# EDGAR Filing Document

**Accession Number:** 0001075531
**File Stem:** 0001075531-23-000012
**Filing Date:** 2023-2
**Character Count:** 38690
**Document Hash:** fa0be0b305e744f956664078606a1ab0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001075531-23-000012.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001075531-23-000012

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230223

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Booking Holdings Inc.
- **CENTRAL INDEX KEY:** 0001075531
- **STANDARD INDUSTRIAL CLASSIFICATION:** TRANSPORTATION SERVICES [4700]
- **IRS NUMBER:** 061528493
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36691
- **FILM NUMBER:** 23659522

**BUSINESS ADDRESS:**
- **STREET 1:** 800 CONNECTICUT AVE
- **CITY:** NORWALK
- **STATE:** CT
- **ZIP:** 06854
- **BUSINESS PHONE:** 203-299-8000

**MAIL ADDRESS:**
- **STREET 1:** 800 CONNECTICUT AVE
- **CITY:** NORWALK
- **STATE:** CT
- **ZIP:** 06854

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Priceline Group Inc.
- **DATE OF NAME CHANGE:** 20140328

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRICELINE COM INC
- **DATE OF NAME CHANGE:** 19981221

?xml version="1.0" ? bkng-20230223

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT** 

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported) February 23, 2023

**Booking Holdings Inc.** 

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **1-36691** | **06-1528493** |
| (State or other Jurisdiction of<br>Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

---

| | | | |
|:---|:---|:---|:---|
| **800 Connecticut Avenue** | **Norwalk** | **Connecticut** | **06854** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (zip code) |

---

Registrant's telephone number, including area code: **(203) 299-8000** 

**N/A** 

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of Each Class:** | **Trading Symbol** | **Name of Each Exchange on which Registered:** |
| Common Stock par value $0.008 per share | BKNG | The NASDAQ Global Select Market |
| 2.375% Senior Notes Due 2024 | BKNG 24 | The NASDAQ Stock Market LLC |
| 0.100% Senior Notes Due 2025 | BKNG 25 | The NASDAQ Stock Market LLC |
| 4.000% Senior Notes Due 2026 | BKNG 26 | The NASDAQ Stock Market LLC |
| 1.800% Senior Notes Due 2027 | BKNG 27 | The NASDAQ Stock Market LLC |
| 0.500% Senior Notes Due 2028 | BKNG 28 | The NASDAQ Stock Market LLC |
| 4.250% Senior Notes Due 2029 | BKNG 29 | The NASDAQ Stock Market LLC |
| 4.500% Senior Notes Due 2031 | BKNG 31 | The NASDAQ Stock Market LLC |
| 4.750% Senior Notes Due 2034 | BKNG 34 | The NASDAQ Stock Market LLC |

---

------

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Results of Operations and Financial Condition.**

On February 23, 2023, Booking Holdings Inc. announced its financial results for the fourth quarter and year ended December 31, 2022. The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. Copies of Booking Holdings' consolidated balance sheet at December 31, 2022, consolidated statements of operations for the three and twelve months ended December 31, 2022, and consolidated statement of cash flows for the twelve months ended December 31, 2022, are included in the financial and statistical supplement attached to the press release. The consolidated balance sheet at December 31, 2022, consolidated statements of operations for the three and twelve months ended December 31, 2022, and consolidated statement of cash flows for the twelve months ended December 31, 2022 shall be treated as "filed" for purposes of the Securities Exchange Act of 1934, as amended, but all other information in the press release shall be treated as "furnished."

**Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits**

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Description** |
| <u>[99.1](ex991123122.htm)</u> | Press release (which includes a financial and statistical supplement and related information) issued by Booking Holdings Inc. on February 23, 2023 relating to, among other things, its fourth quarter and year ended 2022 earnings.  |
| 104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| BOOKING HOLDINGS INC. | BOOKING HOLDINGS INC. | BOOKING HOLDINGS INC. |
| By: | /s/ David I. Goulden | /s/ David I. Goulden |
|  | Name: | David I. Goulden |
|  | Title: | Executive Vice President and Chief Financial Officer |

---

Date: February 23, 2023

## Exhibit 99.1

**Exhibit 99.1**

![rgb_inlinexfullcolorxcolora.jpg](rgb_inlinexfullcolorxcolora.jpg)

**Booking Holdings Reports Financial Results for 4**<sup>th</sup> **Quarter and Full Year 2022**

NORWALK, CT – February 23, 2023. . . Booking Holdings Inc. (NASDAQ: BKNG) today reported its 4<sup>th</sup> quarter and full year 2022 financial results. Fourth 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 $27.3 billion, an increase of 44% from the prior-year quarter (approximately a 58% increase on a constant-currency basis). Room nights booked in the 4<sup>th</sup> quarter of 2022 increased 39% from the prior-year quarter.

