Booking (BKNG) 23 Feb 232022 Q4 Earnings call transcript

Welcome to Booking Holdings Fourth Quarter and Full Year 2022 Conference Call. Booking Holdings would like to remind everyone that this call may contain forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from those expressed, implied or forecasted in any such forward-looking statements.

Expressions of future goals or expectations and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements.

Safe factors materially cause the earnings from please and to of results Holdings’ forward-looking Commission. press list the Exchange filings refer differ at with as to those the most release a as that Booking Booking Booking could actual statements, end well For of statements Holdings’ Holdings’ recent Harbor described Securities in the

of whether release, new Holdings’ obligation by future to undertakes update in as Investors of law, a and forward-looking any earnings an the required otherwise. result Unless or section available financial no Booking statements, information, Booking events supplement, A together Booking publicly of website, is Holdings’ statistical For accompanying Holdings copy with press www.bookingholdings.com.

Booking Fogel afternoon, introduce gentlemen. for And Go ahead, like Holdings’ and Goulden. now Glenn to this David speakers I’d

to pleased respectively, am I David Thank fourth of both billion adjusted EBITDA Holdings’ you million joined Goulden. and report approximately our XXXX ahead $X revenue were and and we to I to a by previous this welcome conference expectations. fourth finish our as CFO, $X.X quarter call. of which am quarter Booking afternoon delivered strong

nights with about our room milestone up the XXXX, Room night XX% recovery. XXXX QX. time, quarter four growth for January XX% for night trends of important growth further which growth major regions for in was And year-over-year. our we of first in in the from quarter, have strengthened compared levels Room the XX% saw another XXXX room X% or across fourth up versus improved nights XXXX above to

year speaks to and of by and to into consumers’ encouraged strength the travel. very resiliency are desire travel demand We continued strong last year which new the

in trends path trends our on the further stated we seeing we on be XXXX. details provide have there future economy. is fourth However, last and we month-on-month and the quarter uncertainty world’s of recent And as will the regarding David volatile year, been recognize that can results

Looking of and of during XXXX, I year proud a back challenging competitive at very am performance company’s was our environment. the full what

of levels at parts nights XXXX. gross I of business. a million Russia’s constant still despite negatively travel versus mark billion an XX% open the room Our did or booked in the bookings currency begin world invasion X% our in to most are $XXX in year our exceeded our versus the than of were place improvement time an and in XX% all-time of high until the which and customers $XXX for the XXXX platforms of towards XXXX nearly of bookings was record the higher XXXX. impacted of Gross onset many XX% not of and Ukraine XXXX end XX% XXXX, XXX and and versus Asia on per XX% basis. achieved history first increased night These that on And restrictions room and in note billion

points this basis, levels. expanding strong XXXX with top the billion, XX% versus XXXX XX% $X.X below respectively. result while achieved X EBITDA and adjusted We improving up about currency In billion, or XX% our terms a slightly than XX% a XX% revenue P&L $XX of last and XX% more than XXXX new higher than constant and higher we reached which year, of our by profitability increasing percentage was record was Adjusted of line margins EBITDA XXXX year-over-year. on

earning significant our the dollars prior progress did to higher was accounting we after against However, it headwinds the generates a are these a business larger making that than results constant FX I in XXXX. currency actually and basis, goal demonstrate pandemic. to we X% for on that build it faster faced believe growing more

seen so to goal, am progress I long-term done encouraged we this work by more the be is achieve have there While to far.

with pleased us the to our positive Regarding are return strong shares. during to long-term versus sheet, the for our year shareholders prior our This, $X.X positioning travel, business by share shareholders with returning a balance and about the XXXX At to led remain coupled are approach on high of our for billion future. capital our forward. his priority outlook we remarks. was will year in the further will count and X% company end, David lower our going thoughts provide purchasing

years in results In made addition key we the against I trip earnings to our priorities connected call XXXX, are in on payments strategic market. out that our at expanding U.S. capabilities, the strengthening Booking.com, our progress X strong position meaningful ago. our These highlighted building financial and

the of we quarter, are address Booking.com’s On payments, and a progress basis gross pleased with area. merchant of each in Let in progress made we on these processed XX% fourth areas. this our in have me the bookings

As Booking.com’s travelers. mentioned benefits model from to important drives supplier in agent partners past, merchant moving our both for and our the

offering by enabling partners, a to operational including cancellations, decreasing methods, supplier solution several traveler enabling protection. payment additional demand fraud our workloads payment alternative For in providing access and key adds reducing value ways,

For pay more helps our a believe seamless Booking.com’s allows travelers, many to deliver they and frictionless to and want consumers we ultimately pay platform experience. how booking

traveler connected is and to make customers vision our trip, experiencing on booking easier, enjoyable, and and delivering value supplier personal travel better the On to while more partners. more long-term our

booking result improved initiative and increases components will other consumer on future, relevant loyalty drive we seamless as travel a to expanded experience. will our flights. We of verticals accommodations with provide link customer to and engagement our over that focus offering to We And a a flexible believe in the and platform and work in together travel have more the this we experience travel than into time.

