Open the filing on EDGARNORWALK, CT - April 28, 2026...Booking Holdings Inc. (NASDAQ: BKNG) (the "Company," "we," "our," or "us") today reported its first quarter 2026 financial results.
- Room nights grew 6% compared to the first quarter of 2025. We estimate room night growth was negatively impacted by approximately 2 percentage points by the conflict in the Middle East.
- Gross bookings grew 15% compared to the first quarter of 2025, or approximately 8% on a constant currency basis. We estimate that the conflict in the Middle East impacted gross bookings growth in line with the impact observed in room night growth.
- Revenue grew 16% compared to the first quarter of 2025, or approximately 10% on a constant currency basis. We estimate that the conflict in the Middle East impacted revenue growth slightly lower than the impact observed in room night growth.
- Net income and Adjusted EBITDA grew 225% and 19%, respectively, compared to the first quarter of 2025.
- On April 2, 2026, the Company effected the 25-for-1 stock split of its common stock. All share and per share information has been retroactively adjusted to reflect the stock split.
| Q1 2026 (#) (Δ Y/Y) |
| Room Nights | 338M | 6% |
| Gross Bookings | $53.8B | 15% |
| Revenue | $5.5B | 16% |
| GAAP Net Income | $1.1B | 225% |
| GAAP EPS | $1.36 | 239% |
| Adjusted EPS | $1.14 | 14% |
| Adjusted EBITDA | $1.3B | 19% |
| Net Cash Provided By Operating Activities | $3.2B | (2%) |
| Free Cash Flow | $3.1B | (2%) |
Refer to the "Non-GAAP Financial Measures" section at the end of this release for an explanation of constant currency and non-GAAP financial measures, including Adjusted Net income, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Adjusted Fixed Operating Expenses, and reconciliations to the most directly comparable GAAP measures.
Gross bookings is an operating and statistical metric that captures the total dollar value, generally inclusive of taxes and fees, of all travel services booked by our customers, net of cancellations.
Booking Holdings Reports First Quarter 2026 Financial Results
Exhibit 99.1
“Despite headwinds associated with the Middle East conflict, we are pleased to report a solid start to 2026, with Adjusted EBITDA growth of 19% (net income growth of 225%), alongside 15% growth in gross bookings and 16% revenue growth,” said Glenn Fogel, Chief Executive Officer of Booking Holdings. “These results highlight the resilience of our business and the discipline of our execution. Although the conflict’s dynamics impacted the quarter’s results, our underlying performance exceeded expectations across all key metrics, with continued strength in our strategic growth areas, particularly in the U.S. Regardless of near-term uncertainty, we remain focused on the factors within our control - furthering our Connected Trip vision, expanding our global reach, and leveraging Generative AI to enhance the value we deliver to travelers and partners.”
Additional Highlights
Return of Capital to Shareholders
Second Quarter Dividend
- Our Board of Directors declared a cash dividend of $0.42 per share, payable on June 30, 2026 to stockholders of record as of the close of business on June 5, 2026.
Stock Repurchase Program
- We repurchased $3.6 billion (excluding excise taxes) of stock in the quarter ended March 31, 2026 with a total remaining authorization of $18.2 billion as of March 31, 2026.
Stock Split
- On April 2, 2026, the Company effected the 25-for-1 stock split of its common stock.
Margins
- Net income margin of 19.6% (7.0% in Q1 2025)
- Adjusted EBITDA margin of 23.3% (22.9% in Q1 2025)
First Quarter 2026 vs. 2025
Top Line Metrics
- Alternative accommodation room nights at Booking.com increased by 5.5%
- CC ADRs increased by about 1%(1)
- Gross bookings increased 15% (approximately 8% on a CC basis) and revenue increased 16% (approximately 10% on a CC basis)
Fixed Costs
- Total operating expenses increased 15%, slower than the 16% growth in revenue
- Adjusted fixed operating expenses increased 14%, driven by adverse FX changes and $53 million in one-time benefits in the first quarter of 2025
Marketing Metrics
- Marketing expense as a percentage of gross bookings was 3.8% (3.8% in Q1 2025)
- Over the trailing four quarters, the mix of our total room nights booked through the direct channel was a mid-fifties percentage, similar to last year
| GAAP EPS | +239% |
| Adjusted EPS | +14% |
(1) Constant Currency ("CC") and accommodation average daily rates ("ADRs")
Outlook
Booking Holdings' guidance for the second quarter and full year of 2026 is as follows:
For our second quarter guidance, we are assuming the direct and indirect impact from the conflict in the Middle East continues through the end of June. Specifically, our outlook accounts for continued fluctuations in travel demand across Middle Eastern inbound, outbound, and intra-region routes, as well as ongoing disruptions to major transit corridors, such as those between Europe and Asia.
