Summary
Priceline.com Incorporated (now Booking Holdings Inc.) filed an 8-K on November 10, 2009, to report its third-quarter 2009 financial results and provide fourth-quarter guidance. The company experienced a year-over-year decrease in average daily hotel rates, down approximately 7% internationally and 11% domestically. While foreign currency exchange rates had a net favorable impact compared to prior guidance, they negatively impacted year-over-year results. The report also detailed significant expense guidance for Q4 2009, including advertising, sales & marketing, personnel, and general & administrative costs.
Key Highlights
- 1Priceline.com reported Q3 2009 financial results and provided Q4 2009 guidance.
- 2Average daily hotel rates decreased year-over-year: ~7% internationally, ~11% domestically.
- 3Foreign currency exchange rates had a net favorable impact on Q3 results versus guidance, but a negative year-over-year impact.
- 4Q4 2009 guidance included consolidated advertising expenses of $94-$97 million, with ~94% online.
- 5Sales and marketing expenses were estimated between $20-$21 million for Q4 2009.
- 6Personnel costs (excluding stock-based compensation) were projected at $40-$41 million for Q4 2009.
- 7Agoda reported significant gross bookings growth in Q3 2009, exceeding 100% year-over-year.