Following a bustling holiday season, Booking (BKNG, Financial), the world's largest online travel platform, reported impressive fourth-quarter results. The company achieved a 15.1% year-over-year revenue increase, totaling $5.5 billion, surpassing expectations by $320 million. Earnings per share, under non-GAAP, stood at $41.55, exceeding forecasts by $5.46.
During the three months ending December 31, room nights booked rose by 13% to 261 million, beating both Wall Street and Booking's own growth expectations of 6% to 8%. Total travel bookings, including taxes, amounted to $37.2 billion, outpacing the anticipated $34.5 billion.
Thanks to stringent cost management, Booking reduced operating expenses by 10%, boosting adjusted EBITDA by 26% to $1.8 billion, surpassing the expected $1.65 billion. Additionally, the company approved a $20 billion stock repurchase program and declared a cash dividend of $9.60 per share, payable on March 31. Following these announcements, Booking's stock rose 3.8% in after-hours trading.
Despite the waning travel surge post-pandemic, demand remains robust, as echoed by optimistic reports from peers Airbnb and Expedia. Last October, Booking raised its 2024 outlook, highlighting strong performance in Europe and growth in Asia. However, both Airbnb and Expedia have issued cautious revenue and booking forecasts due to the strong dollar. Analysts from Evercore ISI have also warned that Booking's outlook could be impacted by currency fluctuations, given that 90% of its revenue is generated outside the U.S.
