Booking Holdings Reports Financial Results for 2nd Quarter 2022
Booking Holdings (BKNG) reported strong financial results for Q2 2022, with gross travel bookings reaching $34.5 billion, a 57% increase year-over-year. Total revenues soared to $4.3 billion, marking a 99% rise from the previous year, with a net income of $857 million, compared to a net loss of $167 million in Q2 2021. The Company achieved a non-GAAP net income of $776 million, rebounding from a loss of $105 million in the prior-year period. Adjusted EBITDA was $1.1 billion, a significant increase from $48 million in Q2 2021. Looking forward, BKNG anticipates record Q3 revenue.
- Q2 2022 gross travel bookings at $34.5 billion, up 57% YoY.
- Total revenues increased to $4.3 billion, a 99% year-over-year growth.
- Net income of $857 million compared to a net loss of $167 million in Q2 2021.
- Adjusted EBITDA reached $1.1 billion, up from $48 million in the prior year.
- Room nights booked surpassed 2019 levels for the first time, indicating a strong recovery.
- None.
NORWALK, Conn., Aug. 3, 2022 /PRNewswire/ -- Booking Holdings Inc. (NASDAQ: BKNG) today reported its 2nd quarter 2022 financial results. Second quarter gross travel bookings for Booking Holdings Inc. (the "Company," "Booking Holdings," "we," "our," or "us"), which refers to the total dollar value, generally inclusive of taxes and fees, of all travel services booked by its customers, net of cancellations, were
Booking Holdings' total revenues for the 2nd quarter of 2022 were
Non-GAAP net income in the 2nd quarter of 2022 was
"We reached another milestone in our company's recovery from the impact of the pandemic with room nights for the second quarter surpassing 2019 levels for the first time. We continued to see very strong accommodation ADR growth, which helped drive a
Non-GAAP Financial Measures
The Unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operating results.
To supplement the Unaudited Consolidated Financial Statements, the Company uses the following non-GAAP financial measures: adjusted EBITDA, non-GAAP net income (loss), non-GAAP net income (loss) per diluted common share and free cash flow (net cash provided by (used in) operating activities less capital expenditures). The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
The Company uses non-GAAP financial measures for financial and operational decision-making and as a basis to evaluate performance and set targets for employee compensation programs. The Company believes that these nonGAAP financial measures are useful for analysts and investors to evaluate the Company's ongoing operating performance because they facilitate comparison of the Company's results for the current period and projected nextperiod results to those of prior periods and to those of its competitors (though other companies may calculate similar non-GAAP financial measures differently from those calculated by the Company). These non-GAAP financial measures, in particular adjusted EBITDA, non-GAAP net income (loss) and free cash flow, are not intended to represent funds available for Booking Holdings' discretionary use and are not intended to represent or to be used as a substitute for operating income (loss), net income (loss) or net cash provided by (used in) operating activities as measured under GAAP. The items excluded from these non-GAAP measures, but included in the calculation of their closest GAAP equivalent, are significant components of the Company's consolidated statements of operations and cash flows and must be considered in performing a comprehensive assessment of overall financial performance.
Non-GAAP net income (loss) is net income (loss) with the following adjustments:
- excludes significant losses on assets classified as held for sale,
- excludes gains and losses on equity securities with readily determinable fair values,
- excludes the impact, if any, of significant gains and losses on the sale of and impairment and credit losses on investments in available-for-sale debt securities and significant gains and losses on the sale of and valuation adjustments on investments in equity securities without readily determinable fair values,
- excludes foreign currency transaction gains and losses on the remeasurement of Euro-denominated debt and accrued interest that are not designated as hedging instruments for accounting purposes and debtrelated foreign currency derivative instruments used as economic hedges,
- excludes losses on early extinguishment of debt and related reverse treasury lock agreements which were designated as cash flow hedges,
- excludes amortization expense of intangible assets,
- excludes noncash interest expense related to the amortization of debt discount on our convertible debt, if applicable,
- excludes income taxes, if any, related to the maturity and redemption of convertible notes held for investment, that were reclassified from accumulated other comprehensive income (loss) to income tax expense (benefit),
- excludes the income tax impact, if any, related to one-time adjustments as a result of the U.S. Tax Cuts and Jobs Act enacted in December 2017,
- excludes the impact of net unrecognized tax benefits related to Italian tax matters, and
- the income tax impact of the non-GAAP adjustments mentioned above and changes in tax estimates, as applicable.