For the full year 2026, our planning assumption is that the direct and indirect impact from the conflict in the Middle East continues through the end of June, followed by a recovery in bookings in the second half of the year.
We are mindful that a sustained disruption could introduce broader inflationary pressures, including fluctuations in jet fuel prices, airline capacity reductions, as well as weigh on traveler sentiment more broadly. These dynamics can create headwinds across the travel value chain, and we are monitoring them closely. However, since these extended impacts on the broader economy are harder to estimate, we have not included them in our guidance assumptions.
Our second quarter and full year guidance are based on estimates and the information available to us at this time, in an unusually unpredictable environment. Refer to the "Information About Forward-Looking Statements" section of this release.
(growth is on a year-over-year basis)
| Q2 2026 | FY 2026 |
| Room Nights Growth | 2% - 4% |
| Gross Bookings Growth | 4% - 6% | High Single Digits to Low Double Digits |
| Constant Currency Gross Bookings Growth | 2% - 4% | High Single Digits |
| Revenue Growth (1) | 4% - 6% | High Single Digits |
| Constant Currency Revenue Growth (1) | 2% - 4% | Mid to High Single Digits |
| Adjusted EBITDA Growth (2)(3)(4) | 4% - 6% | Slightly Faster than Revenue Growth |
| Adjusted EPS Growth (2)(3)(5) | Low to Mid-teens |
(1) Revenue Growth includes a benefit of about 2% in Q2 2026 and of about 1.5% for FY 2026 due to foreign currency exchange rates.
(2) We are not able to provide a reconciliation between forward-looking Adjusted EBITDA and GAAP Net income and Adjusted EPS and GAAP EPS as we cannot, without unreasonable effort, forecast certain items required to develop meaningful comparable GAAP Net Income and GAAP EPS and predict certain components of such reconciliation as they arise from events in future periods. This is due to the unpredictable nature of these reconciling items, which would require an unreasonable effort to forecast, and would result in a large range of projected values that would not be meaningful to investors. See Item 10(e)(1)(i)(B) of Securities and Exchange Commission (“SEC”) Regulation S-K.
(3) Excludes certain costs expected to be incurred related to the Transformation Program. Refer to the "Non-GAAP Financial Measures" section of this release.
(4) Changes in foreign currency exchange rates are expected to impact our reported growth rates for Adjusted EBITDA by a similar amount of percentage points for the second quarter and by about a half percentage point less than Revenue Growth for the full year.
(5) Changes in foreign currency exchange rates are expected to impact our reported growth rate for Adjusted EPS by about a half percentage point less than Revenue Growth for the full year.
