Booking (BKNG)

Glenn Fogel Chief Executive Officer and President
David Goulden Executive Vice President and Chief Financial Officer
Lloyd Walmsley Deutsche Bank
Mark Mahaney RBC
Kevin Kopelman Cowen
Justin Post Bank of America
Brian Nowak Morgan Stanley
Justin Patterson Raymond James
Deepak Mathivanan Barclays
Eric Sheridan UBS
Naved Khan SunTrust
Stephen Ju Credit Suisse
Doug Anmuth JPMorgan
Heath Terry Goldman Sachs
Call transcript
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Welcome to Booking Holdings Fourth 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.

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

of whether new obligation by future to undertakes update as law, a forward-looking any required otherwise. result Unless or no statements, information, events Booking publicly Holdings

statistical A website, release, copy Investors of together with Booking Holdings is Holdings' www.bookingholdings.com. earnings an press accompanying available financial supplement, Booking For the in section of and

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

Glenn Fogel

to fourth high exceeded fourth strong nights, million I'm And our which Holdings XX% by afternoon is you. XXX conference and our this as David quarter Goulden. the had Thank CFO, up room end range. we of booked joined welcome guidance We call. quarter a Booking year-over-year

over $X.X currency increases billion year-over-year revenue EBITDA in and in a billion and are $X.X approximately on respectively. approximately a which basis X% X% constant of produced We

booked more first is for million the the which XXXX. performance full XXXX. our about our XXX room was a will year, Then XXXX coronavirus. nights in the XX% our objectives I year We current for talk XXXX will company. I about then regarding for and in address than situation year good

across financial that X.X million room We Just year-over-year produced day. means booked than our metrics. that more nights to we key put in growth on context, each average strong

basis X% adjusted on and EBITDA X% revenue were a constant and currency respectively. Non-GAAP up

for exceeding on currency basis the up a was XX% our EPS non-GAAP year. Our constant guidance

I approach geographies in billion returning business. rate growth over throughout confidence from pleased year. disciplined considering the we to XXXX, during EPS faced with certain Our environment which macro in results capital shareholders demonstrates our our am our these of share and to $X repurchases the benefited

accomplished spend. we this rate, top while performance solid growth marketing also line producing our Moreover, leverage in

consistently global diversity, as environment Our we to at talented to the this teams our execute have speaks ability in our well to and company. dedicated as scale and

We solid and year, the for trip building platform, strategy. our improving expanding accommodations payment Booking.com strategic key alternative the our goals our progress further made against business connected

As continue focus that we becoming company increased even customer-centric drives smart repeat into move behavior. loyalty through XXXX, and we to plan to will making on We value this more goal accomplish experience scale our customer customers our acquisition, and using in while our connected strategy. product trip to the accommodations providing further core the offer in best progress best our to an

In are expenses have further we'll In at a addition, we appropriate to will emphasize organization. we need all and more streamline aspects of to ways cost make revenue make while our company the look for XXXX conscious sure our been always efficient. and our

in a Investing so term, opportunities. during at long the products taking look XXXX for close be but And these and unnecessary eliminating too we'll important expense. processes is is

occur now XX% approximately percentage in highlights bookings The expect our to at payment XXXX of platform. processed properties on Booking.com payment and its XX% in grew XXXX on to payment and Booking.com gross capabilities One XXXX from of approximately over our are our during its Booking.com expanding this platform bookings reach XX% in we XXXX. XX% over of on that enabled was gross

drive this Booking.com also both particularly and investment capability platform offerings. partners, and increase for discussed, options growth. favoured by property non-hotel this provide capabilities to customers offerings provides merchandising have provide our property Merchant we our merchant to a partners and we expect with platform product As payment in to continue

drive strategy for frictionless products customer we a experience across believe our foundational in will platform payment that which multiple loyalty. envision This connected is trip we increased

has and XXXX Our alternative scale. solidly accommodations grew in large business

platform search XX of conversion. increasing on drive of can listings our customers the joining had we and choices quality million and our the for XXXX our variety we As accommodations properties We alternative December focused remain so in X.X provide business. best

accommodation $X.X for XXXX, in alternative in solid is one billion XX% our overall when rate and XX% approximately of year in revenue the recorded Booking.coms of growth approximately revenue euros. a expressed representing

proposition. It on consistently both profit traditional also year the is one core grew believe a and platform than accommodation presenting faster our business best properties accommodations healthy We the maintained alternative and throughout customer margin.

create year connected of to a our took Last vision we further trip. steps

We support by payment offering, growth. customer all seamless drive enhance connected to are intelligence and accommodations, we experience dining and ground loyalty on provide and a frictionless build multi-product journey to that believe transport supported personalized network a a by including flight a attractions, will

to that incentive seeing cross-sell cross-sell saw at value of customers. by We the ground offerings days ROIs. in grew XX% higher These to early year-over-year a have programs in accommodations. this from product experimentation to last of an to types certain encouraged ground stages the believe these bookers of Rentalcars.com benefits as integration discounted Booking.com leverage acceptable transport primarily quarter, We've the of increase Rentalcars programs during Booking.com with for year XXXX. shown provide to been we and better the offering We these look early of also signs the we options Booking.coms further conversion increased the benefit We opportunity. bookings transport with deliver customers. forward are to due fourth in