In addition to the adjustments listed above regarding non-GAAP net income (loss), adjusted EBITDA excludes depreciation expense, interest and dividend income, and to the extent not included in the adjustments listed above, interest expense and income tax expense (benefit). In the event the Company reports a GAAP net income but a nonGAAP net loss, dilutive shares that are included in the GAAP weighted-average number of diluted common shares outstanding are excluded from the non-GAAP weighted-average number of diluted common shares outstanding. In the event the Company reports a GAAP net loss but a non-GAAP net income, anti-dilutive shares that are excluded from the GAAP weighted-average number of diluted common shares outstanding are included in the non-GAAP weighted-average number of diluted common shares outstanding.
We evaluate certain operating and financial measures on both an as-reported and constant-currency basis. We calculate constant currency by converting our current-year period results for transactions recorded in currencies other than U.S. Dollars using the corresponding prior-year period monthly average exchange rates rather than the current-year period monthly average exchange rates.
The attached financial and statistical supplement includes reconciliations of our financial results under GAAP to non-GAAP financial information for the three and six months ended June 30, 2022 and 2021. We are not able to provide a reconciliation between forward-looking adjusted EBITDA and GAAP net income (loss) because we cannot predict certain components of such reconciliation without unreasonable effort as they arise from events in future periods.
Information About Forward-Looking Statements
This press release contains forward-looking statements, which reflect the views of the Company's management regarding current expectations based on currently available information about future events. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, such as the adverse impact of the COVID-19 pandemic; adverse changes in market conditions for travel services; the Company's ability to attract and retain qualified personnel; adverse changes in relationships with third parties on which the Company depends; the effects of competition; growth and expansion of the business; rapid technological and other market changes; impacts of impairments and changes in accounting estimates; success of the Company's marketing efforts; and other business and industry changes. Other risks and uncertainties relate to cyberattacks and information security; tax, legal, and regulatory risks; increased focus on environmental, social, and governance responsibilities; the Company's facilitation of payments; foreign currency exchange rates; success of the Company's investments and acquisition strategy; and financial risks relating to the Company's debt levels and stock price volatility. For a detailed discussion of these and other risk factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements included in this press release, refer to the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequently filed Quarterly Reports on Form 10-Q. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
About Booking Holdings Inc.
Booking Holdings (NASDAQ: BKNG) is the world's leading provider of online travel and related services, provided to consumers and local partners in more than 220 countries and territories through six primary consumerfacing brands: Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK and OpenTable. The mission of Booking Holdings is to make it easier for everyone to experience the world. For more information, visit BookingHoldings.com and follow us on Twitter @BookingHoldings.
#BKNG_Earnings
Booking Holdings Inc. | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(In millions, except share and per share data) | |||||
June 30, | December 31, | ||||
(Unaudited) | |||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 11,841 | $ | 11,127 | |
Accounts receivable, net (Allowance for expected credit losses of | 2,249 | 1,358 | |||
Prepaid expenses, net (Allowance for expected credit losses of | 492 | 404 | |||
Other current assets | 342 | 256 | |||
Total current assets | 14,924 | 13,145 | |||
Property and equipment, net | 858 | 822 | |||
Operating lease assets | 445 | 496 | |||
Intangible assets, net | 1,925 | 2,057 | |||
Goodwill | 2,842 | 2,887 | |||
