Booking (BKNG)

Glenn Fogel President, CEO
David Goulden Executive VP & CFO
Mark Mahaney RBC
Lloyd Walmsley Deutsche Bank
Mark May Citi
Justin Post Bank of America Merrill Lynch
Kevin Kopelman Cowen and Company
Brian Nowak Morgan Stanley
Douglas Anmuth JPMorgan
Naved Khan SunTrust
Mike Olson Piper Jaffray
Anthony DiClemente Evercore
James Hardiman Wedbush
Deepak Mathivanan Barclays
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Welcome to Booking Holdings' Third Quarter 2018 Conference Call. Booking Holdings 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 forward-looking statements.

safe factors materially cause the earnings from please and to of results Holdings' forward-looking Commission. press list the Exchange filings refer differ at with as to those the most release a as that Booking Booking Booking could actual statements, end well For of statements Holdings' Holdings' recent harbor described Securities in the of whether new obligation by future to undertakes update as law, a forward-looking any required otherwise. result Unless or no statements, information, events Booking publicly Holdings statistical A website, release, copy Investors of together with Booking Holdings' is Holdings' www.bookingholdings.com. earnings an press accompanying available financial supplement, Booking For the in section of and Holdings now for David Glenn this like afternoon, and introduce And I'd Booking speakers Fogel to Goulden. Please go gentlemen. ahead,

Glenn Fogel

XXX range. in guidance to am booked is dollars room Holdings' call. XX% passed year the CFO, welcome conference constant our a of a in in solid our by the single quarter, XX% milestone Booking were high joined million afternoon Goulden. busiest of quarter end year-over-year I basis. and on nights We million David had worldwide and XX% new our up about year-over-year execution up third currency U.S. Thank nights you, of this quarter and gross exceeded bookings This Consolidated or booked. room a reporting XXX

currency currency similar a Our a EBITDA revenue in increased XX% on XX% dollars dollars basis, growth and rate. with constant adjusted or year-over-year on in U.S. the X% U.S. about year-over-year grew impact

our system. room night later-than-normal helped growth summer strong rate booking by Our was

benefited in the our growth coming optimization from In performance start efforts. addition, channels, year's lapping our higher from we which marketing part of last have

this market. with note am marketing approach paid more growth global reflects of room QX continuation channels have will we faster that with growth taken we of the spend. grow reflects our the top continue this pleased rate line Our significantly to our And our we in year. guidance accommodations than I XX% our stability expectation and for night we that strategic overall have

will which our data-driven ROIs. approach remain to acceptable forward, growth expect Going very markets and why we'll continue balance is these dynamic, the of to right achieve we employ

We and while look traffic working ROIs. work advertising build I And competitive in manner brand our we want those to to attractive see us the opportunities our will customers. our said to paid we will spend work high-quality closely believe channels at we a with before we help as not acquire serves partners that when who participation and maintain in strengths emphasize, that best our customers. is way that Conversely, a do best those our for reduce in with

we're our can you results, advertising. our brand beginning see As ramp up in to

expect past, directly bringing goal As increase our and we customers increase to further segment. our platforms we've discussed more to in to in of our efforts awareness, product particularly advertising brand home the to our

investment as pace our of digital long-term efficient we our direct in part channels we possible, in to the provide this and effectiveness our is letting measure We increasing efficiently strategy. allow us help of are spend to data expect better mindful reach to This our are as though results the of And spend. area, the and as spend investment. increase they

experience areas have experiences. accommodations our expanded that current discussed alternative breadth of and we've the progressed many the product of in investment in year. the particular, We customer In we over areas have and

listings unique XX. apartments of were million in and build listings as other in XX XX, alternative total We places million homes, supply which about of had continue year-over-year. to is an September Booking.com's stay, of September to X.X over increase And Booking.com XX% reported accommodations. reported

first-ever booking that alternative our growth see the is also consolidated customers through than us home pleased Our higher rate. is accommodation We're with room whose robust our to night in remains growing growth number product and nicely. of

We coming enhanced unique property their management include challenge to onboarding, a home we home building streamlined one have the home property a host States, booking platform. awareness These We the benefit our platform our like particularly believe to services of and customer specifically highlight services marketing profiling tools that property's that for is building capabilities, United guest unified of a discover same frictionless investment great host. certain building new to higher search developed customer expect truly which a from believe both we the geographies allows only to customers capabilities, in continue us. will offering come great leading the accommodations and low comes require aspects. platform in unique our recognize And have from And are path home We to and best hotel on quarters. part is accommodations in the business. that and

we long we the in are area to However, experiences, we the leading integrated believe will path are global seamless creating capabilities, our out our on choices the building run, and, product of home a offer way for more a customers. business. In right accommodations achieve

is access cities products, technology attractions quarter, even more now come well, help world integrating leverage attractions giving Booking.com approximately to online. progress made and in experiences to ability the we around worldwide. FareHarbor's local This the to XX U.S. new offer Booking.com's in experiences Booking.com scaling FareHarbor's and tours the product and

other these with In booking addition, restaurant at-hotel areas making efforts. experience in nascent and we are offering as services we such progress that options are note

wherever we invest of our travel of all may we As and in accommodations, continue an transport part ground products, customers the integral our whenever mobile platform, ecosystem, increasingly so mobile becomes can be. offer to and our experiences,

over our mobile today, from with of come happy devices. transactions area booking as our this accommodation are XX% progress We in

