Booking : Reports Financial Results for 3rd Quarter 2022

Booking Holdings Reports Financial Results for 3rd Quarter 2022

NORWALK, CT - November 2, 2022. . . Booking Holdings Inc. (NASDAQ: BKNG) today reported its 3rd quarter 2022 financial results. Third quarter gross travel bookings for Booking Holdings Inc. (the "Company," "Booking Holdings," "we," "our," or "us"), which refers to the total dollar value, generally inclusive of taxes and fees, of all travel services booked by its customers, net of cancellations, were $32.1 billion, an increase of 36% from the prior- year quarter (approximately a 52% increase on a constant-currency basis). Room nights booked in the 3rd quarter of 2022 increased 31% from the prior-year quarter.

Booking Holdings' total revenues for the 3rd quarter of 2022 were $6.1 billion, an increase of 29% from the prior- year quarter (approximately a 47% increase on a constant-currency basis). Net income for the 3rd quarter of 2022 was $1.7 billion, an increase of 117% from the prior-year quarter. Net income per diluted common share in the 3rd quarter of 2022 was $41.98, an increase of 126% from the prior-year quarter.

Non-GAAP net income in the 3rd quarter of 2022 was $2.1 billion, an increase of 35% from the prior-year quarter. Non-GAAP net income per diluted common share in the 3rd quarter of 2022 was $53.03, an increase of 41% from the prior-year quarter. Non-GAAP net income for both periods includes adjustments to exclude net losses on equity securities with readily determinable fair values. Adjusted EBITDA for the 3rd quarter of 2022 was $2.7 billion, an increase of 26% from the prior-year quarter. The section below under the heading "Non-GAAPFinancial Measures" provides definitions and information about the use of non-GAAP financial measures in this press release, and the attached financial and statistical supplement reconciles non-GAAP financial results with Booking Holdings' financial results under GAAP.

"I am encouraged by the strong results we are reporting today, including the highest amount of quarterly revenue and Adjusted EBITDA ever for our company. We saw an improvement in room night trends as we moved through the quarter and accommodation ADR growth continued to be strong," said Glenn Fogel, Chief Executive Officer of Booking Holdings. "Despite the rising concern around the macroeconomic environment, we are encouraged by the slight improvement in room night growth we have seen in October and by the level of bookings for travel in early 2023."

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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 the following non-GAAP financial measures: adjusted EBITDA, non-GAAP net income (loss), non-GAAP net income (loss) per diluted common share and free cash flow (net cash provided by (used in) operating activities less capital expenditures). 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 EBITDA, non-GAAP net income (loss) and free cash flow, 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 (loss), net income (loss) or net cash provided by (used in) 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 cash flows and must be considered in performing a comprehensive assessment of overall financial performance.

Non-GAAP net income (loss) is net income (loss) with the following adjustments:

• excludes significant losses on assets classified as held for sale,
• excludes gains and losses on equity securities with readily determinable fair values,
• excludes the impact, if any, of significant gains and losses on the sale of and impairment and credit losses on investments in available-for-sale debt securities and significant gains and losses on the sale of and valuation adjustments on investments in equity securities without readily determinable fair values,
• excludes foreign currency transaction gains and losses on the remeasurement of Euro-denominated debt and accrued interest that are not designated as hedging instruments for accounting purposes and debt- related foreign currency derivative instruments used as economic hedges,
• excludes losses on early extinguishment of debt and related reverse treasury lock agreements which were designated as cash flow hedges,
• excludes amortization expense of intangible assets,
• excludes noncash interest expense related to the amortization of debt discount on our convertible debt, if applicable,
• excludes income taxes, if any, related to the maturity and redemption of convertible notes held for investment, that were reclassified from accumulated other comprehensive income (loss) to income tax expense (benefit),
• excludes the income tax impact, if any, related to one-time adjustments as a result of the U.S. Tax Cuts and Jobs Act enacted in December 2017,
• excludes the impact of net unrecognized tax benefits related to French and Italian tax matters, and
• the income tax impact of the non-GAAP adjustments mentioned above and changes in tax estimates, as applicable.

In addition to the adjustments listed above regarding non-GAAP net income (loss), adjusted EBITDA excludes depreciation expense, interest and dividend income, and to the extent not included in the adjustments listed above, interest expense and income tax expense (benefit). In the event the Company reports a GAAP net income but a non- GAAP net loss, dilutive shares that are included in the GAAP weighted-average number of diluted common shares outstanding are excluded from the non-GAAPweighted-average number of diluted common shares outstanding. In the event the Company reports a GAAP net loss but a non-GAAP net income, anti-dilutive shares that are excluded

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from the GAAP weighted-average number of diluted common shares outstanding are included in the non-GAAPweighted-average number of diluted common shares outstanding.

We evaluate certain operating and financial measures on both an as-reported and constant-currency basis. We calculate constant currency by converting our current-year period results for transactions recorded in currencies other than U.S. Dollars using the corresponding prior-year period monthly average exchange rates rather than the current-year period monthly average exchange rates.

The attached financial and statistical supplement includes reconciliations of our financial results under GAAP to non-GAAP financial information for the three and nine months ended September 30, 2022 and 2021. We are not able to provide a reconciliation between forward-looking adjusted EBITDA and GAAP net income (loss) because we cannot predict certain components of such reconciliation without unreasonable effort as they arise from events in future periods.

Information About Forward-Looking Statements

This press release contains forward-looking statements, which 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 adverse impact of the COVID-19 pandemic; adverse changes in market conditions for travel services; the Company's ability to attract and retain qualified personnel; adverse changes in relationships with third parties on which the Company depends; the effects of competition; growth and expansion of the business; rapid technological and other market changes; impacts of impairments and changes in accounting estimates; success of the Company's marketing efforts; and other business and industry changes. Other risks and uncertainties relate to cyberattacks and information security; tax, legal, and regulatory risks; increased focus on environmental, social, and governance responsibilities; the Company's facilitation of payments; foreign currency exchange rates; success of the Company's investments and acquisition strategy; and financial risks relating to the Company's debt levels and stock price volatility. For a detailed discussion of these and other risk 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.

About Booking Holdings Inc.

Booking Holdings (NASDAQ: BKNG) is the world's leading provider of online travel and related services, provided to consumers and local partners in more than 220 countries and territories through six primary consumer- facing brands: Booking.com, Priceline, Agoda, Rentalcars.com, KAYAKand OpenTable. The mission of Booking Holdings is to make it easier for everyone to experience the world. For more information, visit BookingHoldings.comand follow us on Twitter @BookingHoldings.

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For Press Information: Leslie Cafferty [e-mail]

For Investor Relations: John Longstreet [e-mail]

#BKNG_Earnings

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Booking Holdings Inc.
CONSOLIDATED BALANCE SHEETS
(In millions, except share and per share data)
	September 30,		December 31,
		2022			2021
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	9,021	$	11,127
Short-term investments (Available-for-sale debt securities:		116			25
Amortized cost of $117 and $25, respectively)
Accounts receivable, net (Allowance for expected credit losses of $119 and $101,		2,284			1,358
respectively)
Prepaid expenses, net (Allowance for expected credit losses of $2 and $29,		612			404
respectively)
Other current assets		377			231
Total current assets		12,410			13,145
Property and equipment, net		879			822
Operating lease assets		402			496
Intangible assets, net		1,855			2,057
Goodwill		2,808			2,887
Long-term investments (Includes available-for-sale debt securities:		2,650			3,175
Amortized cost of $617 at September 30, 2022)
Other assets, net (Allowance for expected credit losses of $25 and $18, respectively)		1,059			1,059
Total assets	$	22,063	$	23,641
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,131	$	1,586
Accrued expenses and other current liabilities		2,925			1,765
Deferred merchant bookings		2,253			906
Short-term debt		1,234			1,989
Total current liabilities		8,543			6,246
Deferred income taxes		723			905
Operating lease liabilities		286			351
Long-term U.S. transition tax liability		711			825
Other long-term liabilities		180			199
Long-term debt		7,950			8,937
Total liabilities		18,393			17,463
Commitments and contingencies
Stockholders' equity:
Common stock, $0.008 par value,
Authorized shares: 1,000,000,000		-			-
Issued shares: 63,774,398 and 63,584,444, respectively
Treasury stock, 24,685,111 and 22,518,391 shares, respectively		(28,630)			(24,290)
Additional paid-in capital		6,385			6,159
Retained earnings		26,306			24,453
Accumulated other comprehensive loss		(391)			(144)
Total stockholders' equity		3,670			6,178
Total liabilities and stockholders' equity	$	22,063	$	23,641

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Booking Holdings Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share data)

		Three Months Ended			Nine Months Ended
		September 30,			September 30,
		2022			2021			2022			2021
Agency revenues	$	3,203	$	2,867	$	6,954	$	4,912
Merchant revenues		2,614			1,622			5,413			2,656
Advertising and other revenues		235			187			674			409
Total revenues		6,052			4,676			13,041			7,977
Operating expenses:
Marketing expenses		1,795			1,378			4,679			2,827
Sales and other expenses		540			302			1,344			620
Personnel, including stock-based compensation of $101, $85,		636			591			1,867			1,829
$302 and $284, respectively
General and administrative		262			179			627			432
Information technology		129			109			400			289
Depreciation and amortization		109			102			327			323
Restructuring, disposal, and other exit costs		(2)			-			40			9
Total operating expenses		3,469			2,661			9,284			6,329
Operating income		2,583			2,015			3,757			1,648
Interest expense		(102)			(80)			(246)			(259)
Other income (expense), net		(305)			(967)			(1,040)			(740)
Income before income taxes		2,176			968			2,471			649
Income tax expense		510			199			648			102
Net income	$	1,666	$	769	$	1,823	$	547
Net income applicable to common stockholders per basic common
$	42.10	$	18.73	$	45.20	$	13.33
share
Weighted-average number of basic common shares outstanding (in		39,564			41,068			40,326			41,032
000's)
Net income applicable to common stockholders per diluted common
$	41.98	$	18.60	$	45.00	$	13.22
share
Weighted-average number of diluted common shares outstanding (in		39,671			41,342			40,504			41,359
000's)

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