BKNG - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Booking Holdings, First Quarter 2018 Conference Call. Booking Holdings would like to remind everyone that this call may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and are subject to certain 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 or expectations and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements.

safe factors materially cause the earnings from please and to of results Holdings' forward-looking Commission. press list the Exchange filings refer differ at with as to those the most release a as that Booking Booking Booking could actual statements, end well For of statements Holdings' Holdings' recent harbor described Securities in the of whether new obligation by future to undertakes update as law, a forward-looking any required otherwise. result Unless or no statements information, events Booking publicly Holdings statistical A website, release, copy Investors of together with Booking Holdings' is Holdings' www.bookingholdings.com. earnings an press accompanying available financial supplement, Booking For the in section of and Holdings' now for David Glenn this like afternoon: and introduce And I'd Booking speakers Fogel to Goulden. Go ahead, gentlemen.

Glenn Fogel

Booking I'm adjusted basis, conference to U.S. year-over-year CFO, approximately $XXX quarter you, dollar solid million. had our by XX% about and joined constant-currency XX% afternoon Goulden. with XX% Holdings' call. and Booking David Holdings' in EBITDA to or quarter increased a welcome one year-over-year XXXX up this revenue Thank on

our Our to by currency dollars, our quarter a leverage $XXX up up of year-over-year performance exceeded U.S. year-over-year and over were performance we our bookings basis. XX% efficiencies XXX points. marketing about our factor spend An was million, important high-end contributing to able in Consolidated XX% of worldwide of over room XX% the were basis EBITDA guidance in were constant range. accommodation on another or nights strong channels, gross as

between to achieve complex our acceptable marketing balance are is dynamic, in and our past, the we appropriate growth. goal ROIs and discussed performance have As an channels

take impacts the our incrementality several of our but other elements. factors peak bidding from the not the important as; the a the out only anticipated account platform rate set the into we such receive, particular platform, we traffic ROI from and on strategies, also hurdles, experience advertising customer we As short-term

is best selection, royalty contact, user strive of priority us. and the quarter, widest direct informative availability, for interface goals, last and increasing discussed a we To the the key achieve prices traffic service. easiest customer customer and the highest level As we have the most these strategic to

pleased are an in direct see growth factor note of in that our business and channel continue we mobile growth that to our to important business. our We report is the direct

discussed also hope we As But part the we We manner. be new will quarters, in technologies of our tools we that reiterate to implementing what direct to said strategy, want marketing various brand have progress further traffic measurement in believe an have past, and make in brand geographies. important previous a over our driving executing testing websites we time. that prudent and in proceed will to

progress we offering global the most XXX adding in During platform made and over countries position our choice maintaining accommodations new marketplace, our leading as supply worldwide. the quarter to territories the

on growth customers bookable and As XX%, reported homes, and unique of on was this marketplace to million that all want for reported bringing the to property in our We XX.X and X.X ability category Today, remain we focus properties for unique alternative booking.com total bookings a apartments approximately resort, across platform. their fit accommodation to shopping Room fully to our integrated firmly listings, are place apartment, experience to is March the million find alternative needs. XX, search compare single night motels may and an traveler demand. accommodation consisting of XX.X demonstrates the which best growing category Year-over-year accommodations to a goal resorts stay, believe hotels, company. are reported our million we home want find of be in Especially as all or strength multi-unit our build booking.com types additional one-stop booking.com destination focused and whether supply. our of listings a in attractive believe hotel, great are instantly are fee. no nicely it aware as opportunity attractions places in ongoing local and approximately a listings in the our more to remains customer with capabilities listings largest managers alternative And they of our whose brand, is reported properties, other us. sophisticated had long-term experiences this stay. Building for and in in owners not professional for of a listings

build have to are to As to-date, expertise order progress larger including look gradually still stage. more our these of to we loyalty in direct pleased with are an our want early a and a brand, acquisition though and we provide and areas, increasing stress travel our drive been that holistic customers FareHarbor our in in we recent experience we for investments

the our billion on premium we the of capital $X.X cash to share in fully During both conversion through count, utilized convertible which quarter matured March. and the in first diluted our settlement repurchases share bonds, reduce

We and travel prudently share through lower believe and was growth single-digit accommodations orient market total deploy global mix the travel we Holdings efficiencies bottom-line run, also first market quarter We solid the to the repurchases. channels. an to share marketing summary, investments, good in organic aided growth market. performance market In the market long stock large will and continue very had ourselves healthy M&A by a in were that year, continue we Booking we a our revenue to the capital and that a have of start realized in remains to even

we to a in complete all This will We travel the offering. expertise we be superior leverage that if to successful. run we continue and more be we take continue our of believe time, will to but provide will continue assets brands able unique with customers to and company, evolve our execute the that our so and long

to hard than employees work XX,XXX more I and for always, want As thank worldwide dedication. our their

And a travel customers experience. season. Northern We I Summer ready for know will to our tirelessly getting Hemisphere work we are great have now all busy ensure our

the to to for Brown June role working moving is Officer to to want the financial closely and the John continue and special of of Asia develop now Asia-based our of up CEO thank I XX Chief with almost long-term the the you to the the Co-founder advisor will Armory Rob, now years be at them. out longtime Agoda to strategies. Rob send position business. of review. take for I Rob CEO of Morganstern and Holdings. turn Booking X, will current taking him, Rosenstein a the Chairman role COO special I've I forward is as Product to there. CEO we the our of Agoda Rob David Agoda, known Taking Congratulations Finally, to all Effective [ph] over COO current and call Agoda look