OpenTable initiatives from OpenTable, throughout such Priceline to best us and working KAYAK some our has promote now we're the our of our to with customers of brands value continue our in The company XXXX. number prior seeing OpenTable excited additional on confident acquisition to benefits companies. And about get restaurants the future, growing platform. platform has between and about believe create interaction benefits ways since is OpenTable are months, development are together forward that overlap seek greater the will provide are We its large and been as Agoda enterprise. by increasing during tighter in over certain is which further to we the XX over and velocity, higher share has to quarters other improvements more through multi-brand diners practices some the in allow its the entire closely market its cross-brand With happening to nicely, U.S., than in come. to all and OpenTable online technical grown our and we OpenTable system, million in innovation and now exciting of cooperation seated its via platform we the opportunity. XXX We and efficiencies reservation pace XXXX. at XX% look both there. XX% managerial

quarter, all will our services Finally, $XXX mentioned partnership we company. But being as Grab, the with growth experience and way thank CFO, progress out. over I am unparalleled the on-demand which worldwide hard quarter. mobile providing Asia, the long-term our and of very sum, in to strategy: in aspects I the David our to last is our travel Goulden, I our optimal I seamless employees this friction at our pleased advances. by in always busy I the partners an financial our lowest to announced changes world robust, and technology in that having to before customers long-term service leading consistent innovation will around long-term integrated initial work travel call am the have customers laid make investment The turn will of their for and this million foundations prospects execution the the the now week. detailed both strategy and the to easier approximately In a third XX,XXX see possible. dedication the be during and pace in world. property for I work of to would to transportation like strategic confident with review. I for create platform Southeast note investment remains pleased This platform, and am want

David Goulden

of discuss year unless operating and quarter then indicated. I'll relative our to the flows for period, afternoon. are quarter the good results otherwise guidance All rates and provide Glenn, fourth XXXX. cash prior you, and the comparable for Thank third growth

new last growth will current discussed revenue revenue and remarks previous accounting to standard in prior in other the standard. night impacted QX the income bookings accounting referenced all we compare by guidance my rates the the under room metrics new accounting reservations As year not the quarter, under year-over-year year are Gross like standard. statement

results and results forecast release. our to compensation financial GAAP in our non-GAAP include reconciled and are Our earnings stock-based

on our quarter. for the Now results to

period QX. the our When is high the growth we We unusual booked an night guidance given XX% and impact having of are provided accelerated in relatively high range a and weather from with Europe ahead season. travel in quarter of were Cup guidance the we're our third summer well our pleased pattern of end August, early of the for in QX, uncertainty the on we World in which room that

from saw we improved through our quarter marketing end room an rate our of in of by acceleration results channels. call, the travel earnings growth and our summer some the performance peak continued driven Following night the that late

about or travel in our accommodations, the our rates some in impact bookings, direct continue single largest growing amount. versus by the growth rates were XXXX currency. basis, faster booked our previous dollars of to billion gross points QX in XX% by Changes was our by for by revenue the coming the Consolidated represent was a above ADRs, that third guidance by in show quarter channel dollars is last which dollars XX% a grew U.S. of by in over acquisition points in and approximately versus X end and year, of our The In than July optimize X QX than about to third our We current rates growth strategy lapping year started including better we and from nights direct performance new our mid-QX XXXX. basis, flat. range. QX continues Momondo, quarter, on of standard which impacted FX year by have grew if quarter bookings an X% grow rates percentage channel, revenue mix. of under markets versus ADRs the which for U.S. revenue through grew QX standard. customers. would up comprised similar OpenTable, point a daily estimate revenue X% in mainly offset and to prior percentage exchange prior foreign constant expressed revenue rate. of under by rates it revenue, for in continued about core changes half KAYAK progress in $X.X than the in XX% the our from Advertising gross X XX% forecast been XX% grew in to and other Revenue We of compared constant reported currency percentage revenue lower XXXX. EBITDA is source more non-intercompany in Strong remains approximately and than we third from room began which on bookings reduced U.S. high guidance. and and in to ROIs, constant currency closed the overall Average growth about marketing negative

growth see from was in As driven result, The the and the by continues in performance to the continue quarter, quarter our the leverage Booking.com. first the offset in rate leverage be other from sales the expense, a to lower a business than in by performance which deleverage half merchant however, marketing of than at marketing of more we year.