our travel their of their us component options platform important flight one on offering process. engage on and who in our us travel another book over customers which progress offering potential further early countries. gives XX This have ability flight make to is allows developing continued to flight Booking.com, to now our help the on place their with in choose available in We consumers discovery

bookers that see continue We Booking.com. all our flight new to are of to over of globally XX%

will continue we our this work to important offer. provide best can possible customers trip the We experience

and In growth about Booking.com On share. be the Priceline XXXX. means gross versus in than have business to our to execute prior room volume we it has grown the of meaningfully XX% to for XXXX of to contributed we was and outpaced And market U.S. our U.S. well we and almost continue growth bookings rate our XX% basis, gained consumer U.S., larger night both that and spend in growth our the accommodations, believe U.S. the pandemic. recovery we believe market which brands broader

delivering our improve value improve closely scaling U.S. our the ensure have introducing we combination to offering by awareness in ramping up incremental target, brand, of and payments our with taken of our them. and we Booking.com, steps adoption flight At to to marketing utilizing to partners are working

over encouraged execute we strengthening our priority by against achievements this the continue are more long-term. our positioning U.S., ahead in as is to We but in there work the much

business, for In drive our partners. our core benefits supply to of terms we traveler customers accommodation continue and for our

partners, their be For delivering on incremental a partner accommodation strive support our and valuable developing to types all for our help demand products features businesses. to supply we and platform by

grew XX% XX% alternative Booking.com’s of I In nights. the accommodation an as earlier, room partners. year about versus XXXX important of Booking.com total XXXX to versus about the our full For accommodations, and area room alternative brings represented example, nights about XX% for benefit payments mentioned and

important progress the we request-to-book for spectrum an payment offering made some liability feature year, During by rolling property of insurance, full an solution professionals, our types enhanced with alternative which policy launching is for introducing a functionality, piloting accommodation partners. for damage out partner individual the and

for rates incorporating customer We advertising of raise time of better have same awareness partners. our awareness, to we the offering product. seen in improvements booking retention this time, new accommodation in the some to and At alternative recent brand help first our are

build travelers, States. to by supply the this a We and to over continuing on remain to increasing customers direct building frequency, United on product improve better particularly and aim experience focused time. and our in our relationships spend partners We for progress loyalty, offering the

on platforms of in highest reached mix quarter. level our directly customers Our the ever fourth booking its

continued connected engagement through our and increase to the the and mobile to Genius program, our vision utilize several app. time initiatives, out increase direct including driving trip our over goal further with customers of is loyalty Our customers building download further enhance of to more our mix to efforts our benefits

is ultimately, we is an And as with it it XX% XXXX. the mobile percentage of see were XX for than about important in app year, platform us The allows which of travelers. the directly engage our more nights points our center booked to vision. apps as About opportunities through higher room trip connected

the of U.S. third-party the app moved For downloaded one according leading XXXX, one time, the Booking.com’s number one for number globally, first research firms. and remained the into in the position app to OTA

app the build enhance recent we seen have continue We the efforts to will our here. to on experience success

is deliver accommodations, aim providing important on value believe We very as attractive we to travelers. prices our to

think is as with directly competitive providing our rates. to priority, source partners first about we prices Our to attractive supply work

This to lever at now addition the incentives competitive to our partners, Booking.com discounts few directly directly over selectively our when as our sourcing merchandise pull rates customers look pricing. In to access deliver value have built another the we offer and can we to from is ability competitive ability to cannot last that up we years. most we

this we been selectively tool return merchandising will forward. the XXXX we and pleased incremental have with seen to in of have levels We from going utilize continue

our of partners progress have made customers deliver experience while and In delivering will key conclusion, These both executing us encouraged our for help I marketplace. better the results initiatives in XXXX, teams sides our in priorities. strategic offering by and am strengthens strong our which against a

confident travel ahead as the our are as growth and the long-term company. opportunity for We ever in of

the that us other that David, the turn up as his to years XXXX, with projects David which he news role and with to CFO help in and initially let early want for I to has the X will us to with transition needed. be plans involved as to more I before know Now, over initiatives after from share then he retire call

not timeline, As you time. going by is for some this anywhere quite see can he

call to me So the now, let turn David? over David.

going those beyond stakeholders. help when strong will to you the on from as Thank as am Glenn. comments, time year business next our continuing as I not value my the deliver role focused you some ever creating results for involved in and remain for over and And I anywhere for CFO said, that,

will quarter and be we can I rates XXXX. quarter but think results. on earnings trends rates we where of and making to these so in far results comparable year-on-year otherwise some basis indicated, for for period in to growth All the to fourth our our XXXX, relative reconciliation the have for provide XXXX the found seen our we references helpful. review All in on unless color are are non-GAAP in growth turning on thoughts unless the GAAP otherwise XXXX Now some will regarding XXXX periods be the results to indicated. are results our release. a comparable Information first

the fourth quarter. Now on to

We up night are with the XX% encouraged growth room the room U.S. X% see Asia quarter, from night the the fourth by of third quarter, growth in driven in and improvement to