Currently capabilities APAC and an across Agoda Booking.com integrated We in on a is product, flight Booking.com goal products platform initially XXXX. total our company global year the globally. offers while plan able XX% expose this flight expand Europe, began flight to launched building Booking.coms flight that to we Priceline the also region. for customers expanded in of is XXXX. throughout the of flight a its be but product to countries to focused in XX

connected these journey our a a accommodation to opportunity other early product flight investment X trip us the it an with even customers true to passengers robust more to their there Having considering products, experience. more cross-sell engage than travel flight and billion a important year. better are us Developing remains but global important in last ability enables gives offer

to expand This other trip attractions year and will as dining we of a options. such connected aspects continue

offerings, experience only best with but these own For we the partner so possible. customer will our can also offer party third assets, we utilize not providers

continue see to loyalty benefits We attractions from customers combination use a our also product. who

their apps to remains a will continue the in IoS world, globally. Booking.com downloaded connected becomes Oti the the trip the leading the invest Android in research stores platform of in XX in most apps travel to one According We experience. ex-China was firm, in only as our it app to our travel party and Booking.com third center top XXXX. of rank

for Coming app been on Booking.coms bookings becoming some time are platform number and app. very the investing strong We've in at three. is with preferred in platform it that the and we travel pleased room the night occurs for growth

and this channels rooms XX% represents share XX%. direct of quarter drive increase year. over I paid direct front customers. earlier, channel booked nights total the number when to The room our As XXXX, year. of search progress through direct channel including for primary royalty these are on its terms, behavior of designed branded all grew increased to repeat In this our with and booked investments greater mentioned faster increases our our over last our each and We made channel than

market we years. loyal for grow can loyal its Booking.com a large best this base and customers several of increase is believe but and This are has part Genius today, we have share. grown and of customer program. customers further We the most group consistently

of an increase Genius we customers, them we had active responsible XX booked Booking.coms were in customers thank Genius of growing nights loyalty. million proportion over XXXX, for XXXX a their room In These year-over-year. X% and for

book of Genius customers. top when often direct compared to see On and more a basis frequently on that, we customers that more non-genius

continue great their of and will this our on efforts Genius membership. We growing of special focus value them as to offering customers group part

our experiencing prospects, has area While been broader At the been David we for recognize has demand over pleased his affected Greater most. in has been the impacted, remarks. been China region long which we to which details in that deceleration are term starting provide slowdown travel will world. demand globally growth the around in last travel we the the and potential several see coronavirus. more also impacted and current further an a APAC is of aware present time, about by we’ve The strong the years now are are

fundamental But to prior team rates. management to like we not this is to is lives has people's faced out, will industry to growth travel company I impact growth would time and point travel know rebound believe the travel that our exogenous demand. We an first

term. in the the impacts a continue we will While travel, the value measured manage for to long company way that builds coronavirus

customers our which cancellations them closely supply and we care one, with steps making their include, the take working are travel However, includes we of sure today partners. with taking facilitating and our plans, help

Two, XX,XXX ensuring around Three, safety the managing our the health marketing efforts employees appropriately. over our and of world.

will our be in money very we We this where year. marketing, ROIs, us bidding In those participate will and cognizant need provide rates that when of that to attractive calculations. paid marketing to quality cancellation recognizing continue traffic incorporate regards channels spent to brand brand should higher in and we be

lasting traveler travel supply company seamless, both with relationship holistic, to partners better travelers our on this suppliers to frictionless service, time. and our and a to that supplier create to a we for The connected platform and a so trip best with value that the intend will delivers provides working over continuing are success future. service achieve a more create they Four, both our five, invest and travel positioned

financial turn now the will I that, call With over David review. to for the

David Goulden

relative growth earnings afternoon. for prior-year quarter. thoughts and our indicated. our and in results unless discuss good review Thank regarding are to All fourth for reconciliation GAAP Glenn otherwise XXXX period the first Information XXXX, rates guidance the can you, found our then in release. quarter I’ll be comparable offering on to the

quarter. our results Now onto for the

Our booked the in end of in as through our QX December. XX% of high range, quarter guidance room exceeded a the growth with finish strong accelerated growth night

our continues Our night and room cautious. to slightly of expectations, that in rates our grew exceed expectations in that world our for also exceed continue growth expectations rest a Europe exceed Room despite in macro despite environment in we growth night QX. remain to Europe QX faster

guidance. were a which on Average year-on-year currency for was X% rates in about QX ADRs down constant our accommodations daily in-line with basis

impacted last as and was mix key the several increasing of QX lower As decline U.S., by Kong, year. to growth as call, such ADR ADR decreases indicated year-over-year lapping on markets ADR last of markets, faster within rates Hong impact in Japan in growing and as the our an the earnings well X%

by Changes approximately gross to less impact than QX versus bookings, rates in by growth We by exchange rate in foreign amounts in points. year. and X FX percentage QX revenue dollars percentage last growth rates X changes point and estimate U.S. reduced growth similar the EPS EBITDA

QX quarter Consolidated our and gross in currency on expressed by grew X% about about end basis constant a U.S. dollars guidance U.S. by coming X% was revenue basis. on a in the the range. fourth in bookings above X% and in of grew billion X% constant dollars $X.X and grew currency high

revenue comprised other in which by December. we OpenTable in of acquisitions lap combined X% and mainly the hotel Advertising is as QX and Kayak the grew benefit

end Adjusted high our year-over-year reported QX on the a and about EBITDA for up on X% was range basis. was currency basis exceeded constant guidance and which X% $X.X billion of

helped increased than in points growth by expected quarter. Performance driven was our leverage higher drive basis volumes the which year-on-year XX in year-on-year marketing channels. expense The X% paid about

remain decline in marketing investing the about of driven the going in second is in spend and We in quarter points a which This in up brand ramp spent XX% half disciplined of decrease a leverage. versus committed basis year of represented contributed by QX part in $XX a XXX on forward. to We last marketing brand XXXX. million manner

incurred the - inter Booking.com. continue and as a expense other increase expenses reduced and in of revenue points about offset [ph] to XXXX sales expenses payments to and of decreased of other as of sales related both basis of QX our certain contra and other last expenses, a leverage versus reclassification well contributed Sales XX expense due which year certain during platform growth X% QX chargeback in

in with was year-on-year in reversal basis growing part forecasts in points year of than line our at % Personnel XXXX. in QX contributing we lower driven bonus deleverage the by accruals end about expense of experienced and expected quarter, XXX XX as

GST. contributed increased $XX quarter, transaction driven G&A points charge the about of XX% a tax year-over-year in expenses basis excludes largely Non-GAAP including which a deleverage basis by XXXX. French expenses non-GAAP on million G&A QX in this the travel year-over-year G&A increase higher a taxes, in indirect was XX

supporting items license growth driven the Finally, XX% to outsource business, expenses data information and by software costs. payments center technology contractors, cloud year-over-year increased several of including fees,

basis due Non-GAAP year income X% to adjustment significantly the reflects in which that was $XX Our QX QX and tax on a clarified year. was a QX higher XX.X% reported to rate $XX.XX, is of prior up versus of revenue the last in million non-GAAP QX provision approximately in non-GAAP by XXXX. constant of EPS currency than onetime XXXX a issued guidance Act Tax related net