see other line merchant expense the ramp business. as sales we continue our will pressure to We and on

are However, a significant expenses portion revenue. in offset of these

spending the drive XX in to our deleverage. brand of As direct to versus traffic part increased year, more quarter marketing our on QX contributed about websites, last of effort by our which XX% bps we

to billion to -- prior $XX periods decreased to impacted the recorded million income in charge expected, expense negatively pressure pretax operating grew related QX per GAAP which GAAP from in by and OpEx, GAAP year-on-year XXXX. that bps of compared income and year. or is amounted related operating pretax GAAP million a $X.X to million sales net X%. line. margin share, QX nonmarketing by tax diminished $XX.XX net by relative which the last by first grew sorry, other, is about margin X%, includes travel operating our transaction G&A half income in As by from to QX -- XXX $XX $XX

mentioned. and to also related investments our Our million our GAAP the losses $XX unrealized and includes in benefit We income by Ctrip. charge net net gain and on just the results. Meituan net transaction unrealized the a negatively net transaction impacted I from GAAP excluded pretax net travel income gains charge non-GAAP equity was travel

line EBITDA was the end up with for and Our was range amounted our our non-GAAP $X.XX to X% of Adjusted in which quarter was QX XX%, met high billion, forecast. for guidance the which rate year-on-year. tax

mentioned, previously in negative our from FX we impact providing our I growth As since on rates a the saw guidance. changes

slightly Our adjusted our in spending marketing, our growth. was XX% below of margin room forecast. EBITDA reflects which This night helped higher

net year. Innovation rate XX.X% non-GAAP which Box the Our EPS and X% tax Netherlands. Acts of up versus U.S. income from of $XX.XX, the Non-GAAP non-GAAP a rate in in the impacts to Tax the high the the due was increased year prior prior reflects QX, Tax

impact offset rates. lower last higher versus X% share on growth Our tax the year negative EPS the count from in QX

billion X% operating XX% $X to and investments by on a at billion for basis amounted by compared and which generated to cash the prior year-to-date quarter Our In we flow, cash year. grew end. quarter $XX.X of QX,

through flow the year-to-date And for $X.X fully our we compared September approximately prior which remaining share share reduced billion, for had XX% quarter by the We diluted the third by billion quarter QX $X.X X% cash share on year. our about X%. the billion to buybacks. grew to free XX, $X.X during basis approximately on shareholders and was start on our authorization. by Our a year, returned repurchase we of Since count

the repurchases. period regard we to of X-year about and both time talked authorization in continue will business we to and We under to be X- to the conditions, opportunistic stable complete programmatic this with within our expect market May. And remainder

Turning to QX.

will long-term mainly Our reflects with the our our over quarter results the size decelerate remainder trends. quarter-to-date the and rates guidance of our growth to of and assumes due consistent business

not Our approach to changed. has guidance

will exchange to similar used rates Foreign when and by growth be in X.XXX estimate X bookings revenue expected setting EBITDA impact QX exchange our rates which are an amounts. we QX, gross to percentage approximately of headwind a year-over-year dollar-to-euro growth rates guidance. rate We point

X% forecasting booked grow basis. currency to by are to to constant on grow bookings room U.S. and a X% dollars in nights to and X% to We gross XX% XX% by XX% by

the for that last be our XX% After revenue accounting QX I We impact adjusting QX this eliminate FX the on flat unfavorable to range. leverage EBITDA the that forecast To and compared versus revenue QX midpoint by will assumes QX dollars year, forecast deleverage basis. underlying on X% the talk year. on a standard modestly accounting QX, that and also grow up versus you will will to by negatively billion, to higher approximately adjusted QX the of X% between estimate adjusted standard. the be constant accounting will constant about that $X.XX currency revenue to and year. QX for benefit earlier. change EBITDA year it rate be rates under versus slightly to billion Note QX year-over-year mentioned revenue will XX% forecast in the change, $X.XX year. than growth represents will accounting in to have versus the U.S. and like-for-like impact -- which company revenue the been of less understand XX% at Our is margin by these standard. revenue of than range currency benefit would to that We was about the impacted I EBITDA forecast guidance revenue be prior down the the new XX% XX% ADRs prior previous reported in last growth impact of Note change. basis growth XX% our expected of EBITDA from from business a help We drivers, by our as prior in margins change

forecasting line from are marketing the We deleverage expense QX. performance in

Our our QX started of optimization forecast year. reflects we ROI last middle lapping the the efforts full impact QX of in

expect where also lean see to We certain continue into channels performance traffic. to we high-quality

better Sales than important to direct at prudent We the merchant ramp-up grow the P&L. -- primarily other websites awareness. a We quarter our investment is our deleverage marketing faster continue we to margins traffic QX, rate in expenses in expect drive additional which to the to and did due build business. more will brand to expected and in brand pressure profit to expense marketing to continue is contribute believe our of

platform expansion help continue our We on to build merchant push for to the effects. home business and a beneficial transaction other

EPS and Finally, we $XX.XX from half of year. made expect XXXX GAAP deleverage in We earlier continued $XX.XX forecast the in QX. personnel for second investments the and we between this

the Our reflecting to will count EPS last repurchase reduce diluted of X% made versus share stock date, common QX guidance XX.X year. share about by assumes of shares, we've our million impacts a beneficial the fully which count

tax non-GAAP the and year was XX%. negatively guidance is, EPS item not Our Act onetime rate tax QX Note therefore, U.S. of for impacted in that QX by our a approximately rate last assumes expense comparable. to GAAP Tax related