Long-term investments | 2,381 | 3,175 | |||
Other assets, net (Allowance for expected credit losses of | 1,118 | 1,059 | |||
Total assets | $ | 24,493 | $ | 23,641 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $ | 2,240 | $ | 1,586 | |
Accrued expenses and other current liabilities | 2,364 | 1,765 | |||
Deferred merchant bookings | 4,395 | 906 | |||
Short-term debt | 1,283 | 1,989 | |||
Total current liabilities | 10,282 | 6,246 | |||
Deferred income taxes | 805 | 905 | |||
Operating lease liabilities | 323 | 351 | |||
Long-term U.S. transition tax liability | 711 | 825 | |||
Other long-term liabilities | 180 | 199 | |||
Long-term debt | 8,190 | 8,937 | |||
Total liabilities | 20,491 | 17,463 | |||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Common stock, Authorized shares: 1,000,000,000 Issued shares: 63,766,460 and 63,584,444, respectively | — | — | |||
Treasury stock, 23,618,459 and 22,518,391 shares, respectively | (26,664) | (24,290) | |||
Additional paid-in capital | 6,278 | 6,159 | |||
Retained earnings | 24,640 | 24,453 | |||
Accumulated other comprehensive loss | (252) | (144) | |||
Total stockholders' equity | 4,002 | 6,178 | |||
Total liabilities and stockholders' equity | $ | 24,493 | $ | 23,641 | |
Booking Holdings Inc. | ||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(In millions, except share and per share data) | ||||||||
Three Months Ended | Six Months Ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Agency revenues | $ | 2,301 | $ | 1,328 | $ | 3,751 | $ | 2,045 |
Merchant revenues | 1,749 | 661 | 2,799 | 1,034 | ||||
Advertising and other revenues | 244 | 171 | 439 | 222 | ||||
Total revenues | 4,294 | 2,160 | 6,989 | 3,301 | ||||
Operating expenses: | ||||||||
Marketing expenses | 1,737 | 988 | 2,884 | 1,449 | ||||
Sales and other expenses | 465 | 206 | 804 | 318 | ||||
Personnel, including stock-based compensation of | 635 | 686 | 1,231 | 1,238 | ||||
General and administrative | 207 | 134 | 365 | 253 | ||||
Information technology | 137 | 93 | 271 | 180 | ||||
Depreciation and amortization | 107 | 108 | 218 | 221 | ||||
Restructuring, disposal, and other exit costs | 6 | 1 | 42 | 9 | ||||
Total operating expenses | 3,294 | 2,216 | 5,815 | 3,668 | ||||
Operating income (loss) | 1,000 | (56) | 1,174 | (367) | ||||
Interest expense | (76) | (81) | (144) | (179) | ||||
Other income (expense), net | 220 | 96 | (735) | 227 | ||||
Income (loss) before income taxes | 1,144 | (41) | 295 | (319) | ||||
Income tax expense (benefit) | 287 | 126 | 138 | (97) | ||||
Net income (loss) | $ | 857 | $ | (167) | $ | 157 | $ | (222) |
Net income (loss) applicable to common stockholders per basic common share | $ | 21.15 | $ | (4.08) | $ | 3.86 | $ | (5.42) |
Weighted-average number of basic common shares outstanding (in 000's) | 40,512 | 41,054 | 40,715 | 41,014 | ||||
Net income (loss) applicable to common stockholders per diluted common share | $ | 21.07 | $ | (4.08) | $ | 3.84 | $ | (5.42) |
Weighted-average number of diluted common shares outstanding (in 000's) | 40,665 | 41,054 | 40,927 | 41,014 | ||||
Booking Holdings Inc. | |||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(In millions) | |||||
Six Months Ended June 30, | |||||
2022 | 2021 | ||||
OPERATING ACTIVITIES: | |||||
Net income (loss) | $ | 157 | $ | (222) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Depreciation and amortization | 218 | 221 | |||
Provision for expected credit losses and chargebacks | 113 | 37 | |||
Deferred income tax benefit | (165) | (120) | |||
Net losses (gains) on equity securities | 806 | (427) | |||
Stock-based compensation expense and other stock-based payments | 201 | 204 | |||
Operating lease amortization | 81 | 91 | |||
Unrealized foreign currency transaction gains related to Euro-denominated debt | (68) | (54) | |||
Loss on early extinguishment of debt | — | 242 | |||
Other | 40 | 47 | |||
Changes in assets and liabilities: | |||||
Accounts receivable | (1,116) | (820) | |||
Prepaid expenses and other current assets | (181) | (173) | |||
Deferred merchant bookings and other current liabilities | 4,861 | 1,973 | |||
Long-term assets and liabilities | (568) | (54) | |||
Net cash provided by operating activities | 4,379 | 945 | |||
INVESTING ACTIVITIES: | |||||
Purchase of investments | (12) | (15) | |||
Additions to property and equipment | (195) | (124) | |||
Other investing activities | (36) | 3 | |||
