KAYAK Reports Record Results and Agrees to Acquisition by Priceline.com Incorporated
KAYAK Software Corporation (Nasdaq:KYAK) announced financial results for the third quarter ended September 30, 2012. The company also announced that it signed a definitive agreement to be acquired by priceline.com Incorporated for $40 per share in cash and stock.
NORWALK, Conn., Nov. 8, 2012 (GLOBE NEWSWIRE) -- KAYAK Software Corporation (Nasdaq:KYAK) today announced financial results for the third quarter ended September 30, 2012. The company also announced that it signed a definitive agreement to be acquired by priceline.com Incorporated (Nasdaq:PCLN) for $40 per share in cash and stock.
Priceline Group Acquisition of KAYAK
"Paul English and I started KAYAK eight years ago to create the best place to plan and book travel," said Steve Hafner, KAYAK Chief Executive Officer and Cofounder. "We're excited to join the world's premier online travel company. The Priceline Group's global reach and expertise will accelerate our growth and help us further develop as a company."
"KAYAK has built a strong brand in online travel research and their track record of profitable growth is demonstrative of their popularity with consumers and value to advertisers," said Priceline Group President and Chief Executive Officer Jeffery H. Boyd. "KAYAK also has world class technology and a tradition of innovation in building great user interfaces across multiple platforms and devices. We believe we can be helpful with KAYAK's plans to build a global online travel brand."
The board of directors of both companies approved the transaction, which is subject to KAYAK shareholder approval, customary closing conditions and regulatory approval. Until the transaction is closed, both companies will continue to operate independently.
Third Quarter 2012 Financial Results
In light of today's announcement, the previously scheduled conference call to discuss third quarter 2012 financial results has been canceled.
"We generated record revenue and profits," said Steve Hafner, KAYAK Chief Executive Officer and Cofounder. "Our investments in product development, marketing, geographic expansion and mobile applications are paying off."
• Revenue: $78.6 million, a 29% increase from $61.2 million in the third quarter of 2011.
• Adjusted EBITDA: $21.1 million, a 19% increase from $17.7 million in the third quarter of 2011.
• Net Income: $8.0 million, a 14% increase from $7.0 million in the third quarter of 2011.
• EPS: Both GAAP and non-GAAP EPS for the third quarter of 2012 include 5.0 million additional shares compared to same period in 2011. EPS is calculated based on GAAP and non-GAAP net income divided by 42.7 million weighted average diluted shares outstanding for the third quarter of 2012 and 37.7 million weighted average diluted shares outstanding for the same period in 2011.
• GAAP EPS: $0.19, as compared to $0.18 in the third quarter of 2011.
• Non-GAAP EPS: $0.26, as compared to $0.26 in the third quarter of 2011. Non-GAAP earnings-per-share excludes $4.1 million in stock based compensation and $1.4 million of amortization of intangibles.
Third Quarter 2012 Operating Metrics
• Queries: User requests for travel information processed through our websites and mobile apps. Please note that we recently revised our methodology for counting a mobile user query to be consistent with our methodology for counting website queries. This change results in lower mobile queries and higher corresponding revenues per thousand queries (RPM). Additional information regarding this change is provided in the tables below. The change has no impact on website queries.
• We processed 302 million queries across our websites and mobile applications, a 31% increase from 231 million queries in the third quarter of 2011.
• We processed 246 million queries on our websites, a 23% increase from the third quarter of 2011.
• We processed 56 million queries through our mobile applications, an 87% increase from the third quarter of 2011.
• Our applications were downloaded 3.1 million times, a 95% increase compared to the third quarter of 2011.
• Estimated RPMs by platform: Revenue per thousand queries.
• Total RPM was $260 compared to $265 in the third quarter of 2011, due to increased mix of mobile queries.
• Website RPM was $305, a 2% increase from $299 in the third quarter of 2011.
• Mobile RPM was $62, a 63% increase from $38 in the third quarter of 2011. This increase reflects both improved monetization and the refined methodology for defining queries discussed above.
• International expansion: Revenue from non-US geographies was $17.3 million for the third quarter 2012, a 40% increase from $12.3 million in the third quarter of 2011.