QX approximately year. growth are EPS We XX% versus $XX.XX to represents forecasting XX% non-GAAP to $XX.XX, prior which of

as estimated is Our to forecast higher of as Box more higher negative from non-GAAP impact share a of Netherlands. rate the than U.S. tax impacts act an income year. rate lower Tax the assumes in count from last versus the rate than rate the the XX%, tax offset increased of QX due well is the XX% prior EPS the by approximately which tax Innovation The

income or our protect and quarter, fluctuation have hedges from the between contracts further hedge fluctuations. end impact foreign the in to in any and EBITDA of dollar fourth currencies bookings, We of revenue net quarter not profit now place our gross the operating the but substantially from shield versus the do currency

market macroeconomic we'll in questions. conditions now in your particular. change not Our assume in significant general travel that, take forecast With does in any or


Our Mark question comes with Mahaney Instructions] from first RBC. [Operator

Mark Mahaney

I through over from gone a you've toggle, advertising. the about to performance think, kind want more bit. away towards I ask of this this little strategy kind of know a year marketing Okay. I of brand and

acceleration to saw through shift you're an of in mix answer whether But of feel the marketing. -- experimentation. color gotten setup year is this towards any the better, But this some growth assume after maybe Do experimentation upside, at you this quarter, feel of broader because like you just to I the little optimal There's you've at brand Sounds like sustainable overall that came a bit address this a be lapping the toggle you like on of it more now? happened going performance advertising. profile constant more marketing shift. yes.

Glenn Fogel

Glenn it's Mark, speaking.

So you'd fine, I forward. all be it's dynamic. the are going me you to matter, like to know, you stable, it's be know But of the and able the same as tell these markets, to fact extremely all going

as we like, find we're in, there's we platform's past high-quality try the long in drive increasing that it what importance of the more. much pay-for-performance traffic going we to we is to we're we step we interest opportunities, to the believe like, that in of some awareness. can our And we now, the Similarly, as we I going and and creating that's the continue reason, we're we said I is the already, talked increase away, to here and other spend. in several spend whether that run, we're part to when to ROIs we're brand And find way believe, saw and continue we're want do buy. we those acting to times. directly, because we is So going of channels. and some good vary reason is we don't think step of our brand said for to and But you when going And at this spend going that going year best that traffic about customers that, ago don't to in how a something say the or the the a

performance, increase be dynamic. going long the run, that absolutely ahead. sort So going I and it add you David, to be how thing can do we'll in much people advertising go movements to to up down. I of I the up it or down is you any get is believe, But about probably direct. is to to in can't want give the specifics There's to come say going right try any brand forward. if there's going color, we're to

David Goulden

thank Glenn, Oh, you.

half very of we just think I reinforce largest comments, remains room direct did booked our the and the of in single remarks upon business, nights. balance growth focused source new again, about our with of consistent Glenn's we're and that customers my which that represents

a our very to part, to the So on also supports to and obviously customers. provide expand value our only portfolios longer-term But strategy brand that it's part. not the supports strategic spending more our


from question next Deutsche our Lloyd comes Walmsley And Bank. from

Lloyd Walmsley

one, you us I about guess, to had can. a able if scale still give brand timing that of the think up a wanted on decision I with measuring return then, we the for should is to you guess, number sense strategic payback? the you're a more Or follow a I the questions. making And first spend? second couple, confidence on customers first, more that how mentioned is brand? on to planning of nicely. any booking And I up growing their specific marketing I are you Can around spend

faster there? Or of further years that your us or you slower given count of growth room nights? any growth a update you've can relative since couple Anything updated it's than it share kind room metric an specific nights? maybe Is rate been So can customer to give overall or that. rate on you

Glenn Fogel

and will to specifics about do you is going early. what talking be. marketing we of so Lloyd, brand, we're any when I can't of say it's the trying think to I still the that give very here? sort ROI

be a the attribution and in we thing technology tools we to we continuing marketing, to terms terms are our to of a and how to the difficult ability increasing seeing, what the do how is to we're last And increased number we're understanding we in do people and as you that. talked little increasing forward able the go like much of This how measure, bit we're now continue factor performing than ways in experiment, your I you're the and the the continue where getting pay-for-performance over past to ROI. going your many as question, are better It's going brand that that's we're is it true have would for to in going spend, very be to to I something we understand what's is it up said do that something but spend. important. brand of we believe a year, If to last to of to going recall and continue about believe we develop is ramp different do

thing, sure having home second who to and time perfectly. I what the the first grow. talking book because it, the product was we I we Regarding want is I make we first that's home What you product. are our said heard to about our something people time-ever, is are they're booking call really awareness there's like see to of with growing thing beginning that That's to showing Booking, using coming

any numbers specifics, give out In to not -- that not on we're area. of going terms I'm


comes from Citi. May question with next our And Mark

Mark May

consistently year about the so, basis of Sorry, of a again, anomaly. now into on the understand is, think, think that up of business? a looks as And would percent Is until year. a revenue I'm or to we side, the year been just thinking the bit thinking couple pace marketing -- about? trying much though you're about more leaned that past pretty pre-XXXX it as I of I of the should but of marketing last a you a be the to hundred should an kind or back points so spend kind growing be bit leverage guess, marketing. the in how marketing company's kind little we has