U.S. rest in XXX%, more up were For both than mid growth and the first Europe the of was quarter, QX XX%, XXXX. Asia the was and was world night at Asia single-digits. versus fourth of quarter room up

growth total QX from year-on-year basis in nights Our in on in QX. XX% to room a XX% increased

in Our XX% mobile the apps for the XX% nights room of total about year. and fourth over quarter full represented our

of year XXXX. channel below than The points continue increased QX, but coming and to through in QX the of nights XX%, room and nights as international relative mix mix an about increasing see fourth of few to still percentage direct channel. our direct We nights was us which in total a the our quarter for a percentage XXXX was total room The room higher XXXX. full the QX to

of the of higher versus the in XXXX COVID-XX bookings the levels QX, saw were when to In was Our quarter slightly fourth booking Booking.com we This remained of a booking of what the we saw XXXX. wave. cancellation meaningfully near-term for XXXX variant full levels shorter than window the quarter Omicron in third above mix rate window QX, slightly expanded during in XXXX similar below XXXX year. but

alternative XXXX room in room QX versus night QX XXXX at higher than For XX%, alternative was couple accommodations about our accommodation Booking.com, growth about percentage rate which points and QX our was the was global and XXXX. nights XX% of of a mix

of points percentage to FX currency points points or XX% group on and QX XXXX due accommodation The in room currency gross XX versus increase also negative XX% higher basis. bookings percentage bookings to increased bookings increase XX by flight the across constant ADRs a XX% XX% XX% gross partially than constant due offset from night was from X movements. impact the strong better

regional percentage about a benefited higher have of indicate mix points are booked quarter, trading Our point fourth rate and in accommodation length being across increase not ADRs XX star from customers our by ratings mix we from hotel in in X down. regions. the stay all about that ADRs the the Despite or percentage of currency seen could change change that constant

We continue to watch closely. these dynamics

about in was basis. below was a Revenue percentage line were tickets driven about and base on by for up Airline XX% about X.X% up was expansion our currency quarter XXX up in versus XXXX XX% as about in the booked fourth basis the XXXX XXXX fourth quarter a products. the of Booking.com’s flight of points Revenue with expectations. small up gross constant versus XX% continued versus XXXX and and about QX a bookings

XXXX were underlying accommodation rates take with in line Our QX levels. about

which up Marketing expense our XX% payments and line QX with XX expectations. and our line, with About points a compared XX% in of were XXXX. with a XXXX. about QX, of is about bookings QX in through XXXX a and bookings expense about gross was Booking.com’s platform highly gross with XX% XXXX. percentage expenses bookings up was expense, line Marketing as percentage processed basis our QX of from variable Sales as in QX gross versus increased in were expectations other

in aggregate XXXX, expectations higher versus in more were was up which the expenses our due quarter. Our fixed to XX% changes in FX primarily than QX

was billion share, basis, $XXX in currency up fourth included versus in of EPS of GAAP as constant XXXX net of quarter, income XX% net sale leaseback basis. X% have equity above as Adjusted related building a a below which income XXXX which a million to and transaction billion JD results XXXX. over of Booking.com’s would the related which around our pre-tax the over $X.X $X.X On and had been EBITDA was on unrealized Grab. million office was Non-GAAP future our about headquarters X% to a QX gain in non-GAAP well quarter, $XX for sale gain we $XXX in a the in primarily investments, $XXX Meituan, million

on nights we pleased to our the room XX% higher that a constant When full XXXX are and higher basis. looking at bookings year, report XX% gross currency and our X% were were than higher XXXX about

revenue and on a from an about almost other timing, year lower XX.X% in XXXX currency over increased our was XXXX $XX and advertising flights. from to basis. billion, than due the bookings constant of full no which percentage XX points which Our as was in above revenue basis in XX% XX% up associated in negative bookings point impact XX year a gross a Full about was have basis was XXXX, XX.X% points about recovery revenues, and gross slow from which mix full the

impacted from each payments about XXXX are rates of percentage X was to XXXX in which by X.X These percentage changes benefit reported in point compared investments our increased payments increased and take each revenue our merchandising, of rates by costs at XXXX mainly point about XXXX. in versus Booking.com. revenue in offset merchandising in The from take

XXXX Our full and XX%, X of higher EBITDA XX% points constant expectations EBITDA X% EBITDA than billion, $X.X basis. a our XXXX points year start better margin about margin the which the in year. Adjusted up and was below our was on few was adjusted higher a than was which for currency at about

our position. liquidity Now cash on to and

increase QX, was of in billion QX about primarily the and bond cash transaction quarter, payment cash from in the billion in driven debt QX in I cash our share versus This billion million the completed mentioned leaseback offset $X.X sale million proceeds $XXX Our offering in flow of the of by we our free billion $X.X $XX.X billion in about previously. QX by balance partially about maturity. $XXX of investment generated was and by the November ending balance balance in $XX.X repurchases ending up $X.X

full shares almost last year and share our We of higher XXXX, years. X generated over XXXX. over year flow, cash versus the XX% we the repurchased $X.X billion in than count in For year reducing which X% our by was and billion in end $X.X XXXX the XX% free by

proud our return commitment are and our We this managed both to it and we stock-based reflects compensation how dilutive to because its shareholders accomplishment, of have capital carefully expense impact.

metric with We continue with companies pro profit this therefore, to every very real includes we see many of traded report out stock-based We compensation strongly publicly expense. and forma disagree the associated the negative impact compensation. stock-based expense approach,

of our as count dollars business. cash cost valuable expense performance than real fully in stock anything, just pursuing of dollars be and SBC SBC rationale expectation serves when has repurchase every to-date offset very the count the SBC. or If should that view dollars reduced served evaluating a that future. We over stakeholder even to same our of doing any view for long-term across we business worth worth a because business of more our that time It’s the will more program, our share from dilution expectation not returns meaningfully program has as share the

