Booking Holdings Inc. (NASDAQ: BKNG ) stock traded 6% lower in premarket Thursday as the online travel agency lagged on crucial operational parameters even at the end of the fourth quarter.
The stock was under extra pressure due to the developing international crisis arising out of Russia’s invasion of Ukraine.
The company said it had seen “meaningful improvement” in bookings so far in the first quarter. But added that Covid could still have a negative impact on travel in periods during the rest of this year.
Financial Highlights
Booking Holdings’ total revenues for the 4th quarter of 2021 were $3.0 billion, an increase of 141% from the prior-year quarter. The Company reported net income in the 4th quarter of 2021 of $618 million, compared with a net loss of $165 million in the 4th quarter of 2020. The 4th quarters of 2021 and 2020 include net gains on equity securities of $20 million and $552 million, respectively.
Net income per diluted common share in the 4th quarter of 2021 was $14.94, compared with net loss per diluted common share of $4.02 in the 4th quarter of 2020. Non-GAAP net income in the 4th quarter of 2021 was $654 million. It is compared with a non-GAAP net loss in the 4th quarter of 2020 of $23 million.
Non-GAAP net income per diluted common share in the 4th quarter of 2021 was $15.83. It is compared with the non-GAAP net loss per diluted common share of $0.57 in the 4th quarter of 2020. NonGAAP net income (loss) for both periods includes adjustments to exclude net gains or losses on equity securities with readily determinable fair values. Foreign currency transaction gains or losses on the remeasurement of Euro-denominated debt that was not designated as a hedging instrument.
Additionally, non-GAAP net income in the 4th quarter of 2021 includes an adjustment to exclude significant gains on equity securities without readily determinable fair values. Adjusted EBITDA for the 4th quarter of 2021 was $940 million, compared with an adjusted EBITDA loss of $38 million in the 4th quarter of 2020.
The section below under the heading “Non-GAAP Financial Measures” provides definitions and information about the use of non-GAAP financial measures in this press release. The attached financial and statistical supplement reconciles non-GAAP financial results with Booking Holdings’ financial results under GAAP.
In comparison, rivals Airbnb (NASDAQ: ABNB ) and Expedia (NASDAQ: EXPE ) had beaten expectations while disclosing their recent quarterly results. Airbnb said it was benefiting from people looking to stay at rented properties for longer durations. They were also paying more, it said.
Chief Financial Officer David Goulden told analysts, the company is seeing stronger signs of a recovery underway this month. Room nights for the first half of February were close to 2019 levels, with particularly strong growth in the US, he said.
