Guidance Tempers Priceline's 40+% Rise in Q4, FY Profit

Priceline.com Incorporated

PCLN

reported fourth quarter and full-year 2013 results on Thursday following the market close. Darren Huston, President and CEO of The Priceline Group commented, "The Priceline Group finished 2013 with a strong 4th quarter, reporting accelerating hotel, rental car and airline ticket unit growth. The Group's full year room night reservations of 271 million grew by 37%, as compared to 40% in 2012, reflecting only modest deceleration on a large scale business." In the press release, Huston remarked on 2014 estimates noting, "The Group's brands are off to a solid start in 2014, with continued investment in broadening our offerings, building our brands and providing a superior experience to our customers."

Fourth Quarter Results

Priceline.com reported Q4 EPS of $8.85 versus the estimated $8.29, beating by $0.56. EPS were up 31% from the same quarter last year.
Revenue came in at $1.54 billion versus the estimated $1.52 billion.
Gross profit for Q4 was $1.3 billion, a 41.9% increase from the prior year.
Management reported that International operations contributed $1.15 billion in gross profit in the 4th quarter, or 38% increase versus a year ago.
Adjusted EBITDA for the 4th quarter 2013 was reported at $578 million, a 35.8% increase over a year ago.
Non-GAAP net income in the 4th quarter increased 35.2% from the prior year to $471 million.
Non-GAAP net income cam in at $8.85 per diluted share, compared to $6.77 per diluted share a year ago.

Full-Year Results

Priceline.com had $39.2 billion travel bookings, a 37.7% increase compared to 2012.
Gross profit increased 40% from 2012 to $5.7 billion in 2013.
Management reported that International operations contributed full-year gross profit of $5.02 billion, a 41% increase versus the prior year.
Priceline.com reported GAAP net income of $1.9 billion, or $36.11 per diluted share. In 2012, the company reported GAAP net income of $1.4 billion, or $27.66 per diluted share in 2012.
Non-GAAP net income for 2013 increased 36.3% from the prior year to $2.2 billion. Non-GAAP net income came in at $41.72 per diluted share, compared to $31.28 per diluted share a year ago.
Full-Year 2013 adjusted EBITDA increased 35.9% from a year ago to $2.7 billion.

Guidance for 1Q14

The company is looking for Q1 EPS of $6.35-6.85 versus $7.11 analyst estimate.
Priceline.com estimates a 23%-33% in a year-over-year increase in total gross travel bookings.
Management estimates a 25%-35% in a year-over-year increase in international gross travel bookings.
The company is looking for a 15%-20% increase in year-over-year increase in domestic gross travel bookings.
Priceline.com is looking for a 15%-25% increase in year-over-year increase in revenue.
Management estimates a 22%-32% in a year-over-year increase in gross profits.
The company estimated adjusted EBITDA for the first quarter to be approximately $420 million to $450 million.
Non-GAAP net income per diluted share for Q1 is projected to be between $6.35 and $6.85.

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