Market Overview

Highlights from Priceline's Q4 Earnings Conference Call

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Below are some highlights from Priceline's (NASDAQ: PCLN) fourth-quarter earnings conference call:

  • Effective offline advertising campaign experiment. Will look continue offline advertising in the future.
    • $220-240 million in offline advertising expected in ‘14.
  • For first time in 2013 Booking.com largest U.S. reservation destination.
  • Booking.com had 1 billion in mobile sales in ‘12, that number increased x3 in ‘13.
  • More regular types of bookings on mobile devices versus last minute bookings.
  • Good handle on ROI of mobile downloads; don't want to chase download numbers.
  • Working to connect screens when transferring between mobile devices.
  • 27% gross booking growth for US Priceline.com.
  • Better than forecasted operating margins.
  • Operating margins affected by Booking.com TV campaign and offline advertising.
  • Continued pressure on ROI, but lesser in Q4 versus previous quarters.
  • Spent 27 million on Capex in Q4.
  • $420-440 million adjusted EBITDA expected.
  • Expecting US gross bookings 15-20% growth
  • Currency exchange rates had negative effect in ‘13.
    • Expect currency fluctuations to be neutral to growth in ‘14.
    • Hedge contracts in place on for the British Pound and Euro.
  • Gross profit growth will be affected by Easter.
  • Forecasting declaration in gross profit line.
  • Vacation rentals are a natural expansion into booking.com
    • Ultimately want vacation rentals to be as easy as book a hotel room.
  • Thailand market not a major concern for global business.
  • Q4 and Q1 peak season for South America and Asia Pacific.
  • Focusing on organic growth will remain top priority.
    • Acquisitions will always be considered, but not necessary.
  • Increased pace of innovation as landscape evolves.
  • No intention to make kayak a Priceline.com only marketplace
  • All of reviews are from verified guest; all reviews are recent reviews; no reviews on site are older than 14 months old.
  • Don't naturally do a lot of couponing. Prefers to be an everyday low price option for consumers.

Posted-In: Earnings News

 

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