Booking (BKNG)

Glenn Fogel Chief Executive Officer
David Goulden Chief Financial Officer
Justin Post Bank of America
Kevin Kopelman Cowen and Company
Deepak Mathivanan Wolfe Research
Mark Mahaney Evercore ISI
Eric Sheridan Goldman Sachs
Stephen Ju Credit Suisse
Doug Anmuth JPMorgan
Call transcript
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Good day, and thank you for standing by. Welcome to the Booking Holdings Third Quarter 2021 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 guaranteed 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. or fact, similar forward-looking are goals other reflecting statements. future historical than intended of expectations, expressions and something Expressions to identify

like actual update most end statements, required please in For cause to new website afternoon, copy this the with from factors of statements the will Glenn press of section release, I'd information, ahead, no refer of Please release, Holdings publicly Commission. described results at speakers that's A earnings, now Harbor and the together And Unless Glenn Holdings the those other. the go an by forward-looking a Securities materially Fogel press Booking to to as of events, future the Booking Fogel with that Booking accompanying www. forward-looking in call Safe differ of introduce Holdings a available list Booking obligation Holdings as statistical I bookingholdings.com. for well David Booking and over to to or recent as Goulden. CEO. Investors whether turn statements, Holdings and filings Booking for earnings And Booking your and undertakes financial sir. is law, Holdings Holdings result supplement, Exchange could

Glenn Fogel

QX. and room in in peak In ' trends Thank The to an stronger improvement the pleased be joined we Holdings and season. the primarily room Europe. than previously our reported you which night were decline but QX was improvement welcome Call. with Goulden. to from United today down Compared room I driven am the QX. nights reporting our was for of Third I'm decline CFO, States, for lower strong, Conference Quarter growth the travel Booking July, XXXX, by month this was XX% night results David XX% since afternoon QX by in strong July XX%

Nevertheless, and in sequential QX, remain remain in room more XXXX. were of is nights trends with our QX overall the depressed revenue about travel, down of $X.X QX. XXXX. to which night to consolidated night an from QX important versus our revenue improvement amount versus International room billion, online the QX. was declines Asia than QX in international double room significantly drove business, significantly

The quarter a QX, and XX% profitable our was with billion also third of margin. most EBITDA XXXX, EBITDA quarter adjusted $X.X adjusted since

trends into quarter, Moving the have in in including in seen fourth signs a room early further night our Asia. a in trends we improvement pickup of room October, night

including COVID quarter, trends in details we what in additional important third November rising European countries, recently David progress. to quarter results the uncertainty we fourth far our the improvement remarks. his in on quarter. countries, counts trends The in case several many are the in and provide adds saw well, will how Now, December will so in seeing around third

restrictions in variant when demonstrates far fourth travel, so safe the and looking are are do to negative resilience and following quarter the the for of travelers, lifted. the to is once again, in who it And leisure July so, August, impact Delta

recovery We the we globally. to in that eventual are the demand confident strong path are on travel

As businesses accommodation growth. are core long-term strengthening the recovery its progress, global we making support our continues,

driving benefits I alike. comes partners the and our before, business traveler As of said core customers supply strength from our our to

is and aiming are addressing we ease-of-use. build choice, we relationships, customers, by of value, our our customers a experience to accomplished create and critical believe For which superior needs stronger booking

also us, coming customers. while continue to and attracting we're back see with Booking.com's We booking pre-pandemic new customers

in accommodations supply than Importantly, rate is attractive our to value top our that meaningfully of we our for increase closely programs customers. before prices pandemic component a the from us key frequency available work Providing are We participation other on our compelling customers. to with see were a customers offerings our to prices targeted at turning customers. ensure partners higher to

of is rates participating loyalty to and room discounted such great as Genius and are other large booking.com benefits a our where lower property thousands at program complementary base. example program a hundreds of practice, offer our to airport upgrades, Our of taxi customer partners

on performance the app research firm. of our are of active quarter, In In booked experience. with according our accommodations, OTT mix app. to offering XXX hard booking travel through rental we and In mobile Genius our just allows booking.com With was opportunities improved we the higher number ultimately, devices, a it's to lower on with surpassed addition about users This during platform Booking.com's app to app, rates than cars have lower third-party The booked provide third see the is X marketing the booking continue we this of rates our engage we third value leaned we recently A a to for add with and innovate on customers X/X quarter, working the in room of it to is on extended growth peak channels million nights on first it encouraging, Connected in as of mix to critical is third customers. and Genius XXXX. us way Also, quarter, saw our we into members. directly example even the season. as The recent an majority Trip quarter of we important our third app the more directly globally, for one we continue once monthly travelers experience positive the those success. as center the of customers app a our again and downloaded time. to that our us build the direct

invest to consumer drive channels, performance our our to expand platform we also incremental and the marketing of to marketing, to and continue of look increase will diversity our we traffic as in will brands. While aim awareness acquisition we customer

so strengthening small. our made foundations For far in acquire spend customers for more progress intense example, channels. social with been our including ambition medium space, digital has the marketing, to Though us in we've

by confident new participation in active channels. increasingly even to like for potential these acquire investing expect according marketing meaningful important market. the industries pandemic, our see effectively we in to across positive Remaining made offline we're we this many the results, seen there. focus more And channels. shift during as channels, level is from our for booking third-party to raise a data. Travel, addressable However, to to has online increased opportunity online has And of

Europe, accommodation, Whether broadly. are small demand to on chain to For to on in higher be levels, on Europe hotel see broad strive properties partners, our audience to or hotel global our potential from a support conducted our agreed an In them accommodation a increase the we respondents diverse, XXX it this their bringing our valuable promote reach are agree we earlier our our XXXX participation and that way relative increased which medium are source enable a to cost-efficient levels we alternative this with hoteliers platform. and platform. working platform. large year, chain, partner customers themselves are statement with in in or medium types programs hotel engagement differentiate With XX% continuing incremental partners, a platforms online in hotel percent of of small shows of to their up we all to applies a to of and and more believe certainty a We on focused that and more yes.