David Goulden

Yes. Mark, David. is this

going. I off where just Let the understand start that. question me is with

I do have you just look X all, year at to me halves. Let in the first -- think of

we the less speaking, half, mentioned, have ago, you comparing from As our in first we authorization a optimized -- start to half, activities and optimized it. the year benefit lap ROI broadly the second

seeing start in slight two you play to different halves start a way. So out the

look range, EPS see if at year, room know full if you at together, revenue QX, you a growth, way I think year look and XX% the the everything our just of it, full at growth, is XX% look and top XX% but to upon I EBITDA projection one guidance you the XX% based this growth, night add growth. end you

represents sometimes through it's significant bit for I a stories fairly year. us to the there's been challenge it little healthy that everybody And moving know during parts. year. So think walk Obviously, a of been I

and -- at it at year. bigger look look for picture step the kind is one way So to just one and the of back

of the to do view of we the going or we changed. think business, changed. to margin what plan as part XXXX forward. of reset but hasn't and other The at our we put above-market bit our our course think to months, platform as about going we on XX is our -- And about -- And business the of hasn't of longer-term plan, a rates a you things last there's ROI growth EBITDA to going longer-term being like that on in the not what grow build-out position our to the close look the plan, with is our always an be deleverage certain of of above-market achieve to going question rates, performance have over to modest some I'm but dollar but specific that and a channels And in kind EBITDA expect view eye give your growth. mean, of invest tolerate longer-term have will amount leverage deleverage, I our

our the to we and finish get little plan. a want obviously you to more I But specifics bit give don't we're direction. XXXX gives as yet that how still you as working much, So into through We'll that.


Lynch. of And Merrill Bank Post comes our next America question from with Justin

Justin Post

growth and I interquarter shift we million than question ROI? versus strength just marketing, the market where big-picture outlook. original spend? something room more then X $XXX first agency. remind pockets our your Or of thought the on and question you that? of us marketing Can you One just one aggressive thinking. something more changed the just were about in you dynamics million That's Did of picture, about than think the better bookings in And you On nights estimates, that versus housekeeping. found secondly, merchant we more made big generated the on spent

Glenn Fogel

the first Justin. let take I'll one. Dave one, second take the I'll Sure.

and So mentioned, as there markets QX the we QX, I towards remarked are lean going terms dynamic. made in interesting back happening is that The things to things bit little of of running spend. David to try we're earlier, to we're end extremely see marketing good don't foresee areas when When harder that we some appropriate, see going spend. think a we the And opportunities, as into were future.

one So we And nights. and at that room about it. we're did spend we build we'll the up pleased franchise. that continue these math are did going things opportunities more with certain the to us and of going times, find type in to hope forward in we clearly each end of where That's those help there, more

David Goulden

Thanks, important And on fairly point. -- Yes. then Glenn. a housekeeping, on actually, it's the

as things exceed That our for can deploying bookings in and 'XX You a our platform really significantly at merchant are partners. started transition occurring when growth a see Booking.com. global the in to does building to the we -- agency number for payments the us, of in great occur customers growth bookings our starting and QX our out

choices could something more of their gives payment more the card. credit their for example. our for closer many to a advance it their not be to opportunities pay either Alipay, may want It pay For be gives It or like them choice. them they stay. product may It customers, how an to with necessarily in to transactions

we're customers works. it offer again, us can in partner, in form more them, how we we in with the different partners, parts different the on them the the to though for then to different There from our us, may have because our our a For forms exactly world taken more payment different pay take payment whatever customers ability in front consistent of service payment of flow basically are provide accept because payment we mechanisms. of And lets charge even basically end. the like they

been you occurring merchant global see for platform principally shift through agency mixed of bookings, quite the it is see bookings. growth we Booking.com the time -- It's some merchant build-out of rather, that as impacts. the So that outstripping payments occurring. the revenues rolling having And

Justin Post

us like Okay. simply than one Can tell follow-up, your is other that? platforms? Agoda And you faster about growing

Glenn Fogel

that not. suspect way We area. are which it's going time usually area. future. for is talk It's in faster, also some about be I don't that I for which will fast-growing been is a the that to continue very competitive growing Asia ones individual say a time, But brands, It's and to some way


Kopelman and Company. our from next Cowen And comes with question Kevin

Kevin Kopelman

update relationship you with on questions. Just they're a give the in customers. given Can remarks, your And the you follow-up your on whether prepared Google? you your an best feel comments us marketing helping serve

Glenn Fogel

advertising I And as time. relationship know, for symbiotic improve about a with also very And had individual we other's that be Google, with relationship, pleased long don't them, I about we're hope think. much you, many, each don't that, helpful a talked talk beyond So we years, capabilities. that. that we've would And very to any helping helping can't our say generally people very a out at continues wonderful platform. you build many with over business we basically together

Kevin Kopelman

Okay, brand on understood. another then just And question marketing.