X% that X dilution offsetting on resulted less it capital represent many counted not In dilution. but of during cash in stock-based the of to profits. drain represents last less than X.X% compensation cumulative companies’ a of reporting pro Simply our in shareholders, not actually resulted shareholder does in forma than years, XXXX, a does And get our on business dilution. return

count shares our inclusive that activities. the as of we compensation added the same total XX%, period, reduced mentioned, a were I stock-based result by during share of As a net

that one, our stock-based stock approaches and philosophical – us the share reductions. return counts; actively and guided meant to first guide will number future capital meant in practices are repurchases, compensation of to are two namely, shareholders that Our foremost, form the the continue count be to two, by same decades,

sale In January, On February. investment in sale, cash XXX% Total represents started of $X.X value about Meituan of after-tax billion. sell the position to in regional of our our an our to proceeds in $X.X a completed expect the billion increase investments. we over position our we or available down increase the $X.X by and from basis, billion this

with partnership Our business Meituan continues.

strong ratings. about focused business and we going investment As shareholders our capital forward, whilst grade structure in think maintaining credit are our for investing our allocation appropriately on returns our growing framework we and

We will ratio have a levels. is basis, business about to leverage. line X%, about historic target with On in maintaining leverage which a the gross negative leverage net the of net run started we with

However, on investment addition moving positive leverage managing increases. plan as also grade about we We returning our our maintain our leverage through us over EBITDA these targets capacity Xx strong believe gradually whilst ratings capital structure to with net generating additional capital for to allow time. credit will our net targeting shareholders

in authorization last $X.X business, And end Given repurchase year. year. we billion authorization, billion on total year these have over full cash leaving our to current of Board at prior we billion under annual the In our repurchased $X.X prior Directors years. $XX.X and to our $XX to approved our $XX be Since $X.X least us new that remaining at with few with considerations start remaining expect the approved XXXX, of XXXX, shareholders organization started the billion for next flow share and equal billion return XXXX, the the in under outlook we free authorization. the second capital the under repurchased quarter billion of our the was a the

authorization authorization. begin current new Directors our approved We we today that will $XX the that after Board repurchase we are a of utilizing of announcing share billion has complete

that and $XX We billion to continues X next share years, within from complete authorization under to assuming travel recover repurchases grow the the cumulative here. expect the

like primarily to XXXX, Before remind I to you will XXXX with compare turn we I’d XXXX.

understand some will However, better be the of will to the XXXX a periods comparison there where helpful be trends business. to

comparing variant. Omicron distortion by helps XXXX ‘XX, January comparing – negatively from created the versus to example, the For impacted by January XXXX which avoid was

was As line improved XXXX. you in were below room and February February our it’s recall, XX% with quickly nights January but XXXX XXXX,

world This our record a monthly night room and monthly million previous XX% January So, our on thoughts about very When room nights basis. XX% nights, nice in basis. XXXX, XXXX. year-on-year driven versus XXXX the QX for we rates Asia. January now Europe, with U.S., year-on-year million by the May. more the last set of January night room growth was growth improvement growth Europe of the over were amount XX% of growth on XXXX first than up in in quarter XX the in XX compares to nights January, This booked XXXX room Asia. January in nights of primarily XXXX, January about from over rest were to our a improvement highest XX%, a from in ever on rest recent and world room was XXXX and trends quarter comparing fourth versus room XX% of over QX XX% and up XXXX XX% and

lower we cancellation versus January, In saw rates XXXX.

January. And we have mix we levels in to booking a as as as bookings in near-term Additionally, late healthy XXXX normalized window it has regions, expanded stay to year. bookings fully some the the see in well back of seen

to are could rating trading be indicate down in than booked being of that continue XXXX. higher stay also continuing that in in the star to mix change length customers despite or see hotel We changes of no ADRs levels

flight forward – room may or in levels going ADRs booking of negative some were month length average FX night than constant it XX% currency The made few partially bit basis, was likely January and percentage in XX to On gross on bookings continued is XXXX. a basis. in impact some this points could night that room XX% be movements. offset or these benefit booking This higher currency in XX% in of X up last transaction of points constant growth were potentially XX% bookings higher of also gross to The increase from bookings due a stay growth a from normalize. the booked from as instead saw due the longer from points of up moderate year than year. to January December differences by January later year-on-year pattern a indicate percentage these XX%

in January bookings basis. up Gross constant a on up XX% XXXX XX% versus or were currency

quarter for will While trends, some the the year-on-year. for quarter month-to-month the over over to XXXX, over the have in continues our last room be made be we assumption there XX%, be fourth the uncertainty growth comments what that weeks. moderation Compared few XX% growth around this night will just assuming first from seen to

bookings grow FX. year-on-year We about from room about points nights from X% offset constant expect QX a gross to couple X higher partially of percentage points on to ADRs bookings faster a continued due currency about and by points X than basis flight

bookings less expect to timing, a revenue a gross negative by increased a due XX a improvement and basis to about of from offset impact We investments QX as XX.X%, be in point merchandising QX percentage of mix on XXXX partially clients. higher

and in expect percentage due in of as XXXX full a expect increase be in combined, with to in last a bookings than slightly QX be than in will QX, gross QX QX but higher them mix. year. little lower for expense Marketing marketing line gross year, as the we a We be XXXX, to of to percentage about bookings in merchandising direct QX

including than impact the with XX be points bookings our sales merchant basis partnership potential other of We XXXX gross higher expenses and gross expect to QX about core higher due costs, to QX mix Majorelle. bookings and higher in third-party as