Net cash used in investing activities | (243) | (136) | |||
FINANCING ACTIVITIES: | |||||
Proceeds from the issuance of long-term debt | — | 2,015 | |||
Payments on maturity and redemption of debt | (1,102) | (1,982) | |||
Payments for repurchase of common stock | (2,288) | (150) | |||
Other financing activities | 13 | (21) | |||
Net cash used in financing activities | (3,377) | (138) | |||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (44) | (1) | |||
Net increase in cash and cash equivalents and restricted cash and cash equivalents | 715 | 670 | |||
Total cash and cash equivalents and restricted cash and cash equivalents, beginning of period | 11,152 | 10,582 | |||
Total cash and cash equivalents and restricted cash and cash equivalents, end of period | $ | 11,867 | $ | 11,252 | |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||
Cash paid during the period for income taxes | $ | 337 | $ | 406 | |
Cash paid during the period for interest | $ | 145 | $ | 164 | |
Booking Holdings Inc. | |||||||||
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | |||||||||
(In millions, except share and per share data) (1) | |||||||||
RECONCILIATION OF NET INCOME (LOSS) TO | Three Months Ended | Six Months Ended | |||||||
2022 | 2021 | 2022 | 2021 | ||||||
Net income (loss) | $ | 857 | $ | (167) | $ | 157 | $ | (222) | |
(a) | Depreciation and amortization | 107 | 108 | 218 | 221 | ||||
(b) | Loss on assets classified as held for sale | — | — | 36 | — | ||||
(a) | Interest and dividend income | (24) | (4) | (27) | (8) | ||||
(a) | Interest expense | 76 | 81 | 144 | 179 | ||||
(c) | Net (gains) losses on equity securities with readily determinable fair values | (365) | (391) | 622 | (423) | ||||
(d) | Impairment of investment | 184 | — | 184 | — | ||||
(e) | Foreign currency transaction (gains) losses on the remeasurement of certain Euro-denominated debt and accrued interest and debt-related foreign currency derivative instruments | (38) | 37 | (78) | (54) | ||||
(a) | Income tax expense (benefit) | 287 | 126 | 138 | (97) | ||||
Adjusted EBITDA | $ | 1,086 | $ | 48 | $ | 1,396 | $ | (147) | |
Adjusted EBITDA as a % of Total Revenues | 25.3 % | 2.2 % | 20.0 % | (4.5) % | |||||
RECONCILIATION OF NET INCOME (LOSS) TO NON- | Three Months Ended | Six Months Ended | ||||||
2022 | 2021 | 2022 | 2021 | |||||
Net income (loss) | $ | 857 | $ | (167) | $ | 157 | $ | (222) |
(b) Loss on assets classified as held for sale | — | — | 36 | — | ||||
(c) Net (gains) losses on equity securities with readily determinable fair values | (365) | (391) | 622 | (423) | ||||
(d) Impairment of investment | 184 | — | 184 | — | ||||
(e) Foreign currency transaction (gains) losses on the remeasurement of certain Euro-denominated debt and accrued interest and debt-related foreign currency derivative instruments | (38) | 37 | (78) | (54) | ||||
(f) Losses on early extinguishment of debt and related reverse treasury lock agreements | —
| 257 | — | 257 | ||||
(g) Amortization of intangible assets | 56 | 41 | 112 | 82 | ||||
(h) Debt discount amortization related to convertible debt | — | 10 | — | 22 | ||||
(i) Net unrecognized tax benefits related to Italian tax matters | — | — | — | 16 | ||||
(j) Tax impact of Non-GAAP adjustments | 82 | 107 | (97) | 2 | ||||
Non-GAAP Net income (loss) | $ | 776 | $ | (105) | $ | 937 | $ | (320) |
Weighted-average number of diluted common shares outstanding (in 000's) | 40,665 | 41,054 | 40,927 | 41,014 | ||||
Non-GAAP Net income (loss) per diluted common share | $ | 19.08 | $ | (2.55) | $ | 22.89 | $ | (7.80) |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO | Six Months Ended | |
2022 2021 | ||
Net cash provided by operating activities | $ | 4,379 $ 945 |
(k) Additions to property and equipment | (195) (124) | |
Free cash flow | $ | 4,184 $ 821 |
Free cash flow as a % of Total Revenues | 59.9 % 24.9 % |
(1) Amounts may not total due to rounding. |
Notes:
(a) Amounts are excluded from Net income (loss) to calculate Adjusted EBITDA.
(b) Loss on assets classified as held for sale is recorded in Operating expenses and excluded from Net income (loss) to calculate Non-GAAP Net income (loss) and Adjusted EBITDA.
(c) Net (gains) losses on equity securities with readily determinable fair values are recorded in Other income (expense), net and excluded from Net income (loss) to calculate Non-GAAP Net income (loss) and Adjusted EBITDA.