David Goulden

are Thank XXXX. second year discuss guidance rates you, All results growth afternoon. indicated. quarter flows cash comparable to unless and quarter, I'll the and good for operating for prior of the period Glenn then provide and relative first otherwise

Before we as than starting XXXX new we X, check under get last January numbers, we out. rather standard, revenue the at reporting discussed into the at revenue began on which accounting check-in quarter recognizes recognition

the accounting new will in year-over-year accounting all current my under under previous and the the a standard. prior referenced year rates compare As standard guidance QX result to the year growth remarks

associated to impacted and revenue XXXX. upon due and reservations for gross QX to like prior revenue the new in the to metrics Additionally, other standard. profit Gross reporting profit change accounting are performance margin QX and year results unit room guidance growth not net comparison night bookings are based by

in GAAP include results Our and are our reconciled earnings to forecast non-GAAP financial our compensation stock-based results release. we

So now onto results our the quarter. for

our It's growth. expectations. and basis, high our guidance Room than which adjusted Our down optimize QX have X%. currency versus a our constant our accommodations range. in on bottom-line margins daily which prior in forecast driving the performance exceeded for about result for improvements were strategy and margins. of booked was second expanding of to The rates of performance is margin or substantially top-line XX%, operating a also quarter in impacting analyst by year ADRs our the guidance Average exceeded was FactSet EBITDA better slightly our a down range QX grew significant ROI row nights end

for results. rates U.S. XX% XXXX. an our $XX includes on by expressed and and in the XX% by compared about Foreign constant dollars XX% prior year. grew and on XX% closed favorably dollars July basis in grew revenues QX about Group, grew a a constant bookings was in U.S. by U.S. billion currency first the quarter $X.X gross by of impacted acquisition exchange in to growth we Consolidated Momondo QX basis. rate QX expressed billion currency dollars from for revenue

loyalty OpenTable's as liability. the We and a changes is of the from believe revenue relates OpenTable not non-GAAP to introduced to recently results to recognized results $XX QX our our million reversal excluded portion is a of of program of benefit in indicative benefit This loyalty also from operating we core business. program

grew revenue to and of growth revenue have by by compared in or last KAYAK bps standard, prior by impact was income a in the OpenTable XX% first percentage approximately This quarter X% accounted would increased X% operating GAAP which operating to which non-GAAP in including was of by Total basis, a the constant Momondo comprised year the revenue been than excludes XX% revenue which about quarter dollars XXXX with QX non-intercompany resulted by mainly ago. OpenTable on year. X Our grew with XX% share, and non-GAAP difference a and year, other if program in which Advertising on is XXX and advertising XX%. currency standard XXXX under per and were OpenTable first XX% in of million the current for basis. lower compared revenues a grew $XXX revenue the income the for to and U.S. quarter from grew reported revenue, QX net benefits. GAAP On growth point GAAP $XX.XX loyalty under comparing our in previous revenues margins QX. other XX% consistent guidance. our QX benefits

GAAP the accounting unrealized We investments balance in our loyalty the change sheet is results. related million our the excluded income this includes benefit QX. in in that took gain effect income rather statement in from $XX.X well now OpenTable Ctrip, to benefit which Our gain than as net an program non-GAAP to as an due equity a unrealized recorded

amounted OpenTable top slightly EBITDA to EBITDA exceeded grew excludes benefit. tax million, gain QX Adjusted and Our the by of mentioned $XXX and which was better $XX also of the Ctrip million forecast. just rate our program XX%. end for GAAP previously loyalty guidance than XX.X% for Adjusted quarter

EBITDA Our higher adjusted better marketing in margin was substantially efficiency. than and to performance due revenue the our forecast mainly of XX.X% quarter

invest we capabilities. non-marketing expenses in expected new markets pressured margins OpEx As as continue year-on-year and new to

tax increased non-GAAP the QX, rate of versus FactSet up consensus. was comfortably XX% quarter from year’s Innovation net the items. the from the reflects prior prior non-GAAP U.S. tax as year the to under rate and $XX, due acts Netherlands impacts EPS discrete rate as Our benefiting exceeding a in of in Non-GAAP XX.X% guidance which the Tax last income higher Box for well

investments cash flow, and generated year. to end. amounted In QX which cash the compared grew billion $XXX operating Our to at prior we of XX% $XX.X million quarter by

flow through higher quarter first shareholders Our than during for quarter merchant returned Cash QX million, our XXXX. the booking.com, free of benefited XX% the is million $XXX We which to $XXX have buybacks. working the capital transactions quarter cash a was favorable impact. from in which share increased about flow

We bonds In that cash of authorization. share settlements a conversion in the for have matured repurchase million addition $XXX another billion March. convertible on the premium used of approximately in $XX remaining our quarter our currently we

two both continue stable we our market expect to year to to will business and three authorization programmatic time complete We a period. and to regards conditions within this with under opportunistic be And repurchases.

with growth Our of of decelerate and our assumes our remainder the actual results long-term quarter due guidance to and reflects consistent business quarter-to-date over mainly our rates trends. will size

reflects also impact optimization approach changed. continued margin the not our has of efforts. to performance And guidance Our our guidance

foreign in future based guidance is to our expressed dollars. U.S. current Our rates rates, which tailwind exchange upon growth provide a

and a to XX% basis. room and on gross to constant to booked U.S. grow X% by X% dollars by currency nights We X% to by in forecasting XX% bookings XX% to grow are total