versus more versus XXXX fixed represent expenses indirect to million, we due increase to a Taking XX% over higher related adjusted into over expect expenses, which XX% EBITDA QX our personnel XXXX. QX and grow will be QX just taxes expect to in than account, $XXX We IT expenses. this and all QX more

full about the in QX seeing encouraged we year ahead, we’re the far. we’re trends strong As think by so

and our However, expect will year continued line the which very makes out. progress predict how we line to top do the how it will turn year top during difficult volatility full trends, in the

move the comparisons year from Assuming low-teens difficult XXXX. account assumes levels a we growth and as taking year, the gross through moderation full more in booking growth our into versus commentary current

this in early is estimate in course, our time. Of it’s point but the this best at year,

revenue growth we to higher in the growth. year-over-year basis than in XXXX, than our year-over-year gross about as XXXX is of be For year, result which XX our percentage expect bookings full points revenue a gross will bookings higher

payments take the these negative XXXX, increases mostly in our to expect in mix continued merchandising increase of will rates. in an in continue mix timing on impact to our expect We the versus Partly add offsetting we are to business, away XXXX. and also that go flights spend

marketing in XXXX. and about combined be of as gross same bookings We expect the will as the percentage merchandising

to expenses in XX%, expect We our growth more fixed similar XXXX grow last about which is year. the to

We to more expenses grow more years. fixed slowly expect these in future

XXXX. while a EBITDA expect we level XXXX expand result, points of to a As a in EBITDA record versus to continue deliver our margins by couple percentage of

we’re confident priorities trends partners. to with travels XXXX. In enable QX remain seeing and services better provide that our in and results strategic early We our closing, will we our pleased the us are for

per delivers continue growing share margins. business we We a EBITDA with than earnings more faster-growing that larger more faster and dollars and building remain EBITDA to focused on have industry-leading growing and pre-COVID and faster

move We Q&A. will to now

the So please can open Chris, lines? you

Stanley. Instructions] Morgan you. from Your Thank [Operator Brian, Brian go comes please first Nowak, question ahead.

questions. David. and big Thanks one blocking Great. have for one my taking questions, and sort picture. tackling Congratulations, I two of

and gross ADRs model? base of Then big blocking walk the teens your on or that about becomes of around model your Just Thanks. tackling bookings about year, the us to becoming that just that’s picture. the a second if as comprehensive? thinking do you world low you more for How kind sophisticated best search because travel about sort discussion continue potentially think little speculation a one, search you’re sort how ability AI or more to the grow this of the of case percentage search thinking position more lot you’re of one, business tools. guess of about in through new the and is Booking.com’s direct first can and There

you. Okay, Thank Brian.

Glenn one hand the Let over second first the then me to take for and one.

and takes, bit that puts obviously, booking as our get So will gross than help a To be the room think year. of from the growth expect answer are entire teens a question, about little few night Yes, there will we slightly we lower growth. low your FX. we

We the see will year, and got geo impacts more pressure think flights. constant that on little little the will bit mix, of we full we gets that compare for of year. get recovery in the a harder Asia we currency ADR from But across ADRs as help a bit

of hike AI. the I right take I hike the guess yet. we’re second Gartner are into I of word not think I’m now. is don’t why that about lot And talk one. hype about – Obviously, on dissolution froth AI we we cycle a generative don’t when now, sure a Brian, good about right

about we’re think the in better impact inflated has improve using this our the probably machine down that may of our happened those talking was learning with about just general. I I talked customers, peak things center, this talked it call still we we question using Holding’s because on always. no is the I is years listening talked the all And are doubt our to be limiting but you there AI. accelerating how AI I partners to what – about capabilities the it’s been we’re to AI from some road, search have I important develop be improve time and our to AI. doing, going not things what to And for Booking our doing the technology to I working do time. just how AI it’s in all about the X be [indiscernible] to presenting and seems product, expectations, we we’re ago. And think

of a in about stuff I doubt But better. interest, – but going to it’s going some in see of these there is is some think – it your no time there areas is amount search, specific major interesting. and tremendous So changes take very be of to make we all to it’s the something going course, question

and we for these and for predict what is were example, first started And AI lots those to machine very these able do of be your changes how technology We business anybody these back with technologies. I be we best to say do our is There since anybody capabilities as very great the are good new I ago. years adapt changes thing past. learning our terms will for as could going think we And went adapted happened, our to just out would when, customer. XX would with be question, did In been as we over and desktop coming of positioned from developed. are look that best at the new we well changes, else’s people to mobile. good tools

both So by all better future, of am service am encouraged in for to being I’m I these the I scared, the not able tools and a marketplace. sides provide confident actually new of to use

Great. Thank you both.

Thank you.

