Image Source: Booking Holdings
By Brian Nelson, CFA
On April 29, Best Ideas Newsletter portfolio idea Booking Holdings (BKNG) reported better than expected first quarter results with both revenue and non-GAAP earnings per share coming in higher than expected. Room nights grew 7% year-over-year, while gross bookings advanced 10% on a constant currency basis. Revenue grew 8% compared to the first quarter of 2024 and was up 10% on a currency neutral basis. Adjusted earnings per share increased 22% in the quarter on a year-over-year basis, to $24.81.
Management had the following to say about the quarter:
I (CEO Glenn Fogel) am pleased to report a good start to 2025 where healthy growth of room nights and gross bookings in the first quarter benefited from our globally diversified business. While there is uncertainty in the market around the near-term geopolitical and macroeconomic environment, we remain focused on driving our business for the long term by delivering value to our supplier partners and our travelers and executing on our strategic priorities.
Booking Holdings’ cash flow from operations increased 21%, to $3.3 billion in the quarter, while free cash flow came in at $3.2 billion, up 23%. Management declared a cash dividend of $9.60 per-share in the quarter, while it repurchased $1.8 billion in stock under its buyback program, which has total remaining authorization of $25.9 billion. Booking Holdings ended the quarter with $15.6 billion in cash and cash equivalents and $16 billion in short- and long-term debt.
Looking to the second quarter of 2025, Booking Holdings expects revenue growth of 10%-12% and adjusted EBITDA growth of 13%-16%. For full year 2025, on a constant currency basis, management expects gross bookings growth in the mid to high-single digits, with revenue advancing by the mid to high-single digits, too. Adjusted EBITDA is targeted for high-single-digits to low-double-digits growth, while adjusted earnings per share is targeted in the low to mid-teens. We continue to like Booking Holdings as an idea in the Best Ideas Newsletter portfolio.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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