QX basis lower about than discrete On offering by year. X% percentage XX operating Our X the some GAAP QX share items. increased by our compared EPS and last point due about decreased rate QX in X% income benefited was to in tax lower basis quarter. growth guidance count a GAAP points to margin

QX from amounted net XXXX. billion income $X.X share, GAAP or QX $XX.XX XX% per up to

Ctrip pre-tax unrealized equity $XX of or million euro investments and net ethics of FX GAAP Metro XXX bonds. gains, Our includes QX in remeasurement - losses $XXX and million income

We tax rate. the XX.X% had as remeasurement which significantly items the gains exclude quarter of I We tax results, impacts the from non-GAAP excluded factors to as impacted a of well mentioned from from increased year results. tax the rate due the and non-GAAP unrealized non-GAAP losses these for GAAP prior

we to generated which of billion flow $X.X last compared QX, year. X% operating cash In declined QX

free Our mainly X% decreased compared which which percentage - a growth quarter flow was points. year by [ph] about cash year, reduced XX $X flow last by due to of for timing to payments million cash

billion. bringing year our stock We $X the over QX to the repurchased $X.X to billion repurchases total of in

the We As of authorization. debts. had and of billion year $XX.X investments $X.X end $XX about billion in remaining our billion ended under the we $XX.X quarter repurchase with of billion an outstanding the cash

We we performance quite our night basis XX% grew XXXX, absorbing annual and at year, range. are with healthy DST very low we our constant EBITDA expenses double-digit business on of growth guidance the unplanned delivered and to the XX% XX% which in XX% back EPS a room during the margin, pleased a in produced as investing Looking XX% currency while around by we non-GAAP or steady growth. exceeded

XXXX, operating room and to our share EPS deceleration benefit with this accommodations merchandizing to share operating a reflected from outlook any model, in for growth, to to Turning gain connected some the modest of night and initial in our repurchases. growth i.e., margins invest pressure continuation on trip for payments and

we of the declines including personnel ADR few to during expenses Duet be growth our earnings factors, second of largely mechanical expected the lapping and year. G&A and the to year, to the phasing weighted of half

an since lesser across to coronavirus Asia more on well. had extent turning our The news regions made in we across Now recent to XXst. other also increased The a these impacts of Asia but were business China, as it has saw impacts early events. outside headlines impact in January and

an we've ADRs. than in with increase region In APAC XX% room mid more and country over the on a room no our context, single help in new seen nights. pressure share accounting APAC bookings for total reduction of To represents little nights of digit single cancellations,

not will travel in the coronavirus what patterns, has possible to in of occurred South the outbreaks alone know, new Iran the slowed while will to predict Italy. where week it's disrupt As last degree China, and have of incidence you in outbreaks Korea, and infections

following Europe We've booking our in seen been on we've impacts the Italy. room night business Asia in recent the in our measure and impacts our far able so to outbreak

outlook a for a a we're that a only disruption travel Europe. As in term range be to result, with providing possibility near will the account growing guidance wider

X% it's versus the the year. the we quarter Based on to our impact forecasting fluid room predict out. the this considering very will and QX booked come situation be of to prior coronavirus, all XX% we're estimate dealing nights with Clearly, is now. based extremely we're in down are QX where on continued available to where best have difficult the But we and a data

in basis bookings We about a on XXX X% and gross dollars. constant points to forecast total to more basis decline currency XX% U.S.

that forecasts QX will down company X%. about be assumes of ADRs constant the Our currency

dollars. QX $XXX XX% down on points in about basis decline expected adjusted basis We on basis X% between decline and million, $XXX and and million forecast constant EBITDA more U.S. to X revenue non-GAAP % year-over-year to QX which XXX a in currency XX constant is to points to more U.S. currency basis range is XX% dollars.

EPS approximately non-GAAP XX%. to XX% EPS approximately QX QX is constant $X.XX estimate $X.XX decrease currency forecasting of to which We're below basis, XX% by On we a year-on-year non-GAAP to XX% to XXXX. QX

estimated an QX tax forecast EPS for rate non-GAAP of Our approximately include income XX.X%.

XX.X year. QX Our guidance X% of diluted is non-GAAP below shares assumes which share EPS last about fully count a QX million

$X.XX be for to $X.XX EPS between GAAP QX. and forecast We

GAAP a a XX.X%. rate of setting We Our of EPS exchange to approximately guidance. rate QX our use when euro QX dollar $X.XX assumes for guidance tax a

We shield hedge income the quarter dollar But impacts currencies EBITDA the have bookings of from any the not gross of revenue net end of and first further and do offering from foreign the in protect substantially to in contracts our hedges fluctuations place quarter. fluctuations. profit now currency versus between

acquisition item. Finally, investment forward. our going spend on Starting brand expenses QX marketing results overall a an take as now reporting marketing and housekeeping basis, Operator? view questions. we our We retention. and customer as your with and plan We’ll in on a performance our combined


our Walmsley question line from Presenters, from Deutsche comes the of first Instructions] Bank. [Operator Lloyd

Your line is open.