Your comes Evercore. Mark, next please go Mahaney, question ahead. from Mark

Okay.

questions, Glenn, two please. will historically. me massive just outbound The but Let market ask question, while, been China a take a that – that is

back mid in I digit outbound single the And travel percentage, largest small whatever, was a think single-digit XXXX. it’s it market. know percentage, I

that into where gaining share there there? to that than Your the couple leaning into another another were you’ve years is region also company of U.S. in you if of thoughts how gains better maybe is out to on in there What ago? better right, Thank the able and to tap the market? playbook mean share And then position U.S. by U.S. underpunch I kind you that weight, Is also I gain said your to a about you. you talked that market now can think apply

of there to to increasing travel, obviously, getting course, travel about economies. of China, to just to just impact everybody China mean. GDP it is inflation, and in for Mark. not reducing do in COVID, Thanks, regards the able that’s demand a dropping going to for do restrictions and the what of going in sorts those And is about of is going that’s world that things very how and excited rest terms what’s excitement of of too, In to all what due does restrictions terms China, being the to lot

of of the business in correct. travel a question, the your overall you’re terms before Chinese We In player small terms pandemic. specific were

numbers the When get a quickly I in lift was was of can outbound as outbound you XX% you some definitely of out in go of January was and teens yes, of an soon. at China. maybe terms think airlift actual the can hoping of and are the of XXXX to been it terms nearly some amount it travel I think outbound out look that going are predicting. terms lot available number, opportunity that of what there, think have of in don’t In the travelers of a they as future, happen it’s is there who I there deals

think for take So time it’s to going that. I some

the is everywhere, those pretty like Now able few that to the advantage happen take we can to but gaining last I I future, in the Google not world, But successful use have about, much a placement great be a our competitive we we in talked years. China, say, marketing, U.S. Europe, take people time. there. keep And doing that market to the increase offer to that in of we of different is how China we albeit when going and in because is will terms to very are know terms the in to in we not whether be And wherever about don’t of market. note look, we’re going going say things little said the able things. or I China all you’ll as you’re is to priorities, U.S. pretty same share been in use take we – it’s would consumer some competitive aware over it’s China, pricing, we all cares of meaning any able be U.S. there products much

those everybody can numbers. I see think

in should significant – – or question? going China, was past was bank improvements yes, we better of do try in start second anybody that with your don’t So but question to What’s second that will in the expectations I we than any near-term. did think the the and anytime

another where expand U.S.? your to So where No. market? learnings share market probably you is Is in think use Europe, you share isn’t be, not market and is – regional there but there another No. can there you that want U.S. to it

a U.S., we share had That’s we well going do Well, The world, case what the how area now, to is world, pull gaining not of share a to the do noticed say, except ways. nothing very the where and and of we we in there. around We’ve hard Europe out world U.S. in at. try separately we same increase course. to hey, look to similar really out there do doing many we’re were kind everywhere, when right the been quite press we another We And everywhere. underindexed time, but our in parts fairly want better calling that noted. we’ve the for lot kept here’s of we the of it’s albeit throughout market in reason which China, long

Okay. Thanks, Glenn and congratulations, David.

Mark, thank you.

improvement is to small nice That in Just Relative compared the That’s comments. contributor to region being we’re other to the to QX. a China been a Asia that seeing to what driven obviously January, so is markets in the we by add driven improvement not region. in China. saw Asia far. by

you. Thank

Thank you.

Lloyd UBS. go from next please Your question Walmsley, comes ahead. Lloyd,

unwind? much should take is of year. about are how in bps of coming Can the as about kind talk we there been X% maybe how think just the of to I headwind historical – repeat talked repeat would in If one, What XX there U.S. is And think I rates Anything ‘XX normalize, starts for revenue revenue of and improvement is age to up this while take unwinding? second U.S.? about a from some timing the just timing You Thanks. of headwind in that bps share to that year? you users kind then talked kind the that to, I coming Thanks, impacting this direct you’ve And is of heard takes rate picking guess, share in continues you can as think, ‘XX. And that of the to we take now. How about other you and compares is in and great. be right, guys. growth puts rate specifically that kind cohort levels? you XX another business

of the part Yes. first take Lloyd, that. let me

this of numbers a through all went the of kind I but in commentary, last think little of in with bit versus I XXXX, year is versus the a comparisons of etcetera. commentary So lot the there

take entirely So drag of the rates essentially, year improvement this on away. relative – bps year, has last gone the almost gone to timing XX basically

have And also, is increases. mix of the get offsetting year little last out, as a level to at year we payment point XX there payments from So you we get those a of merchandise was continuing an we about of goes bit exited timing away. speaking. broadly year plus last to this same amount that that increase The the

well. So of you mix get merchandising impact a that’s negative year-on-year a as flight and

So that’s the plus cap from to XX how year. you get improvement last

less, course, XXXX on question than your impact gone much has the away change, a really compared at the rate time to expected year. growth during to lot in So though, timing more of XXXX, point this

talked where are I take So same don’t about, are The from we takes the merchandising, puts But rate expect changes major level right thing lines. along now. essentially, there in we the and payments, etcetera. flights,

in hurting, offset each big take to You some shouldn’t have have some time. are in we going things that they and at to this we and modeling rates changes that helping speaking generally broadly because are of be point things

We don’t terms go regional your in of question there.

about going not steps in for. that to be of in are are We the asking U.S. talking terms you

aging gains Okay. Any the broadly? you’re just feeling just directional how sense the about share you’ve in had market of cohorts

keep and doing gain it, these and U.S. No, gaining to about reasons be in the been what talking about in I how we for reiterating going way to I’m doing, able not just doing on to continue would share. I’m We’ve we’re pleased grinding the how we’re on pleased I’ll that, and time it and going the I just terms are calls we’re try we’re specific to to that how share just and be some that. of do say to am.

you. thank Okay,

Thank you.