Consolidated Balance Sheets
(In millions, except per share data)
| March 31, 2026 | December 31, 2025 |
(Unaudited)
ASSETS
Current assets:
| Cash and cash equivalents | $ 16,024 | $ 17,203 |
| Accounts receivable, net (Allowance for expected credit losses of $145 and $137, respectively) | 3,520 | 3,820 |
| Prepaid expenses, net | 619 | 611 |
| Other current assets | 771 | 630 |
| Total current assets | 20,934 | 22,264 |
| Property and equipment, net | 784 | 807 |
| Operating lease assets | 607 | 632 |
| Intangible assets, net | 882 | 918 |
| Goodwill | 2,662 | 2,669 |
| Long-term investments | 473 | 582 |
| Other assets, net | 1,378 | 1,392 |
| Total assets | $ 27,720 | $ 29,264 |
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
| Accounts payable | $ 4,131 | $ 5,094 |
| Accrued expenses and other current liabilities | 4,476 | 4,454 |
| Deferred merchant bookings | 8,189 | 5,270 |
| Short-term debt | 3,015 | 1,880 |
| Total current liabilities | 19,811 | 16,698 |
| Operating lease liabilities | 530 | 557 |
| Other long-term liabilities | 705 | 731 |
| Long-term debt | 15,398 | 16,856 |
| Total liabilities | 36,444 | 34,842 |
Commitments and contingencies
Stockholders' deficit:
| Common stock, $0.008 par value, Authorized shares: 25,000 Issued shares: 1,618 and 1,613, respectively | 13 | 13 |
| Treasury stock: 838 and 816 shares, respectively | (58,337) | (54,315) |
| Additional paid-in capital | 8,490 | 8,344 |
| Retained earnings | 41,420 | 40,670 |
| Accumulated other comprehensive loss | (310) | (290) |
| Total stockholders' deficit | (8,724) | (5,578) |
| Total liabilities and stockholders' deficit | $ 27,720 | $ 29,264 |
Unaudited Consolidated Statements of Operations
(In millions, except per share data)
Three Months Ended March 31,
| 2026 | 2025 |
| Merchant revenues | $ 3,698 | $ 2,918 |
| Agency revenues | 1,528 | 1,564 |
| Advertising and other revenues | 306 | 280 |
| Total revenues | 5,532 | 4,762 |
Operating expenses:
| Marketing expenses | 2,068 | 1,777 |
| Sales and other expenses | 804 | 702 |
| Personnel, including stock-based compensation of $141 and $142, respectively | 893 | 693 |
| General and administrative | 100 | 142 |
| Information technology | 240 | 200 |
| Depreciation and amortization | 131 | 154 |
| Transformation costs | 25 | 32 |
| Total operating expenses | 4,261 | 3,700 |
| Operating income | 1,271 | 1,062 |
| Interest expense | (253) | (649) |
| Interest and dividend income | 187 | 241 |
| Other income (expense), net | 194 | (258) |
| Income before income taxes | 1,399 | 396 |
| Income tax expense | 316 | 63 |
| Net income | $ 1,083 | $ 333 |
| Net income applicable to common stockholders per basic common share | $ 1.37 | $ 0.41 |
| Weighted-average number of basic common shares outstanding | 790 | 821 |
| Net income applicable to common stockholders per diluted common share | $ 1.36 | $ 0.40 |
| Weighted-average number of diluted common shares outstanding | 794 | 827 |
Unaudited Consolidated Statements of Cash Flows
(In millions)
Three Months Ended March 31,
OPERATING ACTIVITIES:
Adjustments to reconcile net income to net cash provided by operating activities:
| Provision for expected credit losses and chargebacks | 110 | 89 |
| Deferred income taxes | 54 | (144) |
| Net losses (gains) on equity securities | 110 | (2) |
| Stock-based compensation expense | 141 | 143 |
| Operating lease amortization | 32 | 30 |
| Unrealized foreign currency transaction (gains) losses related to Euro-denominated debt | (333) | 437 |
| Amortization of debt discount and change in fair value of the conversion option related to the convertible senior notes | - | 234 |
| Other | 5 | (42) |
Changes in assets and liabilities:
| Accounts receivable | 155 | (99) |
| Prepaid expenses and other current assets | (66) | 84 |
| Deferred merchant bookings and other current liabilities | 1,827 | 1,903 |
| Other | (34) | 163 |
| Net cash provided by operating activities | 3,215 | 3,283 |
INVESTING ACTIVITIES:
| Additions to property and equipment | (107) | (121) |
| Other investing activities | - | 3 |
| Net cash used in investing activities | (107) | (118) |
FINANCING ACTIVITIES:
| Payments on maturity of debt | - | (1,530) |
| Payments for repurchase of common stock | (3,770) | (2,170) |
| Dividends paid | (343) | (319) |
| Other financing activities | 87 | 52 |
| Net cash used in financing activities | (4,026) | (3,967) |
| Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (168) | 222 |
| Net decrease in cash and cash equivalents and restricted cash and cash equivalents | (1,086) | (580) |
| Total cash and cash equivalents and restricted cash and cash equivalents, beginning of period | 17,269 | 16,193 |
| Total cash and cash equivalents and restricted cash and cash equivalents, end of period | $ 16,183 | $ 15,613 |
Non-GAAP Financial Measures
The Unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operating results.
