The Priceline Group
Priceline Group Inc. (Form: 8-K, Received: 08/08/2017 16:05:40)


SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported) August 8, 2017
 
The Priceline Group Inc.
(Exact name of registrant as specified in its charter)
 
Delaware
 
1-36691
 
06-1528493
(State or other Jurisdiction of
Incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
800 Connecticut Avenue, Norwalk, Connecticut
 
06854
(Address of principal office)
 
(zip code)
 
N/A 
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o             Soliciting material pursuant to Rule 14a-12  under the Exchange Act (17 CFR 240.14a-12)
 
o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o             Pre-commencement communications pursuant to Rule 13e-4c  under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐








Item 2.02.              Results of Operations and Financial Conditions
 
On August 8, 2017 , The Priceline Group Inc. announced its financial results for the quarter ended June 30, 2017 .  The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. Copies of The Priceline Group's unaudited consolidated balance sheet at June 30, 2017 , unaudited consolidated statements of operations for the three and six months ended June 30, 2017 and unaudited consolidated statement of cash flows for the six months ended June 30, 2017 , are included in the financial and statistical supplement attached to the press release.  The unaudited consolidated balance sheet at June 30, 2017 , unaudited consolidated statements of operations for the three and six months ended June 30, 2017 and unaudited consolidated statement of cash flows for the six months ended June 30, 2017 shall be treated as "filed" for purposes of the Securities Exchange Act of 1934, as amended, but all other information in the press release shall be treated as "furnished."

Item 9.01.           Financial Statements and Exhibits
 
(d)    Exhibits

Exhibit
Number
Description
 
 
Press release (which includes a financial and statistical supplement and related information) issued by The Priceline Group Inc. on August 8, 2017 relating to, among other things, its second quarter 2017 earnings. The unaudited consolidated balance sheet at June 30, 2017 and unaudited consolidated statement of operations for the three and six months ended June 30, 2017 and unaudited consolidated statement of cash flows for the six months ended June 30, 2017 shall be treated as "filed" for the purposes of the Securities and Exchange Act of 1934, as amended, and the remaining information shall be treated as "furnished."


 








SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
THE PRICELINE GROUP INC.
 
 
 
 
 
 
By:
/s/ Peter J. Millones
 
 
Name:
Peter J. Millones
 
 
Title:
Executive Vice President, General Counsel and Secretary
 
 
Date:  August 8, 2017






EXHIBIT INDEX
 
Exhibit
Number
Description
 
 
Press release (which includes a financial and statistical supplement and related information) issued by The Priceline Group Inc. on August 8, 2017 relating to, among other things, its second quarter 2017 earnings. The unaudited consolidated balance sheet at June 30, 2017 and unaudited consolidated statement of operations for the three and six months ended June 30, 2017 and unaudited consolidated statement of cash flows for the six months ended June 30, 2017 shall be treated as "filed" for the purposes of the Securities and Exchange Act of 1934, as amended, and the remaining information shall be treated as "furnished."










Exhibit 99.1
PRICELINELOGO2017.JPG

The Priceline Group Reports Financial Results for 2 nd Quarter 2017

NORWALK, CT – August 8, 2017 . . . The Priceline Group Inc. (NASDAQ: PCLN) today reported its 2 nd quarter 2017 financial results. Second quarter gross travel bookings for The Priceline Group (the "Company," the "Group," "we," "our" or "us"), which refers to the total dollar value, generally inclusive of taxes and fees, of all travel services booked by its customers, net of cancellations, were $20.8 billion , an increase of 16% over a year ago (approximately 19% on a constant-currency basis).
The Group's gross profit for the 2 nd quarter was $3.0 billion , a 21% increase from the prior year (approximately 24% on a constant-currency basis). International operations contributed gross profit in the 2 nd quarter of $2.6 billion , a 24% increase versus a year ago (approximately 26% on a constant-currency basis). Net income in the 2 nd quarter was $720 million , a 24% increase versus the prior year. Net income was $14.39 per diluted share, a 24% increase as compared to the prior year.
Non-GAAP net income in the 2 nd quarter was $758 million , a 20% increase versus the prior year. Non-GAAP net income was $15.14 per diluted share, a 20% increase compared to $12.59 per diluted share a year ago. Adjusted EBITDA for the 2 nd quarter 2017 was $974 million , a 20% increase versus a year ago. The section below entitled " Non-GAAP Financial Measures " provides definitions and information about the use of non-GAAP financial measures in this press release, and the attached financial and statistical supplement reconciles non-GAAP financial information with the Group's financial results under GAAP.
"The Priceline Group achieved strong results for the second quarter," said Glenn Fogel, Chief Executive Officer of the Priceline Group. "Globally, our accommodation business booked 170 million room nights in the quarter, up 21% over the same period last year." Looking forward, Mr. Fogel said, "We are pleased with the performance of the business and will continue to build our franchise by adding properties to the platform and by investing in technology, customer experience and content expansion."