Booking Holdings' total revenues for the 4<sup>th</sup> quarter of 2022 were $4.0 billion, an increase of 36% from the prior-year quarter (approximately a 49% increase on a constant-currency basis). Net income for the 4<sup>th</sup> quarter of 2022 was $1.2 billion, an increase of 100% from the prior-year quarter. Net income per diluted common share in the 4<sup>th</sup> quarter of 2022 was $31.92, an increase of 114% from the prior-year quarter.

Non-GAAP net income in the 4<sup>th</sup> quarter of 2022 was $957 million, an increase of 46% from the prior-year quarter. Non-GAAP net income per diluted common share in the 4<sup>th</sup> quarter of 2022 was $24.74, an increase of 56% from the prior-year quarter. Adjusted EBITDA for the 4<sup>th</sup> quarter of 2022 was $1.2 billion, an increase of 32% from the prior-year quarter. 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, and the attached financial and statistical supplement reconciles non-GAAP financial results with Booking Holdings' financial results under GAAP.

For the full year 2022, Booking Holdings had gross travel bookings of $121.3 billion, an increase of 58% from the prior year (approximately a 73% increase on a constant-currency basis). Booking Holdings' total revenues for the full year 2022 were $17.1 billion, an increase of 56% from the prior year (approximately a 71% increase on a constant-currency basis). Net income for the full year 2022 was $3.1 billion, an increase of 162% from the prior year. Net income per diluted common share for the full year 2022 was $76.35, an increase of 171% from the prior year.

Non-GAAP net income for the full year 2022 was $4.0 billion, an increase of 111% from the prior year. Non-GAAP net income per diluted common share for the full year 2022 was $99.83, an increase of 118% from the prior year. Adjusted EBITDA for the full year 2022 was $5.3 billion, an increase of 82% from the prior year.

"Looking back at the full year of 2022, I am proud of our company's performance during what was a challenging and competitive environment. We generated our highest-ever level of revenue of $17 billion in the year, which increased 56% versus 2021 and was 13% higher than in 2019," said Glenn Fogel, Chief Executive Officer of Booking Holdings. "We are encouraged by the continued strength and resiliency of demand from travelers last year and into the new year, which we believe speaks to our consumers' strong desire to use our platforms when booking their travel."

------

**Non-GAAP Financial Measures** 

The 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 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;excludes an accrual related to the potential settlement of an Italian indirect tax matter,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• excludes significant losses on assets classified as held for sale,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• excludes significant gains and losses on sale and leaseback transactions,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• excludes gains and losses on equity securities with readily determinable fair values,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;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,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** excludes losses on early extinguishment of debt and related reverse treasury lock agreements which were designated as cash flow hedges,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• excludes amortization expense of intangible assets,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• excludes noncash interest expense related to the amortization of debt discount on our convertible debt, if applicable,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• excludes the impact of net unrecognized tax benefits related to French and Italian income tax matters, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;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-GAAP weighted-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

------

from the GAAP weighted-average number of diluted common shares outstanding are included in the non-GAAP weighted-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 twelve months ended December 31, 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: adverse changes in market conditions for travel services; the effects of competition; the Company's ability to manage growth and expand; the adverse impact of the COVID-19 pandemic; adverse changes in relationships with third parties on which the Company depends; success of the Company's marketing efforts; rapid technological and other market changes; the Company's ability to attract and retain qualified personnel; changes in the presentation of travel search results and the auctions for search placement; impacts of impairments and changes in accounting estimates; and other business and industry changes. Other risks and uncertainties relate to cyberattacks and information security; tax, legal, and regulatory risks; the Company's facilitation of payments; foreign currency exchange rates; financial risks relating to the Company's debt levels and stock price volatility; and the success of the Company's investments and acquisition strategy. 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: <u>Booking.com</u>, <u>Priceline</u>, <u>Agoda</u>, <u>Rentalcars.com,</u> <u>KAYAK</u> and <u>OpenTable</u>. The mission of Booking Holdings is to make it easier for everyone to experience the world. For more information, visit <u>BookingHoldings.com</u> and follow us on Twitter @BookingHoldings.

