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10-QPeriod: Q2 FY2023

Booking Holdings Inc. Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 3, 2023For Securities:BKNG

Summary

Booking Holdings Inc. reported strong revenue growth of 27.2% year-over-year for the second quarter of 2023, reaching $5.46 billion, driven by a significant 58.4% increase in merchant revenues. This surge in merchant revenues reflects the ongoing strategic shift towards a merchant model on platforms like Booking.com. Despite increased marketing and sales expenses, the company demonstrated robust operational performance, with operating income growing substantially to $1.67 billion. The company also saw a healthy rebound in room nights, up 8.8% year-over-year for the quarter, and reported strong forward-looking guidance, expecting continued room night growth in the mid-teens for the full year 2023. Financially, Booking Holdings maintained a strong liquidity position with $14.6 billion in cash and cash equivalents. The company continued its aggressive share repurchase program, buying back $3.1 billion worth of stock in the quarter, signaling confidence in its financial health and commitment to returning value to shareholders. While facing ongoing regulatory scrutiny and some tax-related matters, the company's core business demonstrated resilience and a clear growth trajectory.

Financial Statements
Beta
Revenue$5.46B
Operating Expenses$3.79B
Operating Income$1.67B
Interest Expense$241.00M
Net Income$1.29B
EPS (Basic)$35.16
EPS (Diluted)$34.89
Shares Outstanding (Basic)36.68M
Shares Outstanding (Diluted)36.96M

Key Highlights

  • 1Total revenues increased by 27.2% to $5.46 billion in Q2 2023, compared to $4.29 billion in Q2 2022.
  • 2Merchant revenues saw a substantial increase of 58.4% to $2.77 billion, indicating a successful shift towards the merchant model.
  • 3Operating income grew significantly by 67.3% to $1.67 billion, reflecting improved operational efficiency and revenue growth.
  • 4Room nights booked increased by 8.8% in Q2 2023 compared to the prior year, indicating a recovery and growth in travel demand.
  • 5The company maintained a strong cash position, with cash and cash equivalents totaling $14.6 billion as of June 30, 2023.
  • 6Share repurchases remained robust, with $3.1 billion spent on repurchasing common stock in Q2 2023.
  • 7The company updated its full-year 2023 outlook, expecting mid-teen percentage growth in room nights and overall revenue and operating profit growth.

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