Lloyd Walmsley

just the first question a a guess Thanks. clarification. of I bit

some changing particular you the there of same you certain the can ex as the I kind gain virus of that seeing and know, I impact kind lines certain room pullback you sustaining, in is I share you geographies. in virus? think brands, are David that if about sure the said with And expecting the heard deceleration in marketing along in the share competitors or of including with before nights. impact ROIs something anything some wasn't correctly, virus, of

a with if changing particular seeing spread some anything guess could regard SEO that know be to second impacts to last from are quarter, of with I great? that would or then geographies change I share question just you intensity? you And Anything the you in new can Thanks. the channel either

David Goulden

Sure, Lloyd. you. Thank

our first year. of which for question, the the talked I year. Let we're initial - times we answering plans at so of me clarify to about start start for we turn to the yes is around when our outlook XXXX Obviously together what was the said our the putting outlook

the delivered of continuation a we reflects that about talked same XXXX. model operating We in

So in on nights, and pressure share operating margins some of with my our modest combinations about EPS give for year comments deceleration the was the coming our benefit of coronavirus. a before into the shape for the room buybacks some share flavor gaining to from year you profile

And period of want channel challenges, that remind the your for has a we kind and just a on as on the then pick SEO of of is been SEO small time. up said business to relatively the to I second. people our part

know, than continues that the channel, You to the research. that channel primary rather be focus pressure as - more paid provides SEO they're search, under that upon

well we to channel. that do in continue But

We have it. teams dedicated to

share with pleased are We in that channel. our

before, continued said it under business. contributes as a part overall As channel pressure really of is a we our minor very

Lloyd Walmsley

Okay, and impact the ROIs of outside on virus competitive the are marketing fairly dynamics? just then anything of

David Goulden

QX saw because quarter was talk many to Yeah, few having about behind weeks things. I'll it's us. very we a a only obviously not and relative clean virus that a Again, QX

we with performance overall it's pleased our any saw QX. grow talk our We time major We spend in about in than channels less continue margin to we business. to in didn't because think leverage a channels the ROIs were still performance I continued rapidly market see shifts. QX the mentioned our So good

mix So leverage. leverage mathematical of we the driven that leverage or kind was demonstrated

in much your as quarter that didn't we also we're with note, ROIs you're about pleased where were. think all of to really very QX. the question or And Nothing genesis I really asking was change well. current

Lloyd Walmsley

unless great. assume add you is I’ll pretty but that something? to That's virus making messy, things want

David Goulden

wanted that's I stop. there, the place right No, to I – think just stop I to

Lloyd Walmsley

Great. you. Thank


question another have Mark do of from We the RBC. from line Mahaney

open. is line Your

Mark Mahaney

and growth you opportunity. ask unit December Rentalcars to attach how I opportunities the and things. with about are of But - you're getting much in days know you want ticket airline you of trip you I and greater rate comp some far Thanks. both know airline growth in like kind along nicely tickets. that's noticed with it called cross-selling tapping think that connected Rentalcars. rates accelerated you out kind that into easier quarter, looks two This the

So that much just the sense are where this in is attempted know Rentalcars? results about how a in you can get of you've we better talk could doing be how that, process even you at so the it percentage - of small a

to then when costs outlook, streamlining were the Glenn don't was about in more And I seem little you emphasize that related think you a talking to XXXX. bit coronavirus.

I that, behind little a it unless bit sounded like I I or why you like but was the think or why bit about it explain Thanks, careful that, costs be all take this to get impression? it's get Glen. just was, want think more little year maybe last streamlining costs that could a versus - didn't year - on coronavirus, more was, don't focused you but something it

Glenn Fogel

Hi, Mark. Yeah.

take called rates the out The the numbers. cetera. Rentalcars good think has correctly. et it you one me business shown first I some Let And attach

getting correct of and up there of can there you're part and coming see part trip our And statistics and If from your seeing not of building That's the we statement that that early, out. that are so press nice you you're any at really the right connected from you supplemental air about or also look growth enough matter that in now. some the right in we're just air business, our not of running. to growth is end release the business really cross-sell that increase

I time to time the low I attach way believe and those those continue at numbers we rates. we where it, to present take as to what's over significantly increase optimize should It's going it. best some show very, look very When it's to

look to a who up filled the we A.I. Tel all offer bunch learning way what Aviv, the experts the very is way present I'm center we things is an about One to they're at with to right the right the it, it's right should we that the conversion It's do something data we and better that's take get, we'll the in But at benefit parts and of best is more really with present a traveler get of know to built to going and right geniuses of that in right something merchandising trying line. putting things do. what come proud different the time the the machine that the the to what thing time. is bottom

that's So that answer the that's - to one.

also you're costs, that. Regarding absolutely correct on

are the are took now over One at there what I the been when Booking.com we months, more job spending organization. right doing where spending, and taking what of than CEO be right then ones ones, the now are which of should little is throughout in that and Amsterdam, looking projects things we on, we're as I've which entire around, a six our ones not

on bottom also always I've as believe I it's rapidly company very great you effective the very grow believed and be should natural that companies line. success and cost a Now achieve

discipline up lightens Sometimes a little bit.

certainly was the that can spend doing I sure So make to we're everything we to that already thinking we money coronavirus correctly. need before

the some our type quarters our of of companies is in better. of us that mentioned one real I've calls of to in couple efficiencies And One the bringing the project. get last all procurement the is cost spend, a together that's benefits over things

efficiencies. right cost to out some at time. do doing lose thing you on the the in But do that companies past and the was And all that we've run while these independently

to of what Now company and where at, it's the in doing. the that's bringing that it's start be time we're going now state

David Goulden

Glenn. Thanks, Okay.


another have question do Kevin Kopelman Cowen. the from of We line from

Your line open. is

Kevin Kopelman

Europe days following lot. Thanks. over in few you bookings you've color outbreak the seen the travel a Thanks us more in trends coronavirus latest the give Could Italy? last on Great. the that of

David Goulden

Yeah, Kevin. This is David.

seen Let up in days. we've take do frame the that. way into that it That's our shapes and the the in quarter take few just account projections me last maybe can what

surprisingly So mentioned all let is been the not China land of impacted, give Asia has also a of time. by China you of for region kind impacted worst the already excluding first lay some we me

also to and February The rest piece the in impacted we was negative of but world be Europe's through growing well. Europe obviously us as big for includes to that a expected March

you virus be give the saw of color even reignite some hitting approximately on quarter to growth the and a point guidance from March. consolidated bit basis tapering quarter in the off view of a we saw how just the all expect a some January plays it at in remain January to for To across XXst. we the we February on though a more first growth see row therefore with to news end the Expect flat from in declines and get our rate - to -

Kevin Kopelman

Got it.

of that is March expectation last the on kind based just so And the over days? worsening few trend

