Booking (BKNG) 30 Oct 242024 Q3 Earnings call transcript

Welcome to Booking Holdings' Third Quarter 2024 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 facts 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 new obligation by future to undertakes update as law, a forward-looking any required otherwise. result Unless or no statements information, events Booking publicly Holdings' statistical A website, release, copy Investors of together with Booking Holdings' is Holdings' www.bookingholdings.com. earnings an press accompanying available financial supplement, Booking For the in section of and

gentlemen. Holdings now for Ewout Glenn this like afternoon, ahead, and introduce And I'd Booking speakers Fogel Go to Steenbergen.

revenue to third room resulted report to the trends I'm and fixed The lower-than-expected revenue our above third Holdings' end in prior by afternoon quarter, gross bookings you, with line was expectations. conference our drive that this EBITDA improvement Ewout quarter and combined spend range. that of all Steenbergen. in of end am Thank CFO, and high adjusted marketing guidance particularly X% in nights, in top disciplined growth, outperformance joined prior helped welcome OpEx the high I call. the our exceeding an pleased Booking Europe,

the health We and continue to be the products. encouraged of our travel industry of of by business, the the underlying strength attractiveness our

$X.X of under billion billion of our just increase across travelers XXX quarter, and X% platforms, In booked year-over-year year-over-year. XX% adjusted grew of $X room third Revenue million an the increased our X% year-over-year. EBITDA nights

with in year-over-year. From night which return of in share by the an driver room quarter, count our by was earnings discuss in global which another for growth we night the accommodation and our per broader adjusted which year, third share of Finally, to well In perspective, far think I'll industry. regional in remain average helped growth growth. our our primary on perform XX% to room optimistic more relatively year-over-year, we our U.S., quarter the levels reduced outpace sequential In double-digit stable in Asia, a the later we continue improvement the this so we business which outlook observed we Europe growth in in our increase continues capital detail region, strong program, the see of this call. grew X% U.S.

continue on will growth our for we room As ahead quarter, our to details to the of demand look we fourth to provide quarter healthy further as results third the Ewout quarter. resilient. remains night levels about fourth and expect see travel thoughts

confident competitive remain position profile growth long-term I growth the earnings our industry, the of and travel model. our and attractive in

properties see connected travel continuing to initiatives our contribute alternative develop better and a AI continue vision, to and progress for our capabilities continuing experience deliver initiatives, include our across trip advancing to which ongoing growing planning, a several on the supplier on We and and developing of are small demand of and partner help our valuable travelers all benefiting partners. majority combination We independents. which also by businesses, our these travel to being the to focused while our our in accommodations, important booking progress incremental support platforms delivering to Asia. These remain features effort trusted products

and all because to see platform. available types, We we alternative which a property believe our X.X growth Booking.com from accommodations night benefits XX% room at hotels properties alternative combination to choices have reaching contributed this strong offering platform connected million, of about up listings for of last to number more see accommodation listings we travelers, we QX, that in the end provide of XX% QX. believe continue on we to approach. accommodations We make our more The growing year. of alternative For our Booking.com, differentiated with

For hotel that trip. options hotel on landing We up in stay are open instead best our our and to with platform many in booking that when alternative end a compare an this a data place for shows travelers interest versa. bookers and determining to example, will believe vice cases, our of in portion shows the alternative accommodation accommodation their

Our objective for make to across continue our is all types. sure provide travelers to we great choices property

and supplier more the towards steps value delivering better and is to together the strengthened seamless make elements connected travel On experience bring more the booking capabilities, vision experience. personal in take by connected help of planning, continue a the growing to to trip, and our long-term travelers more enjoyable, partners. trip easier, our different we which travel booking We our believe merchant while

incremental at has their Booking.com they bookings. into helps addition, our accommodations our they to program of other which travel expanding more receive Genius partners with and value loyalty deliver our trips outside and to as to book components as of been In our more us travelers verticals,

means have with a We Booking.com's quarter better trip trip a that we a making to multiple by customers directly that travelers. experience it believe than booking high which increased in in our We plan platform, more one of connected total booking trip in us book represented vertical. year-over-year have XX% likelihood transactions. and frequently percentage connected book future. more the experiments, a are continue us a in booking growth single-digit third see transactions, book over the on travel easier transactions to overall elements we trip our seen of These to and includes a by higher past with choose and for connected who And of providing

from the for component booking. booked on important the year-over-year, tickets benefited our from offering, we are growth air acceleration an quarter, also of connected growth XX% our in Agoda's was primarily of flight business. trips platforms which strong Booking.com but was QX increased They're and growth an flights. many by third In that travelers flight the of XX% to Turning driven

and the the through are vertical returning of the coming that by value on We Booking.com continue services other customers platform. our the of and also see customers number healthy flight to encouraged to see offer we these of a customers new number

always trip, center technology also platforms. own scale, drive and for into each as technology for of of teams experience our our we've travelers and proprietary We our the of achieve AI experts resources further us offerings to build to and our position efficiency their more To us compelling of brands, At power the technology connected believe with intended in along continue and easier This vision. this AI incorporate our they operations. at to our on to valuable the AI partners. experience will enable be that well draw our personalized personalized AI data,