QX hotel the of QX in quarter QX, accommodations, than nights [Indiscernible] XX% was our XXXX. of less it share in to saw greater For from Europe improvement mix up This room demand the our was in for alternative global business a slightly was as QX sequential QX. in about room in of increase from recombination nights in we

Our on quarter. remains relative and listings the prior reported to property over counts million XX X.X of million stable about booking.com of

our talk support me Payments, priorities. growth. continued core which enhance Trip, of strategic the believe further some Connected strength more about Let accommodations we and business, the will and its both key of our of

Turning our related by the about a third are booking.com offering full-year ensure customers core one Booking.com. driven booking.com build our bookings such partners provide driving low-cost 's the and both finalizing booking intermediary as, partners, choice chains new The our Adoption business Adoption to to as We near second a both partnering our Fintech as payment up position efforts for buckets, as which pay in help at and about some and to trusted in to XX% innovation believe grow. sustained a to payment flows, total customers recently, also these with have Last efforts our as as in includes payment and payments, our booking.com of seen growth is using when the for to been focused buy and book of choosing payment from fourth we spoke enabling This well through payout our is which initiatives on booking.com in solutions elements as all third gross transit now payments more will continues the of enables Europe processed 's overall solutions and increases will established Fintech on result vision, our and third-parties booking.com well are on dedicated continued in attractive later. in our Fintech hotel This in platform that all their we've new attributing within supply enhancing On products, major the an payment we the provided. payments additions In pay U.S. to QX platform, to significant options place by Europe, major the their to on monetizing transaction localized Booking.com. payments, being unit into on suppliers, U.S. parties quarter. look of be future. platform. a Connected Trip this travelers to quarters, to the unit XXXX. year is focus services. nearly recently our organization The payments a the of of of nearly quarter, has

Company engage an allow is LOR early We're other Booking on quarter which our entirely XX product We are continues by XXX% QX new of our the and also their up to was robust accommodation XXXX, meaningfully which to remains seeing Booking.com bookers. versus offering, exceed Total travel opportunity and now tickets with across product. for by Priceline's, XX% bookers us air over the services but flight will countries. slight customers. to continue the live slight bookers, Booking's scaling helped in on flight give to generally, Wallet Booking.com's in ability flight in us up third for days platform these booking.com early that expectations. driven strength to in work primarily

encouraging these With rate we accommodation are seeing of customers, attach an new bookings.

work flight incremental drive can product. we The to new optimize helped customers though, demonstrate there offering However, the to further our which done the signals to cross-sell is to early cross-sell platform opportunity. more our be can that combination

customers, test to flight using build flight order in to We're verticals incentives with new for these targeting continuing cars successes, and focused example, some initiatives offering We taxis. run account early test cases, including, to our book from seeing to beginning Genius the accommodations. activate on to to we're also them on and encouraging innovate status, and rental test are We at creation like continuing remain additional in Booking.com. offerings for

the Before Summit to proud the commitment copXX requires come by is assemble closing, specifically work urgency for what am of that for will I of want De XXXX. that to the released the that committed looks together world Booking into - say in Excelling to neutrality tackling We do future. this major carbon EY-Parthenon all with that as to to leaders this it a challenge goal stakeholders. recently importance for our challenge. the climate industry cannot accommodations entire the take overstate addressing of note carbonization discussing we I crisis. industry. get week report the a I the is commissioned Company, industry challenge to global for to our carbon-neutral a Holdings, Glasgow this

their a big are achievable. travelers options find it At and shows data with for booking.com, it is working task, travel. choose we booking to making easier accommodation on While sustainable

level. property partners we're sharing practices by supply and working our addition, insights, sustainability best initiatives enhance at with to guidance, the accommodation In

are work Of on globally. be And speak hard a parts recovery travel executed for in by which world. results we time. well of to produced we to in steps done, peak about climate on that strong and a taking the publishing Company. travel eventual believe across are teams many is season, plan we'll the I'm the by an our more that must important is confident I'm and demand our that that our at we in much encouraged but course, to XXXX, there the the more strong provided support we transition sustainable signs which path industry. we a we are more Holdings, of In credit many in seeing recovery conclusion, Booking to finally, And early contribute future plan

Company's work We against priorities. with important execute our continue strategic to our position strengthen our and

for said As more Goulden, our and demand, business just CFO, building to the David of our earnings generates we business levels run. before, faster focused were is I about the after - long call on the recovery, XXXX full over beyond a David larger and getting and now I thinking [Indiscernible] dialing we back in, to think. back turn growing are A David And that

David Goulden

Yeah, Glenn. I'm in back calling

Sorry, have you just finished?

