December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 12,221 | $ | 11,127 | ||||||||||
Short-term investments (Available-for-sale debt securities: Amortized cost of $176 and $25, respectively) | 175 | 25 | ||||||||||||
Accounts receivable, net (Allowance for expected credit losses of $117 and $101, respectively) | 2,229 | 1,358 | ||||||||||||
Prepaid expenses, net (Allowance for expected credit losses of $18 and $29, respectively) | 477 | 404 | ||||||||||||
Other current assets | 696 | 231 | ||||||||||||
Total current assets | 15,798 | 13,145 | ||||||||||||
Property and equipment, net | 669 | 822 | ||||||||||||
Operating lease assets | 645 | 496 | ||||||||||||
Intangible assets, net | 1,829 | 2,057 | ||||||||||||
Goodwill | 2,807 | 2,887 | ||||||||||||
Long-term investments (Includes available-for-sale debt securities: Amortized cost of $576 at December 31, 2022) | 2,789 | 3,175 | ||||||||||||
Other assets, net (Allowance for expected credit losses of $5 and $18, respectively) | 824 | 1,059 | ||||||||||||
Total assets | $ | 25,361 | $ | 23,641 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 2,507 | $ | 1,586 | ||||||||||
Accrued expenses and other current liabilities | 3,244 | 1,765 | ||||||||||||
Deferred merchant bookings | 2,223 | 906 | ||||||||||||
Short-term debt | 500 | 1,989 | ||||||||||||
Total current liabilities | 8,474 | 6,246 | ||||||||||||
Deferred income taxes | 685 | 905 | ||||||||||||
Operating lease liabilities | 552 | 351 | ||||||||||||
Long-term U.S. transition tax liability | 711 | 825 | ||||||||||||
Other long-term liabilities | 172 | 199 | ||||||||||||
Long-term debt | 11,985 | 8,937 | ||||||||||||
Total liabilities | 22,579 | 17,463 | ||||||||||||
Commitments and contingencies | ||||||||||||||
Stockholders' equity: | ||||||||||||||
Common stock, $0.008 par value, Authorized shares: 1,000,000,000 Issued shares: 63,780,528 and 63,584,444, respectively | — | — | ||||||||||||
Treasury stock: 25,917,558 and 22,518,391 shares, respectively | (30,983) | (24,290) | ||||||||||||
Additional paid-in capital | 6,491 | 6,159 | ||||||||||||
Retained earnings | 27,541 | 24,453 | ||||||||||||
Accumulated other comprehensive loss | (267) | (144) | ||||||||||||
Total stockholders' equity | 2,782 | 6,178 | ||||||||||||
Total liabilities and stockholders' equity | $ | 25,361 | $ | 23,641 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Agency revenues | $ | 2,049 | $ | 1,751 | $ | 9,003 | $ | 6,663 | ||||||||||||||||||
Merchant revenues | 1,780 | 1,040 | 7,193 | 3,696 | ||||||||||||||||||||||
Advertising and other revenues | 220 | 190 | 894 | 599 | ||||||||||||||||||||||
Total revenues | 4,049 | 2,981 | 17,090 | 10,958 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Marketing expenses | 1,314 | 974 | 5,993 | 3,801 | ||||||||||||||||||||||
Sales and other expenses | 474 | 261 | 1,818 | 881 | ||||||||||||||||||||||
Personnel, including stock-based compensation of $102, $86, $404 and $370, respectively | 598 | 485 | 2,465 | 2,314 | ||||||||||||||||||||||
General and administrative | 307 | 188 | 934 | 620 | ||||||||||||||||||||||
Information technology | 126 | 123 | 526 | 412 | ||||||||||||||||||||||
Depreciation and amortization | 124 | 98 | 451 | 421 | ||||||||||||||||||||||
Restructuring, disposal, and other exit activities | (239) | 4 | (199) | 13 | ||||||||||||||||||||||
Total operating expenses | 2,704 | 2,133 | 11,988 | 8,462 | ||||||||||||||||||||||
Operating income | 1,345 | 848 | 5,102 | 2,496 | ||||||||||||||||||||||
Interest expense | (145) | (75) | (391) | (334) | ||||||||||||||||||||||
Other income (expense), net | 252 | 43 | (788) | (697) | ||||||||||||||||||||||
Income before income taxes | 1,452 | 816 | 3,923 | 1,465 | ||||||||||||||||||||||
Income tax expense | 217 | 198 | 865 | 300 | ||||||||||||||||||||||
Net income | $ | 1,235 | $ | 618 | $ | 3,058 | $ | 1,165 | ||||||||||||||||||
Net income applicable to common stockholders per basic common share | $ | 32.07 | $ | 15.05 | $ | 76.70 | $ | 28.39 | ||||||||||||||||||
Weighted-average number of basic common shares outstanding (in 000's) | 38,524 | 41,072 | 39,872 | 41,042 | ||||||||||||||||||||||
Net income applicable to common stockholders per diluted common share | $ | 31.92 | $ | 14.94 | $ | 76.35 | $ | 28.17 | ||||||||||||||||||
