The Priceline Group Inc. (NASDAQ:PCLN) Q2 2015 Earnings Conference Call - Final Transcript

Aug 05, 2015 • 07:30 am ET

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The Priceline Group Inc. (NASDAQ:PCLN) Q2 2015 Earnings Conference Call - Final Transcript

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Operator
Operator

Welcome to the Priceline group's second quarter 2015 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 forecasted in any such forward-looking statements. Expressions of future goals or expectations and similar expressions reflecting something other than historical facts are intended to identify for looking statements or 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 statements 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, www.pricelinegroup.com. And now I'd like to introduce the Priceline group's speakers for this afternoon Daren Huston and Daniel Finnegan. Go ahead, gentlemen.

Executive
Darren Richard Huston

Okay, thank you very much. And welcome to the Priceline group second quarter conference call. Thank you for joining us before the markets open this morning in New York. I'm here in Amsterdam with Priceline group CFO, Dan Finnegan. The group reported consolidated gross bookings for the second quarter of approximately $15 billion, up about 26% on a constant currency basis, or about 11% year-over-year in US dollars.

Our customers booked accommodation reservations for 113 million room nights in the quarter, up 26% year-over-year, reflecting slight acceleration for the second consecutive quarter. Non-GAAP earnings per share were $12.45, down slightly versus prior year, surpassing tax at consensus estimates of $11.85 per share and our guidance for the quarter. Our US dollar denominated growth rates were again impacted substantially by the strong dollar.

Our international business recorded 30% gross bookings growth on a constant currency basis, up from 29% last quarter. Booking com continues to benefit from further penetration of its existing partner relationships, as well as growth in its accommodation supply. Booking.com platform now has about 707,000 hotels and other accommodations in 220 countries and territories up 35% over last year, including 313,000 instantly bookable vacation rental properties.

Vacation rental properties grew 62% year-over-year, and that represent 1.7 million rentable units within these properties. In the last 12 months about 15 million room nights for vacation rental properties were booked on booking calm, and villas.com up 39% year-over-year. This quarter, we began experimenting with self onboarding of individually owned vacation rental properties subject of course, to a set of quality checks on our side, and the ability of