Booking Holdings Inc. (NASDAQ:BKNG) Q3 2018 Earnings Conference Call - Preliminary Transcript

Nov 05, 2018 • 04:30 pm ET

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Booking Holdings Inc. (NASDAQ:BKNG) Q3 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Welcome to Booking Holdings Third Quarter 2018 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. For a list of factors that could cause Booking Holdings' actual results to differ materially from those described in the forward-looking statements, please refer to the safe harbor statements at the end of Booking Holdings earnings press release as well as Booking Holdings most recent filings with the Securities and Exchange Commission.

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

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

Executive
Glenn Fogel

Thank you, and welcome to Booking Holdings third quarter conference call. I am joined this afternoon by our CFO, David Goulden. We had solid execution in our busiest quarter of the year and passed a new milestone of 200 million room nights booked in a single quarter, reporting 201 million worldwide room nights booked. This is up 13% year-over-year and exceeded the high end of our guidance range. Consolidated gross bookings were up 12% year-over-year in U.S. dollars or about 14% on a constant currency basis. Our revenue increased 11% year-over-year in U.S. dollars or about 13% on a constant currency basis, and adjusted EBITDA grew 8% in U.S. dollars with a similar currency impact on the year-over-year growth rate.

Our strong room night growth rate was helped by our later-than-normal summer booking system. In addition, we have higher growth coming from our performance marketing channels, which benefited in part from our lapping the start of last year's optimization efforts. Our guidance for Q4 room night growth of 12% reflects our expectation that we will have more stability in our top-line growth rate and reflects the continuation of our marketing spend. And we note that we continue to grow significantly faster than the overall global accommodations market. I am pleased with this strategic approach we have taken with our paid channels this year.

Going forward, we expect these markets will remain very dynamic, which is why we'll continue to employ our data-driven approach to achieve the right balance of growth and acceptable ROIs. We will look to spend in the paid channels when we see opportunities to acquire high-quality traffic at attractive