Weighted-average number of diluted common shares outstanding (in 000's) | 38,709 | 41,371 | 40,052 | 41,362 |
Year Ended December 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||
Net income | $ | 3,058 | $ | 1,165 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 451 | 421 | ||||||||||||
Provision for expected credit losses and chargebacks | 232 | 109 | ||||||||||||
Deferred income tax benefit | (257) | (445) | ||||||||||||
Net losses on equity securities | 963 | 569 | ||||||||||||
Stock-based compensation expense and other stock-based payments | 404 | 376 | ||||||||||||
Operating lease amortization | 156 | 178 | ||||||||||||
Unrealized foreign currency transaction gains related to Euro-denominated debt | (46) | (135) | ||||||||||||
Loss on early extinguishment of debt | — | 242 | ||||||||||||
Gain on sale and leaseback transaction | (240) | — | ||||||||||||
Other | 38 | 71 | ||||||||||||
Changes in assets and liabilities, net of effects of acquisitions: | ||||||||||||||
Accounts receivable | (1,228) | (1,002) | ||||||||||||
Prepaid expenses and other current assets | (217) | 6 | ||||||||||||
Deferred merchant bookings and other current liabilities | 3,718 | 1,539 | ||||||||||||
Long-term assets and liabilities | (478) | (274) | ||||||||||||
Net cash provided by operating activities | 6,554 | 2,820 | ||||||||||||
INVESTING ACTIVITIES: | ||||||||||||||
Purchase of investments | (768) | (17) | ||||||||||||
Proceeds from sale and maturity of investments | 32 | 508 | ||||||||||||
Additions to property and equipment | (368) | (304) | ||||||||||||
Acquisitions, net of cash acquired | — | (1,185) | ||||||||||||
Proceeds from sale and leaseback transaction | 601 | — | ||||||||||||
Other investing activities | (15) | — | ||||||||||||
Net cash used in investing activities | (518) | (998) | ||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||
Proceeds from the issuance of long-term debt | 3,621 | 2,015 | ||||||||||||
Payments on maturity and redemption of debt | (1,880) | (3,068) | ||||||||||||
Payments for repurchase of common stock | (6,621) | (163) | ||||||||||||
Other financing activities | (17) | (23) | ||||||||||||
Net cash used in financing activities | (4,897) | (1,239) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (40) | (13) | ||||||||||||
Net increase in cash and cash equivalents and restricted cash and cash equivalents | 1,099 | 570 | ||||||||||||
Total cash and cash equivalents and restricted cash and cash equivalents, beginning of period | 11,152 | 10,582 | ||||||||||||
Total cash and cash equivalents and restricted cash and cash equivalents, end of period | $ | 12,251 | $ | 11,152 | ||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||||||
Cash paid during the period for income taxes | $ | 600 | $ | 735 | ||||||||||
Cash paid during the period for interest | $ | 380 | $ | 318 | ||||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Net income | $ | 1,235 | $ | 618 | $ | 3,058 | $ | 1,165 | |||||||||||||||||||||
(a) | Accrual related to the potential settlement of an Italian indirect tax matter | 46 | — | 46 | — | ||||||||||||||||||||||||
(b) | Depreciation and amortization | 124 | 98 | 451 | 421 | ||||||||||||||||||||||||
(c) | Loss on assets classified as held for sale | — | — | 36 | — | ||||||||||||||||||||||||
(d) | Gain on sale and leaseback transaction | (240) | — | (240) | — | ||||||||||||||||||||||||
(b) | Interest and dividend income | (131) | (4) | (219) | (16) | ||||||||||||||||||||||||
(b) | Interest expense | 145 | 75 | 391 | 334 | ||||||||||||||||||||||||
(e) | Net (gains) losses on equity securities | (179) | (18) | 779 | 577 | ||||||||||||||||||||||||
(f) | Impairment of investment | — | — | 184 | — | ||||||||||||||||||||||||
(g) | Foreign currency transaction losses (gains) on the remeasurement of certain Euro-denominated debt and accrued interest and debt-related foreign currency derivative instruments | 24 | (27) | (56) | (135) | ||||||||||||||||||||||||
(h) | Losses on early extinguishment of debt and related reverse treasury lock agreements | — | — | — | 257 | ||||||||||||||||||||||||
(b) | Income tax expense | 217 | 198 | 865 | 300 | ||||||||||||||||||||||||
Adjusted EBITDA | $ | 1,241 | $ | 940 | $ | 5,295 | $ | 2,904 | |||||||||||||||||||||