**###**

**For Press Information**: Leslie Cafferty <u>communications@bookingholdings.com</u>

**For Investor Relations**: John Longstreet <u>ir@bookingholdings.com</u>

#BKNG_Earnings

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**Booking Holdings Inc.**

**CONSOLIDATED BALANCE SHEETS**

**(In millions, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $12221 | $11127 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments (Available-for-sale debt securities:<br>Amortized cost of $176 and $25, respectively) | 175 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net (Allowance for expected credit losses of $117 and $101, respectively) | 2229 | 1358 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses, net (Allowance for expected credit losses of $18 and $29, respectively) | 477 | 404 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 696 | 231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 15798 | 13145 |
| Property and equipment, net | 669 | 822 |
| Operating lease assets | 645 | 496 |
| Intangible assets, net | 1829 | 2057 |
| Goodwill | 2807 | 2887 |
| Long-term investments (Includes available-for-sale debt securities:<br>Amortized cost of $576 at December 31, 2022) | 2789 | 3175 |
| Other assets, net (Allowance for expected credit losses of $5 and $18, respectively) | 824 | 1059 |
| &nbsp;&nbsp;Total assets | $25361 | $23641 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $2507 | $1586 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 3244 | 1765 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred merchant bookings | 2223 | 906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term debt | 500 | 1989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 8474 | 6246 |
| 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 | 11985 | 8937 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 22579 | 17463 |
| Commitments and contingencies |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.008 par value,<br>Authorized shares: 1,000,000,000 <br>Issued shares: 63,780,528 and 63,584,444, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock: 25,917,558 and 22,518,391 shares, respectively | (30983) | (24290) |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 6491 | 6159 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 27541 | 24453 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (267) | (144) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 2782 | 6178 |
| &nbsp;&nbsp;Total liabilities and stockholders' equity | $25361 | $23641 |

---

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**Booking Holdings Inc.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In millions, except share and per share data)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| | **(unaudited)** | **(unaudited)** | | |
| Agency revenues | $2049 | $1751 | $9003 | $6663 |
| Merchant revenues | 1780 | 1040 | 7193 | 3696 |
| Advertising and other revenues | 220 | 190 | 894 | 599 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 4049 | 2981 | 17090 | 10958 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing expenses | 1314 | 974 | 5993 | 3801 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and other expenses | 474 | 261 | 1818 | 881 |
| &nbsp;&nbsp;&nbsp;&nbsp;Personnel, including stock-based compensation of $102, $86, $404 and $370, respectively | 598 | 485 | 2465 | 2314 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 307 | 188 | 934 | 620 |
| &nbsp;&nbsp;&nbsp;&nbsp;Information technology | 126 | 123 | 526 | 412 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 124 | 98 | 451 | 421 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring, disposal, and other exit activities | (239) | 4 | (199) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 2704 | 2133 | 11988 | 8462 |
| Operating income | 1345 | 848 | 5102 | 2496 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (145) | (75) | (391) | (334) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 252 | 43 | (788) | (697) |
| Income before income taxes | 1452 | 816 | 3923 | 1465 |
| Income tax expense | 217 | 198 | 865 | 300 |
| Net income | $1235 | $618 | $3058 | $1165 |
| 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) | 38524 | 41072 | 39872 | 41042 |
| 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) | 38709 | 41371 | 40052 | 41362 |

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**Booking Holdings Inc.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In millions)**

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| | | |
|:---|:---|:---|
| | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2022** | **2021** |
| OPERATING ACTIVITIES: |  |  |
| Net income | $3058 | $1165 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 451 | 421 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for expected credit losses and chargebacks | 232 | 109 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax benefit | (257) | (445) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net losses on equity securities | 963 | 569 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense and other stock-based payments | 404 | 376 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease amortization | 156 | 178 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized foreign currency transaction gains related to Euro-denominated debt | (46) | (135) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on early extinguishment of debt |  | 242 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale and leaseback transaction | (240) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 38 | 71 |
| Changes in assets and liabilities, net of effects of acquisitions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (1228) | (1002) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (217) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred merchant bookings and other current liabilities | 3718 | 1539 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term assets and liabilities | (478) | (274) |
| Net cash provided by operating activities | 6554 | 2820 |
| INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of investments | (768) | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale and maturity of investments | 32 | 508 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions to property and equipment | (368) | (304) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions, net of cash acquired |  | (1185) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale and leaseback transaction | 601 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investing activities | (15) |  |
| Net cash used in investing activities | (518) | (998) |
| FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the issuance of long-term debt | 3621 | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on maturity and redemption of debt | (1880) | (3068) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for repurchase of common stock | (6621) | (163) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financing activities | (17) | (23) |
| Net cash used in financing activities | (4897) | (1239) |
| 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 | 1099 | 570 |
| Total cash and cash equivalents and restricted cash and cash equivalents, beginning of period | 11152 | 10582 |
| Total cash and cash equivalents and restricted cash and cash equivalents, <br> end of period | $12251 | $11152 |
| SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid during the period for income taxes | $600 | $735 |
| &nbsp;&nbsp;&nbsp;Cash paid during the period for interest | $380 | $318 |