To supplement the Unaudited Consolidated Financial Statements, the Company uses non-GAAP financial measures, including Adjusted Net income, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, and Free cashflow (Net cash provided by operating activities less capital expenditures). The Company also uses information on (i) the impact of the adjustments required to compute Adjusted Net income and Adjusted EBITDA on Sales and other expenses, Personnel expenses, General and administrative expenses, Depreciation and amortization expenses, Impairment expense, Transformation costs, Interest expense, Interest and dividend income, Other income (expense), net, and Income tax expense, as reported in the Company's consolidated statements of operations, as applicable, and (ii) Adjusted fixed operating expenses, which is Total operating expenses, as reported in the Company's consolidated statements of operations, adjusted to exclude (a) certain operating expenses which are generally more likely to vary based on changes in business volumes and (b) amounts which are excluded in the computation of Adjusted EBITDA.
The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
The Company uses non-GAAP financial measures for financial and operational decision-making and as a basis to evaluate performance and set targets for employee compensation programs. The Company believes that these non-GAAP financial measures are useful for analysts and investors to evaluate the Company's ongoing operating performance because they facilitate comparison of the Company's results for the current period and projected next-period results to those of prior periods and to those of its competitors (though other companies may calculate similar non-GAAP financial measures differently from those calculated by the Company).
These non-GAAP financial measures, in particular Adjusted Net income, Adjusted EBITDA, and Free cashflow, are not intended to represent funds available for Booking Holdings' discretionary use and are not intended to represent or to be used as a substitute for Operating income, Net income, or Net cash provided by operating activities as measured under GAAP. The items excluded from these non-GAAP measures, but included in the calculation of their closest GAAP equivalent, are significant components of the Company's consolidated statements of operations and cashflows and must be considered in performing a comprehensive assessment of overall financial performance.
Reconciliations of (i) Net income to Adjusted Net income and Adjusted EPS, (ii) Net income to Adjusted EBITDA, (iii) Net cash provided by operating activities to Free cashflow, and (iv) Total operating expenses to Adjusted fixed operating expenses are detailed in the Reconciliation of GAAP to Non-GAAP Financial Information and Additional Information on the Impact of Non-GAAP Adjustments sections below, including the impact of the adjustments to the respective line item in the Company's consolidated statements of operations.
We evaluate certain operating and financial measures on both an as-reported and constant currency basis. We calculate constant currency measures based on the predominant transactional currency in each country, converting our current-year period results in currencies other than U.S. Dollars using the corresponding prior-year period monthly average exchange rates.
Information About Forward-Looking Statements
This press release contains forward-looking statements, within the meaning of the U.S. securities laws, including regarding our outlook, travel demand trends, the geopolitical and macroeconomic environment and potential effects on consumer spending and behavior, travel patterns and our partners, artificial intelligence trends, and changes in foreign currency exchange rates. These forward-looking statements reflect the views of the Company's management regarding current expectations based on currently available information about future events.
Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, such as: the conflict in the Middle East; adverse changes in market conditions for travel services; the effects of competition; the Company's ability to manage growth and expand; adverse changes in third-party relationships; rapid technological or other market changes; success of the Company's marketing efforts; the development and use of generative AI; the Company's ability to attract and retain qualified personnel; impacts of impairments and changes in accounting estimates; operational and technological infrastructure risks; and other business and industry changes. Other risks and uncertainties relate to information security, cybersecurity, and data privacy; taxes; changes in, and compliance with, laws and regulations; the Company's facilitation of payments; foreign currency exchange rates; the Company's debt levels and stock price volatility; and the success of the Company's investments and acquisition strategy.
For a detailed discussion of these and other factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements included in this press release, refer to the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequently filed Quarterly Reports on Form 10-Q. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
Additional Information
We use the Investor Relations page of our website (ir.bookingholdings.com) to disclose material information for purposes of the SEC’s Regulation Fair Disclosure. We encourage our investors to monitor this website in addition to our other public announcements and SECfilings as information posted on that page could be deemed to be material information. We will be posting our prepared remarks and a summary earnings presentation to the Investor Relations page of our website after the conclusion of the earnings call.