Net income as a % of Total Revenues | 30.5 | % | 20.7 | % | 17.9 | % | 10.6 | % | |||||||||||||||||||||
Adjusted EBITDA as a % of Total Revenues | 30.7 | % | 31.5 | % | 31.0 | % | 26.5 | % |
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME APPLICABLE TO COMMON STOCKHOLDERS PER DILUTED COMMON SHARE | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Net income | $ | 1,235 | $ | 618 | $ | 3,058 | $ | 1,165 | |||||||||||||||||||||
(a) | Accrual related to the potential settlement of an Italian indirect tax matter | 46 | — | 46 | — | ||||||||||||||||||||||||
(c) | Loss on assets classified as held for sale | — | — | 36 | — | ||||||||||||||||||||||||
(d) | Gain on sale and leaseback transaction | (240) | — | (240) | — | ||||||||||||||||||||||||
(e) | Net (gains) losses on equity securities | (179) | (18) | 779 | 577 | ||||||||||||||||||||||||
(f) | Impairment of investment | — | — | 184 | — | ||||||||||||||||||||||||
(g) | Foreign currency transaction losses (gains) on the remeasurement of certain Euro-denominated debt and accrued interest and debt-related foreign currency derivative instruments | 24 | (27) | (56) | (135) | ||||||||||||||||||||||||
(h) | Losses on early extinguishment of debt and related reverse treasury lock agreements | — | — | — | 257 | ||||||||||||||||||||||||
(i) | Amortization of intangible assets | 57 | 40 | 224 | 162 | ||||||||||||||||||||||||
(j) | Debt discount amortization related to convertible debt | — | 6 | — | 39 | ||||||||||||||||||||||||
(k) | Income taxes on convertible notes held for investment | — | 31 | — | 31 | ||||||||||||||||||||||||
(l) | Net unrecognized tax benefits related to French and Italian income tax matters | (25) | — | 100 | 16 | ||||||||||||||||||||||||
(m) | Tax impact of Non-GAAP adjustments | 40 | 5 | (133) | (219) | ||||||||||||||||||||||||
Non-GAAP Net income | $ | 957 | $ | 654 | $ | 3,998 | $ | 1,893 | |||||||||||||||||||||
Weighted-average number of diluted common shares outstanding (in 000's) | 38,709 | 41,371 | 40,052 | 41,362 | |||||||||||||||||||||||||
Net income applicable to common stockholders per diluted common share | $ | 31.92 | $ | 14.94 | $ | 76.35 | $ | 28.17 | |||||||||||||||||||||
Non-GAAP Net income applicable to common stockholders per diluted common share | $ | 24.74 | $ | 15.83 | $ | 99.83 | $ | 45.77 |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | Year Ended December 31, | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
Net cash provided by operating activities | $ | 6,554 | $ | 2,820 | |||||||||||||
(n) | Additions to property and equipment | (368) | (304) | ||||||||||||||
Free cash flow | $ | 6,186 | $ | 2,516 | |||||||||||||
Net cash provided by operating activities as a % of Total Revenues | 38.3 | % | 25.7 | % | |||||||||||||
Free cash flow as a % of Total Revenues | 36.2 | % | 23.0 | % |
Notes: | |||||
(a) | Accrual related to the potential settlement of an Italian indirect tax matter is recorded in General and administrative and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA. | ||||
(b) | Amounts are excluded from Net income to calculate Adjusted EBITDA. | ||||
(c) | Loss on assets classified as held for sale is recorded in Restructuring, disposal, and other exit activities and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA. | ||||
(d) | Gain on the sale and leaseback transaction related to Booking.com's future headquarters building is recorded in Restructuring, disposal, and other exit activities and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA. | ||||
(e) | Net (gains) losses on equity securities with readily determinable fair values and significant gains on equity securities without readily determinable fair values are recorded in Other income (expense), net and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA. | ||||
(f) | Impairment of investment in Yanolja Co., Ltd. equity securities is recorded in Other income (expense), net and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA. | ||||
(g) | Foreign currency transaction losses (gains) 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 are recorded in Other income (expense), net and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA. | ||||
