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"We're off to a strong start as a public company, with record revenues and adjusted EBITDA," said
Second Quarter 2012 Financial Results
Second Quarter 2012 Operating Metrics
Second Quarter 2012 Financial Results Conference Call: KAYAK will webcast a conference call today at
About KAYAK
KAYAK allows people to easily compare hundreds of travel sites at once when searching for flights, hotels, and rental cars, and gives travelers choices on where to book. The company processes over 100 million user queries each month and operates websites in 18 countries including the U.S.,
Use of Forward-Looking Statements:
This press release contains forward looking statements regarding our management's future expectations, beliefs, intentions, goals, strategies, plans and prospects. Such statements constitute "forward-looking" statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, our actual results, performance or achievements could be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the
Use of Non-GAAP Financial Measures
Adjusted EBITDA is a financial measure that is not calculated in accordance with accounting principles generally accepted in
Earnings Before Interest, Taxes, Depreciation and Amortization, or EBITDA, is a metric used by management to measure operating performance. Adjusted EBITDA represents EBITDA excluding the impact of stock-based compensation expense and other income (expense), net. We present Adjusted EBITDA as a supplemental performance measure because we believe it facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting other income (expense), net), tax positions (such as the impact on periods or companies of changes in effective tax rates), the age and book depreciation of fixed assets (affecting relative depreciation expense), the impact of acquisitions and the impact of stock-based compensation expense. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to performance measures derived in accordance with GAAP.
See "Schedule of Non-GAAP Reconciliations" below for a reconciliation of income (loss) from operations to Adjusted EBITDA.
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Consolidated Statements of Operations (Unaudited, in thousands, except share and per share amounts) |
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Three Months Ended |
Six Months Ended |
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| 2012 | 2011 | 2012 | 2011 | |
| Revenues | $ 76,938 | $ 56,753 | $ 150,276 | $ 109,427 |
| Cost of revenues (excludes depreciation and amortization) | 4,807 | 4,684 | 9,992 | 9,629 |
| Selling, general and administrative expenses: | ||||
| Marketing | 39,409 | 30,025 | 80,658 | 58,482 |
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Personnel, includes stock-based compensation of $2,669 and |
11,306 | 9,800 | 23,219 | 19,839 |
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Other general and administrative expenses, includes stock-based compensation of |
3,615 | 4,164 | 8,447 | 8,381 |
| Total selling, general and administrative expenses (excludes depreciation and amortization) | 54,330 | 43,989 | 112,324 | 86,702 |
| Depreciation and amortization | 2,050 | 2,341 | 4,100 | 4,402 |
| Impairment of intangible assets | -- | -- | -- | 14,980 |
| Income (loss) from operations | 15,751 | 5,739 | 23,860 | (6,286) |
| Other income (expense) | ||||
| Interest income | 47 | 24 | 68 | 45 |
| Other income (expense) | (613) | 306 | (809) | 917 |
| Total other income (expense) | (566) | 330 | (741) | 962 |
| Income (loss) before taxes | 15,185 | 6,069 | 23,119 | (5,324) |
| Income tax expense (benefit) | 7,897 | 2,293 | 11,686 | (2,186) |
| Net income (loss) | 7,288 | 3,776 | 11,433 | (3,138) |
| Redeemable convertible preferred stock dividends declared | (2,936) | (2,936) | (5,872) | (5,872) |
| Deemed dividend resulting from modification of redeemable convertible preferred stock | (2,929) | -- | (2,929) | -- |
| Net income (loss) attributed to common stockholders | $ 1,423 | $ 840 | $ 2,632 | $ (9,010) |
| Net income (loss) per common share | ||||
| Basic | $ 0.20 | $ 0.11 | $ 0.37 | $ (1.21) |
| Diluted | $ 0.19 | $ 0.10 | $ 0.30 | $ (1.21) |
| Weighted average common shares | ||||
| Basic | 7,049,863 | 7,505,505 | 7,043,571 | 7,451,737 |
| Diluted | 38,620,694 | 37,391,530 | 37,959,369 | 7,451,737 |
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Condensed Balance Sheets (Unaudited, in thousands, except share and per share amounts) |
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| 2012 | 2011 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 54,550 | $ 35,127 |
| Marketable securities | 10,912 | 11,198 |
| Accounts receivable, net of allowance for doubtful accounts | 50,247 | 37,332 |
| Deferred tax asset | 2,212 | 2,212 |
| Prepaid expenses and other current assets | 5,826 | 5,425 |
| Total current assets | 123,747 | 91,294 |
| Property and equipment, net | 5,268 | 5,474 |
| Intangible assets, net | 14,563 | 17,684 |
| Goodwill | 155,244 | 155,677 |
| Deferred tax asset | 9,441 | 7,488 |