We Our XX% EBITDA Easter X% margin year. $X.XXX versus constant QX prior of EBITDA This prior about period. QX accommodation QX a adjusted to at dollars of that QX to recognition is due shifting ADRs line prior from timing and is a grow the future company to check-in. expected to will approximately QX. basis. in range forecast to We forecast and billion, forecast at forecast XX.X% $X.XXX between XX% with the compared revenue be impact will billion revenue be down which mid-points by for adjusted assumes XX.X% revenue currency year by on up constant the and about U.S. the to by currency includes X% to

will forecast Our year-over-year QX that yield marketing our optimization efforts performance assumes ROI efficiency.

investments We from expect marketing offset operating performance the deleverage in the in expenses and marketing from our will this non-marketing brand quarter. leverage

have QX, annual and quarter, of more a significant a normal margin to typically our we in in profits which which in As quarters mentioned these seasonality due investments our of last QX share business. impact smaller earn

QX, Although, we're not in year. we investments the marketing last lap and throughout non-marketing giving guidance but we second diminishing expect brand made beyond do XXXX, OpEx deleverage half as in

up for also last is we which that optimization benefit anniversary year. XX% the until will in between prior and the forecast marketing EPS $XX.XX We at efficiency margins from We GAAP about midpoint assume year. operating performance of QX versus increased QX, efforts started $XX.XX

EPS which we the beneficial the common diluted about of a fully share assumes million made to-date. reflects Our repurchases stock count of guidance impact shares, XX.X have

Our for to GAAP XX% tax prior a EPS rate assumes guidance of rate QX XX%. compared of year

Our current the due Tax the Netherlands. year the the well of increased the higher rate Innovation U.S. as Tax as year tax impacts Box to Act, than in last is rates from

forecasting the non-GAAP which EPS QX to at year. approximately of $XX.XX versus XX% is about up We’re $XX, prior midpoint

XX%, includes same rate forecast of reasons which income the rate approximately due EPS GAAP for just higher rate. discuss non-GAAP prior an than Our of I tax estimated XX% to is

versus and the fluctuations. second hedge and currency any foreign net between from hedges have bookings, the gross quarter. place not dollar did fluctuation end the the currencies shield to of operating further now We in contracting EBITDA But reflect the or from our impacts our earnings substantially of quarter profit revenue

any your not assume general take now that travel Our change particular. in With in market forecast the macroeconomic or does in significant conditions, we'll questions. in

Operator

of you. question UBS. Sheridan is Our [Operator first Instructions] Thank from Eric

open. is line You

Eric Sheridan

shortening for for how if against question. can. window way volatility booking wanted to the progressed out the I in taking Easter as two quarter understand out Thanks and room forecasted Maybe and And keep what Last the had potential quarter played cancellations the I thought wanted room maybe against look your color deceleration around comp, understand you you around need forecasting called initially some you nights. nights going a an a in little second, as projecting I mind? then in some to Thanks. what in? like bit QX, to in you're easier well that there

Glenn Fogel

to take that Eric, question David second Hi, little I'm then bit its let going a and Glenn. talk about booking windows.

a factors And In some deceleration been has of overtime, consistent deceleration, trending quarter-to-quarter. many been has and and regularly faster fairly and overtime gone had quarters company we've our some quarters were there deceleration, volatility even very there numbers. in had So, talking about And been of large we've small been has but that. lot has certainly had that acceleration. that some we because that into have something quarters

factors could has not some macro some factors the factors competitor, the sort for who's influence and can of of algorithm reorganization of be be of SEO a action economy, by someone, engine. Some a but search somebody are the the some things competitive

do, factors that And things some marketing, the of our optimizing are clearly one. performance we

grow predictions. absolute all long-term You factors make in do some hard and these I that to and or looks, is to But up it's company run, well. the GDP confident a world gross and are function we very I��ll and we is level, the industry faster some this at take up one. confident highly sense in feedback macro there let And why. go short-term very travel makes you GDP, prediction a are this and to tell making travel that’s interact volatility. that predict very in it I’m world is can lot that continue have GDP long complex. enough to of project And of going going my comp me the in start of the the

been tailwind to using experiencing, a it thing online, offline the we to always online. arcane offline sounds that second The now is

who digital that us. is markets, world let’s That’s going so Let’s it, are online more not already developed to areas are doing are doing, are some people thing many there Yes, for it. but doing we’ll yet, who trend but in there our are in the processes, another be call it continue. call that of that

Let’s company -- down get go our into individually. micro let’s number three,

We share the and we’re are of the a of the small we big single-digit talking number a share travel our market company, small just but haven’t measuring a are industry, share we a business, our gotten of of business yet. platform the about available inventory accommodation rooms on -- biggest

you things, us it’s that the we’ve very that’s opportunities all the the think the inventory out -- share. and We can for So put about we year, that’s were about much and our industry we air, and other into priceline.com, now And us it is going part about. about There it’s get you ground of platform. out the a that things attractions that’s new innovation. hard, talked have we of I We with exciting, maybe maybe continue industry with that in Maybe of us if you’ve And well wise. area growth lot talked and things seen we coming with to some different costs Experimentations a mentioned have for is the for we are doing product talked that travel come another we’re this we about the booking.com have now that. to experimentation experimental things is parcel and to you’ve of have like talked companies about, you drive on all going we the is it’s conversion things flight do there. talked that Many that amount say are going are that growth the seen seen trying our on attractions. think forward accommodations of the we of it, And like that in give that the transportation, dead, a past, new, of are more things we with always a smaller total some investing we we in inventory getting help non-hotel giant we numbers very where thing in we you’ve we’ve that can the a rate. package can better money us us. small out have up go it about about see conversion working When separate past inventory, future. more thing a of us was always developing no, to always that up what