1



The Group's guidance for the 3 rd quarter of 2017 is as follows:
 
 
Guidance Ranges
(U.S. Dollars in millions, except per share amounts)
 
Low
 
High
Metrics
 
 
 
 
Year over year growth - Room nights booked
 
11
%
 
16
%
Year over year growth - Total gross travel bookings
 
11
%
 
16
%
Year over year growth - Total gross travel bookings
(constant currency)
 
9
%
 
14
%
 
 
 
 
 
GAAP
 
 
 
 
Year over year growth - Gross profit
 
15.5
%
 
20.5
%
Year over year growth - Gross profit (constant currency)
 
12.5
%
 
17.5
%
Net income
 
$
1,590

 
$
1,670

Net income per diluted share (1)
 
$
31.70

 
$
33.40

 
 
 
 
 
Non-GAAP
 
 
 
 
Non-GAAP Net income
 
$
1,625

 
$
1,705

Non-GAAP Net income per diluted share (1)
 
$
32.40

 
$
34.10

Adjusted EBITDA
 
$
2,030

 
$
2,130

 
 
 
 
 
(1)  Assumes a fully diluted share count of approximately 50.1 million shares.

    
Non-GAAP adjustments for amortization expense of intangible assets, non-cash interest expense related to the amortization of debt discount and the tax impact of these non-GAAP adjustments are expected to increase non-GAAP net income over GAAP net income by approximately $35 million in the 3 rd quarter.
Adjusted EBITDA excludes depreciation and amortization expense, interest income, interest expense and income tax expense. These adjustments are estimated to increase adjusted EBITDA over GAAP net income by approximately $440 million - $460 million in the 3 rd quarter.





2



Non-GAAP Financial Measures
The Unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operating results.
To supplement the Unaudited Consolidated Financial Statements, the Group uses the following non-GAAP financial measures: Adjusted EBITDA, non-GAAP net income and non-GAAP net income per share. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
The Group uses non-GAAP financial measures for financial and operational decision-making and as a basis to evaluate performance and set targets for employee compensation programs. The Group believes that these non-GAAP financial measures are useful for analysts and investors to evaluate the Group’s ongoing operating performance because they facilitate comparison of the Group’s results for the current period and projected next-period results to those of prior periods and to those of its competitors (though other companies may calculate similar non-GAAP financial measures differently than those calculated by the Group). These non-GAAP financial measures, in particular adjusted EBITDA and non-GAAP net income, are not intended to represent funds available for the Group's discretionary use and are not intended to represent or to be used as a substitute for operating income, net income or cash flow from operations as measured under GAAP. The items excluded from these non-GAAP measures, but included in the calculation of their closest GAAP equivalent, are significant components of our consolidated statements of operations and cash flows and must be considered in performing a comprehensive assessment of overall financial performance.
Non-GAAP net income is net income with the following adjustments:
excludes the impact, if any, of significant charges or benefits associated with judgments, rulings and/or settlements related to travel transaction tax (e.g., hotel occupancy taxes, excise taxes, sales taxes, etc.) proceedings,
excludes amortization expense of intangibles assets,
excludes the impact, if any, of significant charges related to the impairment of goodwill, such as the $941 million non-cash goodwill impairment charge recorded in the 3 rd quarter of 2016,
excludes non-cash interest expense related to the amortization of debt discount and gains or losses on early extinguishment of debt, if any, related to our convertible debt,
excludes the impact, if any, of significant gains or losses on the sale of cost-method investments and significant charges related to other-than-temporary impairments of such investments, and
the tax impact of the non-GAAP adjustments mentioned above.
In addition to the adjustments listed above regarding non-GAAP net income, adjusted EBITDA excludes depreciation expense, interest income, interest expense and income tax expense and includes the impact of foreign currency transactions and other expenses.
We evaluate certain operating and financial measures on both an as-reported and constant-currency basis.  We calculate constant currency by converting our current-year period results for transactions recorded in currencies other than U.S. Dollars using the corresponding prior-year period monthly average exchange rates rather than the current-year period monthly average exchange rates.
The attached financial and statistical supplement includes reconciliations of our financial results under GAAP to non-GAAP financial information for the three and six months ended June 30, 2017 and 2016 .


