q1 FY2022

Booking Holdings Inc. Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 4, 2022For Securities:BKNG

Summary

Booking Holdings Inc. reported a net loss of $700 million for the first quarter of 2022, a significant increase from the $55 million net loss in the same period of 2021. This widening loss was primarily driven by substantial unrealized losses on equity investments, totaling $987 million, compared to a gain of $36 million in the prior year. Despite the net loss, total revenues surged by 136.3% year-over-year to $2.7 billion, reflecting a strong rebound in travel demand as pandemic-related restrictions eased. The company saw a robust recovery in key operational metrics, with room nights booked increasing by 99.7% and gross bookings more than doubling to $27.3 billion. This growth was bolstered by significant increases in both agency and merchant revenues, with merchant gross bookings growing at a faster pace due to expansion at Booking.com. While marketing expenses rose considerably to support the demand recovery, they remained below pre-pandemic levels. The company also highlighted increased ADRs (Average Daily Rates) and expressed optimism for an operating profit in the second quarter of 2022, despite ongoing uncertainties from geopolitical events and the pandemic.

Financial Highlights

49 data points
Beta

Revenue

$2.69B

Net Income

-$700.00M

-26.0% Net Margin

EPS (Diluted)

$-0.68

Total Assets

$22.38B

Cash & Equivalents

$10.58B

Free Cash Flow

$1.59B

Financial Statements
Beta
Revenue$2.69B
Operating Expenses$2.52B
Operating Income$174.00M
Interest Expense$68.00M
Net Income-$700.00M
EPS (Basic)$-0.68
EPS (Diluted)$-0.68
Shares Outstanding (Basic)1.02B
Shares Outstanding (Diluted)1.02B

Key Highlights

  • 1Total revenues increased significantly by 136.3% to $2.7 billion, driven by recovering travel demand.
  • 2Net loss widened to $700 million from $55 million in the prior year, largely due to $987 million in unrealized losses on equity investments.
  • 3Gross bookings more than doubled, increasing by 128.7% to $27.3 billion, indicating a strong recovery in travel volume.
  • 4Room nights booked saw a substantial increase of 99.7%, demonstrating a robust rebound in customer bookings.
  • 5Marketing expenses rose by 148.8% to $1.15 billion, reflecting increased investment to capture the recovering travel market.
  • 6The company expects an operating profit in the second quarter of 2022, signaling a return to profitability despite ongoing market uncertainties.
  • 7Booking Holdings continued its share repurchase program, spending $1.1 billion in the first quarter of 2022.

Frequently Asked Questions

The primary driver of the widened net loss in Q1 2022 was $987 million in unrealized losses on equity investments, notably in Meituan, DiDi Global Inc., and Grab Holdings Limited. This contrasts with a net gain on equity investments in the prior year's quarter.

Booking Holdings experienced a strong rebound in Q1 2022. Total revenues grew by 136.3% to $2.7 billion, and total gross bookings increased by 128.7% to $27.3 billion, reflecting a significant recovery in travel demand and operational activity.

Booking Holdings anticipates an operating profit in the second quarter of 2022. They expect gross bookings to be approximately 20 percentage points better than room nights relative to Q2 2019, primarily due to increased Average Daily Rates (ADRs), and anticipate revenues as a percentage of gross bookings to be lower than Q2 2019.

The conflict led to an immediate suspension of booking services in Russia and Belarus, resulting in lost bookings and cancellations. While there was an initial softening of booking trends across Europe, the company noted an improvement after the first week of March 2022. The company is also navigating complex sanctions regimes and potential cybersecurity or geopolitical risks.