the Now we past we just we be do just us, an some and keep I long continues to and building very fact mobile better, talented on just to growth absolute position. to in think do have worse, in in for the continue quarters going in conversion go we our that always some have be And we’re technology, but we rate going going quarters lot run up. I a great of capital XX,XXX are area actually people, to

now I would between want say optimization profit to say And we our when hadn’t are. I point like growth we position you number it’s happening a good, our two at actually we David, So are you there. yet. actually what’s and easier comparing year where an a XX% growth comp. and take this was started rate good Last are comparing you this which very is where balance

David Goulden

as up about have let well. of question, maybe on opening couple pick me your a QX I point Yes, a

quarters things most think in by modest booking the marketing booking noted last it’s on see around to are see window, our a saw we efforts performance window, some the that, We did the over it decline. impacted of doing to continue we a optimization likely we channels. in So, few we decline the

desktop. an targeting to continues window without converting going that’s mobile upper and Now on window has out than the into a we a booking also funnel shorter and the lower mobile impact having and all that are booking details, perform I’d point less outplacements well less

see factors going the it those are to said window, into as booking we continuing decline. modestly So we

later of line very much a impact a comparing a But on, Easter revenue night It reported revenue. stable into Easter earnings explain for in question impacted commented small to we period call. to did Dan Glenn our guidance room that get the on the think the itself channels. heavily with impact actual guidance, how QX. spending what nights on very and impact pay against are if on terms about specifically Very much booked. booked, the the call, relative And the as which had In have on comments. relatively we in you room QX, if it’s in are with just line I’ll what then much we vis-à-vis It mentioned, we on big last

than approach between Also Our guided for more guidance here and sitting now changed. hasn’t we with now are we time when quarter. end to quarter last the

in in given quarter growth and right new something of timing the rates. Cup is in as there point going are this and end quarter has increased of the looking prior is potential always the that we natural the factors, I variability, out in some play World years is would impacted of quarter So in at for there but group example at ending level something every QX

of all in. those So factored

Eric Sheridan

Thanks so much.

Operator

you. Thank

Lloyd question of from Walmsley is Our next Deutsche Bank.

Your is line open.

Lloyd Walmsley

two taking a driving Glenn sense question I factor the you of us particular you mentioned an can looks anything there. has I like if in direct changed It for just the give if think mobile as important in Thanks if can. Wondering business.

quarters direct of just as two I down strength. kind of think played I ago source had a think mobile you

was web. mobile synergy like look some looking the just contained with share making. you're there it color TV in well it then is despite So changed of there. app spend something if And usage at investments ultimately non-advertising the mobile fairly doing could Any OpEx, you or you're a versus maybe actually

the magnitude P&L in So there that share is to to these investment you new in you could just make great. that of color being any would or of areas. able really of size Any the a the some kind changes be have of absorb of function

Glenn Fogel

that not believe strategy is going direct helps that something of the Sure I And forward. Lloyd, direct significantly. misspoke mobile of if did interpret it's a It or mobile or was part nature. I believe other. one sort Because very was we said of for that the I misunderstood important certainly important

that then is why and are the I take we for How to an technologist of think you which And it that -- noting on not interfaces, is continue desktop, let's number size spent have company way of are advantage, we the is do for can the works all long everything. new that in us time use why of Now all with a important. so connectivity you we our the different for us experiments because the it is world much staff, important how our mobile we example. mobile in the parts is these to of be something of just do And People Asia efficiently. that went. in developing result, areas the our right have for systems we because where the the customers, a for in run different better right business really better of the end up doing

reasons people And about OpEx, OpEx associated we this talked non-ad long-term. taking the up then things of our that ramped important investments. all of for are do was we strategy expenses and the ago, a wanted with thought things time. And goes we to people a numbers that with and bunch those how the non-ad them Regarding it was we significantly why are quarters that we at couple these about talked about we

Now be more these this year hire those to to more now such. efficient the people need rate we and full, we now need higher they don't came at onboard and they’re people effective throughout

was the certainly believe will into hire going that should they're expect not continue work to year doing the Dave us we to benefit year see at not and rate. all should the did So people way XXXX as pointing of are we over kind great the but we out who you we -- those last of doing, that get I

Lloyd Walmsley

you. thank Got it,

Operator

Thank you.

Nowak Our next question of Brian is Stanley. from Morgan

is line Your open.

Brian Nowak

thanks questions. taking Great, for my

the about the large guidance. back it the the are of this sort industry, one most And your comment mix about through for growth thinking direct back I if direct is to that question how are kind hoping just the of throughout the just to point? of around first The in color traffic think year? just of room growing. year on about the room you whether I appreciate not, implied your kind maybe the of lot And so And buckets in over nights deceleration the lead was much. course going factors even at going faster but regions Thanks acceleration. of talk night course guess I traffic. internally, are growing you that potential then or you What numbers. it's focused of next could to the

Glenn Fogel

a you little said that question. I the explain direct understand mix, didn't about, within just could quite more you Well,

Brian Nowak

direct So night mix. a year-on-year. I the percentage increasing as growing of is is guess paid room still you with traffic it The mentioned growing question your total is, your service