learning AI text activity the Booking.com alongside from the has that trip machine our of insights and the existing messengers. through and over the a Booking.com extend from including and side use potential responses the and new led company, trip Booking.com. findable discuss GenAI are the of The briefly partners. gained to across the launch, millions just also this applications technology, interactions our our being its help a with few This planner, tool have in valuable the GenAI of across of leading AI I'll the area planner launched has filters makes this of properties queries traveler technology travelers from search learnings summer, recent smart XXX of increase underway for an as free bookers partner-facing to These innovations write improves significant as models. brands. Last interface. We filter, well which business at to encouraging since to rates efforts GenAI its are a a launch to in is leveraged experience traveler response

topic X with questions the GenAI function Booking.com properties. well as driving Booking.com Booking.com's is drive interactions in agent AI a accelerate customer summer. Gen summarization. early called efficiency meaningful a chatbot over and service had service Penny. sign-ups, million launched opportunities generative onboarding alternative in leveraging detection focus Booking.com improvements by better to travelers greater have during Priceline, increased and still meaningful center incorporate sees is to service to last improving efficiency journey case process is assistant its working customer now in on and its the help with this customer testing in was shows and AI testing customer This into a travel travelers. future. At experience as also Initial AI-powered for starting help also with partner accommodation in

and at search, and full support. In conversations Penny booking servicing end hotel the While with available of Penny discovery, address trip experience planning them which funnel originally the hotels positioned launched was assist to on Voice, it's to in types and and across Penny enables now trips, for the engage travelers of can many searching with bookings. October, including the page, verbal destination checkout questions, Priceline traveler

interaction will and respond this As offering, Priceline voice. we based needs able be anticipate past enhance Penny on a to in preferences continues that and to envision then real-time

Penny share AI in Priceline focused their been using time productivity focused tools. and of to over by content internally development use the both the While per written generation, last to by as development highly the over far. And great have implemented Agoda developed an been externally Penny HR. there in product, and time. code in product of so GenAI software has further cases valuable customer progress year, across XXX Agoda, learnings development, over is service, for enhancing development leveraging is finance GenAI improvements as leveraging on measurable increase well and This automate leading developer is on

then many experience travel launched determine planning different by of improves results. better KAYAK and is allows a travelers a for price to tool, the to that shot form launched a a tool comparison which price order entries time, use same the KAYAK KAYAK against can upload In At sites check text the allowing and PriceCheck, March, to traveler. screen itinerary, personalizes search if its free which flight there refine their in KAYAK search available Ask travelers to also

Diners reservation, these At and like offering Salesforce also tasks an integrated AI updated restaurant service bot OpenTable now asking customer then reservation, more their helping Agentforce platform into queries, call agents dietary in into questions with voice great situations. This are which agents delivering which participating focus on noting its web better perform is and is recently its been service phones. handling altering platform. serve automatically making their a diners. restaurants This to helps can restaurants OpenTable and restrictions, has software. OpenTable, answer help is partnered its restaurants complex

our our have into the the brands. our that early to We GenAI and is to we we how platforms exciting of across ongoing company all still and learn very work consumers, GenAI to see integrate technology. ability many of are connections human more of years and they to between this sharing experience It's know days products to much remain and knowledge the I benefit our want in in happening for about data travel-related improve with AI given AI, to new capital. in developments from confident our our But financial our interact and our customers ultimately company's supply our to partners our

as Over to time, and we satisfaction. we in further acquisition, see technology, benefits this retention expect incorporate and partner travel

will expect to the to operational addition, contribute future. deceleration improve of in In we expense efficiency, growth it our which fixed a

growth region. continue market in long-term positioning outlook Finally, our important of that as major its is the over the of high next highest be which for growth industry will the in I a to Asia Asia Asia. mentioned be the the regions. the about potential estimate as digits single due X our We years, call, in rate to strategically the at and size, our travel start see optimistic growth we We

the as we faster Asia is the industry recovery. have to pandemic continue than grow ambition to overall Our through in done travel

the months, was region, slightly pandemic. nights XX% which Over in by is our mix of Asia bookers to higher last the booked it a room prior the were than global XX about

region driven across no we than Asia more representing and Asia in in seen single solid complementary percentage X by our business operating brands, is single-digit Booking.com. room country Our of a been and in the with The the position success countries global our the region diversified nights. low Agoda have in has

region the both approach growth over across these an long Our booking with to is utilize eye brands for holdings of run. profitable the on

by continued of strong travel encouraged demand. results quarter our I'm conclusion, leisure the and third In resilience

company. our against confident remain the We position strategic well and long well the priorities, term. our which ahead opportunities teams helps for in many the key growth of Our execute continue our to business for travel long-term in

now will call the Ewout Steenbergen. to over I CFO, our turn

Information results GAAP and our quarter to a Glenn, third the afternoon. and review of the for Thank basis. non-GAAP results rates earnings fourth regarding thoughts our you, All growth are now year. can I and full quarter good found provide the reconciliation on year-over-year our in will be release. for results

of Holdings our We will summary the the be as the remarks website presentation conclusion Booking after to a well call. earnings posting Investor earnings as Relations prepared