About Booking Holdings Inc.
Booking Holdings (NASDAQ: BKNG) is the world leader in online travel and services that support the entire travel journey. Our platforms - including Booking.com, Priceline, Agoda, KAYAK and OpenTable - utilize advanced AI, machine learning and other innovative technologies to simplify and personalize the travel experience for consumers and partners in over 220 countries and territories. Our mission is to make it easier for everyone to experience the world.
For more information, visit BookingHoldings.com and follow us on X @BookingHoldings.
For Press Information: Leslie Cafferty communications@bookingholdings.com
For Investor Relations: Grace Lee ir@bookingholdings.com
#BKNG_Earnings
Reconciliation of GAAP to Non-GAAP Financial Information
(In millions, except per share data)(1) (Unaudited)
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED EPS
Three Months Ended March 31,
| 2026 | 2025 |
| (a) Adjustment related to the Netherlands pension fund matter | - | (129) |
| (b) Gain related to settlement of litigation matters | (89) | - |
| (c) Amortization of intangible assets | 36 | 54 |
| (d) Transformation costs | 23 | 32 |
| (e) Net losses (gains) on equity securities | 107 | (3) |
| (f) Foreign currency transaction (gains) losses on the remeasurement of certain Euro- denominated debt and accrued interest and gains on debt-related foreign currency derivative instruments | (333) | 389 |
| (g) Amortization of debt discount and change in fair value of the conversion option related to the convertible senior notes | - | 234 |
| (h) Other | (14) | - |
| (i) Tax impact of Non-GAAP adjustments | 90 | (89) |
| Adjusted Net income | $ 902 | $ 821 |
| GAAP and Non-GAAP weighted-average number of diluted common shares outstanding | 794 | 827 |
| Net income applicable to common stockholders per diluted common share (GAAP EPS) | $ 1.36 | $ 0.40 |
| Adjusted Net income applicable to common stockholders per diluted common share (Adjusted EPS) | $ 1.14 | $ 0.99 |
| Net income applicable to common stockholders per diluted common share (GAAP EPS) growth YoY | 239 % |
| Adjusted Net income applicable to common stockholders per diluted common share (Adjusted EPS) growth YoY | 14 % |
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
Three Months Ended March 31,
| 2026 | 2025 |
| (j) Depreciation and amortization | 131 | 154 |
| (j) Interest and dividend income | (187) | (241) |
| (j) Interest expense | 253 | 649 |
| (g) Change in fair value of the conversion option related to the convertible senior notes | - | (158) |
| (j) Income tax expense | 316 | 63 |
| Adjusted EBITDA | $ 1,290 | $ 1,088 |
| Net income as a % of Total Revenues (Net income margin) | 19.6 % | 7.0 % |
| Net income growth YoY | 225 % |
| Adjusted EBITDA as a % of Total Revenues (Adjusted EBITDA margin) | 23.3 % | 22.9 % |
| Adjusted EBITDA growth YoY | 19 % |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
| 2026 | 2025 |
| Net cash provided by operating activities | $ 3,215 | $ 3,283 |
| (k) Additions to property and equipment | (107) | (121) |
| Free cashflow | $ 3,108 | $ 3,162 |
| Net cash provided by operating activities as a % of Total Revenues | 58.1 % | 68.9 % |
| Free cashflow as a % of Total Revenues | 56.2 % | 66.4 % |
| Net cash provided by operating activities decline YoY | (2) % |
| Free cashflow decline YoY | (2) % |
(1) Amounts may not total due to rounding.
(Unaudited)
Notes:
(a) During the quarter ended March 31, 2025, the Netherlands pension fund matter related to 2023 and earlier years was resolved resulting in a $129 million reduction to the related accruals. When the liability related to these years was initially recorded in the Company's Consolidated Financial Statements for 2023, its impact was excluded from the Non-GAAP results for that year.
(b) In the first quarter of 2026, the Company entered into favorable settlement agreements to resolve litigation matters in which it was a plaintiff, for which it received a benefit of $89 million.