Glenn Fogel

very with is is that something continue to that it pleased of Direct we part increase to are and that. is and growth the rate is Direct strategy growing. growing overall

a terms up In -- being thing lot driving a an and that’s up bunch with I number of and come what making is just out innovative of that speculative. has more growth that been versus overtime yet, could of could -- will we And done come become one whole come obviously something of something number. that say increase thought that of would terms a them decelerating up that when and though the we is, with I so seen absolutely be it we’ve accelerating in and helpful rate it’s we haven’t we’ve business. a things new hypothetical

booking the and was we years, So but of at long XX fast mobile well grow in hear came out, it something here I time growth when a are the wouldn’t you that good there seen when have example might be enough like so is I’ve rate, fact to it the that on use to us. use started such an in advantage for front mobile people when great who no ways that phones to thing with people technology their was by was coming easier for as and up wanted to make mobile. out being But book

competitors So we be about and be do earlier scale. of have scale a who for something business out better technology in help and of areas come achieve future than it not I get to will because like we’ve could area, talked already, I in scale in result that advantage the actually the all believe same because idea about to our us able something the we’ll have that that our may

Brian Nowak

Okay, thanks.

Glenn Fogel

maybe give you’re me technologist Especially us at we heart think so something I would why about. accelerate? talked that I give David, a Let

David Goulden

point. Glen is want to add Brian, the as not is direct a as single-digit to there to business just the long-term a markets year clear of that with points, just of channel point half we against this first reinforce a bookings the for during I’d are for increasing the percentage mentioned shares just attract only our you these so that ROIs to core us But easier it so terms couple of our a compares headroom available mix second the And et of for on start them just largest rate market of get year customers, it add factor of -- growth little now industry and one ways many in a where to we then in all said as have this comparing right things rest will weren’t the other with bit new second are that half periods the certainly periods quite, the are with optimizing from cetera. in factors grow more our -- optimizing start point, I’ll we which just in Glen including well. into play in fact we

So those driving will for growth factors be the rates. long-term bigger

Brian Nowak

Okay, thanks.

Operator

Thank you.

is of question next Our from Mark May Citi.

line is Your open.

Mark May

in you Actually one degree frame of your follow-up that’s possible about that North direct recent optimizing response secondly, last And rate you. a you. Thank that on bit? my for relative Is your quarters? America just you growth? questions of impact of the has how bit little help and the trending growth to the bit market marketing in help is maybe kind talk of to had a to a the can a some quantify been some of Thank it And then comment.

Glenn Fogel

Mark. Hey,

to David that that’s definitely out the optimization, as going on our hurt pay not and a strategy. want optimization terms what the speak, a growth we but to more pin number not up for we’re so to is a rate on So could but get we growth we know put pointed of it in if

and that’s we’re achieve between to going we to out. at Our believe and and is balance strategy the is balance really growth we’re where play appropriate profit a

In different terms generally out North differently. regions don’t America start we of pulling

in recapture and domestic North also effects not in America I'm that still currency so And of areas all. there I small impact world. a have currency or world will the at that with the not good, and are business, areas generally. go I of going Argentina some interest mentioned we on that business good to some there, travel make a couple most Brazil of is outbound negative is is and economy you us it’s say some but think decline of Russia happening David which

of an So country I that’s that’s a regional bit terms area go a issue. or in generally little far as call out could of is but in about anything terms I area,

Mark May

you. Thank

Operator

our of question Thanks Mark Markets. from next Capital Mahaney RBC is

Your line is open.

Mark Mahaney

related World getting people your years is stuff and impact near-term small questions, a this just excited one just event Cup, the two is European got a don't about that had they that, Hey. that over pretty the there just about in passed, talk by I travel. sizable

try that -- your could your how that. of lot. in I wanted but to the building online And or Thanks also business? to secondly, much reach to how ask about I complicate impinge potential about future that you of issue, have to to your And how GDPR a in impact as of actually the that does a will the a So business? on effectiveness for current marketing running know want of is European, do extent which challenge terms out customers? I terms of overall, kind to business, ask that's handicap channels you either your just and GDPR that just on near-term do you think

Glenn Fogel

this I’ll take and year and GDPR Mark. handle Cup the have being they English that David let I'll one in second a Hi, World team actually him one.

to think compared of up it win. our and for we costs World let thoughts to we're to need said business, either Cup on out definitely we So it’s when on let for work working a deadline customers, obviously and to prediction That or we've our us to the privacy to than our Relatively I’ll combinations been trying or GDPR, movement preferring making we do just as and and be actual we even do to of our do privacy partners his innovative again terms is there it being preparing GDPR. a more David in and resources. things that think marketing talked in about answer that of from look me but impact to we were important who some we said, being figure it's impact to new diversion maintain about a on your about going happy material how cause talk been people any that how some a question, impact believe this of continuing give We Brussels. not see come have everyone do it. we minor really first not on and what down was not rather is point thing going of working sort is business in that very business real GDPR. our something of do believe, they maybe thought out really he before getting customers, thinking our But before and would the long we have GDPR the up size And and

David Goulden

would countrymen I which when while number this. it’s their get factors What seen Mark in start Cup, World because later it's interesting Mark, round, It predict teams not the into of they heavily through is that out to get is once that but quit we've prior go difficult years they to are booking depends as not quickly. the it's well. booking in knocked as very in far come doing the team public. because

So, to early end middle in I through rounds. happening And the the gets rounds July, group at I it's as it’s into that later a of starting that quarter. mentioned, going with the function who right of of think play everything June the end

be So, a that. to it's teams beyond forward function going which going are

a again can't modeling and it's when out who and based that winds during But happens rates to quarter. certainly the to that difficult So tell up later it’s growth through at looking we and looking bookings growth We’ll things we're rounds. to our sequential the specific. very predict be so you what are factor more like have upon

Mark Mahaney

very much. thank you Okay,

Operator

you. Thank

of Our America. next Post Bank Justin of question is from

open. is Your line

Justin Post

Great, thank you.