Now let's results. move to our third quarter

by Our night of quarter X the Europe similar grew in end points. growth third room quarter the by year-over-year more The in starting from room third percentage expanding and window improvement our exceeded for was guidance driven nights be expectation August in to stronger-than-expected which high benefited the in versus X%, it our the trends in an to XXXX. booking

by Looking growth Europe digits. at our quarter, region night was up single third in room the high

Rest Asia single up the low up was of was double U.S. World up digits was low digits. and digits. mid-single

connected Glenn As to make progress our the and in mobile our our travel priorities, trip vision. growing offering enhancing our increasing continue of verticals mix Genius our as to and other growth noted, against alternative strategic apps, we accommodations, our direct bookings of including channel the part driving

global XX%, which at alternative The mix third from to our was Booking.com quarter accommodations For which our percentage room nights was the at up points business. quarter XX%, X the XXXX. third of was Booking.com, growth accommodation of overall continued outpace night alternative room

with on increase strengthen to travelers our continue We platforms. direct our our relationships and loyalty

exclude Over BXB of channel the XX% mix the when range. was quarters, X nights in the we business And our mid-XX% the through in our was to last coming range. direct us low the room total

third mixes of have total the of mix which XX% to was quarter these at year-over-year. Mobile the low both continue from XXXX. range, increase up We was room in seen in range mid-XX% nights our

our bookings to the that continue We through significant see apps received channel. majority come a of from direct mobile

and tiers this was travelers in loyalty Genius year-over-year. Levels to nights X mid-XX% the over by Genius our higher continued mix last increase room the and For X mix range quarters, of of the the program, Booking.com booked X in

verticals, platforms driven travel Agoda. booked flight other XX%, our on in tickets by continued growth In we by airline increased saw Booking.com our of third the the offerings quarter and

growth third booked strong platforms than for the and from and car airline We also accelerated quarter, rates in quarter. growth increased both our driven better at rental saw car our by second the on expectation XX% The rental were tickets days Booking.com. both days

X% of gross percentage quarter year-over-year accommodation room the offset from was X less X%, a from decline due than higher Asia. Third room decrease higher currency percentage bookings mix of growth, nights bookings ADRs increased by constant night impacted The flight than in ADR approximately by partially X a about growth which points was point negatively higher to the X%.

the ticket ADRs changes currency gross percentage in less FX than X regional our stronger due X% stronger XXXX. high guidance versus less increase of growth, end were room Excluding to in points by mix, up constant flight The plus bookings growth. exceeded night from pressure and

was of as prior of bookings, billion mix up quarter Third percentage quarter reached line from payments XX% the of XXXX. guidance the payments revenues line our expectations bookings. X increased gross XX% by higher year-over-year, which in total X% our a bookings XX.X% Revenue with the percentage revenues our offset revenue from merchant which at in as our in by The was increased associated also exceeded and third were with of were $X points. in also year, a with by an increase of of end driven grew mix, flight high gross

social marketing is to variable the which direct ROIs, expense line and due points a of X% gross mix by was expense, X.X%, third expense in highly higher offset increased performance about of media year-over-year. Marketing spend Marketing a than XXXX as XX bookings percentage increased lower basis higher quarter a partially channels.

X.X% Third last line expenses percentage a year. gross other with quarter bookings and sales of as was in

G&A below our of well year-over-year into some to to we expenses expenses. fixed primarily as up and X% lower adjusted fourth shift basis expectation IT lower expect quarter which an Our as the were on due were expenses

growth focused fixed future. very of important earnings will be stronger the our investment to disciplined in expenses. strategic believe carefully leverage continue drive to line capacity We top on this greater operating managing across creates we which and believe as initiatives, the is expenses growth help in our it fixed for We our drive

reduction the by X%. Adjusted was fixed expense certain margin of million marketing per $X.X a million year-over-year up also above in by EBITDA was last repatriation a impacted a partially X% net than and benefited which EBITDA by versus a billion more due potential Adjusted largely driven higher third share expense. our over matters, share quarter the expenses. lower-than-expected income expectation, XX% quarter $XXX and offset XX.X% leverage. billion up year grew revenue count was the a of from and income Adjusted of of in EPS income than percentage net indirect XX% lowered U.S. billion of lower accrual to the tax related fixed up third third was XX.XX $ was was Adjusted quarter a of and our the $XXX tax average On and X tax to point $X.X expenses bit basis, G&A by GAAP negatively XXXX. liability, to settlement by Italian in $X.X

Now our and on cash position. liquidity to

Our quarter cash balance $XX.X share and billion, generated capital to down and down including matured free of for of and ending flow offset debt of the about versus pay partially was by quarter. billion billion due our second ending dividends September, in billion balance in $X.X a repurchases $X of investments $X.X in billion about third quarter cash $XX.X return, that about

Moving the our quarter. fourth to for thoughts

to We third the and be between continuing quarter. our expect trend fourth quarter growth room night X% positive from X%,

night bookings growth. X% to to ticket We point expect between due room and flight gross X%, higher growth a fourth grow quarter of expected ahead

ADRs to We be expect currency constant accommodation year-over-year. flat approximately

between to X%. and revenue quarter be fourth X% expect We growth

quarter $X.X $X.XX to growth fourth representing billion, billion and XX%. between X% about adjusted expect and be We between EBITDA

faster than result grow as increasing direct due a revenue marketing to of leverage EBITDA expect We to mix. adjusted primarily

is quarter, and by for outlook seasonally largest driven year, revenue primarily quarter. profit full We're the stronger-than-expected the which increasing our our third

full year X%, We faster increase improvement bookings gross our prior from expectation X%. of expect about an than to

revenue our better We just than of growth full expectation expect prior faster of X%. year XX%, is which below than

We point our slightly of negative FX which growth expect expectation full compares percentage rates, impact. changes a X for our prior negative to in on impact year top from line about

We expect adjusted expectation. prior basis OpEx fixed around than on lower XX%, grow an to our

expect which increased prior growth. between to and than expectation growth and revenue fixed OpEx lower is XX% to better adjusted XX%, the due EBITDA We grow our

we EBITDA X expand We And finally, expect in bit our expect the adjusted teens. than grow year percentage high by to margins a full point. EPS adjusted year-over-year to more

third are and results fourth year. our teamwork. and full the we company pleased our to outlook hard with you conclusion, across quarter their my for Thank innovation the In for and work, determination quarter the colleagues all

you that, will now take open With we'll the Operator, questions. lines. please your

[Operator first take America. Justin the Post, from Instructions] We'll of today question Bank

you lot that you because could in of to expenses? people looks factors it of of can when could how East AI since you you factors? talk more come will the translate -- your one financials? about Just affect bookings, some guess thinking about rates your then attach maybe that better translate the we traffic tools, Maybe talk financials? And about talked could you're to lower in you like I comps? all remarks. prepared think QX Middle expect Do a the maybe or AI how direct some about to on bring your the see to either XQ that How -- hurricanes site, bookings

let then first the Ewout speaking. Glenn I'll regarding fourth and a your little about take about question AI, it's quarter. I'll question bit talk Justin,

help ever. about about of lot it curiosity of what's and of number the me enable the some really times where also it that to partners, for before. make able their get this we're working industry, some And a our I've It's type it's you've all to better service are it's I've be conferences, business so heard one happening. more of in enabling traveler. a them of examples we et targeted travel provide much this because things transformational. is the is more something talked -- us give about did the customers better. And for to AI in technology company going there's And to Maybe on the exciting out know we talk of I cetera, a better to most going to incremental, people company particularly So

very the into cents. mentioned interactions compared of the this of some does about you'd course, terms mentioned to -- And numbers know the That which we in we've early. of It's in I remarks, number how some number using have total places. number it, of the and a of actually in, You, some customers. efficiencies translate is time. in of with very, is small that still that prepared dollars difficult people We already at like see relatively coming to

small big like X a company. compared number, Sounds a big number, but the of size to this where that's it's million,

So areas certain that it's going are but advantages. be be we going people have as been the of for to some in learning pleased of now right far, we I not Sure, and it successful wasn't numbers I know say, GenAI. we've We've got The is but will the capital. it what people say AI to, But very many with who've what kind working very, that many, now. to project made know, companies got important. you'd I of transformational. machine technology. are incredibly AI on years. skilled models, who They're because lot are got a I'm very going in progress like we're We've to winners is those working long-term so

know. large to out have something to thrilled having language better we're a doing more that unique I'm with test just think systems fourth It's like urge on to See for Ewout models, addition, of you you what a I speak And progress. data, know and we and It's we'll able be to and building, sometimes really is sometimes anybody curious up about who's real. pleased, what I ways the there. so as out you'd about in so provide things market. great it. I've what to all I'll the which see in other this quarter. service. better In we're the people, with come about making important it what done combine other able people quantify disappointed, to future, really It's I'm a we're let live. little be myself It's you but

with think I see at and that. robust is for have bookings in as into to the the seen we're quarter quarter bit a respect few the positive continuation months. Justin, quarter, we the of a let the the very where looking last trends headline me outlook But fourth fourth a we deeper dive little over

little quarter in the where easier get First, we're to comps East. because in the an a year Middle the fourth start conflict had lapping of the with period particularly respect we the last impact, the

impact. point you in second might our events. is The end, to out. really from impact results. a short-term doesn't are effort it will perspective, always the It referring have really Events our But

really to as performance. an or actual on So events us never our you hear pointing will impact outlook

in been in into think third seen expect it's what to we the that quarter we third a to is, The know continuation quarter the the have The we important with be booking and I far and happening. in words, is, guidance. out pull might fourth take last quarter. been things that our also there We have taken our in of with other third strength there that respect we a have in risks so have uncertainties forward consideration and is, the October. September, all geopolitical fourth that otherwise to than respect lot expended is, quarter quarter. And have would outlook also In there of environment. window fourth of absolutely the into bookings the And have fourth consideration to also the the are some less global reflected are seen we August