3



Information About Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements reflect the views of the Group's management regarding current expectations and projections about future events and are based on currently available information and current foreign currency exchange rates. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed, implied or forecasted in any such forward-looking statements. Expressions of future goals and similar expressions including, "may," "will," "should," "could," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," or "continue," reflecting something other than historical fact are intended to identify forward-looking statements.
The following factors, among others, could cause the Group's actual results to differ materially from those described in the forward-looking statements:
-- adverse changes in general market conditions for travel services;
-- the effects of increased competition;
-- fluctuations in foreign exchange rates and other risks associated with doing business in multiple currencies;
-- our ability to expand successfully in international markets;
-- our performance advertising efficiency;
-- any change by our search and meta-search partners in how they present travel search results or conduct their auctions for search placement in a manner that is competitively disadvantageous to us;
-- our ability to respond to and keep up with the rapid pace of technological change;
-- IT systems-related failures, data privacy risks and obligations, and/or security breaches;
-- adverse changes in the Group's relationships with travel service providers and restaurants;
-- the ability to attract and retain qualified personnel; and
-- tax, legal and regulatory risks.
For a detailed discussion of these and other factors that could cause the Group's actual results to differ materially from those described in the forward-looking statements, please refer to the Group's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequently filed Quarterly Reports on Form 10-Q. Unless required by law, the Group undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

About The Priceline Group
The Priceline Group (NASDAQ: PCLN) is the world leader in online travel and related services, provided to customers and partners in over 220 countries through six primary brands - Booking.com , priceline.com , KAYAK, agoda.com , Rentalcars.com , and OpenTable . The Priceline Group’s mission is to help people experience the world.  For more information, visit PricelineGroup.com and follow us on Twitter @PricelineGroup.


###
For Press Information : Leslie Cafferty (203) 299-8128 leslie.cafferty@pricelinegroup.com
For Investor Relations : Michael Noonan (203) 299-8489 michael.noonan@pricelinegroup.com


4




The Priceline Group Inc.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)

 
 
June 30,
2017
 
December 31,
2016
ASSETS
 
 

 
 

Current assets:
 
 

 
 

Cash and cash equivalents
 
$
2,634,264

 
$
2,081,075

Short-term investments
 
3,721,825

 
2,218,880

Accounts receivable, net of allowance for doubtful accounts of $31,291 and $25,565, respectively
 
1,230,602

 
860,115

Prepaid expenses and other current assets
 
685,879

 
241,449

Total current assets
 
8,272,570

 
5,401,519

Property and equipment, net
 
425,100

 
347,017

Intangible assets, net
 
1,914,767

 
1,993,885

Goodwill
 
2,418,630

 
2,396,906

Long-term investments
 
10,263,659

 
9,591,067

Other assets
 
163,597

 
108,579

Total assets
 
$
23,458,323

 
$
19,838,973

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 

 
 

Current liabilities:
 
 

 
 

Accounts payable
 
$
598,200

 
$
419,108

Accrued expenses and other current liabilities
 
1,073,632

 
857,467

Deferred merchant bookings
 
1,185,639

 
614,361

Convertible debt
 
899,484

 
967,734

Total current liabilities
 
3,756,955

 
2,858,670

Deferred income taxes
 
397,449

 
822,334

Other long-term liabilities
 
134,537

 
138,767

Long-term debt
 
7,564,636

 
6,170,522

  Total liabilities
 
11,853,577

 
9,990,293

 
 
 
 
 
Convertible debt
 
15,077

 
28,538

 
 
 
 
 
Stockholders' equity:
 
 

 
 

Common stock, $0.008 par value; authorized 1,000,000,000 shares, 62,560,183 and 62,379,247 shares issued, respectively
 
486

 
485

Treasury stock, 13,503,447 and 13,190,929 shares, respectively
 
(7,411,392
)
 
