Booking Holdings Reports 8.9% Revenue Growth in Q3 2024, Net Income Remains Stable

Booking Holdings Inc. reported significant financial performance for the third quarter and the nine months ended September 30, 2024, reflecting robust growth in revenues and profitability compared to the previous fiscal period.

For Q3 2024, total revenues reached $7,994 million, an 8.9% increase from $7,341 million in Q3 2023. Merchant revenues also saw a substantial rise, climbing 26.0% to $4,972 million from $3,945 million year-over-year. For the nine months ended September 30, 2024, total revenues increased by 10.2% to $18,268 million, up from $16,581 million in the same period of 2023. The growth in revenues was primarily driven by a strong demand for online accommodation reservation services, which accounted for approximately 90% of total revenues.

Operating income for Q3 2024 was $3,179 million, slightly up from $3,103 million in Q3 2023, while net income remained stable at $2,517 million compared to $2,511 million in the prior year. For the nine-month period, net income increased to $4,814 million from $4,067 million, reflecting a solid performance despite rising operating expenses, which totaled $4,815 million for Q3 2024, up from $4,238 million in Q3 2023.

The company’s balance sheet showed improvements, with cash and cash equivalents rising to $15,775 million as of September 30, 2024, compared to $12,107 million at the end of 2023. Total assets increased to $27,978 million from $24,342 million, while total current liabilities also rose to $16,678 million from $13,330 million, largely due to increased accounts payable.

Strategically, Booking Holdings has focused on enhancing its user experience through its "Connected Trip" initiative, which aims to provide a personalized travel planning and booking experience. The company has also seen an increase in alternative accommodations, which accounted for approximately 35% of room nights booked in Q3 2024, up from 33% in Q3 2023. However, this shift may lead to lower profit margins due to higher customer service costs.

In terms of operational adjustments, the company reported a 3% increase in employee headcount to approximately 24,200 as of September 30, 2024. Marketing expenses rose by 6% in Q3 2024, reflecting the company's efforts to drive gross bookings and revenues. Additionally, the company has been involved in various regulatory challenges, including a reduced fine from the Spanish competition authority, which was adjusted from €486 million to €413 million.

Looking ahead, Booking Holdings anticipates continued growth, projecting year-over-year increases in room nights, gross bookings, and revenues for Q4 2024, with expectations of operating income surpassing that of Q4 2023, which was impacted by significant accruals related to regulatory fines.