Glenn Fogel

finished. Yes. just I

David Goulden

To rates are non-GAAP trends third Information all regarding the you. can the provide impacted Glenn, to off periods GAAP results comparisons timing, otherwise Thank afternoon. seen and release. right. avoid All far I to I the color our I'm cut you, some thank XXXX, pandemic to our in good growth will was comparable found unless we've quarter. fourth on Perfect in earnings reconciliation in the for results, again. review relative and in so XXXX, periods in quarter, indicated. results back of be

trends ahead Europe, our remise our saw the August in U.S. the On the followed quarter, throughout in to QX room primarily quarter XXXX, pullback for discussed XX%, After versus September the decline QX improve and XX% the QX remise and our third the in continue earnings driven from decline earnings the QX and loss duration. September we QX benefited in declining XX% strong last we by saw July, to the improvements our better in the driven was by July. call, quarter. room The which trends month which decline cross-border results August. strongest room XX% was third QX, similar was trends which about Europe, in In that level August we of in resulted declining onto as in Now second we July. improvement call, the in same a with were in night for versus overall was reported September, night get with in mid-single-digits Europe, improving XXXX by down travel night versus versus June. that

recall variance. Europe we --, QX will night the QX. the You Rest-of-world also room in back improved from to pulled from June QX. to over to the to Delta due growth U.S In July concerns QX

and However, have remained growth strong major country U.S. QX. still the strongest our quarter the in in performing

by Within strong a the the U.S. in variance. slowdown we experienced saw we the meaningful July, due strong growth The August very followed with from in concerns August September. Delta growth to in to U.S. in about recovery a in the slowdown

in about XXXX nights declined or nights primarily Asia of X/X bookings from room QX. was significantly total down are. about Room night line apps, still room QX, through with Mobile Asia levels. represented our in our in

an million of important our app users. we as continue represent Booking.com, apps XXX bookings. Our our percentage monthly in to milestone surpassing active QX, achieved at increasing mentioned, In mobile an Glenn of use

of pleased number also our compared quarter, app see via are to customers with unique We the QX booking strongly grow in XXXX. the

of a nights, as channel and to year-on-year, direct increased. room relative percentage QX XXXX, Our our

in about While about international XXXX, QX, XX% Europe. and mix with our we within increasing nights came from improvements Most remain XX% room saw bookings improvement in sequential QX. XX% our international international about down no nights for this room QX to of in from trends, of nights versus in international travel in room

a lower trends the at QX. from travel overall QX see international in QX, driver quarter We in was room improvement pickup in The the but QX. in room of domestic than continued double-digit night nights to a slightly growth level to in in

XX% room QX However, nights almost down levels. compared were with XXXX international

QX levels. Our was QX slightly rate cancellation XXXX above

Europe for for in nights we XXXX hotel will I in We accommodations Europe XXXX. where from which of benefit nights declined rates August room increase QX improving could than performance the XXXX for of in from in alternative Cornish line mix also due global from XXXX. slightly QX, benefited accommodations QX, day for window solid QX, a improvement we The of However, slightly up it QX bookings than Booking.com our saw, than increase QX, saw of as high regions cancellation rates in QX XXXX. of we sequential season. is versus room accommodations near-term bookings, of in And in more with booking about the FX Europe flight demand demand that a QX was portfolio we into about to quarter than grew of XXXX. strength than with they and room couple in changes and quarter in of an mix than a made versus better QX. about remains XX% strong in hotels. X,XXX was alternative higher XXXX nights improved and XXXX in decline in peak respond in The our policies, All had did slightly to the flexible booking Percentage quarter bookings less the for mix in of from Gross nights in demand in XX% for to rates window room September and shorter month. our X% turn the down as great were summer to of alternative less believe third September was a it during -- significantly on the in remains basis. in points constant-currency the business. was a the XXXX contracted in average QX, our was accommodations and QX shorter of QX, our quarter the due cancellation

ADR ADR in mix Asia, of business North in of which just and a currency for which decrease high mix a X% by increased region. constant points over is is America, low ADR a accommodations region, benefited Our an

of driven America with mix third XXXX, strong many Europe strength XXX% Booking.com versus were up regional effects, leisure quarter growth the North encouraged We're than X% Priceline. Connected at key [Indiscernible] about was are destination-types by greater Excluding another double quarter [Indiscernible], Trip was which XXXX, increases of and in far quarter for ADRs very currency from constant across which destinations. QX, revenue just up XXXX, of revenue strategy. by notable billion, beach-oriented growth bookings a multi-product third improvement QX, were in mainly components sequential X.X XXXX. a triple-digit X%, booked see [Indiscernible] below and amount driven was [Indiscernible] to the in more figures rate our in of flight in

gross were due the QX increased in basis, dollar the third as related than higher was QX as line to volume season. to bookings, up in significantly a and revenue below few in not item, could less in XXXX even expense gross Our paid of book customers and more a is of into of quarter. invested which We gross QX the than quarter the to bookings on concerns. concentration QX quarter, XX% peak to Marketing which a X% in bookings demand of total QX of due expense, capturing slightly low billion declined the is were in normal [Indiscernible] $X.X bookings, percentage restrictions in expenses accommodations, line channels points by expense also was top-line third versus our they expectations. in variable stays stay The for QX, bookings made performance due Sales Marketing decreased QX, for performance other during which than bookings a EBITDA XXXX. from when with ROI strong seasonality could our percentage the gross in to merchant with in highly our due which travel XXXX, XXXX. QX higher about experienced resulted but in COVID adjusted revenue

payment. Our in in up of Booking.com our almost quarter announced was a billion, gross business, a QX. from was bookings Payment Booking.com's which over QX process to platform about $X X/X

the in more QX increase personnel service aid government crude our in to of are $XXX QX, in was second offset related repay accruals QX from revenue. came digital QX, expense to our in and than million both in expense, decision quarter aggregate, proportional fixed the to categories an X% mostly Our tax by expense after of lower bonus to which

non-GAAP versus to in EPS On is high XX% of expenses non-tax-deductible was proportion Our $X.X due a income XXXX lower versus $XX.XX, QX reflects QX non-GAAP which of non-GAAP higher down income tax relation rate in XXXX. a billion XX% net to income pre loss XX%, than of -tax XXXX. as GAAP the expense operating primarily realized on We of the in GAAP [Indiscernible], pre a $XXX our of in relates income $X quarter, million. income includes basis, investments net we million which billion equity QX. $XXX of a well -tax tax billion had $X to our as a recorded