| Other assets | 248 | 331 |
| Total assets | $ 308,511 | $ 277,948 |
| Liabilities and stockholders' equity (deficit) | ||
| Current liabilities | ||
| Accounts payable | $ 16,212 | $ 9,514 |
| Accrued expenses and other current liabilities | 24,760 | 16,220 |
| Total current liabilities | 40,972 | 25,734 |
| Warrant liability | 1,319 | 1,150 |
| Deferred tax liability | 3,241 | 4,202 |
| Other long-term liabilities | 799 | 1,092 |
| Total liabilities | 46,331 | 32,178 |
| Redeemable convertible preferred stock | 256,295 | 247,494 |
| Commitments and contingencies | ||
| Stockholders' equity (deficit) | ||
| Common Stock | 7 | 7 |
| Class A common stock | -- | -- |
| Class B common stock, 33,864,565 issued and outstanding, on a pro forma basis | -- | -- |
| Additional paid-in capital | 6,575 | 3,296 |
| Cumulative translation adjustment | (2,215) | (977) |
| Accumulated earnings (deficit) | 1,518 | (4,050) |
| Total stockholders' equity (deficit) | 5,885 | (1,724) |
| Total liabilities and stockholders' equity (deficit) | $ 308,511 | $ 277,948 |
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Consolidated Statements of Cash Flows (Unaudited, in thousands) |
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Six Months Ended |
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| 2012 | 2011 | |
| (unaudited) | ||
| Cash flows from operating activities | ||
| Net income (loss) | $ 11,433 | $ (3,138) |
| Adjustments to reconcile net income to net cash from operating activities: | ||
| Depreciation and amortization | 4,100 | 4,402 |
| Stock-based compensation expense | 5,840 | 6,191 |
| Excess tax benefits from exercise of stock options | (73) | (226) |
| Deferred taxes | (2,819) | (9,811) |
| Mark to market adjustments | 169 | (916) |
| Impairment of intangible assets | -- | 14,980 |
| Other | -- | 121 |
| Changes in assets and liabilities, net of effect of acquisitions: | ||
| Accounts receivable, net | (13,277) | (8,901) |
| Prepaid expenses and other current assets | 461 | 2,989 |
| Accounts payable | 6,871 | 5,870 |
| Accrued liabilities and other liabilities | 8,171 | (3,061) |
| Net cash from operating activities | 20,876 | 8,500 |
| Cash flows from investing activities | ||
| Capital expenditures | (1,162) | (1,068) |
| Purchase of marketable securities | (7,481) | (18,182) |
| Maturities of marketable securities | 7,651 | 6,699 |
| Exercise of put options | -- | -- |
| Cash paid for business combinations, net of cash acquired | -- | (9,194) |
| Net cash from investing activities | (992) | (21,745) |
| Cash flows from financing activities | ||
| Proceeds from exercise of stock options | 302 | 682 |
| Tax benefits realized from exercise of stock options | 73 | 226 |
| Cash paid for expenses in connection with initial public offering | (411) | (1,118) |
| Net cash from financing activities | (36) | (210) |
| Effect of exchange rate changes on cash and cash equivalents | (425) | 467 |
| Increase (decrease) in cash and cash equivalents | 19,423 | (12,990) |
| Cash and cash equivalents, beginning of period | 35,127 | 34,966 |
| Cash and cash equivalents, end of period | $ 54,550 | $ 21,976 |
| Supplemental disclosures of cash flow information | ||
| Cash paid during the period for: | ||
| Interest | $ -- | $ -- |
| Income taxes | $ 11,040 | $ 7,331 |
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Key Operating Metrics (Unaudited, in thousands, except RPM) |
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Three months ended |
Six months ended |
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| 2012 | 2011 | 2012 | 2011 | |
| Mobile Queries | 57,103 | 29,291 | 109,464 | 54,697 |
| Website Queries | 246,936 | 199,457 | 504,890 | 388,270 |
| Total Queries | 304,039 | 228,748 | 614,354 | 442,967 |
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Three months ended |
Six months ended |
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| 2012 | 2011 | 2012 | 2011 | |
| Mobile RPM (Estimate) | $ 46 | $ 33 | $ 40 | $ 31 |
| Website RPM (Estimate) | $ 301 | $ 278 | $ 289 | $ 277 |
| Total RPM | $ 253 | $ 248 | $ 245 | $ 247 |
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Schedule of Non-GAAP Reconciliations (Unaudited, in thousands) |
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Three months ended |
Six months ended |
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| 2012 | 2011 | 2012 | 2011 | |
| Income (loss) from operations | $ 15,751 | $ 5,739 | $ 23,860 | $ (6,286) |
| Other income (expense), net | (613) | 306 | (809) | 917 |
| Depreciation and amortization | 2,050 | 2,341 | 4,100 | 4,402 |
| Impairment of intangible assets | -- | -- | -- | 14,980 |
| EBITDA | 17,188 | 8,386 | 27,151 | 14,013 |
| Stock-based compensation | 2,842 | 3,054 | 5,840 | 6,191 |
| Other (income) expense, net | 613 | (306) | 809 | (917) |
| Adjusted EBITDA | $ 20,643 | $ 11,134 | $ 33,800 | $ 19,287 |
CONTACT: Investor Relations:
Denise Garcia
203-682-8335
IR@kayak.com
Media Relations:
Jessica Casano-Antonellis
prcontact@kayak.com
Source: Kayak
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