Booking Holdings Stock: 3 Key Numbers to Watch in 2023

Booking Holdings (BKNG) is one of the world's leading online travel agencies. The company operates a portfolio of brands including Booking.com, Priceline, Agoda, and Rentalcars.com.

In 2022, Booking Holdings generated $17.8 billion in revenue, up 29% year-over-year. The company's net income was $4.6 billion, up 44% year-over-year.

For 2023, Booking Holdings expects to generate between $19.5 billion and $20.5 billion in revenue, up 9-15% year-over-year. The company expects its net income to be between $5.4 billion and $6.0 billion, up 18-30% year-over-year.

Here are three key numbers to watch in 2023:

Gross Bookings

Gross bookings are the total value of all bookings made on Booking Holdings' platforms. In 2022, Booking Holdings generated $96.3 billion in gross bookings, up 30% year-over-year.

For 2023, Booking Holdings expects to generate between $108 billion and $114 billion in gross bookings, up 12-19% year-over-year.

Gross bookings are a key metric for Booking Holdings because they represent the total value of the bookings that the company can generate without marketing. As gross bookings increase, Booking Holdings can increase its revenue and profitability through advertising and other forms of marketing.

Adjusted EBITDA

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is a measure of Booking Holdings profitability. In 2022, Booking Holdings generated $7.2 billion in adjusted EBITDA, up 38% year-over-year.

For 2023, Booking Holdings expects to generate between $8.2 billion and $9.2 billion in adjusted EBITDA, up 14-28% year-over-year.

Adjusted EBITDA is a key metric for Booking Holdings because it represents the company's cash flow from operations. As adjusted EBITDA increases, Booking Holdings can increase its investments in new products and services, as well as its marketing and advertising efforts.

Net Income

Net income is the bottom line for Booking Holdings. In 2022, Booking Holdings generated $4.6 billion in net income, up 44% year-over-year.

For 2023, Booking Holdings expects to generate between $5.4 billion and $6.0 billion in net income, up 18-30% year-over-year.

Net income is a key metric for Booking Holdings because it represents the company's profits that can be used for investments, acquisitions, or shareholder dividends. As net income increases, Booking Holdings can increase its return on investment for shareholders.

Common Mistakes to Avoid

Here are some common mistakes that investors should avoid when investing in Booking Holdings:

• Overestimating the growth of the online travel market. The online travel market is growing rapidly, but it is important to be realistic about the expectations for growth.
• Underestimating the competition. Booking Holdings faces competition from a number of other online travel agencies, as well as from traditional travel agents.
• Overpaying for the stock. Booking Holdings is a great company, but it is important to pay a fair price for the stock.

Pros and Cons

Here are some of the pros and cons of investing in Booking Holdings:

Pros:

• Leading market position. Booking Holdings is one of the world's leading online travel agencies.
• Strong financial performance. The company has a solid track record of financial performance.
• Growth potential. The online travel market is growing rapidly, and Booking Holdings is well-positioned to benefit from this growth.

Cons:

• Competition. Booking Holdings faces competition from a number of other online travel agencies, as well as from traditional travel agents.
• Regulatory risk. The online travel industry is subject to regulation, which could impact Booking Holdings' business.
• Economic downturn. A downturn in the economy could lead to a decrease in travel spending, which could impact Booking Holdings' business.

4 Useful Tables

Here are four useful tables that provide additional information about Booking Holdings: