Booking Holdings Inc (NASDAQ:BKNG) stock rose 4.40% (As on November 3, 11:40:33 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. For the full third quarter, global room night growth was 8%, with Europe high single digits; the U.S. up almost 30%; rest of world, up over 10%; and Asia, down mid single digits. September was the first month of room night growth in Asia versus 2019 as the delayed recovery continues in that region. And mobile apps represented about 45% of our Q3 total room nights, an increase of slightly over 40% in the second quarter. Total mobile bookings represented over 60% of the total room nights in the third quarter, also an increase from the second quarter. The international mix of the total room night in Q3 was about 45%, in line with Q2. Our Q3 cancellation rates continue to be below 2019 levels as they were in Q2. Q3 gross bookings increased 27% versus 2019 or 41% on a constant currency basis. The 27% increase in gross bookings was 19 percentage points better than the 8% room nights increase due to 28% higher accommodation constant currency ADRs and also due to 4 points from strong flight gross bookings across the group, partially offset by the 14% points of negative impacts FX movements.
Moreover, Airline tickets booked in the third quarter were up about 235% versus a small base in 2019, up 45% versus 2021, driven by the continued expansion of Booking.com’s flight offering. Revenue for the third quarter was over 6 billion, which was up 20% versus 2019 and up about 34% on a constant currency basis.
BKNG in the third quarter of FY 22 has reported the adjusted earnings per share of $53.03, beating the analysts’ estimates for the adjusted earnings per share of $49.40, according to Zacks Investment Research. The company had reported the adjusted revenue of $6.05 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $5.91 billion. Q3 ending cash and investment balance of $11.8 billion was down with Q2 ending balance of $14.2 billion, primarily driven by about $2 billion in share repurchases in Q3, as well as the unrealized losses on the equity investments.
For the full year, the company expects the revenue as a percentage of gross bookings to be just over 14%.