Glenn Fogel

that really we going our it. view as over. We're we control no responding - something Yes. I what's dealing to predict on best mean cause we're giving fluid of mentioned other have obviously to we're you with a very situation very difficult

built surprising at in Europe few has the response which negative. seen and that March looking we Italy to what's we we've outbreak happened very in and when create after last is it not the in in expect response what specifically the range, guidance So we're the to happen over been days

room expecting seeing we're of So yes, end - to through February towards even we we're though in decline. is night of world February are that going the get already rest in growth

decline into continue to expect it March. to We

Kevin Kopelman

it. Thank you. Got


question comes of Bank next Our America. of line from from Post Justin the

line Your open. is

Justin Post

then behavior you've don't cancel going give trips that. had be take people Great. travel cancel could they see you view can't I us you couple it specific, past or before their Thank or long and on a timeframe disruptions start where do on again when questions. any thoughts I How it book. on trips if a loyal but rebook. helpful guess, does know be you. then too you and people of would customers and A your most

take it's second you. industry your could then maybe deeper a you're spending, back marketing inefficiencies or and Thank in people talking as the benefit there's main a interesting savings. about travel channels whole competitor cost And costs? pulling as at their other some you in look think Do

Glenn Fogel

Hi, Justin.

and not company. say experience future. think is be at for past years it I've very not be he'd week this years. - happen try been I've been business, what situation be it will in My is anniversary now an would different, Friday fact The as this XX wise to in the XX analogy I use in this in will

exaggerate the the of of of And so through because mentioned and severe I've entire a won't for seen travel go some them time impact all lot extremely I I factors them call.

effects periods. being rebound That said, time they different have all and different

to helpful you for the there. volcano go going what could or not swine took on on be the I after it's after X/XX on after which GFC stop Iceland. in I'll after me So I flu and or mean or tell to and

really anybody So to own helpful. that guesses which be best your be have as you'll admits will good make else's as And can't I just guesstimates.

Regarding anybody to time. compared to always margins I part the place the but waste that does the license looking. single spend so industry, to spending, a Are else can right not this to every company, at be right the correctly then we have of continue in very spending in And us give we high we money. want money

continue going the a of of probably to some see terms turn marketing. pulling always in we're right we people to have lot do in their that, and and better I think think like try do I so. think In probably term been to be marketing. to there's everywhere are can way There That's going waste who We industry is probably to back room and the company. efficient long successful a to only that effective. we've and But

what coming will that over seen You back, business we question, know am and again. confident you we've the your know, I though be confident am that of over its and first something over I regardless know towards

times many, As They will it for Travel be said see to doing people. so the basic have time. you'll to soon as a travel. a as coming back air long here. many clear I speak, And very is been people need very, for

Justin Post

Great. Thank you.


Morgan from the of question line another have do We from Nowak Brian Stanley.

open. is line Your

Brian Nowak

headwind better of for for so over underlying factor first corona Great. month the all into I a can you commentary quarter? the to night and have of the please. But of David maybe just understand the growth. guide appreciate room Thank EBITDA question. you sort first just we big month the taking have How put two durability quarter. for my in

Glenn, geographies. performance more how to one, untapped marketing perspective think that on sort share focus of is area? the importance in the opportunity perhaps to us take about know and second about sort the the about Thanks. year to then talk branding And of and this Talk a opportunities and you you from this a U.S. more

Glenn Fogel

Brian Thanks, the take of it. part Okay. I'll first

of a Now of by know think you a I'll out flavor to can into XX% envelope the growth like to I to getting to I you minus range. some kind avoid terms what to master try rates look getting specific do in figure has minus give back month. March you X%

this would to looked have over we because this what's one of quarter. may at in we Europe of range only Europe in the we've end course worse few days travel happened environment Kevin get that the last if the be rest the anticipating there's surprised mentioned the is at in to as Way outbreak at I my looked have the the lower very so answer and much

lot saw So is week last we we've a led account cancellations. into by taken course of what over happening which of the

as the over visiting to week rate things be usually more to and on obviously quite growth see the early out. bookings different news it can patterns may in moderate and less So not we're get seeing as the is these you cancellations a time you reaction last that underlying cancellations, than spike because

But the in We slowdowns the or of quarter rest we've the week. and if in worse Europe outbreaks happening there the we've through last what rest of are impact the additional it world. taken projected further the recognize the over of to seen make into account that course

That's how very until rapidly guidance we've that tried some this have we from to is obviously intelligently best give the you points as data it's moving morning. we're getting up data data

David Goulden

we Booking.com start company there significantly. we opportunities have Americans like under opportunity, hotel US In and only business to index what was for And the an to yet air. regards it reason and their using air example, have know to we'd travel always it market our like why world, historical without is didn't around the that is a the many we product an achieved our not doubt biggest enormous for

out so be an time bringing So be we going air to over we're one. now product would that

consumer extremely the US. in is price sensitive Second price thing competitive,

product. the that got non-hotel to an you've going historically to believe back but to by have meaning consumer meaning have do by be agency set the to a the or we be, Looking adjusting that We payment the to was player, price hotels merchandise accommodations. to able that is what value

got quarter U.S. for It domestic was we running only up consumers. last payment that the product

one. another that's So

I'm Well we're do Another that like that like com package product of more a product and about big issue is now Booking.com come up to Americans toward package one to between packages, will that just just things value. a some them out. Priceline.com with get the use very U.S. to proud for working that many getting a combination or consumers we're starting

the have we our help other to to aware sites have. consumers them bring The great and other thing is of make assets things we

people example lot the past done A In in than consumers. every we platform value the they'll power month. platform have the the For and OpenTable more bring really a to provide way OpenTable using of Booking.com together OpenTable. anything are never

the U.S. a So I our we're that do to of is us business. out things build opportunity a on because for working the great lot help believe

Brian Nowak

Great. Thanks, guys.


from Raymond another question have We of Patterson line Justin from the James.

Your line is open.

Justin Patterson

assets there with scaling Is on One side that or optimal Great. customer experience. we how anything and to about through should party need dining on third you your connected own in so an partners attractions partners trip, ensure the Thanks much. supply there? think control

about on coupons think attracting your mix and incremental drive using branded of performance conversion customers that business how questions we much. say so to grows. your And should the payments grows direct do marketing, second as via channel versus you How ROI - Thanks then marketing?