(h) | Loss of $242 million on early extinguishment of debt and losses of $15 million on related reverse treasury lock agreements which were designated as cash flow hedges are recorded in Other income (expense), net and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA. | ||||
(i) | Amortization of intangible assets is recorded in Depreciation and amortization and excluded from Net income to calculate Non-GAAP Net income. | ||||
(j) | Noncash interest expense related to the amortization of debt discount on convertible debt is recorded in Interest expense and excluded from Net income to calculate Non-GAAP Net income. The Company adopted Financial Accounting Standards Board Accounting Standards Update 2020-06 on January 1, 2022 and such debt discount amortization is not recorded in the financial statements for periods after that date. | ||||
(k) | Excludes income taxes related to the redemption of convertible notes held for investment that were reclassified from Accumulated other comprehensive loss to Income tax expense. | ||||
(l) | Net unrecognized tax benefits related to French and Italian income tax matters is recorded in Income tax expense and excluded from Net income to calculate Non-GAAP Net income. | ||||
(m) | Reflects the tax impact of Non-GAAP adjustments above and changes in tax estimates which are excluded from Net income to calculate Non-GAAP Net income. | ||||
(n) | Cash used for additions to property and equipment is included in the calculation of Free cash flow. | ||||
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 definitions and information about the use of non-GAAP financial measures. |
Units Sold | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | |||||||||||||||||||||||||||||||||||||||||||||||
Room Nights | 76 | 99 | 157 | 183 | 151 | 198 | 246 | 240 | 211 | |||||||||||||||||||||||||||||||||||||||||||||||
Year/Year (Decline) Growth | (60.4) | % | (20.1) | % | 457.5 | % | 43.9 | % | 99.9 | % | 99.7 | % | 56.3 | % | 31.5 | % | 39.5 | % | ||||||||||||||||||||||||||||||||||||||
Rental Car Days | 8 | 10 | 13 | 13 | 11 | 15 | 16 | 16 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||
Year/Year (Decline) Growth | (52.2) | % | (15.1) | % | 558.8 | % | 44.0 | % | 35.8 | % | 53.0 | % | 22.4 | % | 24.9 | % | 27.6 | % | ||||||||||||||||||||||||||||||||||||||
Airline Tickets | 2 | 3 | 4 | 4 | 4 | 5 | 6 | 6 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||
Year/Year Growth | 4.0 | % | 62.1 | % | 626.7 | % | 154.8 | % | 108.0 | % | 69.1 | % | 31.4 | % | 45.1 | % | 61.5 | % | ||||||||||||||||||||||||||||||||||||||
Gross Bookings(2) | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | |||||||||||||||||||||||||||||||||||||||||||||||
Agency | $ | 5,098 | $ | 8,704 | $ | 15,290 | $ | 14,872 | $ | 11,875 | $ | 16,286 | $ | 19,448 | $ | 17,614 | $ | 14,031 | ||||||||||||||||||||||||||||||||||||||
Merchant | 2,215 | 3,232 | 6,665 | 8,812 | 7,136 | 11,007 | 15,097 | 14,506 | 13,263 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 7,313 | $ | 11,935 | $ | 21,956 | $ | 23,684 | $ | 19,011 | $ | 27,293 | $ | 34,545 | $ | 32,120 | $ | 27,294 | ||||||||||||||||||||||||||||||||||||||
Gross Bookings Year/Year (Decline) Growth | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency | (64.1) | % | 4.6 | % | 895.6 | % | 56.2 | % | 132.9 | % | 87.1 | % | 27.2 | % | 18.4 | % | 18.2 | % | ||||||||||||||||||||||||||||||||||||||
Merchant | (65.9) | % | (20.7) | % | 764.4 | % | 128.2 | % | 222.2 | % | 240.6 | % | 126.5 | % | 64.6 | % | 85.9 | % | ||||||||||||||||||||||||||||||||||||||
Total | (64.7) | % | (3.7) | % | 851.7 | % | 77.0 | % | 160.0 | % | 128.7 | % | 57.3 | % | 35.6 | % | 43.6 | % | ||||||||||||||||||||||||||||||||||||||
Constant-currency Basis | (65) | % | (6) | % | 802 | % | 75 | % | 164 | % | 140 | % | 73 | % | 52 | % | 58 | % | ||||||||||||||||||||||||||||||||||||||
4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 1,238 | $ | 1,141 | $ | 2,160 | $ | 4,676 | $ | 2,981 | $ | 2,695 | $ | 4,294 | $ | 6,052 | $ | 4,049 | ||||||||||||||||||||||||||||||||||||||
Year/Year (Decline) Growth | (62.9) | % | (50.2) | % | 243.2 | % | 77.1 | % | 140.7 | % | 136.3 | % | 98.7 | % | 29.4 | % | 35.8 | % | ||||||||||||||||||||||||||||||||||||||
Constant-currency Basis | (63) | % | (51) | % | 229 | % | 76 | % | 146 | % | 146 | % | 116 | % | 47 | % | 49 | % |