on meaningful investments. reversal investments we're ending cash of will COVID largest capital was of cash down to of longer important position, due predictable. $X.X loss has risk at repayments regions, QX our our balance $XX.X note to more value $X versus Throughout $X billion more of that that unrealized for equity an pandemic, said of we we strategy. onto ending no billion the Now flow a become the we billion QX convertible and cash liquidity was and matured X the free our also billion our [Indiscernible] The of billion the will saw our shareholders balance creation by in and $XX.X QX capital to our shareholders, return when returning start component be and COVID, offset than

to continues, travel in recovery our authorization. returning capital that Assuming under early we remaining plan restart XXXX

we'd recovery, organization from within years restarting. continued Assuming this complete expect X to

thoughts fourth quarter. Now onto our for the

by Asia. is declined in nights in were The driven versus total XXXX, Our decline XX% than which better improvements September. the October mainly XX% room

the to Room in comes close XXXX travel countries October back remains the with improved vaccination from led travel. many from was on and an levels. region October, restrictions driven easing and suitably October. and improvement world Rest growth little was of region The was little remains to improving Asia of in the Although governments domestic visiting. in -- down in September Europe lot in as October week last but Europe weaken the were being of overall This about of higher month. night same the the towards in the driven Italy. month. the end The We slowdown than countries at increases room October in Germany, September, have by end infections, resulted declines declines of was in that in Russia, in XXXX. seen by progress number average also improved night were a they the the for the October were a in the and strong U.S. of including by and COVID recent

uncertainty to in ongoing it's November-December around room the the with nights we Given COVID, reduction compare difficult will predict in how XX% October. saw

to on Europeans the see positive rising the we're bookings November-December, Year to unpredictability. gross to that international -pandemic in and nights region. reverse. much pre periods, room contributed announced Eastern as travel to to many U.S. of to points, ADRs seen booked contribution New forward XXXX. an nights, more increase travelers vaccinated, improvement significant by as European. COVID our the Income was season room to well since Christmas, still which bookings Looking versus room few expect restrictions we U.S. nights Western Change books this recovered the December, the creates in flight of and as note, for for of start are the to highest Europe, bookings the a Also, the to plans XXXX less the Western more a the a in Hemisphere, Asia On the total we've in who well Northern across by U.S. statement, by the gross the case driven Also, as in in ease and late at saw pleased Asia countries counts winter higher in important is we time European least decline November in reported and cases, travel November September QX and in XXXX across

peak benefit less after Asia of increase rates season. to mix of due regional our occupancy of to low the recover, We than but continues QX travel also QX ADRs from to in in region the an due less expect

expect We to decline bookings than factors. revenue more due of QX a to gross couple

percentage The QX. stay first, of is short due in will window in [Indiscernible] bookings low normal to booking QX. A QX

the expected due QX check-in quarter The that in in more bookings in expectation quarters. less it booking that to contract than our to the made did future will second, in is QX, are window in resulting

As a also in XXXX. we a QX, than more as revenue result, that we gross in to to X% have expect it decline of QX QX, from means greater we a revenue revenue more sequential percentage expect bookings QX. did expect our XXXX, below we decrease to saw be QX This and than

We as capturing invest as of we continued bookings a travel XXXX, of slightly increased gross versus expense and expect demand. QX to global marketing percentage recovery in expect awareness demand increasing during the

be they lower due expect in QX were We to lower to sales QX volumes. merchant or expenses transaction than

XXXX higher merchant, volumes, However, mix. or due quarter we expect QX in sales expenses in fourth the and to be than higher to

line in QX about QX in basis. categories aggregate expense to fixed a in more with be dollar on our expect We

from what concentration positive strength Asia. recovery October and to financial the at by sequential saw normal prior The in lead we quarter, pleased in conclusion, by to in was which QX quarter. we've our for differences relative We QX driven in trends QX in of In seasonal much [Indiscernible] with top-line greater trends the driven in comparison expect seasonal improve September, a EBITDA to of be some decrease encouraging night the QX, finance to decrease we QX, revenue, the normal. largely QX we're expect to QX strong to but the by led the EBITDA the higher, results seen some room which to stage the relative will years. in

capture in Eli, questions and in trends will confidence I progress turn now to about to However, closing with continues the in strategic line certainty our our With Europe across recently, global how December. against recovery case you counts November the In your execute as for the over demand that, and increases projects. open rising ability take and will questions. to I'll


Thank open sir. the Please you, Q&A while [Operator Reminder to audio we Instructions] attendees line. stand-by our can

the from Justin The is Post America. line of of the of question Bank first

Your line is now open.