So direct always new you've you’ve helped years, do I great competed growth competitive rooms I competitors sound just out then you many just that affected follow people and I wondering getting your impact overtime for in And or you've is on propel mean, where some said rate, you marketing be you've have your tightened about opportunities company it? your going think you that? actually have thresholds overtime. and going might channels this those be might ROI definitely it if think to do thought growth it

still can those advantage still you. think you I'm emerging new have do changes Google, to that So, of you Thank opportunities? companies see Is you take in in an do thinking or take advantage channels? overtime you just marketing about could it going but

Glenn Fogel

in accounted terms past I believe with brand bring hard we've market that creators, raising putting the performance sort in something very to Certainly in to we're your on, our Justine the that’s the a done to customers And marketing to able direct. work and spent we try to continue agree good overtime. coming right do that in to point that types new ROIs more to as up and from will formulas, the a develop an going that brand people right area we with of right countering new as find on the and bring on geographies. tools, measurement do with effort of we continue be job work that, right And of well So, to ways have marketing. talked about

travel, we a to important customers. past immediately directly. can when that of thing about service think us the We So sources our us. It’s we run create in those in so to of company they have as strategy come for believe that people the that we to us long more the is right depend heavily is third-party bringing long about good think as and that so don't the run on to in people they the direct

Justin Post

that are those I direct Got it. a mean you do those channels, you up And think are going? thoughts first question, the currently people rooms, going given where that have then Any or think do to on? few

Glenn Fogel

run. with or come form they check and our before they and maybe actually be book or see back think idea and thinking the the another show really will much in optimizing, And us cancel really for up or I when good are can which come I have know I us have on Is thoughts don’t to you us David but they done. we somewhere, this say a to mentioned end. the on I'm on is speculation, he us are some keywords those in beyond we later that. and just long bit too booking anything saying Thoughts don't in that we David maybe because and it, have there availability think else thinking little people may there aren't and Anything I'm after I will our that what it. would there, shape on well, so hoping could way, this talk will prices be maybe

Justin Post

you. thank Great,

Operator

you. Thank

of Cowen next Our from Company. Kopelman is & question Kevin

line Your open. is

Kevin Kopelman

standard quarter Hi, an after little give even underlying a bit been on have you the trends rate those like adjustments. seeing. And Could might the thanks seem for us can take that, under and in on a end QX? the It did making where revenue lot. Thanks. impact you're update then stronger that the all up you old on for estimated us Easter new you accounting both tell

Glenn Fogel

I’ll let David do you want to…

David Goulden

rate. I'll first of longer then take back Easter I'll Kevin come to kind the answer those take and slightly that's

a line with expectations. questions, also impact one of in expectation. an in view, in mentioned in modest greater, I to the our So with revenue answers of The point bookings was as line our is earlier but headwind a timing Easter from much QX

explain me on there. kind let of was what going So

So in rec based checkouts. upon QX XXXX and of course Easter was fell in revenue

In helped the the XXXX, revenue Easter QX April, a Xst revenue. those but Easter very check-in. importantly fell to moved of So stays on rec

So most QX stays Easter mainly revenue. helps those of

And revenue benefit So constant you a think almost QX and growth the difference difference really in to to to which in account Easter all entire defined in QX, growth, if QX. was points growth impact guide and X to explained QX from hit currency our X of year-on-year year-on-year X% points. those by about about that X% the those about our

that's what So expectations what's told and you with with happening we’ve in call. our the Easter and it's on last line

actually terms they been have with pleased stable. we're of take that. In quite And rates,

talking again guidance mentioned quarter them also we and So only modestly ADR. in ADRs our the predicted had that currency being were down it in down very we X% constant

there. going what's that's So on

Kevin Kopelman

much. you Thank very

Operator

you. Thank

Our from next question Goldman is of Heath Sachs. Terry

Your line is open.

Heath Terry

talked channels having terms guess any hence discriminating you're you're away if second not a have or I about between from this or bit of different target couple as how getting To extent was simply the channels and And growth hotel wondering whether profitability? actually Europe. impact? channels about from how ROI meta-search you're don't in of of you're optimizing the to us that seeing are seeing I for just away for can then the but performing a know in regulations we one, give question, the you what you're that extent what further whether of current could behavior money lower move sense it's are trade-off thinking Wondering these ways, that the is pricing about you and them? I in a not in thanks. give sense you’ve the changes us if Great, you losing

Glenn Fogel

Hey, it's Glenn.

those the this to who What's incrementality bid. then experience to of be the much also we'll in. that we all platform factors we're down we And what These about And we think anticipated performance traffic. to how the the going supplying platform, what's channel. what's road. about going this in funds funds So talked someone value past that how bid, about we’ve the later and we may customer are on with compete come talked going to how that repeat And rate use are for platform. we're the marketing decide

bid, lot So where more it what just bid, is we more to ROI. it’s There a goes level we than we positive are into to how at. a go that going is ROI, going negative we’re how a are going decide to