You make around today? are world out annually. about grow How now, million spend right there the you're what to $XXX is Right that. the you're you to on brand amount talked about sure about thinking wanting getting to

Glenn Fogel

not data. of you guesses of one So or very that we're things know, make history about as to our proud trying without just doing experimentation is the and projections

done, we've it's to what continue a over is optimal it take is you spend we I that time, to with spend, to think will And complicated. spend, find going able going to that It's the given now we number time. what is. this But amount a of we're It's amount are over -- how see what test, to before long long give the what the expect experimentation It's that about up going can't so rapidly, interesting up optimal the long thing very to things it significant for to One is come going period more that good going be used and test; I marketing a we out take and goes. we're time So of I is of And see to the than is brand the of doing about thing, world moving. so am because more that And I add is. is this digital be a will dynamic, don't happy to one with is when video. set that over-the-air better going spend of come things to always you're though, change that ever is TV. numbers. always measurement

we're the data, getting against. least measure better at So

Kevin Kopelman

you quarter-to-date can I can give us repurchase? lastly, -- share and just Glenn,

Glenn Fogel

I to no. believe David that's say

David Goulden

done. on we'll a -- policy. every think That update you quarter I we've Kevin, just new Yes, I saw how

the right it's to go. think I way


next our from Brian question with Nowak Stanley. Morgan comes And

Brian Nowak

two. I have

XQ guidance biggest growth? one, to you one, to to can the or bit The night guidance. of, the acceleration the the first a talk the the Then better again, understand and any The overall that products understand quarter. contributors room acceleration just deceleration, kind regions the better specific just XQ little second and trying just were to and

performance said, use data than rate, think I ROIs? faster the lower in did the ROI upside what Or direct We're able lower Just to more happen? How more traffic, that you not? mix, expected. drove ROIs thought? direct you yet expected? you and or to of grew As it in grew deliver how overall more than than volume come than sounds performance like, at so stable that Was were better did sort it test probably

David Goulden

to a Glenn I'm then for over it and comments. pass start, maybe me sure of let couple Brian,

you of yes, things asked there. a number So

if part in opportunity And much, what did amount to see growth quarter in very confirm prior lot of during we to drop Well, to I kind return with saw there? to wanting We the of drive opportunity. and key without ROI. the some we as and QX, kind is if growth, ROI. elasticity the to of the would in a a that to very growth just sense. more increase opportunities opportunities year dropping thing we confirm, you performance So channels more saw had in again, a reduction that what to test growth our dynamic The direct high our also always those of rates the some smart more as performance elasticity drive that mentioned, that. did early were in testing they we see thought say channels, just a in real-time We're test and growth we yes, have potential makes do. ROI constantly a increase the little We the specifically of was for testing some less investment. a year, in in And mix kind channels, of you why did of drive of some actually to bit the

to unusual we're wave and July. that gave of the whole better, mind breaking I the at top both the were to higher night, a some bit reason seeing course, that was north we not number than There little It we've accounts wave part in the do room to guidance we why to why south. we're the quarter. those of of about. start very only that the kind of performance accounts Particularly, perhaps in So why talked better, QX marketing the in that's things of performance of reason and more are we the the when expected weather there scorch were into able situation we bit that's in in got And many the at we factors, But we as guidance. other people nights. able better. our that our the estimated. in have lent of we when breaking get In spend other why patterns know in much a in we're do mentioned better August, in our channels the already a for room heat little those terms Europe for was started commented than upon gave

but So all those think, specifically channels, color. I the you related contributing some that are factors gives to

Glenn Fogel

probably and -- guidance I But try add questions coming for looking investors where trying is looking be would numbers great what trying the and to I just of for and all to I just we're our customers people sort to partners. these people what's is focus what on company at what grow, are are have that and term, that to build, long we're understand going do for was. continue the at our and

So really -- the we're here. experience run, with we're to and the the people profits more to the long what friction That's to world world mission, trying to which less help us. is in experience achieve no do able for

going And some quarters than expected. are to be better

that to going there's brand dynamic. market their We I'll advertising. much the Bidding as And good. us. word and players not against use in a also strategies, perhaps be are so a of bidding -- lot again, got quarters own are Some

customers, We our But for that about we what what I of makes long as works, work, easier are as build what travel. create system lots products, trying really to figure talked past for make continue doesn't out things this happening. factors holistic to to better people on the the it

rate. the And a do industry. that we I in a as will continue digit at whole company believe, reasonable the this single we continue in grow still as times, in and long we focus long that, we're so accommodations on to run, to many As said

a that's lot So of left. ramp


Douglas comes with question from Anmuth next JPMorgan. our And

Douglas Anmuth

do you consumers into about Glenn, hoping through as here you to more the Maybe a into pass But in you a are sum in where How nonhotel also can little talk that's priorities how accommodations terms segue ties just look and just part something the season. key the 'XX? bit of good marketing-related. into busiest awareness of up you supply, that value proposition your not