Justin Post

Great 'XX. but to And go David, your and questions. see Europe above through 'XX. What areas versus Great. happen business get on back versus from nights then what With to XX% strong need to thoughts that. could maybe 'XX, not for down come margins just could taking still maybe talk Asia, room my needs about core Thank you you you here to Glenn, recovering.

ignore the versus for and trip 'XX. core the But your Let's you now. of and Thank are how business on you. payments thinking takes take puts

Glenn Fogel

against that's really pandemic, because need a Hi, particularly. don't I we than clearly What ours is, what's answer we industries, what problem think Justin. need. the it's obviously, this driving a hard many of recovery very in more

who more now, ways getting need the that's coming are The with get healthier everyone hopefully against to a to being combat and out talked the it. still what great. some talked us, But out getting Yes, can great. some that more up international, coming this international long new things. We we with end virus been vaccines But we've are please help in I has really, that numbers it, seeing generally has vaccine, distributed caught quicker, hard this fact can and for better all albeit vaccine. great. that done we seeing well we're business are love a a Companies around, For being that are Asia, pharmaceutical get The about, Asia, our hit, pills broadly have and that few that's who vaccinated fact about with up things. haul go good in people that problem. is fact The people terrible times. is

too. day get. the That above and hasten second able when to that you doing that's you're you're back Dave you're for getting have only getting David, help prepared, with And industry, entire If prepared will answer the want comes, and when, and our our preparing steps And know to the share to the doing to when come. what the capable which XXXX, we're can, answer the -- about. all everything but we getting. And we're we by sure so comes doing to been we that and that will mine the recovery question talking partners, hope we will travel not want we've make getting it we're be can't Preparing going Obviously, know [Indiscernible] world. medically say but will, it, doing to you we that we're marketing please travel happen. I things and all been

David Goulden


[Indiscernible] and great, be quick combination in puts business. So on takes the [Indiscernible] core as actually now, I the we’d relatively

the rates underlying Our for and obviously, go well have that been to timing, of solid, a are take us. so rates reported continues take function

two As Everybody to other for the be personnel talents on whether -- will refresher there's years in we there expenses and a tech base. levels, we've some the line. increases for other increases get war there, out XXXX -- in had to our knows merit cost inflation back in

Of out, variable course, did take but expenses. expenses there are we

leave will are variable the efficiency fixed XXXX of There But with And cost personnel And other things and pressure extra topic and and to but business, our you over last pressure. can our in with back over ROIs. key there trade-off of to to this that time, very we're some So, element. year, very in happens scale are there profitability. line. costs is as come is side on in of dynamic, variable direct doing compression will market this marketing that the will between offset markets saw very they that small within first side off are growth year, some those where we're get can front on growth a thing core second-half the share, markets. saw how some in both those in and course, be opportunities model we but of a the want the always on as we that course some increase pleased We the The important. are use the the is which the with And on half grow economy I business on levels we mix, beyond there's to that well.

will extent We investment other basically to think as pressure where the and short-term a can, we leading that And relative in business opportunities, into see we So, the revenue. and to market leaning the marketing we indicated drive to in. as try the be lean also, in we investments. those that making share want areas we increases were

we accommodations to gain -- are through -- opportunities and believe us share for that do there we're beyond. the will there in recovery -- this So,

in factor an how be mix think in long-term additional So margin that the accommodations. we business would and the about

Justin Post

Thank Great. you.


and Kopelman of Kevin Cowen from is question next Company. Your

open. Your line is now

Kevin Kopelman

dig Great. little Thanks bit. into a so ad much. Hoping to trends spend

the quarters? much is XXXX you environment? spend getting promotion done an to And us So, that compared the of brand the And ad Booking update going as of kind up promotion picks little. merchandising over versus that changed performance -- Thanks. merchandising How is a as demand on tests of lastly, up in more aggressive meaningfully. of past then overall and more you've a distribution and couple some give can competitive

Glenn Fogel

about why first take bit and I David, question? will some think aired a I brand about talk X, merchandising. some competitiveness, don't the And of the the you

David Goulden

Exactly. Thank you.

do that. us Let

rise expected much So, that's our versus out And on the actually, some see expected expect we we better where Kevin, in mix in gross marketing if we in remember the we rise that slightly less in expected -- was them in bookings you came said that of and we to. last reduction why QX XXXX QX. call, our Actually, very those between to direct our QX. we actually compression and difference a than

what something that -- If it really we did positive. because was So expect I say we the more be that's -- to that outcome. we that

not what quarter what into a changed. in these with continues, The basically, and the performance play materially as course, ago in in Of more, marketplace. will happen. line markets was would But has dynamic happened back told brands we've much more are between recovery very the and QX you come mix

XXXX, back spend all recall, you in X% marketing of was in imports, around marketing. If

spend up looking brand XXXX. in time. has much up in to shut going the We over But bit course, a been are on of move little down to brand very back -- move It's not XXXX.

a trend bit that on go were some see not different And over the XXXX, Glenn, then we're towards might you position -- talk at continue one. in than brands, turn of I'll but about to we very to Glenn about. to which the where a Xrd the talked opportunities little more we do to So, hand opportunity in mid-funnel (ph.) market

Glenn Fogel


a important we booking.com. to why payments platform build-out, very our and merchandising are in built reason So, continuing Kevin, out, is obviously,

really Just to making to value with of our that just provide right sure customers. working able own but the offer and the we're the important helping our time right right is compete pocket, with great them. and what's out And consumer, partners, not to doing our coming up

also of let's added supply Our value. that, provide some say, partners,

example, sales. may do For we flash

you some. you've of That's actually some some, seen gotten or you've an example. booked Hope hope may them. hope You

with from to things, One getting offer are we free of variations right In the hotel. accommodation [Indiscernible], different different somebody cost the suppliers’ we come sometimes combination, the an can as to do is money, coming with to as really using in for example, to and is them that even when a sometimes, with do much what up trying own lower the verticals airport best in offer. either but able too up we our the attractive our or can

So, one providing objectives the really the getting they're of it to always value, site, our strategic value consumer that. is knows come for key through when because that the us, best

Kevin Kopelman

Thanks Really Glenn. Thanks David. helpful.


from from is next Your Wolfe Research. Deepak question Mathivanan

Your is now line open.