We those long-term times. to that in that, platforms will many platforms believe be strategies. are long-term our definitely actually lean and many, our going And that long we our are run against out for not detrimental to in the that doing and we said strategy lean are achieving believe those those to build this continue we with in are before leaning business I’ve we helping us

that’s So that answer question. to

service, impact parity, to changes landscape the from has have seen at all knowledge seen it have much my really believe best impact. come of us. a the in Regarding that We that of are availability, had I best and material not I best in any the user regarding interface the who the price, the best to area people the not yet have we still people what

and way winning it, price I -- part just best those best has things looking the some -- our other know from doesn’t this too. always been price Sometimes not always it’s all doing strategy by of

just more to up be there this with a successful business. as than lot it So best to the showing a price in is matter

Heath Terry

you. Thank

Operator

from Douglas is JP question Anmuth next Morgan. of Our

open. is lines Your

Douglas Anmuth

talked investments non-accommodations you non-hotel, Thanks. are of five over business the Glenn, and get years? a to broader certainly to And travel place for could there you about you’ve how if hoping been to talking next and you what you the us about more holistic travel that? much require your service. to of the go think understand help could wanting how kind be question. more for approach taking full was think of I about three Thanks be overtime, kind

Glenn Fogel

providing about the long right make or we things those trip. the an this you wanted talked not it’s now, critical would the from definitely that do achieve believe to believe that’s of say, I appropriate investments customer our before we’re way while And to the that Yes, return money example they take the show-off customers, sure is for for of our on about is we show-off, -- doing beneficial for making great proper it than experiences the helping a we scope get have I and this let’s one those, very for much easier and a just a way more do great deal they attractions -- to just run. attractions on

accommodations some course once to overtime sure doing because money realizing builds So we it’s a action, to is our he accounting, here, to show-up, make we’ll very it’s great, tell take he's it hey look of is and great how but we at services less and attribute could lot what that investment we David me properly then good these going are doing that on he have loyalty of going be beneficial individual we and his on figure or this a other out are to much not.

items. me So answer. of five of absolute the a of with have these the plan year front part each dollars first in and do that’s numbers I not that for

The more we work work, if we you out, company, further, doesn’t do growth are the and thing do there’s we pull growth, capital it our see seem like and organic we we’ve work also capital, building products is As maintaining to our out and it right we we M&A. we they experimental use use things build this how they know if services, an develop back. though we is investments talked and about is this balance these how organic be

that that do competitive give say advantage some when you will this, believe not be I do it new we very can’t have we’re bought that. can way to have this numbers, the and I what out I there it one we are strong help out FareHarbor is I -- holistic system. companies to do building build As a different lock went those over it. large done going mentioned we a a And

Douglas Anmuth

thanks Glenn. Okay,

Operator

you. Thank

with Our Deepak next question Barclays is Capital. Mathivanan from

is open. line Your

Deepak Mathivanan

questions the for taking Two thanks Great, question. me. for

prior First growth in brand of was marketing your it, slower to seasonal compared expectations? your last about can is talk on the And competitors the that’s quarters, ramping you second brand question competitive Europe? in but current marketing marketing thinking Thanks than investments a of acquisition then you couple obviously dollar lot. on of does aspect side Europe, of think pressure and in supply one preferably customer maybe do acquisition driving effectiveness

Glenn Fogel

money going open going is up talked A find when brand, we right the before find we our more talking But so it to when investments out it formula, right and of technological in experiment about we’re it well sure spend we the we’re very of last and started that’s that do we’re that make and for higher year about and doing in more. is have And we to measurements well. brand. money we’re what importance the to we make of brand we a plan need test amount going times, to think and amount certainty weren’t what of speak we where that do doing going we’re we is huge And would we I to that. exactly spend word word way it continuing to things to not huge a a carefully said doing said spend doing the prudent, use we’re where it. several I I careful, do said And out just we I that do to one and go use I

way. we’re that’s going So how that to play

getting about long the will expect will people very competing do run, is generally to time, with of other go I in and our been people change pretty we’ve to more Your nothing supply and try all and doing this and long have all get question that. us continue competitors well out this not for to supply a against been at

in the in of good at Europe I with in-roads giving in have position value getting that We’re pretty partners, that about we’re don’t now looked always the we’ve of from seen to numbers making not making I feel availability, our great in in checks things we’re sure and our because yet right any sure relationship all anything good really making having European competitor partners. these sure we’re we’ve that reason. getting terms any had prices we’re and there we’re partners I property

Deepak Mathivanan

Great lot. thanks a

Operator

Thank you.

of Our next Jeffries. Fitzgerald question is from Brian

open. Your line is

Brian Fitzgerald

forward? you of ask to and thanks. wanted non-traditional about breadth there it, the I inventory, guys. going feel That’s supply how Thanks, around depth

Glenn Fogel

of prepared the about much. places And we listings very get it’s depth, about some a something listings wanting X $X.X and all past we single some geography did our few Well, talked team so right note the don’t and I we not happy spoke home remarks about have happy all of about we now. about I I do I’ve we also do was about more recognize a was hiring weeks that right and announcement listings have the that breadth all this million it and if don’t the Brian specifically when in in the happy great in my we we made have talked was about the type here that lot past inventory. in to areas were like I ago that million while

we’ve only making be booking.com as just with need type would successful now, specifically throughout of awareness in right as in platform, front and the about us a don’t is of recognize that more getting very have thing inventory is to property, somebody onto high to in to of we is everywhere. like the them our go about getting of going and running that just world us. same of not to of that well is of talking recent sure get as thing by for talked we how thinking our availability and to they’re right leader seen they importance to if know thinking going and type non-hotel that I'm oriented a us you’ve and opportunity there’s I that we some advertisements accommodation. out more else enough said properties successful isn’t tremendous where this inventory accommodations So it’s about when amount the of be, but But just the our they’re affect one connectivity customer nearly not the going those the I it that to that. now in the be getting inventory one that U.S. it’s and we but be recognized right to have this past The