Glenn Fogel

it's is year-over-year. listing it's opportunity. Look, incredibly Yes. XX% important. We a We great believe reported up

have actually the actual to supply anything. book to got You

-- it behind that them we've way, But it do year. this properties come a talked a property, we demand the that's make be were to hey, host, about the it's think we're project. rent the And believe a get awareness we we willing been to then stuff And lot from out product, somebody. prepared some get get to a to quarter got to to going my on all a to of thing a even doubt best also great that and to the to we site. be past owns about to side have in, spend built, improve good know, that competitors, the no things really you're in be remarks, who's effort. having a our and being and continue about about something to going way start. of it. That's quarters, we the of to able same And or need a bit starting that. we in need the from done be that to This going need little is the be the to business, money talked If person different done But you so to that, long-term in move the about in said, things that we've not to long-term and we it that's hotels building. we That some X that talked it's that not is home I absolutely is able believe both that don't and

somebody tools the going to hosts that, there. a it traveler's And we of we sees for trust. to we be believe products the and an instant-booking instant-booking customer so to in both build purchase, one is the to do make an the basis, feel And with those the some it's at that when the and customer ready comfortable And important It's incredibly is of about don't on back issue end. forth, the is back though, fee in hit So sees to the done. And that forth. able host there, that tools right reviews some ability a there's things you an of not of talked area. that believe right

is time us trying So we're as seen the an ever what seen that. -- of they build a done, home it's part lots I loving first earlier, of And with things booked people product, here. I've mentioned be booking important to but to


SunTrust. our And next comes Naved Khan question from with

Naved Khan

It's Naved questions. Maybe Khan from SunTrust. two

China Europe now little talk had maybe on maybe and acquiring demand for metasearch. outbound plans about So can I gotten from follow-up then a you the business? bit approval just And a for that you've HotelsCombined that

Glenn Fogel

have question, -- may don't believe first approval I'm yet. -- got question actually I I final missed So not and we HotelsCombined, it. the

question. that on pass to going we're So

meta your in about So general? question

Naved Khan

of to the what Yes. any know if share. And China then willing to just, along outbound with demand, you HotelsCombined are now, to wanted color trends provide willing -- be might some on you're kind so

Glenn Fogel

how I look, travel China again. the saying that thought I'll China locomotive, of the so statistics some just train. outbound. incredibly saw can were love see I be. indicative it, Yes, it I I this love important. how say interesting important

XX also a were go the million a country. passport passports making to to growth. use kind actually of tourist That Chinese could China go XXX things, making it Chinese get they XXXX, of for So go the it's People you there outbound. don't shows million passports. is intend XXXX, out out. unless to easier

So in visa-free. XX countries that XXXX, were there were

a there easier Now lot countries, are XX to it makes go.

afford And want to As the the China, money, this as well, travel able -- want go. more. when is to to and economy is travel people China, in anywhere get more person outside is to the When they doing they the world. in

of It's some seeing in and being product, be more that. share why a times all out putting the media, able Rome the in doing tourists, Chinese us Iceland we're It tourists. being so to important about Chinese get that's on, that. talked the world, lot is Alaska and of in to good for that visiting going over But at seeing London, of I've look and people than you pictures and Paris all their social social it's of stuff If a effort.

We working there. have in over X,XXX for us people China

have we XX in China. or a either I offices think dozen

investments, By that great can that an getting to making are investment all reach the different ways some as made we've in you significant time Meituan, in China. We made Ctrip investments have We in and DiDi. to we show the them tourists, recently We ago. made we invested to know, offer we good in things we -- some so invested them. these partners have Chinese

they long-term about our And want need. it's And going got when we're have it. to benefit So pleased company. excited we to what think a to about We're it. they travel, we've

David Goulden

meta that can in first just point I question. up because the was on Glenn, the if And pick

we approvals not reason, we're have HotelsCombined For because so-called not the yet. in obvious got the final

we meta think that building are very segment first is the of group I people the it their longest-term is a are that OTA choosing before build multi-platform are think model, will And to important. what model are meta we to and working prepared who that there global space. in with platforms. been segment And is we because a go the travel, winning we've want people relationships a other would which is their nicely. down who But say I always So path meta think a

customers confused. go a strategy, So part prefers our want of of get have solution we and it's first, think as our complementary the very the business. those with for shouldn't marketplace of well. to don't because it think and important great We we it's necessarily It's segment parts that there a to competitive addresses people just a

Naved Khan

That's helpful. commentary your on the And on -- meta. just

that now improving appropriate Or year, for of lapping for at ROI changes, the last sort do you changes made ROI So the level do are now? you that you more room there? they're their see think you

David Goulden

nicely was channel We to Well, should in works made of so now that we for be our things where in we've us lapping in ROI shift fact, done for the terms their fully will meta, approach. as our think QX. changes business. we there the share we meta a got our think in terms when level -- in are of we get biggest that now we that our is effort for authorization benefits the QX The areas what in was, But a started over ROI I and businesses, QX. like

QX. did we're we lapping channels like and opportunities other in we're now with I So looking mentioned just incrementally those, the


And our Piper comes from with Jaffray. Olson Mike question next

Mike Olson

vacation is One And whether we follow-up on additive traditional investment your list. in as wondering fairly area near priority categories? Or the homes. the significant spend relative up Just on it being to minor stacks cannibalistic how that mostly a other about or not future? to decipher Have you this bookings? or of think been on Should separately, to are experiences. able then homes in