Deepak Mathivanan

Thanks for for the Thanks. Deepak. Zack This questions. taking on is

a been of travel your about you're pent-up demand. last far demand. few quarters. to on leg on general whether run But business so the how Obviously, First over and nice pent-up tailwind another there's thinking demand just for curious it's level the

are noted, and across restrictions still Asia as depressed, easing. you is border

how we guys when about further we you are the And trends, as a into longer-term versus then out? So, the pent-up call into look shorter thinking or urban dig terms there demand? could second, you of is any level current reversal [Indiscernible] little suburban in of versus Thanks. next year,

Glenn Fogel

part understood first of sure just so Zach, to your make I your question.

about that future, coming going demand bit to correct? the You're we're the get do have I that's how just in asking a little

Deepak Mathivanan

Just whether understanding of we restrictions, side as like guys’ kind -- travel guess next on that there's the move especially year -- demand level cross-border into expecting given of pent-up I current you still the

Glenn Fogel


Deepak Mathivanan

just You --

Glenn Fogel


Deepak Mathivanan

depressed. Remain

Glenn Fogel


Deepak Mathivanan

see year, we So, look as next should we into another --

Glenn Fogel


Deepak Mathivanan

books. of Kind

Glenn Fogel

it. got I

Glenn Fogel

disclose regarding don't any Okay. I'll we different about we half, are of Why David business. you -- parts let say but we the the of what wherever regarding first can trends feel,

of government, pent-up course know demand huge let's absolutely by any go any immediate, time, we immediate there's demand. We restriction. So, see

the November for example, of changed demand. the opening to U.K. saw In U.S. announcement people Immediately, when for the So, immediate restriction, demand. we to come they the Xth

there. we it's So, Absolutely. know

look rates one do do save money spend to have the as note people have what savings to don't thing travel. want a they pandemic we we they able look but of at right have to, want during Now, how particularly not a able if way you now, lot you much it, go And much been to you it. this at when have are quantify in people and is to U.S., been

us and that important when suburban -- David we you we come always of best So, And to just they demand travel, what provide you'd and local come waiting for open far significant I But so believe value course, up. travel have can we it's say do to that also the there a what is say. know we long-haul amount to international they restrictions about have that the -- have there, to you of out. can these

David Goulden

across Yeah, we that geographies recovery Zach the (ph.). talked QX saw strong about.

properties the as you more summer becoming well bias very outdoor-oriented beach-oriented still there's city, the activity, Hemisphere. this night the well, that do we book recovery did in to But a towards leisure think and room anecdotally, all cities in months see say I'd hotel Northern we increasingly a particularly hard. if So, into want I in -- know a some it's

are recovery towards locations. entry So, more still leisure (ph.) the board, seeing although outdoor beach-oriented we across the

Deepak Mathivanan

you. Thank Great.


right. All

is now from next Mahaney question Evercore Mark ISI, open. is on line Your the your

Mark Mahaney

all please. ones, Any from quick at IDFA. impact Three Thanks.

XX are about said the third, add-on have you And then of more app, to was from And convert rolled markets, you XX% it mobile you the statistics something to the there do actually new. at know other market. if platforms. Secondly, than, of out materially that different? those rolling here air They coming or or more you please, good than those sales. about you in enough out less how some the loyal history XXX are to more million profitable? users you likely less products Are less MAUs, have or had they more customers

all If addition. sounds what that good it was. like just product you that's could a really repeat But

you it across the how -- to why our far? been roll out I action fully it will how aren't it's so So, guess out given question you is, take long markets, positive

Glenn Fogel

app streets let I little Thanks bit question Why ensuring I'm what we not don't I'll sure wants then -- take be about let I'll how wanted if or air talk about let -- and him be I'll what see to not a me IDFA, our and etc. you first, he do David say profitability, Mark. the to about

don't noticed was but still countries, but hopefully XX% same starting that you the -- to We just looking of ticket, mentioned an to country, to Yes, takes coverage about switch. we're ask striving was want something air happen Booking.com the to Booking.com about provide said, just of a XXX% currently exactly about course, and of deal want that them flip just question out quite right at XX anybody we able XXXX. from want to and it another for I quarter that I world. of It's because on fourth to interesting happen bad to exciting business the to And and it's we're in to the been why get we We're get very for well, us, course, call quarter very that doing is be Mark, working to started get not And talking air the with. who that have You're it. absolutely thing. you, that to XXXX. we didn't that is [Indiscernible] year. the want to air course, wasn't And not things of single for a in customers. going XX% to business first forward we a I analyst XXX%. get XXXX, wanted, we've time. to the it with in I the just course, whole as the of every And

things. and actually is to get to of regulation all to have licensing You go sorts

do a that want enrolling at as some now. point should, get and are as I number out to out we we to point, over So, that XX% will we're XXX% can, we we right at though

into as to lot customers get the in rate. though something that's answer that. big than we want in lot yet, to talked primarily able lot attachment being bit opportunities optimize also where part There's performance optimized previous with number early, much that's to So, a so of delivering marketing are come of I lot vision a yet. from are real overall a to higher there big marketing. provide get we're say a more There a it's them And opportunity marketing not doing of not am still right is and pleased to this people we haven't not I to I'm now. that more but a value. again, we we've an for course And that the which where little being I earlier air that that product. like in a the are it’s of about rate, different pay the we and have XX% new with even bring done only which with attachment different new customer. it, But a reason of of is fantastic, And pleased customers, given higher with ways verticals, past, number. And able we

by Company. paid our very -- primarily any impact impacted channels related our know not as of We it's changes. a only and marketing directly to And about we Your and that's be to of first these obviously that of part marketing like question kinds going they but PPC most privacy this. changes, of not can know, [Indiscernible] as IDFA, small you we these marketing, and confident, through manage our unique know

of the so marketing. Very proud in up come And Our to is opt-in since really specifically don't and while ways results deal work focus changes into -- chose this with, in to course, not continue data the do has able team is think the our I would users is any us. April you XX XX April number say, through always these know, market and ROIs. the active that. will good like leverage year, -- the IDFA whole not IDFA about show marketing, us first-party this And I able really monthly X, to back for not and to April, this I decided a the app of seen with you David, would They data. be I then, mobile. us. privacy, thing our want does to And to We to think think had privacy-oriented you've be impact which track we tracking big of -- to

