KAYAK Q2 2012 Earnings Presentation
Transcript of KAYAK Q2 2012 Earnings Presentation
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Second Quarter 2012 ResultsAugust 22, 2012
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Safe Harbor
This presentation, the accompanying conference call and the related earnings press release contain forward-lookingstatements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include all statements that are not historical facts, including statements about our plannedinvestments in key strategic areas and our expected financial metrics such as revenue, adjusted EBITDA, stock-basedcompensation and other matters. 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, ouractual 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 mattersset forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth inthe section entitled Risk Factors in the companys Prospectus filed on July 20, 2012 and additional information that will be setforth in our Form 10-Q that will be filed for the quarter ended June 30, 2012, which should be read in conjunction with thesefinancial results. These documents are available on the SEC Filings section of the Investor Relations section of our website athttp://ir.kayak.com/. Please also note that forward-looking statements represent our managements beliefs and assumptionsonly as of the date of this presentation, August 22, 2012. Except as required by law, we assume no obligation to update theseforward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in theforward-looking statements, even if new information becomes available in the future.
In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP measuresare in addition to, and not a substitute for, measures of financial performance prepared in accordance with U.S. GAAP. Areconciliation of those non-GAAP measures to the most directly comparable GAAP measures is available in the Appendix.
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The best place to planand book travel.
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Q2 Highlights
Revenue ($MM)
36% Growth
Adjusted EBITDA ($MM)
33% Growth 85% Growth
56.8
76.9
2Q 2011 2Q 2012
11.1
20.6
2Q 2011 2Q 2012
Queries (MM)
229
304
2Q 2011 2Q 2012
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Booking Path
2.7%
11.3%
2Q 2011 2Q 2012
Note: KAYAK booking path launched in March 11, 2011.
Booking Path Revenue (% of total)Partners
Expedia
Travelocity
Getaroom
Air Canada
Hertz / Advantage
Avis / Budget
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9.9
15.0
2Q 2011 2Q 2012
International Expansion
International Revenue ($MM)
52% Growth
Launched in 4 new markets(18 total)
Brazil (August 2012) Russia (July 2012) Poland (June 2012) Portugal (May 2012)
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Mobile
Queries (MM)
95% Growth
Estimated RPM ($)
40% Growth 42% Growth
App Downloads (MM)
1.7
2.3
2Q 2011 2Q 2012
29
57
2Q 2011 2Q 2012
$33
$46
2Q 2011 2Q 2012
Note: Mobile RPM are KAYAKs best estimation of revenue per thousand mobile queries based on data provided bythose travel partners that delineate between mobile and website travel bookings.
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Other Developments
Resolved arbitration with Orbitz
Extended our partnership with Amadeus
Partner since 2006 Multi-year agreement
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56.8
76.9
109.4
150.3
2Q 2011 2Q 2012 1H 2011 1H 2012
199 247
388
50529
57
55
109
229
304
443
614
2Q 2011 2Q 2012 1H 2011 1H 2012
Growth
Web
Mobile
33% Growth 39% Growth
Queries (MM) Revenue ($MM)
36% Growth 37% Growth
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Revenue per thousand Queries
$33$46
2Q 2011 2Q 2012
$280
$301
2Q 2011 2Q 2012
$248 $253
2Q 2011 2Q 2012
Note: Mobile and website RPM are KAYAKs best estimation of revenue per thousand mobile or website queriesbased on data provided by those travel partners that delineate between mobile and website travel bookings.
Estimated Website ($)
8% Growth
Estimated Mobile ($)
2% Growth 42% Growth
Total ($)
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Marketing
Geographic split (%)Spend ($MM)
93%78% 79%
71%
7%22% 21%
29%
2010 2011 2Q 2011 2Q 2012
US
Intl
16.1 19.131.0
40.012.0 18.7
23.5
37.3
30.0
39.4
58.5
80.7
2Q 2011 2Q 2012 1H 2011 1H 2012
Brand
Online
Other
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SBC 3.0 2.7 6.2 5.7
Personnel
Personnel ($MM / % of Revenue) Total Employee Headcount (1)
9.811.3
19.823.2
17.3%
14.7%
18.1% 15.5%
2Q 2011 2Q 2012 1H 2011 1H 2012
145
165
185
2Q 2011 1Q 2012 2Q 2012
(1) Excludes part-time employees and contractors.
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Cost of Revenue and G&A
Cost of Revenue($MM / % of revenue)
4.7 4.8
9.6 10.0
8.3% 6.2%
8.8%
6.6%
2Q 2011 2Q 2012 1H 2011 1H 2012
G&A ($MM / % of Revenue)
4.2 3.6
8.4 8.4
7.3% 4.7%7.7% 5.6%
2Q 2011 2Q 2012 1H 2011 1H 2012
SBC 0.0 0.2 0.0 0.2
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Effective Tax Rate (%)
Profitability & Taxes
Adjusted EBITDA($MM / % Margin)
11.1
20.6
19.6%
26.8%
2Q 2011 2Q 2012
$0.10
$0.19
2Q 2011 2Q 2012
GAAP EPS($ per share)
38%
52%
2Q 2011 2Q 2012
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Appendix
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Adjusted EBITDA Reconciliation
($MM) Q1 Q2 Q3 Q4 FY 2011Q1
2012Q2
2012
Income from operations (12.0) 5.7 12.7 7.9 14.3 8.1 15.8
Depreciation &amortization
2.1 2.3 1.9 2.2 8.5 2.1 2.0
Impairment of intangibleassets
15.0 - - - 15.0 - -
Stock-basedcompensation expense
3.1 3.1 3.1 3.1 12.4 3.0 2.8
Adjusted EBITDA 8.2 11.1 17.7 13.2 50.2 13.2 20.6
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Balance Sheet
($MM)As of
June 2012Pro forma
for IPO
Cash, Equivalentsand Marketable Securities
$65.5 $168.8
Total Assets
$308.5
$408.0
Working Capital $82.8 $182.5
Long-Term Debt $0.0 $0.0
Total Liabilities and
Stockholders Equity $308.5 $408.0
Cash balance pro forma for IPO proceeds, net of unpaid offering costs, of $97.3MM and
$6 million from a private placement immediately after the IPO.
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Cash Flow Statement
($MM)6 months
endedJune 2012
6 months ended
June 2011
Cash flows from operatingactivities
$20.7 $8.3
Cash flows from investing activities ($1.2) ($10.2)
Cash flows from financing activities ($0.0) ($0.2)
Effect of exchange rate changes ($0.4) $0.4
Net change in Cash, Equivalents
and Marketable Securities$19.3
($1.7)