Glenn Fogel

I CFO David he about going how our optimize the talk hit answers want we're the can to first, to coupons. being I’ll

all in in to that supply you and you us directly terms connect an party ideal using prefer to world be your to of in would have right like third You're an ideal suppliers. not world

sure against offer a speed said, that's the have you consumers. being the to and That a create to necessary supply market balance to good making

interest [ph] have to to OpenTable in can. we lot product party lot I opportunity gone inventory le we but speed of world licensees business while consumers cities providers cities, the around provide a as want of in our there. do that as OpenTable that don't business a in many provide different also that great have. do and they mentioned don't with dining we we the has ago. in a third a They So to little

partner will with we others. So

same there We own lot the contracts but a people world where had Attractions the thing. our are of supply with are in places traveling.

parties. we're So terms the seamless supply creating Over this helps run supply believe having that in that truly in to But that your going market. to you connected make third the speed we have sure in own long matters trip. of time, we

going So we're do to too. that

David Goulden

come of to important sometimes also marketing well. channels now that acquisition some And Justin, channels on sources phones drive pleased in the of important as the business are new very for net the marketing and things all to customers really the us can direct we're build back our of all and all app that different direction. and But existing future trip connected first and is that customers very for the

on incremental re-measure different But very comparable our at to a a we your look basis. very activities them answer basis. compare can all on measured these of and We question, ROI

look offer attractions the other don't decide channels where like our So on other the ROI when coupons we lean or of through channels, in may only it we visit may or and comes to that be. case as one at we things the just

So to that short we have return on like metrics we term things able on those all investments. the are measure pretty good because

Glenn that longer even powerful how things well mentioned term as - towards things at a business offer. the lean people connected the also becoming way the - based during activity look and initial becomes trip to downloads very becomes short channel can we're shortest more a tipping we in and channel us to the very the for it's is a connected all which repeat on decide term or like the ones Again, is couponing trip a the app direct drive piece how in in and looking app trip, that returns including much and highest vote to space of measured give and strategic. return these experience direct the towards after bigger basis of app level the Tactically and create on to different the

Justin Patterson

Thank you.


of Our from next Deepak comes question the line from Mathivanan Barclays.

open. is line Your

Deepak Mathivanan

little David question. about provided pretty helpful. a the nicely, and on double exceeded model and year talked you now it earnings this the right then situation facts more you taking last for achieving is understand fluid digits [ph] was operating growth exact Thanks color bit the Great.

we the kind there of in think things should like on. growth know then how disruption Thank for you translate And when How going about into currently year. share sheet earnings you. about those this for the is using repurchases year balance thinking are you a

David Goulden

question. the for Thanks Deepak. Sure,

first of Let me the take it. part

measure successful not the as specific too get a force we XXXX continuation a about a to we we expected a there's which expectations what in mean quite a against want point obviously of talked XXXX. I very pretty from ago. for out year yes, because because I was think come out operating model a is to the of model coronavirus few targets few putting a forecast against a year So lot could only never I different going in hypothetical it bridge weeks And don't and

with But came XXXX know pleased we way you were that the out.

QX of talk no won't times you can't why look the you second look then underlying about And port kind If back the of sheet. model believe normal at Glenn that understand that reason health in and business. balance XXXX we at continue there's

Glenn Fogel


significant amount have strong sheet, to So very balance we are pleased of cash. a free very

good very is is as we've how really should a always And rating. had have use the credit we question We capital. our best

repurchases. of has been always share things One

potentially we're connected add do we thing strategic look to help continue we're looking going to vision trip other companies Another to our always that is always that. could at that at and

significantly very to us Certainly in areas. very, past at say this I to anything carefully not provide we however an Operator, both right a situation question this that in box opportunity we now be will fluid we do do for please. because though and have says, changed ourselves look into valuations the and it's we're more agile. have any going But may very do want right as second David recent


UBS. Sheridan of have Eric the we added sir, Yes question from from line a

Your line open. is

Eric Sheridan

with Thanks of environment up in down about if you variable understand how it is relatively how sort is think over quarters few might you we cost or better structure in investing a business up question. piece they're probably Maybe our night and of around so in variable versus tune nature the get for uncertain next the taking better investments way term the of in of with queued the the Thanks results irrespective can I what and sort guide a a there more results QX? room more likely for plan a be going made some of investments they for QX much guys. excellent because the where how worse track down the much just out from the strategic could on couple you long fit how vision, arcs the they're are making cautionary in environment or the to to of or

Glenn Fogel


this since term marketplace. That the talking how strategic going in to I a for than three ago. long been to requires is about became sides continue continue holding create now we're company to vision that. of it of CEO create important for do And years some our more and I've value So people. little And to investing time all

from providing, code, In of now. differentiator that right is there is are sure making a something we what terms out

come possible something that position that as will want slow And stop but we I in soon be the there we on which or out to end. want hold I that that. the is get better this down out that to be. service no out to services superior of truly we environment is travel And current with as come sooner will that back is the when of reason The unexpected, best that we have.

going continue So that. to we're on

that are at We not changing all.

is. Now what investments, the adjustments terms based in and in that on to of terms in marketing terms always of environment make naturally you of things want like

foolish It's not the of other side. who be you're invest are us thinking all. brand campaign. money marketing listening a Well you're going extreme we on at I people to to as brand marketing. are not about to to a if So And not not us for making that's to And about message travel example mentioned an travelling, for listening in brand marketing that ad.

in there all And David, going doing always different be go to different, making between we've adjustments been That's things to in these and no that that. as we throughout we're between year the anything add.

David Goulden

just what of Glen around framework little a Eric a talked for about. maybe bit

down going up of of our about all marketing mark said primarily you second but for half not offering little think think to OpEx a travel. performance and not change. people related of So over our We're volume variable brand obviously no a if billion if spending easily and lot Glenn you brand obviously expenses point a $X.X look of just XXXX is about at volume, really with

to expenses costs and is platform. as related of piece large other ourselves because also to processing payment on a the A back ties that merchant well volume

well the So volume OpEx half is of that directly really within to over business. tied our

some areas low are in our And obviously there. are and other Now aspects there volume very which et obviously personnel fixed mainly some there's related cetera. I.T. expenses G&A, the

variable. But quite about quite tied is think it really our if you expense being structure to volume larger cost directly. is The line

Dan as directly that to there talked tied Of things are can course refine not do in areas optimize to we are the continue and about.