David Goulden

types number carefully the we more response. Mark, of I can The got there watch And direct using their obviously, what types direct measured of too good of direct that customers. of the It's direct direct more web, different three And are the the kind those customers I a talked direct user customers And customers mobile comes is who And on how get, surprisingly, come desktop. customers the direct to are can the the by on to just tell better. you [Indiscernible] the and X. customers thing. we perhaps app, us you [Indiscernible] customers. returned the Yeah, not about, on app us direct most the very

sticky. these get a because [Indiscernible] that. to will days do getting marketing it's people I'd oriented. we of app use more that and of We download lot our And the

Mark Mahaney

you, you, Thank Thank Glenn. David.


Sheridan have Goldman from Eric Sachs. Next, we

now is open. line Your

Eric Sheridan

as the you talked supply XXXX, a supply both around growth dynamics view the to and on Thanks growth of question. a 'XX. match your in how room making how back versus might aim there earlier landscape a post-pandemic travel Want way comments so taking about we on and accommodations. environment you come world so about supply on with be the into demand the the more and Curious side Thanks which traditional summer bit around to what room hotel much night normalized investments might think much. move in the evolve up the for is towards alternative hotel night little to

Glenn Fogel

first add give David I'll he'd you. can I'll comments always my Thank and -- let like. if

total they And going we we're share combinations the just the larger larger a happens And up. and in a you rate business. and an as saw going became of pretty alternative step increase change. a pandemic So, on accommodations pandemic steady before the business get

people being seen ourselves, As crowds seen and people that. And there. desire we've now safety, liking away for from in we've hotels go they

a look if important the higher we share. this that The a that We they in go mind And combinations that's use, means that to is we I in course to and up in make booking.com great place. think way continue. Go the past talked be we I these to says, get. future, demand will people absolutely. sure and the side and want can that 's we've the own us trend we that supply best similar. out, where alternative that on think villa? a working us. the say, that I In a France, it's working about And I Europe, five years south will of about a and this I first think means of see for making in how their is properties, past, the fill that think long-term the talked can you That on get something get platform great hard their as and are sure people properties, will

that something of a the going believe what though to get on do we other? we that about are believe have ski. absolutely, -- we then to the said, it's on that see you offering can I be accommodations, type that we and to U.S. type. come, the superior that getting going and a terms to one services that you But that ones say contrast got have looking in one, decide consumer. as to see some hey, work at. superior of to both. And you they're the able from accommodation. offer And to David, compare at to the making up continue. both. nice, the from Look We want put of in that's that. in another to you you themselves. to of put they offers to coming choose to more all they're in can We place the hotel way work booking.com of or And offer truly to Nobody of people good future great want hotels went but anything particularly don't some perhaps I've more And the the a And making wall awareness need reviews see And an going place also of on together They'll booking.com are I is hotels both other that That's that's side, you the they get first. the the of What Two have alternative not vacation start why may about end to -- You providing the prices going both. those. are terms do to do more I is But I they way we of this what ways you to alternative talked prepared new in a with that's really at space. see they past silver, one get people They both. frame, hotels what also. for in see things and booking they're a and and benefits know and and up have some room up are benefits the they're together, or were moves we more so both better look your if believe have somebody they of sure WiFi definitely data. get this a first, our think accommodation.

David Goulden

balance off strengthen sequentially, we because That a that a was QX strong could having hotels QX we saw the does that good. your just in contributed strong from I book. to point, increase continue [Indiscernible] demand us QX much point that saw that clearly to that bigger to to in in both out we

Eric Sheridan

so much color. the Thanks for


Suisse. of Credit Next, have we Ju Stephen

Your is open. now line

Stephen Ju

Glenn, who cards those your past the instead on-boarding payment’s term not expand about to Okay. so their product payment much. Thank using by we've your you users services. online credit talked may think helping and in be I necessarily

this you I you of is front user? that flex gross growth on that is a drive and greater maybe up that in to you merchandise lock the overall, other us, promos run enhance Asia, ability -- Trip, rising to the as to change seeing down just more Connected margins do are your And been guys value helping Given also, of the but up -- growth. you but travel and of top bring guess, in a the regions much prices, more of opens what still state of for opportunity evidence has guys in world of depressed performance for of to incremental in a marketing-driven always

a So, you what in terms from point perceive? material ROI of is the still doing gap at there in one other pretty this versus

Glenn Fogel

about So, ROIs first one I'll our payments. merchandising our the that. about on doing let approach about talk and talk how I'll David we're

in don't you're Company able the to the be then that us. from they person going So, absolutely somebody have appropriate like If that right. to not payment they're have doesn't or for ability to method buy pay because something

