The Top 5 Analyst Questions That Stood Out During Booking’s Q4 Earnings Call

Booking Q4 Results: Key Takeaways

Booking Holdings' fourth-quarter performance led to a drop in its share price, even though both revenue and adjusted earnings surpassed analyst forecasts. Leadership credited the company's growth to strong travel demand worldwide and increased spending on digital marketing, especially in Asia and the United States. CEO Glenn Fogel pointed to the ongoing expansion of the Genius loyalty program and the adoption of generative AI in customer support as important drivers. CFO Ewout Steenbergen remarked that customer service expenses have declined while bookings have climbed by roughly 10%.

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Highlights from Booking’s Q4 FY2025

• Revenue: $6.35 billion, beating the $6.13 billion estimate (16% year-over-year growth, 3.6% above expectations)
• Adjusted EPS: $48.80, matching analyst projections
• Adjusted EBITDA: $2.20 billion, exceeding the $2.11 billion estimate (34.6% margin, 3.9% above forecast)
• Operating Margin: 32%, consistent with the prior year’s quarter
• Room Nights Booked: 285 million, an increase of 24 million compared to last year
• Market Cap: $128.9 billion

While management’s prepared remarks are always insightful, the unscripted analyst Q&A often reveals the most interesting details—sometimes surfacing challenging topics or complex issues. Here are the questions that stood out to us this quarter:

Top 5 Analyst Questions from the Q4 Earnings Call

• Mark Stephen Mahaney (Evercore): Asked about the sustainability of higher marketing expenses. CEO Glenn Fogel responded that the company is flexible with marketing investments, aiming to balance short-term spending with long-term brand value.
• Lee Horowitz (Deutsche Bank): Queried the economic impact and rollout speed of Booking’s agentic AI features. CFO Ewout Steenbergen reported early signs of faster searches, better conversion rates, and fewer cancellations, but noted that the sample size is still small and no rollout timeline was provided.
• Eric Sheridan (Goldman Sachs): Inquired about the trajectory and investment in the Genius loyalty program. Fogel emphasized that loyalty remains a central focus, with Genius members accounting for a growing share of bookings and hinted at further improvements, though details were not shared.
• Alex Brignall (Rothschild & Company): Sought clarity on Booking’s partnerships with large language model providers and its competitive edge. Fogel argued that Booking’s complex payment and supplier systems set it apart, making it difficult for rivals to deeply integrate LLMs.
• Trevor Young (Barclays): Asked about the outlook for alternative accommodations and the potential for renewed growth. Fogel and Steenbergen highlighted ongoing investments in this area, particularly in expanding supply, but did not specify a growth target.

What to Watch in the Coming Quarters

Looking forward, StockStory analysts will be monitoring several factors: the adoption and monetization of Booking’s AI-powered tools and Connected Trip features, the effectiveness of ongoing investments in Asia and the U.S., and whether the company can maintain operational improvements from its Transformation Program. Additional focus areas include enhancements to the Genius loyalty program and progress in alternative accommodations.

Booking’s stock is currently trading at $4,070, down from $4,270 before the earnings release. Is now the right time to buy or sell?

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