Evercore. Mark from comes question Next Mahaney,

please. questions, Two

have I the was was so. call just but that of just region back much than particular Asia, anything pre-COVID. you in they're finally finally for what the market of higher think was you region the travel it done? you in a did your it kind On think AA have time and to Or The as the you is out, recovering? And the success I that where percentage I is figure to out, inventory, that sort both Asia out it is the mix, this, you it mix overall In of is go long mix don't question XX% XX%? for markets number. those markets traditional because usual where mix full enough I'm sufficient in Or I Therefore, That's of expect you that materially still trying could outbound you've kind then term? we think, the AA inventory? Glenn, mode? why recovering regions lot in have I So that called mix a around up where have of versus higher? full how the to is first of was you assume average that of AA,

actually thing Asia. Mark, calling I'm about not on sure if out you're right, that

really slower Agoda for put growth and and has It's little we're in our yes, an had out about where coming to with we been are some areas the I a team. service really think different were seeing provide fast. some bit certain thanks such. just in There to coming a a Asia were better. little Asia a how pleased bit Asia. getting bit of a that growing because But benefit me market And opportunity up has Asia parts. team we this to little that, Asia customers. things doing is done the with is ways a we're a to as well That a out But pandemic better of regardless of obviously let's just overall talk of

that way, good person lot pay comfortable they done types buy, able place. a different great our to And making a to of ways team example, parts wants sure to up of the is of countries. feel of methods, inventory. Asia lot in people obviously, A A of Agoda this way Asia, can people the to want be use certain with we're and payment that local -- getting a different that. the the the buy, job say very for Asia, I'd big service Now matching different localization what doing up in are coming different ways is has looking customer of in And for.

can different a our it independents Asia lot great be different site. ways of sure small pricing, on where little parts in up Again, there's other to it's showing or get than a make

So everybody great there efforts. team and Asia retail in Agoda, by effort a booking, that's also helping doing

really, happening with there. overall, pleased So really we're what's

times, rate alternative second listings the like Last like with we your terms ahead the said in are XX% accommodations, them did. about homes And them in XX how again. time it, them increase competitor the announcement, of we there, our beaten X.X for million, XX in pleased, of know of one growth and to again, that the call, increasing beat came to Now didn't we the too. time I I that of last XX% biggest had earnings we question out

So as this times, when and homes XX, little total marketplace. running the this is out again, XX not of small roughly It's player of combination maybe quarters do in business. big I'm a room it's X/X business amount for it of nights biggest we a of because a alternative we time the wondering, couple mentioned a bit

big a it's business. So

growth. doing be this in to it's sort leading of So great be able size. at It's growing great to terms of

only sort of don't stage site that of it do our things come start and they is and sure one about what the how And just customer know from making we what business I of Your end max to that of wants I remarks much our something else. go they the mentioned what sort of that question key the inventory with, they've to in get the to know then site or feel thinking and as were is at because we we buy chosen the and so? they up on customers choose.

we is our provide and key wants sure not and steer a them. making thing try whatever business the So to customer

done. a particular, quarter us. U.S. the in growing there's It's in it. I getting keep we're lot ramp of that But much front though, be. so know ultimate in of to terms about nicely myself as to we're great I So is work I on nowhere And in talking the certain going important near continue share what it, is in don't regions business quarter. we're after more to U.S. do know inventory. to what's of long getting repeating left be Sure,

And us in am enough available seeing there looking I'm York, I the at in was what -- It's inventory today yet. was for summer. New looking today, just the Hamptons. I literally because like

negative. us the to I to looking So some build and people really that's for that's an out opportunity a see forward I'm continuing say business. us,

next Doug from with your question Anmuth And JPMorgan. comes

is on X. Dae for have Doug. I This

So the you're in first on one, quarter, drove could this you what quarter. out mild in double moderation Europe, talked you growth the region click about but in Europe. seeing performance Last

a region? summer around have changed what fall? any So U.S. the share macro views do in there as and And to the you

underlying also our also then demand there's are the averaging but that timing, we we First, is at of general again, clearly Europe, in believe proposition. starting partially seen in seeing terms But out. But for Europe of in that July, always the products of improvement we with as and it's a and bit to was we partially August. services. a We perhaps our general impact what look purely market, reacceleration of some respect in events. believe a It's of growth have that there

so to on options, explained, easy. great very are Of Europe, as ways. the app many many with Glenn very people verticals, travel, us And mainstream app. so if purchase can a many use different want such so using platform you many course, where they in really it's much having that in already And people a

card credit your easy to book, easy to there, have adjust. You

our been So Europe need that to to happened the winner, also big third expansion in that so window in booking respect point the quarter. we proposition. is Europe of the the definitely in out and standard really much a therefore, I have with

acceleration also time. the definitely that of same helped So the at growth with

And Cowen. question Kopelman TD Kevin from the next comes

versus a and being how us you in update now terms ]? And an question of what marketing on of us third as you Could the mentioned You to ROIs the a marketing. in on seeing? higher ROIs quarter. you give is update had of year in full can you're underlying look I Europe percentage stronger? expect improvement much GDP on [ Great. How that merchandising