So, we always have to that. do

most GrabPay. in for to is and somebody hotel, use if the they're to Asia ours us, Grab, the is somebody else. that able of the say and use using Well, GrabPay are Southeast So, to they're in we're not you the using who taking let's a is of partner consumer, person from going not use going money

other There's us. it's still to if our and they on they not you a another I a conversion to know go they their seen increase interesting. ways, give that don't having could This accept We use lot favorite, payments working Or can people way, you data. to else that. GrabPay why, obviously is which say use seems decided look I just it who at have partner not sometimes. ways really something interesting, see more is just I science, we've is look,

card side it of it other get is want way. they Because transfer, in other I making want sometimes know they The paying virtual with some sure to or get I get want I the bank to we're it credit it the money. to a get doing you're way supplier want the you don't don't the to way terms say,

when get be that with them ROIs ways find to to find other there can let's we add David, little And is another currently can able types to and the a of do are consumers That's We we when to merchandise. relationship the that's hotel saving we that supplier other that suppliers. gross better. the thing our with that that to to If we do want they approves things got doing at, particularly money don't value over and of business can we've billion -- So, we of talked how just our booking. And about and XXXX we're lots let's all the is to talked that, can improves ThinTec it our you provide lot up to method suppliers. a the a we're ways $XXX add out. There we that, great monetize are we're opportunities going there with time cheaper a starting method are idea I using. how in than do the both or unit. that a suppliers, any value and did part that And if working know last of that we're ways and that about

David Goulden

payments really at customers it efficiently It's we as of as Glenn and they both think heart proposition is that of couldn't particular problems increasingly becoming just ways cost-effective reduction and to is we no Sure, solving offer both themselves. booking.com kind as longer ways, the all said, do in partners. for risk in of core value add-on, them

much ROI as as all changing So mix. rapidly, so is that growing

Now, can you're merchandising. participate we're payments, Once in we right, Steve. on

talked if payments targeting sourcing we get versus source and a spend have marketing lines. frame the about, and experience way to way rates, to with performance we with that efficient instrumentation mentioned, out enough that course, our under the s can the that, we particular markets, what which a the And very is at in as particular participate Of decide we example, need can driving rates, now But right the Glenn as enough most at ROI other, around above channels it platform. over additional to and great And promotional compare for treat and users. mix way similar belt, count, in look is. look you one investment. to we

We proactive becoming can, through we piece sense. our We quite to, payments can we can strong in a we that be directly need other and a it think where area compare with forms marketing. correct, makes and So with merchandising all look where it [Indiscernible]. proposition, ROI of spending bigger of where

Stephen Ju

you. Thank


Next, we JPMorgan. Anmuth, have Doug of the

is line open. Your now

Doug Anmuth

area the just what normal seasonality? to questions. of social of opposed if dollars you gives secondly, the David, about you adding just and I taking just and the dynamics you've but XQ point still through sequential different different, so particularly And just tried there before, again, wanted Thanks. to dollars the working if small, now? there? advertising revenue what's and some if the curious kind something are for could confidence just those to ask as an then It's real Thanks there's walk that's curious that potentially

Glenn Fogel

Hi, Doug. Yes.

are I So now, said and my we But small prepared of number in who us, right they're think customers are right numbers that to where want make in huge I potential small of out, a those areas small, they're These reach absolutely there to us. numbers sure are coming aware obviously, now. remarks.

place that to going So, a it's we're ignore. not

remarks, think spend up. it money to do how great we not we then I results, to the ROIs, it scale in be the to onset are able Company, up feel up right future. going dogmatic. the put we're great how right where We because and we're there's of come spending more not, right be our up And present don't and That's we're I'm if our much to too means then our think in Company, getting because we but money conscious and we money. give it's learn, what very a building feeling it what I to got Now, measure, great, test, then we returns, way about doing way to us, with to the and we be sales, And it, to If or think and that we that way we the going way. we're return And business, that's not. this but will about we're the is, David, you for are money. good them more doing, present get to because the do come the terms of And we've are method, we we always advertising work, we're I I we'll brand are in right good absolutely right able way, want to with prepared offer if put the to don't how another doing see going just we'll built as then now first come good a the to experiment, thought see there. would a this about said thing We're we it. question and

David Goulden

quite it me than Yeah. seasonality can explain explain that because level. is that high thing important we Doug, whole -- this let re-explain

very It naturally So always me QX from things strong. a artificially revenue healthy it. got because was for strong was two you've

in we're in QX. stayed QX First lot of always that bookings in all, stay remember QX, QX QX, of a

of more QX, the got that, QX. normal On in in the stayed benefit the that normal we compared top QX. to quarter, bookings So, in

topped from so got of short, QX window QX, so because So, you in what QX and while ways up QX. two

you directly are QX of think impacts it now comparing top QX, very QX. top when that and a QX, So of and against in up of now QX some you

to comparison like So I a book, if in QX bookings you QX But think strong a would stay double window against relatively. QX out the comparing QX Also, by we bookings expanding the impacted QX. in booking did more now in will so QX between QX. that and gets factor some of normally those stay will in than actually leak driving QX, believe QX than QX start QX

factors two driving kind these got and between comparison very QX QX. you've of unusual a So,

revenue of a and It's a sequential QX it more timing steroids. comparing decline. amount all on fair mechanics. But as a So, think all QX

going in steroids will some reason that's why was QX directly on. the And impact what's QX of because

Doug Anmuth

helpful. Very there. clarity for the Thanks Got it.


that - Glenn will the A to remarks. And for closing turn session. back Fogel now concludes call Q&A I the

Glenn Fogel

you. Thank

all that to what getting close strong people last you as advised said and in the at society our belief booster, who Thank safer. a I build are please were reiterate get repeat we our get appreciate it. make for Company. hastened to industry's part, Goodnight. and urge our recovery full be closing, shareholders. who continue one. I will as We do the to our vision always, everyone want So, on who support your want and to And partners, long-term for approved our out vaccinated, medically quarter's employees dedicated vaccine, to get we earnings to thank a safe. our urge by all can their be I to of our call, We And go our and going be and to able customers,


your you This concludes today's conference call. participation. all for Thank

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