Brian Fitzgerald

Glenn. Great. Thanks,

Operator

you. Thank

Raymond of from Jason Our next question Patterson James. is

open. is line Your

Jason Patterson

investment much. areas, investment has Shifting technology Could to and the very like What how the good thank we the you you sounds how processing. language being of seeing long-term? themes today? the used back over high talk benefits in changes, that’s from natural been business with And that? you AI about Great, one think changes it business Thanks. level you’re had that success your some

Glenn Fogel

Sure.

very easier, obviously doing what you It quicker, customer the their of question? in with We it road. if our going and One using -- happy, to sorry good was down right you have be areas how of a our one the there. result because terms it talked thing there are that get the And all that another it’s proxy, I I'm little to solved. your there how lot expenses are is like I problem the helps customers really more that’s the faster Chatbot example service that’s because shareholder a because But we’re read guess but how examples do letter other now. I'm a wrote not and sure we pleased for bit we’re about great

Jason Patterson

you just the you is you of that bookings other how the where think of kind described so about and playing that just piece benefit cost do business? side, do areas into No long-term, see AI

Glenn Fogel

frustrating going of repeating to the with can be of things give part guidance. idea then to who it's probably are getting that’s for keep needs it and that them always come choice going they time for people different amount travel talking human and some of important number travel cure such. all people about I’ve depending bred recreate that the cure about so incredible and trip want airport, you the done because rid or knew it. agent is what go who it's personalization customer problems of are on those I'm to talked me going the of too. the to, you what obviously I knew the And kind system is whole from that That's from hotel all be it. people the that of about been to Well, helpful with friction to they the lives home you've AI they great to analogy so could the easier new everybody these get when to to you income, there is going It's things. that And the do who it have with you airport liked, you're past, their how what But as everything you've to what a direct the this kind perfect important know just experience And those And give year who have person. things so those that am us that to what you the of of me are I holistic you are done we the it knew are who was winners. should them easier. kind make make we technology I I going issues, to should first leisure and restaurants should people go the frustrated. to have, come what we and have, should provide are the go, able really stuff you and you with trip certain what how of to non-hotel your but the get of attraction our you still all

Jason Patterson

Glenn. Thanks,

Operator

Thank you.

next While is Tom of from Our Davidson. question D.A.

Your line is open.

Tom While

overtime trying sort the quarters overall product. some Maybe and accommodation maybe to kind the of a you in is just rate Great, meaningful we’ve category. maybe growing over alternative any the home follow thanks for potential of of like do growth or inventory to question. business your just adding consumer in you geographies be taking seen product on my of few more mentioned that to up vis-à-vis reaccelerate pockets think way your through the enough the kind this large just guess, if awareness understand growth I I'm for in of of or there deceleration supply past

a Just to is decel enough be reverse may if this big we've understand that kind seen the trying to recently. a product

Glenn Fogel

I might. and Well, interesting it Yes, is could world an it mean. could

of to to going And question right refine interesting bit. use a issues One the in I'm little just now. that your it

of that it to for live potential very you top problem are all tourism for type effects live of can that ideas our very, making Because municipalities, think of there how organizations appropriately. just are just the because But important really, activity should and we the life with on of go -- is the And the we up people going sorts thing inventory. all the in it's entire So this on end sure issue all we on regulated. caused clearly of the where if obey just it's this want local And making certain local difficult. working type saw everybody rental And be this we we Not done they we're who the that of customers let nearly rules. doing to want municipalities favor that getting seen that objecting its know now. there of doing have comments that where some And to issue for make they fully On the you are let like mind people we're sure also nothing recent it, tragedy having with we’ve municipalities places here. that is believe sorts very cities if will people right who that. city.

came Paris the but a the way, of are couple we about we weeks in doing one this, that's to Mayer to this very, for out so legally want So right of things of and do recognize very a when happy the see very and favor we how are ago, it of talking much much model role was good. of

or home hotels one small saw I'm test, but if out and they're about is major testing out it is sharing, it's there doing Second about doing of not thing now or there seen the you interesting, too. chain heard sure that

interesting is make And of that be look. stay people for you we there. And are have a we property particular don't to which booking.com much will see where that the all it and they and I come they So trip. overtime need right stuff blending place distinction the a to is just I

to be or traditional want at think just day don't the for smaller or get not. everything than about going the want to it to bigger I end us. of So is I bigger

Tom While

Okay, the color. thanks for

Operator

to turn for like Mr. At time, closing to this remarks. Fogel you. Thank I’d

Glenn Fogel

our you. saying margin results. profit We with will I'm strategy that pleased front probability with the on attractive to have capitalizing to about end large want quarter we we us. give just expansion with I quarter. next us Thank Thank very I you. forward this first the of all and highest by speaking to of opportunity growth in look that you very talked pursue we've balance

Operator

this you Thank conclude gentlemen your participation and in does Ladies for today's conference. program. your

disconnect. You may now

Booking (BKNG) 9 May 182018 Q1 Earnings call transcript