Yes, how marketing at higher Kevin, overall, ROIs. should you and look

specialized are all I doing spend our ROIs allocate that continuously expertise, that dollars. the are the possible. how company optimizing a have, that the options that such across to think highest algorithms has where really this really has is And incremental make great such our a different to the we are sure incremental

to it marketing So this be be our respect merchandising, we marketing as the also forms It the are different well. could channels where be spend but could could channels. with of expanding social with performance media

marketing, our expect expect as of So clearly, time. With the for percentage less the flat With of of more it last opportunity the the year was each of to and full question the higher achieve growth as a quarter we growth ultimately continue the there a through to to channels. your direct or bookings, year. to same on respect our continuous optimization the quarters be to leverage of we fourth to marketing gross compared for higher in outlook, at with respect result merchandising continued XXXX ROIs

from Sheridan, up, Next hear we'll Eric Sachs. Goldman

to theme investments. want come on I back the fixed to

turning made maybe business backwards, you're investments longer fixed term, fixed fixed XXXX, what start return produced cycle? cost about terms just most on coming of those where out the in you're impact do in as over investments about some looking a margin First to think an the seeing revenue could you proud and not but fixed you've how term? or that be longer highlight the profile of investment of on think And that than about that do grow business investments And you incremental slower the around return today? profile of

will and The opportunities love X for it's really efficiencies actually do growth ways. where way Eric, personally we in we extremely we the then One because the achieve decision around attractive I'm is completely this achieving And way I we returns highest mechanism about. business the optimal leverage. look dollars Yes, in reinvest future. separate can a at potential case passionate that most is something question at see in different that where operating those

start part. me first let with So the

as up have an the and terms we the organization, over scale many leverage, a are scale we we the now volume we there because period. should operating more In have company building been much in opportunities believe existing over have of opportunity next run to

point you So let a to of couple areas. me

tremendously down First, we hiring. have slowed

X%. now, approximately if our year-over-year up So headcount is you look

back quarter was in up ago XX%. of go headcount third you the a If year XXXX,

I perspective. terms future. But really is you believe it's verticals. we we we're about if question Well, few efficiencies we XX%. that's as are number and years find we We different where we where efficient, in of touched a are very on those many a more we layers careful on opportunity growing but and as think to all more an We organization really in areas opportunity. hiring. at clearly, And then make clear in the reporting have many Look AI, I time, spans, areas. are about at in your think procurement, at that are elaborate expand the ago, of opportunity already new across company, will of being looking agile also the proud impressive at not we a growth looking A super look on the estate, were to flights. So operating future the that, In the investments? real areas. artificial not from my intelligence, really of to model with the other interest also optimization, clear We're

doing payments we're Looking and to fintech. respect at what with

touching and still impressive investments to many are at the we market aim we than that do geographical we'll what other the on we from well we're areas. a are believe in as and making U.S., the the in Looking in the the perspective. faster and very was U.S. future Glenn in Asia, to doing continue growth growing

the are next the most for way in very making opportunities company optimal growth very in the disciplined on sure that at much and most in that end, we're period. way, in invest our focused the looking a scarce we So resources using attractive the over

spending of that what think cetera. to people Ewout successful. investing hit lot a little add, really lot there are we're and said, of there, I'll that question a et just have to benefit I us we're a see have on why of key things beginning back, a the bit times made And been looking And this. we And now the money finally what

totally you was an know, So there no totally payments where, point agency Booking.com is at all. a as business, business, agency

of hotel make things to XX%. day how And end foundational you not merchant change with have is long to about area -- be another getting change are now important you not areas, to pillar our in make changes, connected you Now we had other these of is stayed an long-term which it invested other about of and out that talked for term Why are mix as question, people as talk are today. getting the is a of would the we We just trip, hotels? why to the the was success we company is have our different to agency-only a it. as able we being where world verticals? At

you we have do going forward, We Now can't see that. stop. can to

money necessary that to will things we've something no else. do Ewout move going careful. not that got So productive our is money. something put to spending Where and it, be very the that to have got not are place we resource longer said have is and stop are into into we to We've just

proud shareholders years tremendously. been February. changed been It sure this, the we almost years. here have concentrated now really really thing making one that XX have able in XX we money. we've will So on careful with I'm And is that throughout to are be are we our But

Lee next Bank, Horowitz Deutsche from the has question. And

Great. another Maybe one on Glenn alternative accommodations.

platform is for consumers bringing of on hotels cohorts likely of a platform this here what that have vertical in otherwise? a volume specifically? booked terms seeing you're you But who this gave this the accommodations. Do your color in think you're would from coming travelers of to you cross-shopping large you're a Or growing booking are is piece coming hotel relates in of seeing new presence you lot it booking You comment of volume? can incrementality and to patterns alternative at the on as all

somebody specifically villa them very is more alternative think never we very interesting can we and would you're offer in they not in but that, unlike haven't if I came incrementality that the come have without data that I look people gone alternative connected understand. trip I otherwise before, back customer goes knew to I somebody in did And because or our have of alternate get that at And I almost alternative thinks what's with of who I accommodation to that the have travel say, in somehow. other of we high, started France, awareness accommodations. the parts world. It's we accommodations. But again, be Europe Booking.com. that question site have [indiscernible] accommodations, data on a of in offering would have That's us because that. to an Obviously, have when say, the an to business nice to come can to trying I who we brought believe certain I accommodations all alternate because Because Europe, I'm they the the about. would proof, a we in whole we aspects had because but seen have see surveying if actual would is villa, completely there asking important has is to that get don't will that Because does that noticed believe nice we've vision. it, any another want incremental

they're combine the to airport to able good have they'll to is be fly to to get then from villa. if going the and that So

true using suppliers stuff, That's be a on and to a to They I do traveler benefits using connected holiday, to I on service us why a in some trip on. And nice of the really that more of that our to that if right and to so too, GenAI vision at goes they're nice in we're we insurance. or connected for better hotel building. in it's can important. other one, offer and capabilities our on come all now, science, because customers, they villa, getting offer trip room. That's a always for that different so types sure that's transportation. more enjoy them the Maybe vision its want using go ground that and of different optimal data, make this have is opportunities attractions sit terms service. the tying that a can real they together the way they room, So whether the nobody need it addition in whoever things the profitability. points And even price can thing the people traveling as say, we're up incrementality is offering given they,

follow-up maybe one sort just on And fixed then OpEx. Great. Ewout of

So that leverage, guys about we forward? growth fixed the help future, given potential in a years your you many OpEx the can the just resources drivers you OpEx the way your fixed think the are and passion of not for conversation you your conversation in -- a to your lot for lot P&L. Do a in business cycle, forward. I think it guess, going for GenAI the year, the invest a investment driving is next up drive to around where place guys of going out it be to on lot given motivation into of free but of and where should part

Lee, I opportunity the have is there that. do how to to is side opportunity reinvest there of would But business. absolutely the we much always do a in flip big say

coming the time is, think the company for X delivering strong opportunities to are is but that run in effects, in of results. or this see that operating as said XXXX? some the the coming sides future. But find -- of do uniqueness this or on It's in being fast. again, in well. of have And very to worked more over as been under not only opportunities talking It's company before, implemented, rate well have will the leverage recently also Absolutely. growing the was course, it's doing So you that initiatives I about I coin I of then XXXX development

faster lot -- We faster a areas. free but to of grow in we different order so in in many generation, initiatives reinvest those flow can even even cash have also grow all

a that's think terms bit we to But on hard on basis say. growth net in of that, can I in still to go. how long of efficiencies, way much So will a the there's really sense a find out, basis, a how play little

Next up, we'll take a question from Tom White, D.A. Davidson.

Great.

that mention of if time, about you social demand efficient of you And channels, recent maybe be do travel was seems it incrementality, bit it ton for seem there, think for seem like vector could demand access and engagement I that's big changing social about growth kind guess, necessarily be having It guess, for like in curious changing? obviously why we've a There's media in to a you. Can or I I social. Just on didn't maybe heard next be how years? really of case. channel? a to several didn't talk long months, source the you success guys guys And you could, like one, but of over the seems which better a the it how

overall wasn't us don't are speaking. we in I'll comes amount it it seeing know, And small experimenting, talk let over pleased was years, a results to a to we're thing work that we from And mention. you working really beginning but said, finally, is many that being it's we But marketing to bit, but relatively of down anything it's for glad. compared I the Ewout expenses, social now always it it we're our That good that to we So Glenn we -- are putting platforms. And little mentioned money agnostic. about see are work. as had were yet. money

care what -- we as that's ROI, really our what is we right the get long we about. that's goal As

past working working we as we it And we'll But interesting really long scale the past to -- want and ways work the continue do there you social depend things when the In further know. cooperation to areas with as That's and as How with It past, it, our that then seen goals. fell want. that be? I creative to little big mutual we keep continue how will we on ROI. the a could ahead think some off. simple it's the because much we don't up the try that so have is. ROIs that, it bit. in platform to getting together than ROIs in I And in now we're achieve people people to coming keep invest more the with

we grow And But I as you Now large total trying promise not the seeing far. anything things that to diversify you so am glad we encouraged or type spend be number want like really can't what But we And I we to who bigger our the start by now. really we're knows. we're numbers a Ewout, numbers, know have and it? to I going amount made on bigger able performance pay on spend. And to that. and am large say marketing, progress have that