---

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**Booking Holdings Inc.**

**UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION**

**(In millions, except share and per share data)** <sup>(1)</sup>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA** | **RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA** | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
|  |  | **2022** | **2021** | **2022** | **2021** |
|  | Net income | $1235 | $618 | $3058 | $1165 |
| **(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 | $1241 | $940 | $5295 | $2904 |
|  | *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 %* |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME APPLICABLE TO COMMON STOCKHOLDERS PER DILUTED COMMON SHARE** | **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<br>December 31,** | **Three Months Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
|  |  | **2022** | **2021** | **2022** | **2021** |
|  | Net income | $1235 | $618 | $3058 | $1165 |
| **(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 | $3998 | $1893 |
|  | Weighted-average number of diluted common shares outstanding (in 000's) | 38709 | 41371 | 40052 | 41362 |
|  | 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 |

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| | | | |
|:---|:---|:---|:---|
| **RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW** | **RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
|  |  | **2022** | **2021** |
|  | Net cash provided by operating activities | $6554 | $2820 |
| **(n)** | Additions to property and equipment | (368) | (304) |
|  | Free cash flow | $6186 | $2516 |
|  | *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 %* |

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<sup>(1)</sup> *Amounts may not total due to rounding.*

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| | |
|:---|:---|
| | **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<br>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.* |

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**Booking Holdings Inc.**

*Statistical Data*

In millions<sup>(1)</sup>

*(Unaudited)* 

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Units Sold** | **4Q20** | **1Q21** | **2Q21** | **3Q21** | **4Q21** | **1Q22** | **2Q22** | **3Q22** | **4Q22** |
| Room Nights | 76 | 99 | 157 | 183 | 151 | 198 | 246 | 240 | 211 |
| &nbsp;&nbsp;&nbsp;*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 |
| &nbsp;&nbsp;&nbsp;*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 |
| &nbsp;&nbsp;&nbsp;*Year/Year Growth* | *4.0 %* | *62.1 %* | *626.7 %* | *154.8 %* | *108.0 %* | *69.1 %* | *31.4 %* | *45.1 %* | *61.5 %* |
| **Gross Bookings**<sup>(2)</sup> | **4Q20** | **1Q21** | **2Q21** | **3Q21** | **4Q21** | **1Q22** | **2Q22** | **3Q22** | **4Q22** |
| Agency | $5098 | $8704 | $15290 | $14872 | $11875 | $16286 | $19448 | $17614 | $14031 |
| Merchant | 2215 | 3232 | 6665 | 8812 | 7136 | 11007 | 15097 | 14506 | 13263 |
| &nbsp;&nbsp;&nbsp;Total | $7313 | $11935 | $21956 | $23684 | $19011 | $27293 | $34545 | $32120 | $27294 |
| ***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 %* |
| &nbsp;&nbsp;&nbsp;*Total* | *(64.7) %* | *(3.7) %* | *851.7 %* | *77.0 %* | *160.0 %* | *128.7 %* | *57.3 %* | *35.6 %* | *43.6 %* |
| &nbsp;&nbsp;&nbsp;*Constant-currency Basis* | *(65) %* | *(6) %* | *802 %* | *75 %* | *164 %* | *140 %* | *73 %* | *52 %* | *58 %* |
|  | **4Q20** | **1Q21** | **2Q21** | **3Q21** | **4Q21** | **1Q22** | **2Q22** | **3Q22** | **4Q22** |
| **Total Revenues** | $1238 | $1141 | $2160 | $4676 | $2981 | $2695 | $4294 | $6052 | $4049 |
| &nbsp;&nbsp;&nbsp;*Year/Year (Decline) Growth* | *(62.9) %* | *(50.2) %* | *243.2 %* | *77.1 %* | *140.7 %* | *136.3 %* | *98.7 %* | *29.4 %* | *35.8 %* |
| &nbsp;&nbsp;&nbsp;*Constant-currency Basis* | *(63) %* | *(51) %* | *229 %* | *76 %* | *146 %* | *146 %* | *116 %* | *47 %* | *49 %* |

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<sup>(1)</sup> *Amounts may not total due to rounding.*

<sup>(2)</sup> *Gross bookings is an operating and statistical metric that captures the total dollar value, generally inclusive of taxes and fees, of all travel services booked by our customers, net of cancellations.*

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