(6,855,164
)
Additional paid-in capital
 
5,633,659

 
5,482,653

Retained earnings
 
12,793,001

 
11,326,852

Accumulated other comprehensive income (loss)
 
573,915

 
(134,684
)
  Total stockholders' equity
 
11,589,669

 
9,820,142

Total liabilities and stockholders' equity
 
$
23,458,323

 
$
19,838,973





5



The Priceline Group Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2017
 
2016
 
2017
 
2016
Agency revenues
 
$
2,332,371

 
$
1,852,961

 
$
4,117,684

 
$
3,352,990

Merchant revenues
 
498,133

 
517,867

 
940,178

 
987,899

Advertising and other revenues
 
194,052

 
185,074

 
386,098

 
363,132

Total revenues
 
3,024,556

 
2,555,902

 
5,443,960

 
4,704,021

Cost of revenues
 
72,742

 
126,084

 
157,911

 
254,753

Gross profit
 
2,951,814

 
2,429,818

 
5,286,049

 
4,449,268

Operating expenses:
 
 

 
 

 
 

 
 

Performance advertising
 
1,147,589

 
920,763

 
2,128,362

 
1,700,672

Brand advertising
 
121,187

 
112,321

 
194,199

 
182,166

Sales and marketing
 
131,734

 
105,522

 
245,770

 
197,845

Personnel, including stock-based compensation of $66,879, $54,976, $125,827 and $120,976, respectively
 
385,708

 
332,654

 
736,738

 
641,005

General and administrative
 
141,634

 
112,642

 
277,181

 
225,687

Information technology
 
44,831

 
35,797

 
84,776

 
68,585

Depreciation and amortization
 
85,872

 
77,712

 
169,302

 
150,583

Total operating expenses
 
2,058,555

 
1,697,411

 
3,836,328

 
3,166,543

Operating income
 
893,259

 
732,407

 
1,449,721

 
1,282,725

Other income (expense):
 
 

 
 

 
 

 
 

Interest income
 
36,821

 
21,292

 
68,813

 
41,639

Interest expense
 
(60,942
)
 
(50,290
)
 
(116,659
)
 
(97,184
)
Foreign currency transactions and other
 
(6,021
)
 
1,997

 
(11,148
)
 
(10,931
)
Impairment of cost-method investments
 

 
(12,858
)
 

 
(63,208
)
Total other expense
 
(30,142
)
 
(39,859
)
 
(58,994
)
 
(129,684
)
Earnings before income taxes
 
863,117

 
692,548

 
1,390,727

 
1,153,041

Income tax expense
 
142,908

 
111,910

 
214,895

 
197,979

Net income
 
$
720,209

 
$
580,638

 
$
1,175,832

 
$
955,062

Net income applicable to common stockholders per basic common share
 
$
14.66

 
$
11.71

 
$
23.92

 
$
19.25

Weighted-average number of basic common shares outstanding
 
49,131

 
49,604

 
49,161

 
49,617

Net income applicable to common stockholders per diluted common share
 
$
14.39

 
$
11.60

 
$
23.49

 
$
19.06

Weighted-average number of diluted common shares outstanding
 
50,056

 
50,059

 
50,049

 
50,105




6



The Priceline Group Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
 
Six Months Ended
June 30,
 
 
2017
 
2016
OPERATING ACTIVITIES:
 
 

 
 

Net income
 
$
1,175,832

 
$
955,062

Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 

Depreciation
 
85,123

 
65,157

Amortization
 
84,179

 
85,426

Provision for uncollectible accounts, net
 
26,127

 
16,117

Deferred income tax benefit
 
(40,939
)
 
(79,863
)
Stock-based compensation expense and other stock-based payments
 
126,047

 
121,016

Amortization of debt issuance costs
 
4,509

 
3,744

Amortization of debt discount
 
35,386

 
34,180

Loss on early extinguishment of debt
 
1,027

 

Impairment of cost-method investments
 

 
63,208

Excess tax benefits on stock-based awards and other equity deductions
 

 
61,470

Changes in assets and liabilities:
 
 

 
 

Accounts receivable
 
(333,545
)
 
(344,147
)
Prepaid expenses and other current assets
 
(438,641
)
 
(286,976
)
Accounts payable, accrued expenses and other current liabilities
 
873,705

 
683,395

Other
 
3,024

 
(10,563
)
Net cash provided by operating activities
 
1,601,834

 
1,367,226

 
 
 
 
 
INVESTING ACTIVITIES:
 
