The Priceline Group Inc. (NASDAQ:PCLN) Q4 2014 Earnings Conference Call - Final Transcript

Feb 19, 2015 • 07:30 am ET


The Priceline Group Inc. (NASDAQ:PCLN) Q4 2014 Earnings Conference Call - Final Transcript


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Welcome to the Priceline Group's Fourth Quarter 2014 Conference Call. The Priceline Group 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 forecast 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. For a list of factors that could cause the Group's actual results to differ materially from those described in the forward-looking statements please refer to the Safe Harbor Statement at the end of the Group's earnings press release, as well as the Group's most recent filings with the Securities and Exchange Commission.

Unless required by law, the Priceline Group undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. A copy of the Group's earnings press release, together with an accompanying financial and statistical supplement is available in the For Investors section of the Priceline Group's website,

And now, I would like to introduce the Priceline Group's speakers for this afternoon, Darren Huston and Daniel Finnegan. Sir you may begin.

Darren Huston

Okay. Thank you very much. And welcome to The Priceline Group's fourth quarter conference call. Thank you for joining us before the markets open this morning in New York. I'm here with Priceline Group's CFO, Dan Finnegan. The Group reported consolidated gross bookings for the fourth quarter of approximately $10.7 billion, up 17% year-over-year or about 23% on a local currency basis.

Non-GAAP earnings per share was $10.85 up 23% versus prior year surpassing FactSet consensus estimates of $10.10 per share and our guidance for the quarter. For the full-year, the Priceline Group reported gross bookings of just over a $50 billion, 346 million room nights, $3.5 billion in adjusted EBITDA and non-GAAP earnings per share of $53.31 all up about 28% year-over-year.

Gross bookings benefited from growth in hotel supply of which now has over 600,000 hotels and other accommodations in 212 countries and territories up 41% over last year. continues to invest aggressively in its global supply platform building substantially differentiated hotel and accommodation supply, content and availability. Much of that growth in supply is driven by vacation rentals which more than doubled to 247,000 properties including villas, chalets, apartments, apart-hotels and other self-catered product all of which are instantly confirmable.

It is important to note that because many of our vacation rental properties have multiple units our 247,000 properties actually represent over 1 million instantly bookable and confirmable units within these properties. We continue to believe in the large untapped potential of the global vacation rental opportunity which has historically been burdened by our high friction research and fulfillment process.