Eric Sheridan

guys. much Thanks so


from have Khan another do We the line from SunTrust. of question Naved

is line open. Your

Naved Khan

of Couple lot. questions. a thanks Yeah,

the year? maybe the your you can light And that you? have results I to might from for question XX% [ph] other maybe be just was early this on you seeing process XX% that XX%. your get What to XXXX in for levers from kind about XXXX are that platform So payment spoke of maybe control own commentary David your you going the Grabbe working shed then how partnership some payment in to

David Goulden

impact developing the we you let me actually it's the on Glenn me just out, the will was talk So and who our statement. how about start us the payments one let income guys to see have gave platform what but off numbers with

helpful and questions ‘XX average XX% a just XX% we understand in in that's prior the XX bit payments. That So be statement the obviously always for about from basically XXXX see our in doing income exit as year. had growth high about I've little calls. cause a to had to we and you XXXX expect might what prior XX That's to ‘XX in

EBITDA In expect even at growth. contribute the both our EBITDA with all actually as as it impact revenue little to to XXXX to start growth well also we has both will upon that towards very contribute - payments rate contributing in XXXX but to been growth

of percentage As payment costs. ever increasing we recover our an

with participate through So able but start things in it be well model is one's all we'll ever in a the doing to there's and very how also this become in about stage our sorts not merchandising for to increasing completely year. our contribute rolling all together will we of part Obviously of trip agency progressing the business. the pleased control package business Glen our an to other to we're nature so ability to that's attractive other as said to starts which including as still on how and connected replace which payments it towards track get and reasons we're growth and think payments

Glenn Fogel

and services travel hotel really of customers that remember it, to want the pleased find significant invest expose [ph] our I'm reasons. and ways that's regarding in we one. you'll for ways been to was great number different over customers all do we three Grabbe combination we to can in and relationship different has was our a Grabbe progressing reason a how way And One about that's very Grabbe

so app that they they ride they're what future a and am visit to can in use ride and that with that whatever to a going know get in with other card they're with our download without the in countries get mistakenly have up arrive credit one to another around. Booking.com great and it'll experience. we sometimes assume be place do can that is sharing be of go a that seamless they're having it's going way things when on a capability they Grabbe in want and what not place would a put and was, I way to And And come going are how sharing not a their to to seamless the person to not do. travelers people be they're said a is thing home familiar they familiar going The and we know going the not in we many great to going app

And I of the third and he gotten said up last how quarter mentioned return money in on thing course we've that Singapore invested. we'd we and have to running financial like the a

end the I to for last pleased be we to One now the at territory of I India And that the able single of Grabbe operates Thailand. on was how. on every operation and app that that actually the IoS the Indonesia in things Booking.com operational quarter expected [ph] by are I'm mentioned have us By year very Grabbe platform.

and ahead done getting the schedule shout out and it's that working team just on for of pushing So that that been you a great thank who's to really guys through.

you is. operational told think more and you Indonesia, all to used beyond as good Grabbe to seen be airport side that car is it other the hotel accommodations minorities We'll I and Malaysia, you And it being to plane Philippines four I've in able Vietnam, a to wonderful everywhere that and something I've on off and our get that about can and go talking just get on that away apps areas. Android Grabbe been more for the a hotel and it's take easy makes we're this it's also to we're now so Cambodia, show you it's weeks that right in to Booking.com experience tell I customers Singapore, really Thailand, so

Naved Khan



from question of Credit from the line Suisse. comes Stephen next Our Ju

is open. Your line

Stephen Ju

very Thanks much.

more Are come supply guess to partner So the onboard Glenn more Linings for for which in able your opportunities, adversity booking any in starved out Silver to important future? can there we so should are or I being terms be going suppliers for be becoming about folks in thinking a of of an really business. environment

talking integrated for well for And consumer for your what of the Booking.com I guess as transforming own has some payment as now. rails, are rollout you the the experience meant travel experience, time the about

cost incur for do in you them that retrain you. And you look you awareness. So up have or to like know pay a to front. non-hotel up products some think you to to do feel bring you have need Thank

Glenn Fogel

And happen unfortunate into their do business So that industry a events the a events. of in happen up of nobody that. when period being I've to over and even Companies for those you sometimes seen it Nobody succeed would are bad and wants because hope again. over they stronger. anyway enter this But stronger events. emerge beneficiary end

There be so is that would very pointed needed they have out what the players for because demand many no could doubt I get and believe and would make I've recession talked past industry. you potential us recessions us and more some they more players in about use in our would happen thing unfortunate to more what in a a to why valuable that

run under Silver ever to better happen that to do way. stronger though that this of being describe from will course I no yes. one that and in that one believe we emerge off competitor it. in end So the would way Linings up better for a a under long will is position much we hope

a regards option. And announcements even it's it's learn to interesting In around save when it see they are Consumers you of playing you get they it. you're products they don't times. money very see consumer. see them different with how value to new just amazing many how in and rapidly - the

make do that all of am better to that will better be planning am sure concerned But we have the will execution. course to Now are marketing concerned people - your way travel that methods not at know sorts and products of I when travel about get our it. have customers I all of your I using aware not we

Stephen Ju

Thank you.


the from line Anmuth from comes question Doug of next JPMorgan. Our

open. line Your is

Doug Anmuth

Thanks for taking the question.

two. ask to wanted Just

to and may you about in and at more XX% seeing payments terms about bit using the talked Can talk payments? the rates Booking.com that you you're a conversion First in you little bookings of speed booking look platform. metrics what other

to why mentioned And going customers, there? kind your XX% why then Thanks. stop the you'd number of expose just that's Glen you curious secondly ultimately flights of to