(c) Amortization of intangible assets is excluded from Net income to calculate Adjusted Net income.
(d) In November 2024, the Company announced its intention to implement certain organizational changes to improve operating expense efficiency, increase organizational agility, free up resources that can be reinvested into further improving its offering to travelers and partners, and better position the Company for the long-term (the "Transformation Program"). Certain costs incurred in connection with this transformation program, which are not considered normal operating expenses, are excluded from Net income to calculate Adjusted Net income and Adjusted EBITDA. These costs primarily consist of professional fees and employee termination benefits.
(e) Net losses (gains) on equity securities with readily determinable fair values.
(f) Foreign currency transaction (gains) losses on the remeasurement of Euro-denominated debt and accrued interest that are not designated as hedging instruments for accounting purposes and gains on debt-related foreign currency derivative instruments used as economic hedges.
(g) Adjustment for the amortization of the debt discount of $392 million and the change in fair value of the conversion option of $158 million, both related to the convertible senior notes.
(h) Benefit related to the Canadian digital services taxes for the years ended December 31, 2022 and 2023 as it was repealed in March 2026. When the retrospective liability related to these years was initially recorded in 2024, its impact was excluded from the Non- GAAP results for that year.
(i) Reflects the tax impact of Non-GAAP adjustments above and changes in tax estimates, as applicable.
(j) Depreciation and amortization, Interest and dividend income, Interest expense, and Income tax expense are excluded from Net income to calculate Adjusted EBITDA.
(k) Cash used for additions to property and equipment is included in the calculation of Free cashflow.
For a more detailed discussion of the adjustments described above, please see the section in this press release under the heading "Non-GAAP Financial Measures" which provides information about the use of non-GAAP financial measures. Additional information on the impact of the adjustments above to the respective line item in the Company's consolidated statements of operations are presented in the following pages. The reconciliation of Total operating expenses to Adjusted fixed operating expenses is also provided.
Additional Information on the Impact of Non- GAAP Adjustments
(In millions) (Unaudited)
Three Months Ended March 31,
Sales and other expenses:
| Sales and other expenses | $ 804 | $ 702 |
| Benefit related to prior-period Canadian digital services taxes | 14 | - |
| Adjusted Sales and other expenses | $ 818 | $ 702 |
Personnel expenses:
| Personnel expenses | $ 893 | $ 693 |
| Adjustment related to the Netherlands pension fund matter | - | 134 |
| Adjusted Personnel expenses | $ 893 | $ 827 |
General and administrative expenses:
| General and administrative expenses | $ 100 | $ 142 |
| Adjustment related to the Netherlands pension fund matter | - | (5) |
| Gain related to settlement of litigation matters | 89 | - |
| Adjusted General and administrative expenses | $ 189 | $ 137 |
Depreciation and amortization expenses:
| Depreciation and amortization expenses | $ 131 | $ 154 |
| Amortization of intangible assets | (36) | (54) |
| Depreciation expenses | $ 95 | $ 100 |
Transformation costs:
| Transformation costs | $ 25 | $ 32 |
| Adjustment related to transformation costs | (23) | (32) |
| Adjusted Transformation costs | $ 2 | $ - |
Interest expense:
| Interest expense | $ (253) | $ (649) |
| Amortization of debt discount on convertible senior notes | - | 392 |
| Adjusted Interest expense | $ (253) | $ (257) |
Other income (expense), net:
| Other income (expense), net | $ 194 | $ (258) |
| Net losses (gains) on equity securities | 107 | (3) |
| Foreign currency transaction (gains) losses on the remeasurement of certain Euro- denominated debt and accrued interest and gains on debt-related foreign currency derivative instruments | (333) | 389 |
| Change in fair value of the conversion option related to the convertible senior notes | - | (158) |
| Adjusted Other income (expense), net | $ (32) | $ (30) |
RECONCILIATION OF TOTAL OPERATING EXPENSES TO ADJUSTED FIXED OPERATING EXPENSES
(Unaudited)
Three Months Ended March 31,
Income tax expense:
| Income tax expense | $ 316 | $ 63 |
| Tax impact of Non-GAAP adjustments | (90) | 89 |
| Adjusted Income tax expense | $ 226 | $ 152 |
| Total operating expenses | $ 4,261 | $ 3,700 |
| Marketing expenses | (2,068) | (1,777) |
| Sales and other expenses | (804) | (702) |
| Depreciation and amortization | (131) | (154) |
| Adjustment related to the Netherlands pension fund matter | - | 129 |
| Adjusted fixed operating expenses | $ 1,324 | $ 1,164 |
| Total operating expenses growth YoY | 15 % |
| Adjusted fixed operating expenses growth YoY | 14 % |
Statistical Data (Units Sold in millions and Gross Bookings and Total Revenues in billions)(1)
(Unaudited)
Units Sold
| Room Nights | 297 | 287 | 299 | 261 | 319 | 309 | 323 | 285 | 338 |
| Year/Year Growth | 8.5 % | 7.1 % | 8.1 % | 13.2 % | 7.2 % | 7.7 % | 8.2 % | 9.0 % | 5.9 % |
| Rental Car Days | 21 | 22 | 23 | 17 | 22 | 24 | 23 | 18 | 21 |
| Year/Year Growth (Decline) | 10.7 % | 10.0 % | 16.2 % | 12.1 % | 7.7 % | 9.0 % | 2.1 % | 4.2 % | (4.9) % |
| Airline Tickets | 11 | 11 | 13 | 14 | 16 | 16 | 17 | 18 | 21 |
| Year/Year Growth | 33.1 % | 27.7 % | 38.7 % | 52.3 % | 44.8 % | 44.2 % | 32.3 % | 27.7 % | 28.5 % |
Gross Bookings (2)
| Merchant | $ 25.8 | $ 25.8 | $ 28.4 | $ 24.2 | $ 31.2 | $ 32.3 | $ 35.7 | $ 30.8 | $ 38.7 |
| Year/Year Growth | 29.3 % | 22.3 % | 27.3 % | 31.7 % | 21.0 % | 25.1 % | 26.0 % | 27.2 % | 24.3 % |
| Agency | $ 17.8 | $ 15.6 | $ 15.1 | $ 12.9 | $ 15.5 | $ 14.4 | $ 13.9 | $ 12.2 | $ 15.0 |
| Year/Year Decline | (8.9) % | (16.0) % | (14.0) % | (2.7) % | (12.8) % | (7.5) % | (7.6) % | (5.6) % | (3.1) % |
| Total Gross Bookings | $ 43.5 | $ 41.4 | $ 43.4 | $ 37.2 | $ 46.7 | $ 46.7 | $ 49.7 | $ 43.0 | $ 53.8 |
| Year/Year Growth | 10.4 % | 4.4 % | 9.1 % | 17.3 % | 7.2 % | 12.8 % | 14.3 % | 15.8 % | 15.2 % |
| Constant currency Basis (3) | 10 % | 6 % | 9 % | 18 % | 10 % | 9 % | 10 % | 11 % | 8 % |
| Total Revenues | $ 4.4 | $ 5.9 | $ 8.0 | $ 5.5 | $ 4.8 | $ 6.8 | $ 9.0 | $ 6.3 | $ 5.5 |
| Year/Year Growth | 16.9 % | 7.3 % | 8.9 % | 14.4 % | 7.9 % | 16.0 % | 12.7 % | 16.1 % | 16.2 % |
| Constant currency Basis (3) | 17 % | 9 % | 9 % | 15 % | 10 % | 12 % | 8 % | 11 % | 10 % |
Reconciliation of As Reported Total Revenues Growth to Constant Currency Total Revenues Growth
| As reported Total revenues growth YoY | 17 % | 7 % | 9 % | 14 % | 8 % | 16 % | 13 % | 16 % | 16 % |
| Foreign currency impact (3) | - % | 2 % | - % | 1 % | 2 % | (4) % | (4) % | (5) % | (6) % |
| Constant currency Total revenues growth YoY (3) | 17 % | 9 % | 9 % | 15 % | 10 % | 12 % | 8 % | 11 % | 10 % |
(1) Amounts may not total due to rounding.
(2) Gross bookings is an operating and statistical metric that captures the total dollar value, generally inclusive of taxes and fees, of all travel services booked by our customers, net of cancellations.
(3) Approximate values.