Maybe X quick things to add.

the channels. encouraged increase absolute still terms, the actually if In of going spend media channels actually AI social to look marketing targeting small. marketing the spend is year-over-year, increase First, additional the advertisement coming is so is and But right. is And because important to meaningful achieve incremental better, to social those higher Glenn to with back ROI. the AI. part those one you on an maybe I'm relatively and respect with at other we point effectiveness Actually, actually is can therefore, delta the help the financials. that tool

is Jed question Kelly, Next Oppenheimer.

to you're branding going baseball the U.S., playoffs Just nice getting the with some record back ratings. having here

nights growing out digits. room called maybe low You single

of you to versus Can single U.S., to the still a platforms. the talk managers, simplifying you then think maybe So other the little complex just about your can it is property about for where talk you some U.S.? And them? are think you're terms in on in more you units with talking where work of brand the they in some

as for your on, and We're That's one true, and competitors, as short, that's that. now, things I of I'll on we point our about, some not haven't right say, great. be perfected working of right the it's you're and So still second doing well yet easy us. opportunity so know that's that's we're

So us. that's for all upside

that's not where numbers look anything comes I continue to more comes When to terms us. Ewout, awareness, the opportunity department reports, marketing back report continue for pleased the up. me, want with again, comes still to we those to market In you of improve. of specific am we're at progress -- But like -- I I to add? to we'd me market we're be, back see reports but making. back going our

Yes.

now it really like point terms technicality, periods growth I we're out is both which over small we to this at a are in last in Just low the single growing of these quarter, would U.S. cusp looks in as more the it's quarters of and falling. because buckets where mid-single still is, digits, said just characterize we digits. stable those

over I So quarters as would the overall, it read the too growth in in stable wouldn't call more this U.S. last I But much investor. an X

Naved Khan, Riley from B. is Securities. question Next

app. guys on then great. that based on updates apps a website? And A connected couple online I give hear respect on if directly of more marketplaces is share that happened through with versus which Glenn, on can with a happen Any shift like Asia Maybe be Grab, remember partnership in you those super partnerships thoughts drive it's think like hotel questions. those would a can you in had some great us ride-hailing to you trip, GenAI that GenAI. to can bookings Booking.com

Sure.

separate questions. So X

ability data forward to position what work, us resources, to complicated. it's in good works, doubt, first where how you about stuff of be quickly the talk capital, Let experiments is people, really it there's And It's general bit is advantage. easy. in no this the a not stuff. have versus little AI and And others. see to GenAI hard me This is what how drive works. an to well, able be doesn't

large -- So do if you're believe. hotel, you don't have I we the even not have that have, resources you a extremely an hotel,

partner of Now, course, others. with can you

In that ourselves. fact, doing we're

so agreement your a the For service, own come area good differentiating AI Salesforce with personalization. accommodations example. to combine new be believe much there. But great not building and it's OpenTable that partnering with They're Agoda, it's up example, important data are have and work able to with have truly their things so they in really they're I to all hotels we

I'd have, we that in this excited confident area, and the pole of very I'm say, it. position am I the growth So about

It's some our mentioned small et other in that thing influencing seen them, we're Asia Asia something as where relationships players. should with anything you our all. that very at other is those, with not about our numbers with The is that pleased -- a be but was cetera. of partnerships amount are

Jefferies. We'll John go Colantuoni, to next

consistent to booking what terms about quarter nights window. us your capabilities one Talk -- both tracking that's on one to be North more quick the room there on you're the help share rate America? seems expectations growth in size region driving could maybe your America, with North of broader second, gains relative you A making perspective? And on just again start the business and then the investments market in Maybe market. to a benefit year-on-year third to were and once

really wouldn't the quarter. the will take I on first John, how overestimate the the is of booking much over but growth third a not It in bit out question. impact I window accelerated impact breaking an had We're period benefit, period.

would but So slight the third benefit say I a quarter, quantifying in we're not really that.

we of the with on general. are of listings, the of Glenn has are third in the growing to external respect believe we playoffs course, the we're And those we touched on in number overall. quarter, the question, were the market, baseball of lot the sources we focus than America and second example, the a the brand faster of relative World that we at, in alternative making. a already, investments terms bit are result market the looking data in to your many on In that's, making, accommodations, based who actually, for of doing North investments Series

a to many in features we get and to we're is an more familiarity actually, opportunity -- And further U.S. it think good We're to market in making our What we're becoming the of more position overall because really market improve in creating the able be in terms in the this doing be enhancements to other ultimately challenger with U.S. that's terms our in product the impact and U.S. natural a position position grow market. and in of to brand

remarks. any Mr. to does Everyone, session. the that or conclude Fogel closing for to like back call additional question-and-answer hand Glenn I'd our

partners, employees support stockholders. to build We we you, our dedicated good long-term continue greatly Thank for on and our want our everyone's as customers, and I you. company. appreciate to our thank our the vision Thank night.

to your you thank Once conference like all conclude does that would participation. We today. again, for our for everyone,

may You now disconnect.