Glenn Fogel

certain to Well you it's takes certain selling time do we in to licensing regulatory jurisdictions. this of because have to for your That's time immediately of eventually and as licenses not be is people and things the my it. just takes But intend actually wouldn't though everywhere. just can stop get just tickets using this airline XXX% We target That start there. exposed it year. XXX%

David A Goulden -

me a now important we bit why payment let in Yeah, future. and seeing the characterize just it's of think very platform little what we're on the

the sometimes that that they areas benefits come So multiple in are additive. and different and

same. So customer all the underlying own in of choice if was process in some to methodologies pay be their to cases pay like payments that profit a up choice their something you in is just the know just different payments own Chinese currency or Ipay offering people of choice offering payment which offer off hotel even payment

if don't use people increases even We have choice. that seen conversion

more. something he's course use don't the languages you will in we that offer to present albeit you recognize these local with small does that do bit some give recognize If site help this we offering case demonstrate something a and payment payments for of native little use like you payments of of local or it bit they actually language him helps choice a they bit myself in something a conversion a a language if in that It's thank they can that amount. then our that offer course

platform offer sponsored proactively can get benefits emergent we payment in process stop customer. pricing other also some and offers participating mentioned belongs as to get benefits or in can thing more rising I other we we to do Booking.com you So conversion that the offer involved booking as can is basically can the well that so the but the

can You behalf immersion I'm it you're the only through. of passing do the really if taking are on as payments participating you and property

a a the payment So pay of to out all gap can payment, the a of the platform do upon it'll choice it other customers for also and it that and of thing currency their help can we property in pay bridge between terms the customer will the customer choice. platform payment do a the payment property currency payment in can in

may offer Italy our can and take we or a not in in in hotel or the that again cards credit them example for virtual we So methods customers give example a Paris all for the to payment Asian MasterCard Visa format.

weren't So to of the well the all deal of and lot customer, that they'll somewhere service helps benefits the you a talk go as leaves not and the of that to want we're the are model versa a payment from because get wrong business we're platform in agency to request to sorts off are actually do about that between different course we're the things we in customer the and just being booking. participating equation there the property and expected that not to vice we or customer open calls the where process agents with property providing is with payments

as we So the satisfaction and incidents we property the the the process overall customer of payment question payment experience customer can both the actually and partner. if number around of service the that we increase rules reduce find the and made

developing have in in we payments one few it's of lot experience you got transaction But some inside something Agoda cases Priceline. benefits of you are payment that we Booking.com because cases in only get them in a many mentioned a the in all are both of rapidly some platform. and one. get So of Others there in

leverage So we're that already seen taking occur. with capability where those benefits we've

Doug Anmuth

helpful. very Thanks


Our next from from Goldman of question Heath comes the Sachs. Terry line

open. Your line is

Heath Terry

Great. Thank you.

between a magnitude were with out growth quarter XXst the to sort of wondering your date share to is You just see coronavirus, of for sense you started then get we January sort the and the the of in of for of then you if now. you've better specifically called bookings headlines where know the we are the shift are us and where where could where expectations where sort one

know past you're where continuing about on cheaper as think also in talked the spreading, sort then And of room being growth growth we the of obviously about - function that night I the seeing you've a and in bookings ADR. divergence and

more platforms. a that, could believe that you far access you of of customers to be maybe downshift much on own much to look of as with geographic. much get retain to little if as continuing their into bit nights rooms that compression their of how as inventory and wondering us How to Just an how for cheaper more detail is issue is hotels might it

Glenn Fogel

free to is virus we take Japan, best again country the Hong again. the type question due ADR rather in about because go those obviously a the half model we really in half in without it became to for US, as a because what's in of and because were why shift And explanation long gave of Kong, some in and long lower we a a lower like on environments. a place usual rates fairly order, that Sure, a due fourth key ago of let if back year a decline reverse My sort macro, the is business that a of is to ADR quarter. towards explanations back the QX we lapping countries saw reduction of normalize that me were to a course unusual were saw we basically you then was ADR to so increase of that know to three ADRs part through you decline and going happening to operating was which ADR

of because that a tax expensive also So macro got the some was of ADR countries higher very point from view.

go when with and at in of mix look ADRs three QX that and going was We of that normalize two points look we QX. half saw believe we and half points related back basically our macro and QX in at about forward. So in reduction QX of

to bit a you that So of flavor little hopefully going gives on. call what's

last little bit to less with to lapping in bit Going down year. couple effect occurring little saw just half we into pre virus due half second basically that piece we on the points, the more reductions a the continued ADR of of XXXX, a macro basis corona first again a assuming to be be expect the to in that what

And the first question. just part back very go to of the to

flavor were corona the for virus would a year, corona try - we how to try we not specific we business the and virus. did fairly Just think you a thought like not we during for the guidance lot three to a give bridging for a and I time. where nicely between that afterwards of it's good it's what as for of in pre period to we're ahead give operate We but pre before the QX can three expectations weeks internal you week only we exercises worth January tracking I our first tell get were of the where into

slightly were into to the outlined I what expect relative to the we was front XXXX. it which talked things have for running four expectations when in and we of worth continue we XXXX for take about So but year we

specific I with good we ‘XX hypothetical what comfortable can looked about we business hopefully going ‘XX things flavor like what the don't business get the it of felt profile where was, continuing and X come to as we full shaping because and was into you thought as never XXXX want really saw We pleased of we year in about compare up. would into shaping can that a own be growth to against we room the in to with we the gives we the were up were your is talked growth, conclusion relative how XXXX to really you Y have but were year. and the model shape a at and

Glenn Fogel

taken and to want we am current more the strategic date to I met long supply value performers write the forward customers summary, this goals. the more to manage to about remarks our So I some so very doing in term financials environment end through the to and travel going saying by XXXX our I'm we're And partners concludes steps our prospects. future. pleased important the very confident and look in to the we've and

there those supplier environment. in than XXXXX our marketing And XXX want than to a and thank subset hard our so to the want I of thank to I over night. want working most been world. offices have couple partners, exploring who traveler special a customers them very our XXXXX much all and more to out months distribute across finally you this of thank are I very thank Good the last of more employees


conference bye. today's concludes Thank Good This you call. participating. for

disconnect.+ now may You