TMTB: BKNG SNAP SPOT PYPL Earnings Call Summaries
BKNG -3%
Key quotes on Macro/Demand Trends
“We observed notable changes in certain travel patterns. For example, we saw a moderation in trends for inbound travel into the US, particularly from bookers in Canada and to a lesser extent from bookers in Europe. However, we also saw an improvement in trends in other travel corridors, for example, from Canada to Mexico, resulting in stable growth overall. We saw a decrease in length of stay in the US, which could indicate that US consumers are becoming more careful with their spending. We also saw some evidence of a bifurcated economy in the US as higher-star rating hotels appear to be more resilient than lower-star rating hotels”…
For us, it doesn’t matter…we are agnostic to where they are traveling because usually they are spending the same amount just at another destination and the fact that we are globally so well-diversified…a little bit over 50% of our business is in Europe, about 25% is in Asia, low-double-digits…in the US…
I think the headline answer there is we see stable demand globally…from January and up till today in April, we have seen very stable demand and don’t see any impact from the general economic environment in our business.
Q&A:
Glenn D. Fogel — Chief Executive Officer
Ewout Steenbergen — Chief Financial Officer
Q: What makes vertical-specific AI agents valuable versus broad platforms?
A (Glenn): Travel-focused agents leverage our data and personalization to execute bookings seamlessly, while partnerships with hyperscalers let us fulfil demand that flows through general agents.
Q: Are shifting travel corridors changing where you invest?
A (Ewout): Demand is stable; our diversified platform reallocates volume automatically, so we’re not altering strategic investments, but if uncertainty bites we can lean in where ROI is attractive.
Q: Why focus on attractions now, and when will AI agents exit beta?
A (Glenn): Attractions grew 92 % and complete the connected trip; agents like Penny and the Booking AI Trip Planner improve daily—full roll-outs will come as accuracy reaches consumer-ready levels.
Q: What’s driving lower incremental ROIs in performance marketing?
A (Ewout): Social-media channels scaled at attractive returns, and experiments in traditional channels uncovered incremental volume with slightly lower but still positive ROIs; overall marketing leverage is still expected.
Q: Why widen full-year guidance if trends are stable?
A (Ewout): The range of macro outcomes has broadened; high-end targets remain intact, but prudence calls for wider bands given potential consumer-confidence swings.
Q: Will you lean in if U.S. demand softens?
A (Glenn): Yes—historically we gain share during downturns by helping partners fill rooms and by investing aggressively where the economics are compelling.
Q: Do alt-accom ADRs differ materially from hotels?
A (Ewout): Economics are similar; faster alt-accom growth hasn’t hurt ADRs or margins—our post-SBC EBITDA margin is roughly 50 % higher than the largest alt-accom competitor.
Q: How are suppliers engaging with Genius during softer periods?
A (Glenn): Properties value incremental, non-cannibalizing demand; Genius tiers and targeted tools (mobile rates, geo-rates) let partners capture business efficiently.
Q: What ceiling do you envision for direct bookings, and how will Gen-AI affect mix?
A (Glenn): Direct share will keep rising but never reach 100 %; Gen-AI can lower acquisition costs via new channels while our own AI tools deepen loyalty and drive more direct traffic.
Q: Any competitive or investment shifts tied to macro conditions?
A (Ewout): We see opportunities to help suppliers fill seats and rooms, bring more alt-accom inventory onto our platform, and expand performance-marketing presence should macro softness create attractive ROI openings.
SNAP -13%
Macro Conditions & Demand Environment
“…the macro is changing quickly and the path going forward isn’t entirely clear… thus far in Q2 we’re still growing, but we’ve seen headwinds… we’ve heard from a subset of advertisers that their spending has been impacted by changes to the de-minimis exemption… we will balance investments with realized revenue growth and keep a strong balance sheet to remain flexible.”
User Growth & Engagement
“Q1 marked an important milestone as we reached 900 million monthly active users… our community grew to 460 million DAU, up 38 million y/y, with North America 99 million, Europe 99 million and Rest-of-World 262 million… content viewers and total time spent watching content both increased y/y… we’re not expecting further declines here in Q2 in North America.”
Geographic Performance & Monetization
“North America revenue growth accelerated to 12 % y/y; Europe grew 14 % and Rest-of-World 20 %… global ad impressions rose 17 %, while ECPMs fell about 7 % as inventory growth outpaced demand.”
Revenue Momentum
“In Q1, total revenue was $1.363 billion, up 14 % y/y… advertising revenue was $1.211 billion, up 9 %, driven by AR ads +14 %… other revenue surged 75 % to $152 million, powered by Snapchat Plus.”
Direct Response & SMB Expansion
“Direct-response ads contributed 75 % of total ad revenue for the first time… total active advertisers grew 60 % y/y, driven by SMB momentum… bigger, fresher models, dynamic product ads and goal-based bidding in sponsored Snaps are the levers to accelerate growth… early adopters of target-cost bidding saw a 32 % drop in cost-per-purchase and 16 % lift in ROAS.”
Ad-Platform Machine Learning
“We improved model freshness and scale, boosting learning speed six-fold and expanding historical interaction data five-fold… SKAdNetwork-reported app purchases grew 30 %+ y/y, while Foot Locker cut CPA 49 % and more than doubled ROAS after adopting conversions API and pixel optimization.”
Snapchat Plus Subscription Growth
“Snapchat Plus revenue rose 75 % y/y to an annualized run-rate just over $600 million, with subscribers nearing 15 million (up 5 million / 59 % y/y).”
Profitability & Cash Generation
“The combination of top-line progress and expense discipline produced $108 million adjusted EBITDA and $114 million free cash flow… flow-through reached 37 %… net loss narrowed to $140 million, down 54 % y/y, and trailing-12-month free cash flow hit $295 million.”
Augmented Reality & Spectacles
“Six months after launching fifth-gen Spectacles we added GPS integration, advanced hand-tracking, a grab gesture, phone-detector and leaderboards… we support 400 k+ AR creators who built 4 million+ lenses and launched Spectacles community challenges to reward new creations.”
Q&A
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