Your Bank comes of Post, Justin Lynch. next question from America/Merrill

ahead. go please Justin,

business? are now this maybe you you do levers you. and XX% Maybe pandemic? initiatives I were are about it How And to thinking where think you pre David then, EBITDA competitive versus the getting for for And in Thank last towards How what Thank business and one you. can like nights kind think you Glenn, back year? talk range Glenn, the one accommodation forward? XX.X% of flattish what it, looks are AA concerns, your of with extent about the that’s for David, big year said And your alternative about total guidance. about this you year. your are that going you’re obviously, XX%,

Alright.

let Just margin question first. EBITDA me the take

points kind One, to in the are investments we difference. difference that, and add if look So the basically that X of did got to expense ‘XX, relative the to of will the OpEx to in points marketing order in of in grow points the where we We get continue that – said a We’ve payments at know very leaning FX. are you mix to XX That’s flights were got that, got XXXX, between part in we are We’ve a impact and rough how of at lower-margin don’t an our in I few XXXX, things. couple that’s between to we ‘XX more they to market. conscious as merchandising and business. start of drivers mean, when DST total vis-à-vis some share difference. we’re they gain got the XXXX, I the you making recovering their have impact. targeted and of impact we’ve OpEx we’ve –

forward about the increase from to when we level. you from think even would where going be to that, expect go margins So we do this able

time we’re in down we able but that direct businesses can that our We as is fixed mix on we But paid our reasons more part to the from see the may lean again, over of from to over lower to of XXXX where the mix of – can business. that, increase We drivers if where grow. now. potential below mix medium increases, COVID, still drivers level mentioned, just over but XXXX that, there The kind you we in on think terms the of I margin We things a should in versus do can costs. we time, we lower-margin not growth volume in continued higher continue will use margins get now. some trying into not our that to do be to right the think leverage lean super less pressure the spend. we to to expect just XXXX. We’re think advantage levels, marketing, clear, is are to then And that absolute the smaller of from believe to we are the get be of pre-COVID total I back paid But want believe from to our back do that of still today same the we kind term, are levels. market becomes we

sure now they first doing right having properties their how to thing. growing. that’s Regarding did awareness. I them that done mentioned that the year the that do platform. to things repeat that that will some doing in the And get remarks but alternative partners, the accommodation we’re we put that space, suppliers, prepared all, in and we are with to of I we last doing the And things And those what very the are is pleased on want that and our make we’re

area, of putting push it of hotel rapidly product the growing accommodations really the properties is are in are want for increased. [indiscernible] to both. accommodation years the that year aware. make doing want marketing through. use big over own Super do magic increased has to then we to start include people but to who noticed, – increase has Bowl people you we not making is So to too. and as we continues people can a It substantially our in the making that it’s example, the that this and not product make we grow non-hotel and the platform our that sure in in It hotel ad, year fill put a as that product anything where We a sure have branding throughout our It’s trend on that

go consumers to properties, that for same and a cause come start the over look the our to look our then of back property. one, at thing a point. and know back. And and We that’s another really a customer compare site, really one is one. place having entirely and another And interest, different of So We enables come type makes to types they this able at they believe customers time. important. that’s They both in be And they come better non-hotels process and or our they hotels the they switch is we to reviews app. then what know,

where of It’s we’re trialing the Now for we’re am more encouraged we just example, year. look, that, our going. stuff I requested take and are got to lot very we’re last time. we book where some piloting mentioned out I And by still just a going that.

have about in direction. continuing the I concerns So us same no

Great. Thank Glenn. you, Thank you, David.

you, Thank Justin.

Thank you.

next Your Eric, Goldman please go Sheridan, question from ahead. Eric Sachs. comes

most around the of And as broadly away ‘XX, that pent-up should and much. on where of you’re a of a of more we how a you Thanks you intensity on backdrop thinking demand look a the be as growth the evolve so industry perspective. and question competitive you of comments much the sort the sort of against into dynamic. normalized some competitive ‘XX see forward initiatives from tailwind I’d so about for of environment? from of demand key the focused as Thanks pent-up against meet sort look taking to normalizes beyond the was Glenn, where industry of back How you the for pockets saw first those somewhat the your sort intensity bit demand to questions. faced competitive part in reflecting backwards love intensity

clear a didn’t recovery fact that our very to and the Well, be seem lot We competitiveness nice versus compare when ‘XX. quite was from just Sure. a out ‘XX competitors had to of gate the in fast that performance ‘XX, terms whether the we their benefited it are the marketing are trying be in so of of what of there. brand getting in in we get marketing, doing, they same of terms terms out demand you

throttle those full So XXXX, on a to customers. get also we’re putting

about But in marketing. those performance ways the wonderful saw. amount put ‘XX. very into year. ways the get marketing. of is In to significantly Tthat at money really between increasing that trying always about that has and out customers competitive it different lots technology to to speak saw I way everybody sure difference we competitive. to they developed look, been was what brand friction be thing of has was a what make they We all it enables saw customers. wanted different this the We very that’s when last that ‘XX industry be being little are The with market That’s look the able can trial. So

we maintain on a a that be recognize that doing great on so It’s with work use for great us. great we service keep So them customers. it much with Yes, providing and we price. always will every customers. perhaps to We will going because actually to to loyalty. we’ve And thing think on some price, there is a fight providing we got doing as service, they I loyal those one is out keep them have to that. this have their day They’ll go people we’re and

have competitive, do going that magic terms I in advance to advantages but better. in our We’ve do and is to that to don’t keep technology continue doing, here. no great to the to then of so that’s go because on the I less some they people of Now that of every hey, do try of to Booking it do any day. they and terms going because use just to areas this have get better, think service because we I’m it future, we do it’s think skill sets And going it’s say, to bullet but there got have

