Booking Holdings Inc (NASDAQ:BKNG) stock fell 12.39% (As on Feb 24, 11:07:17 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the fourth quarter of FY 21. The quarterly revenue came in stronger than expected due to higher average daily rates, which were up about 9% on a constant currency basis, primarily in Europe and North America and in higher-demand leisure destinations. Goulden says higher adjusted EBITDA is credited to the higher than expected revenue and lower than expected operating expenses related to fixed expenses. The company’s operating expenses totaled $8.5 billion for the year. Gross travel bookings in Q4 2021 were $19 billion, nearly matching the Q4 2019 figure of $21 billion. Net income in the quarter was $618 million, compared with net loss of $165 million in the 4th quarter of 2020. Room nights booked in the 4th quarter increased 100% from the prior year quarter.

Moreover, the company is making progress on its connected trip strategy, with about 27% of Booking.com’s gross bookings processed through its payment platform, up from 22% in 2020 and 15% in 2019. The company is also continuing to improve Booking.com’s mobile app, which Fogel says it is the “center” of the connected trip experience. Mobile bookings represented about two-thirds of total room nights in Q4 and the full year 2021, and the majority of those were coming through the company’s apps. Goulden says the direct channel increased as a percentage of room nights in Q4 and full year 2021 relative to both 2020 and 2019. Regarding the flight product, Fogel says the company’s acquisition of Etraveli Group will help it accelerate development by bringing “critical flight expertise and technology in-house.” When the acquisition closes later this year, Etraveli will operate as an independent company within Booking Holdings. Booking.com’s flight platform is now live in 34 countries, which represent about 70% of Booking.com’s room nights booked in 2019, and 25% of its flight bookers are new customers to the site.

BKNG in the fourth quarter of FY 21 has reported the adjusted earnings per share of $15.83, beating the analysts’ estimates for the adjusted earnings per share of $12.73, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 141 percent to $2.98 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue by 2.72%.