(d) Impairment of investment in Yanolja Co., Ltd. equity securities is recorded in Other income (expense), net and excluded from Net income (loss) to calculate Non-GAAP Net income (loss) and Adjusted EBITDA.
(e) Foreign currency transaction (gains) losses on the remeasurement of Euro-denominated debt and accrued interest that are not designated as hedging instruments for accounting purposes and debt-related foreign currency derivative instruments used as economic hedges are recorded in Other income (expense), net and excluded from Net income (loss) to calculate Non-GAAP Net income (loss) and Adjusted EBITDA.
(f) Loss of
(g) Amortization of intangible assets is recorded in Depreciation and amortization and excluded from Net income (loss) to calculate Non-GAAP Net income (loss).
(h) Noncash interest expense related to the amortization of debt discount on convertible debt is recorded in Interest expense and excluded from Net income (loss) to calculate Non-GAAP Net income (loss). The Company adopted Financial Accounting Standards Board Accounting Standards Update 2020-06 on January 1, 2022 and such debt discount amortization is not recorded in the financial statements for periods after that date.
(i) Net unrecognized tax benefits related to Italian tax matters is recorded in Income tax expense (benefit) and excluded from Net income (loss) to calculate Non-GAAP Net income (loss).
(j) Reflects the tax impact of Non-GAAP adjustments above and changes in tax estimates which are excluded from Net income (loss) to calculate Non-GAAP Net income (loss).
(k) Cash used for additions to property and equipment is included in the calculation of Free cash flow.
For a more detailed discussion of the adjustments described above, please see the section in this press release under the heading "Non-GAAP Financial Measures" which provides definitions and information about the use of non-GAAP financial measures.
Booking Holdings Inc.
Statistical Data
In millions(1)
(Unaudited)
Units Sold | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 |
Room Nights | 28 | 127 | 76 | 99 | 157 | 183 | 151 | 198 | 246 |
Year/Year (Decline) Growth | (86.7) % | (43.1) % | (60.4) % | (20.1) % | 457.5 % | 43.9 % | 99.9 % | 99.7 % | 56.3 % |
Rental Car Days | 2 | 9 | 8 | 10 | 13 | 13 | 11 | 15 | 16 |
Year/Year (Decline) Growth | (90.4) % | (55.6) % | (52.2) % | (15.1) % | 558.8 % | 44.0 % | 35.8 % | 53.0 % | 22.4 % |
Airline Tickets | 1 | 2 | 2 | 3 | 4 | 4 | 4 | 5 | 6 |
Year/Year (Decline) Growth | (69.7) % | (9.3) % | 4.0 % | 62.1 % | 626.7 % | 154.8 % | 108.0 % | 69.1 % | 31.4 % |
Gross Bookings(2) | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 |
Agency | |||||||||
Merchant | 771 | 3,861 | 2,215 | 3,232 | 6,665 | 8,812 | 7,136 | 11,007 | 15,097 |
Total | |||||||||
Gross Bookings Year/ Year (Decline) Growth | |||||||||
Agency | (91.8) % | (47.4) % | (64.1) % | 4.6 % | 895.6 % | 56.2 % | 132.9 % | 87.1 % | 27.2 % |
Merchant | (88.0) % | (46.1) % | (65.9) % | (20.7) % | 764.4 % | 128.2 % | 222.2 % | 240.6 % | 126.5 % |
Total | (90.8) % | (47.1) % | (64.7) % | (3.7) % | 851.7 % | 77.0 % | 160.0 % | 128.7 % | 57.3 % |
Constant-currency Basis | (91) % | (48) % | (65) % | (6) % | 802 % | 75 % | 164 % | 140 % | 73 % |
2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | |
Total Revenues | $ 630 | ||||||||
Year/Year (Decline) Growth | (83.7) % | (47.6) % | (62.9) % | (50.2) % | 243.2 % | 77.1 % | 140.7 % | 136.3 % | 98.7 % |
Constant-currency Basis | (83) % | (49) % | (63) % | (51) % | 229 % | 76 % | 146 % | 146 % | 116 % |
(1)Amounts may not total due to rounding.
(2) Gross bookings is an operating and statistical metric that captures the total dollar value, generally inclusive of taxes and fees, of all travel services booked by our customers, net of cancellations.
View original content:https://www.prnewswire.com/news-releases/booking-holdings-reports-financial-results-for-2nd-quarter-2022-301599441.html
SOURCE Priceline.com
FAQ
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