 
 
 
Purchase of investments
 
(2,869,903
)
 
(2,701,662
)
Proceeds from sale of investments
 
1,480,236

 
2,176,868

Additions to property and equipment
 
(147,269
)
 
(113,699
)
Acquisitions and other investments, net of cash acquired
 
(490
)
 
(795
)
Net cash used in investing activities
 
(1,537,426
)
 
(639,288
)
 
 
 
 
 
FINANCING ACTIVITIES:
 
 
 
 
Proceeds from short-term borrowing
 
4,599

 

Proceeds from the issuance of long-term debt
 
1,051,722

 
994,705

Payments related to conversion of senior notes
 
(83,473
)
 

Payments for repurchase of common stock
 
(555,250
)
 
(520,566
)
Proceeds from exercise of stock options
 
2,790

 
9,766

Net cash provided by financing activities
 
420,388

 
483,905

Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
68,570

 
4,627

Net increase in cash, cash equivalents and restricted cash
 
553,366

 
1,216,470

Cash, cash equivalents and restricted cash, beginning of period
 
2,082,007

 
1,478,071

Cash, cash equivalents and restricted cash, end of period
 
$
2,635,373

 
$
2,694,541

SUPPLEMENTAL CASH FLOW INFORMATION:
 
 
 
 
Cash paid during the period for income taxes
 
$
577,247

 
$
496,403

Cash paid during the period for interest
 
$
60,308

 
$
43,727

Non-cash financing activity
 
$
1,000

 
$


7




The Priceline Group Inc.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2017
 
2016
 
2017
 
2016
 
Net income
 
$
720,209

 
$
580,638

 
$
1,175,832

 
$
955,062

 
 
 
 
 
 
 
 
 
 
(a)
Depreciation and amortization
 
85,872

 
77,712

 
169,302

 
150,583

(a)
Interest income
 
(36,821
)
 
(21,292
)
 
(68,813
)
 
(41,639
)
(a)
Interest expense
 
60,942

 
50,290

 
116,659

 
97,184

(c)
Loss on early extinguishment of debt
 
1,027

 

 
1,027

 

(d)
Impairment of cost-method investments
 

 
12,858

 

 
63,208

(a)
Income tax expense
 
142,908

 
111,910

 
214,895

 
197,979

 
Adjusted EBITDA
 
$
974,137

 
$
812,116

 
$
1,608,902

 
$
1,422,377

 
 
 


 


 


 


 
GAAP Gross profit
 
$
2,951,814

 
$
2,429,818

 
$
5,286,049

 
$
4,449,268

 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA as a % of GAAP Gross profit
 
33.0
%
 
33.4
%
 
30.4
%
 
32.0
%
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER DILUTED COMMON SHARE
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2017
 
2016
 
2017
 
2016
 
Net income
 
$
720,209

 
$
580,638

 
$
1,175,832

 
$
955,062

 
 
 
 
 
 
 
 
 
 
(b)
Amortization of intangible assets
 
41,161

 
43,041

 
84,179

 
85,426

(c)
Debt discount amortization related to convertible debt
 
16,525

 
16,093

 
33,019

 
32,055

(c)
Loss on early extinguishment of debt
 
1,027

 

 
1,027

 

(d)
Impairment of cost-method investments
 

 
12,858

 

 
63,208

(e)
Tax impact of Non-GAAP adjustments
 
(20,995
)
 
(22,255
)
 
(42,063
)
 
(44,395
)
 
Non-GAAP Net income
 
$
757,927

 
$
630,375

 
$
1,251,994

 
$
1,091,356

 
 
 
 
 
 
 
 
 
 
 
GAAP weighted-average number of diluted common shares outstanding
 
50,056

 
50,059

 
50,049

 
50,105

 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Net income per diluted common share
 
$
15.14

 
$
12.59

 
$
25.02

 
$
21.78

 
Notes:
(a)
Amounts are excluded from Net income to calculate Adjusted EBITDA.
(b)
Amortization of intangible assets is recorded in Depreciation and amortization expense.
(c)
Non-cash interest expense related to the amortization of debt discount and loss on early extinguishment of debt are recorded in Interest expense and Foreign currency transactions and other, respectively. Loss on early extinguishment of debt is excluded from Net Income to calculate Non-GAAP Net Income and Adjusted EBITDA.
(d)
Impairments of cost-method investments principally related to our investment in Hotel Urbano are recorded in Foreign currency transactions and other and excluded from Net Income to calculate Non-GAAP Net Income and Adjusted EBITDA.
(e)
Reflects the tax impact of Non-GAAP adjustments.
 
