Stock Story -
Online travel agency Booking Holdings (NASDAQ:BKNG) beat analysts' expectations in Q2 CY2024, with revenue up 7.3% year on year to $5.86 billion. It made a non-GAAP profit of $41.90 per share, improving from its profit of $37.63 per share in the same quarter last year.
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Booking (BKNG) Q2 CY2024 Highlights:
- Revenue: $5.86 billion vs analyst estimates of $5.77 billion (1.5% beat)
- EPS (non-GAAP): $41.90 vs analyst estimates of $38.70 (8.3% beat)
- Free Cash Flow of $2.38 billion, similar to the previous quarter
- Room Nights Booked: 287 million, up 19 million year on year
- Market Capitalization: $126 billion
Online TravelBecause of the enormous number of flights, hotels, and accommodations available, travel is a natural fit for marketplaces that aggregate suppliers, simplifying the shopping process for consumers. Online travel platforms today make up over 50% of the industry’s bookings, a percentage that has been rising for 20 years, and will likely continue in the years ahead.
Sales GrowthBooking's revenue growth over the last three years has been exceptional, averaging 54.1% annually. This quarter, Booking beat analysts' estimates but reported mediocre 7.3% year-on-year revenue growth.
Ahead of the earnings results, analysts were projecting sales to grow 6.7% over the next 12 months.
Usage Growth As an online travel company, Booking generates revenue growth by increasing both the number of stays (or experiences) booked and the commission charged on those bookings.
Over the last two years, Booking's nights booked, a key performance metric for the company, grew 19.8% annually to 287 million. This is strong growth for a consumer internet company.
In Q2, Booking added 19 million nights booked, translating into 7.1% year-on-year growth.
Revenue Per BookingAverage revenue per booking (ARPB) is a critical metric to track for consumer internet businesses like Booking because it not only measures how much users book on its platform but also the commission that Booking can charge.
Booking's ARPB growth has been mediocre over the last two years, averaging 4.4%. However, the company's ability to continue increasing prices while consistently growing its nights booked shows they still find value in its platform. This quarter, ARPB grew 0.2% year on year to $20.41 per booking.
Key Takeaways from Booking's Q2 Results It was good to see Booking narrowly top analysts' revenue expectations this quarter despite selling fewer room nights than anticipated, meaning its outperformance came from pricing. We were also glad its EPS beat Wall Street's estimates. Overall, this was a solid quarter for Booking. The stock remained flat at $3,612 immediately following the results.
![Booking (NASDAQ:BKNG) Posts Better-Than-Expected Sales In Q2](https://d68-invdn-com.investing.com/content/pica7fc989e26d37e258083290cb1779430.jpeg)