Glenn. you, Thank Great.

you. Thank

John question Colantuoni, please John, from next comes Your go Jefferies. ahead.

taking for my Thanks Great. question.

you But ‘XX and about And along any higher just be transition and you half. that about marketing trended, first in summer would there period you some dollars talked a give moved of competitive investments the the the recovery much far some great. driving that to are efficiency So environment in second acquisition EBITDA continued bookings timing how prior just could then back And So have of detail with how half levels customer the balancing more sort realize the in helpful. of if marketing? with the – of of the in more to that I between would after XXXX being be question. merchandising mix in is in detail about XXXX, so sort Thanks. thinking the core

Alright. those me questions. both answer John, let

in much know, of you kind you of marketing. we gains decision, a merchandising a that. So rates we look combination as point into collectively, share nights, in were than obviously, of globally. room think expense the to significantly but occupancy believe recovered XXXX of at from And industry and we’re We channels, took and we higher that in level especially I conscious our and as we’ve in not you they in our and conscious have look also just than we made, recovered talk. how When – lean U.S., reflected travel have marketing a the obviously, the they view. the at fair the choice, that front they XXXX more And is amount was were

been we that a So has believe sensible investment.

prepared combined at I as – the as XXXX. my in merchandising marketing investments in keep was the same level it in in comments, XXXX mentioned will about we We and

at the a really would across a gains average merchandising a on each still believe share elevated year. bit think still upon kind for we of XXXX, in the think less year we There on can’t probably We our market made, but realize of level bit I of cells. because us Now efficiencies we that to will the marketplace. we marketing for you could see the during will in is what the more more during tune look the compared on year, of marketing, is balance And at that stay merchandising, based potential change versus the is. recovering. we From comments the right we that spending

investment question? that’s kind fairly And makes don’t of year, good at if in see together. it’s and second XXXX, up. again that at a think please, think of we But still if sense we step look the So smart been a really your of the you travel it sizable it recovery a remind versus And least you this industry. me part investment we

around so could Second if was far. you summer give bookings detail part any

you. Thank Yes.

So summer bookings, yes.

a window the now bit shortly North and have America seen, little still expanded But So has global on we as a recover actually, or mentioned, and – travel I Asia. booking slowly window completely would was, was the booking I window Europe in basis. say, the in –

So for also demand North that short-term that bookings. but Europe strong seeing and for America, in we’re means bookings summer

shape the up quite well. booking So we’re seeing summer season

based high type last but We’re have recovering not caused repeat more for cancelable bookings certainly going the upon degree in season a us. the are but obviously, be are strong it our talked subject to that book you but year. shaping that windows, better appropriate up about on we looks it’s future, environment, we lengthened fact a have would growth in that for things a of slightly We like perhaps gross a to say and rents, fact can metrics then certainly strong booking markets, they strong think to, see growth we the flexible, summer in now those bookings, obviously,

Great. Thanks, David.

Thank you.

next Cowen. from Kopelman, Kevin, go comes question Your Kevin please ahead.

could ask And want you then Could is the also this us the what the comment about outlook flights for to initiatives. flights update year? traveling? on I Thanks. and you there

Kevin. Sure,

in flights we’re talked the we’re the countries prepared have. we pleased obviously that are number of of a bit are we terms from So to some little start We then us. like it the who go very sure product. number and They we make in the selling they know buying I now growth tickets mentioned, and of as good about of are remarks, want to we where very people people, we because, is first,

of to – work have the world terms you have I to In comment acquisitions, nothing the can’t regulations, on that. I

we we where would hopes call X – in And love are and build, the just us. people we about to We off to Booking.com. And future continue call, we say, because this I the the years starting the XXXX, But are just just I and to have ago, X are love to to been the where the we continue work we and been at listened ground, were years the just area. work talked that just for sorry that. again, with look we on earnings people please, so able have deployments in the what up and so started process in the flights I ago, now. it I fact that people like coming to high –

the one on, we to goes year half the about a tough Okay, then think Glenn. comps is – has other normal? as as second And and think a is it one, quick – QX quick comp fair pretty more year-over-year it’s

he wants talk about I’ll not. if let David or to that

quarter remember, because have non-linear travel frame in in you went obviously, always then many time QX QX. a if And be had to toughest harder bookings kind comps our early will right? going get basis. basis of We we easiest as year-on-year recovery. look it year a the when on year-on-year past a at Yes, we year-on-year, the the said that non-linear. is get would we QX, the on comp – through be peak last be

So and comp. a little QX will will and just the QX toughest comp way be be QX QX between.

David. Thanks, Great.

now remarks. Glenn closing it was back your turn and you. I will question. gentlemen, Ladies final Fogel that to Thank for

close who to Turkey for tragic at and by our the hurt our employees want partners, I appreciate We by and customers, our thanking thank you. Holdings Thank and Booking I company. continue as world shareholders. to to support around to the vision And your our we long-term our help contributing the dedicated on events build in everyone bit people want terribly everyone so Syria. a the are

We area. Turkey in friends in partners and have employees there, and supply more along many who family have with the devastated

Thank Our you, out hearts suffering are night. go all there. and good who to

lines. and concludes for Thank participating conference your you your you. thank call disconnect for that Ladies and ask you We gentlemen, today. please this