 
 
For a more detailed discussion of the adjustments described above, please see the section in our press release entitled "Non-GAAP Financial Measures" which provides a definition and information about the use of non-GAAP financial measures.

8



The Priceline Group Inc.
Statistical Data
In millions (1)  
(Unaudited)
Gross Bookings (2)
 
2Q15
 
3Q15
 
4Q15
 
1Q16
 
2Q16
 
3Q16
 
4Q16
 
1Q17
 
2Q17
Agency
 
$
12,867

 
$
12,850

 
$
10,344

 
$
14,534

 
$
15,369

 
$
15,757

 
$
12,978

 
$
18,140

 
$
17,947

Merchant
 
2,094

 
1,928

 
1,670

 
2,119

 
2,494

 
2,703

 
2,134

 
2,546

 
2,850

Total
 
$
14,960

 
$
14,778

 
$
12,015

 
$
16,653

 
$
17,862

 
$
18,460

 
$
15,112

 
$
20,687

 
$
20,797

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year/Year Growth
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
11.1
%
 
8.7
 %
 
15.3
 %
 
22.1
 %
 
19.4
 %
 
22.6
 %
 
25.5
 %
 
24.8
 %
 
16.8
 %
Merchant
 
7.0
%
 
(3.7
)%
 
(0.9
)%
 
13.5
 %
 
19.1
 %
 
40.2
 %
 
27.8
 %
 
20.2
 %
 
14.3
 %
Total
 
10.5
%
 
6.9
 %
 
12.7
 %
 
20.9
 %
 
19.4
 %
 
24.9
 %
 
25.8
 %
 
24.2
 %
 
16.4
 %
Constant
Currency
 
26
%
 
22
 %
 
24
 %
 
26
 %
 
21
 %
 
26
 %
 
28
 %
 
27
 %
 
19
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Units Sold
 
2Q15
 
3Q15
 
4Q15
 
1Q16
 
2Q16
 
3Q16
 
4Q16
 
1Q17
 
2Q17
Room Nights
 
113.1

 
115.6

 
99.1

 
136.5

 
140.7

 
149.6

 
129.7

 
173.9

 
170.2

Year/Year Growth
 
26.2
%
 
22.0
 %
 
26.6
 %
 
30.5
 %
 
24.4
 %
 
29.4
 %
 
31.0
 %
 
27.4
 %
 
21.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rental Car Days
 
17.2

 
16.0

 
12.2

 
16.2

 
18.5

 
18.0

 
14.0

 
18.6

 
20.7

Year/Year Growth
 
20.1
%
 
13.0
 %
 
10.6
 %
 
10.9
 %
 
7.9
 %
 
12.5
 %
 
14.4
 %
 
15.4
 %
 
11.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Airline Tickets
 
2.1

 
2.0

 
1.7

 
1.8

 
2.0

 
1.9

 
1.6

 
1.8

 
1.8

Year/Year Growth
 
0.3
%
 
(1.1
)%
 
(2.6
)%
 
(7.2
)%
 
(6.6
)%
 
(2.5
)%
 
(4.3
)%
 
(2.1
)%
 
(8.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2Q15
 
3Q15
 
4Q15
 
1Q16
 
2Q16
 
3Q16
 
4Q16
 
1Q17
 
2Q17
Gross Profit
 
$
2,092.9

 
$
2,947.3

 
$
1,879.4

 
$
2,019.5

 
$
2,429.8

 
$
3,589.1

 
$
2,276.4

 
$
2,334.2

 
$
2,951.8

Year/Year Growth
 
11.1
%
 
12.5
 %
 
12.2
 %
 
20.8
 %
 
16.1
 %
 
21.8
 %
 
21.1
 %
 
15.6
 %
 
21.5
 %
Constant
Currency
 
26
%
 
29
 %
 
23
 %
 
27
 %
 
18
 %
 
23
 %
 
24
 %
 
17
 %
 
24
 %

(1) Amounts may not total due to rounding.

(2) Gross bookings is an operating and statistical metric that captures the total dollar value, generally inclusive of taxes and fees, of all travel services booked by our customers, net of cancellations.

9