Booking Holdings Inc. (NASDAQ:BKNG) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 04:30 pm ET

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Booking Holdings Inc. (NASDAQ:BKNG) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to Booking Holdings Third Quarter 2019 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. 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 [Technical Issues] financial and statistical supplement is available 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. Go ahead, gentlemen.

Executive
Glenn D. Fogel

Thank you, and welcome to Booking Holdings third quarter conference call. I'm joined this afternoon by our CFO, David Goulden.

We executed well in our busiest quarter of the year as we booked 223 million or almost a quarter of a billion room nights, which is up 11% year-over-year and exceeded the high-end of our guidance range. We are pleased that room night growth has been reasonably consistent this year. We produced over $5 billion in revenue and approximately $2.5 billion in EBITDA, which are year-over-year increases of approximately 7% and 8% respectively on a constant currency basis.

While we believe these financial results show that we have meaningful size and scale, we note that against a very large global travel market opportunity, we are still a small share of the marketplace, which means we have substantial opportunity in front of us. I am pleased that our performance this quarter delivered better-than-expected room night growth, driven by solid growth in our direct channel, though I note that we continue to witness slower growth in our pay channels. And while we look to find ways to drive growth through the pay channels, we will remain disciplined and will invest only if we like the quality of traffic and the associated return on investment.

We remained firmly in execution mode as we work to deliver against our goal of extending our lead in core accommodations market through key initiatives in customer acquisition, merchandising, our payment platform and improving the selection of properties on our websites. We expect these initiatives to improve customer conversion and drive incremental growth from our existing demand channels. We continue to execute against our long-term strategy of building the connected trip with Booking.com recently launching a fleet offering in certain European countries. The launch is still in its very early days and we will continue to make product enhancements and improve the customer experience to create what we believe will be a better offering over time.

We remain excited as