Glenn Fogel

could you read Mike? one that second sorry, I'm again,

Mike Olson

investments the just Experiences, stacks be near-term it where to and list wondering how priority up much there. on need the

Glenn Fogel

right. All

homes, don't of I really. way, it that of think of terms terms in in usually cannibalistic So

us. our to what even check about home. to us I we though, may it's We've said though come we We negative. we not home, don't to do, to a us travel have makes what try that try our come on direct when to consumer It's may on and more the have providing they're somebody want recognize, the want by they're They the it's really going always it they thinking going to of consumer think out appealing decide, fine us. and know type choices. a winter. igloos we there. decision do breadth, home, or to and homes, We're get the be incredible that if them the accommodation by don't a important We in one that talking On the about to unique lose may way place stay. That -- unique. That and it's We're talking on way, they mean platform. talking for the yurts. or wanted want that providing hotels It's the say We're everything what they they to who really get to side. single every to be apartments, other. able

the bottom out long an will to it's the incremental the to million money EBITDA, goes going that to so things I've celebrate. I've Booking.com that crash easier in and person just to up travel. statement but It's skip about very, that And to now we something have I top the the myself talked experienced not we providing to in thing, very is also experiences, And the by be reason believe, at the build or to throwing that app, system is I important. is line, run, did times, it's so better like it of that been experiences, it mountain is And right show it of thing but terms [indiscernible] on this go in the something build not the it bring And QR a it. that the long money is of income that castle to thing And make the go run, code makes do, we we're only that able the many wonderful off the in it important. to just Now consumer. just said, it just that. miles at it that's X to the loyalty, and great. cities use type the the thing go for easier. I and as it'll where these a line to hour

incremental So besides there's just lot of the transaction. one of amount of getting compound out a that money


question comes DiClemente from next our Anthony with And Evercore.

Anthony DiClemente

have I you Glenn, been have are. about as out their of to with two. themselves their guests grow success own talking competing direct-to-consumer there direct suppliers the initiatives. the hotel They're relationships

be So what or same I that were much your your Glenn. brand would channel? and question flows to puts What's the cash David relative M&A relationships is either guess, buybacks talking to really going? the is on to then, build time? really So capital of the amounts business is steady releases of direct is? And trying guess, a just your the question over of the would be maybe is, how overcapitalized Booking takes right versus structure Is about second the actually compete for, helpful. versus with stock strategic How I capital of spend really for those what in suppliers Holdings

Glenn Fogel

it to some with people value a be middle edge accommodation. little wrong with want trying for that. supplying They is are it's that. people nothing large always directly. wrong relationship in who provide chains, the may to nothing them hotel them, the to it cheaper And in with that. to creating a to provide of or the village we for attract our of international be as accommodation the seen international large them want and They demand based some to people the owner think and come value great to do There's side. stay I've a to sure, single who both chain whether small And So in multinational, France, business on

portion to business have a want to make we run. can everything That's And point long their international business. that the do out in how the We about be and of a better. of actually past, provide we in relationship. But help our about chain large do lot we a small business. we XX% is the I'd of helpful value. win talked that great We've our

We demand world have for platform the the in largest accommodations.

bed has to some come to. wants fill hotel and to body who anybody a So a the and with a we're money, people make

and a their change too? money to see This we say, that us a thing let pay event, we're a really XX a our customer languages, could service about more those do to cost. hotels, come hotels. I where, symbiotic about we hear for [indiscernible] languages, -- tone doing we're the doing paid want David that don't That you this almost things attract find is providing everything, And that Doing to XX the want people wish relationship. that the in like that. fight the for the really over people that. stuff in languages, do, to efficiently these done some all talk helping other. over -- of really are of we was just And to But the the we That's of thing wanted than and people I do sporting sure, their any capital end, on that site and And that I'll own. this I to marketing. so each don't why I saying value is And like something really structure. between want people and people own this would efficiency, to they'll thinking I read these direct, hotel the about marketing or stop is look, to I boxing us

David Goulden

got it. only Anthony, a topic, Yes. a could very we've and of long capital be couple structure minutes obviously, for

higher kind So the give and of you I'll a view. try

and wants lower to to back are travel to First we of marketplace on opportunity all, strongest. and us with think, seamlessness travel forward a value, huge broader and we price try you the And customers. And service huge the that everybody for look is share our global of offering have do -- single-digit only best choice, the have at price. to a we Therefore, price, is combination the marketplace. online have the is have single-digit and go market we where a develop. think of planet, the There is out I build mission out there, our I step share And a that to we business. travel segment a try

of So that is our to fortunate significant course, financial to return that amounts and, primary our to mission be in be life, and able we to resources able have of are to shareholders. do money

to aided right that that to return Now relatively shareholders has Tax the been new. we as Act as aggressively ability can by now is

X for we X very large over out next the generate mission the life. that primary customers, billion something, the and to shareholders, do partners, in front the of inorganically our in forward. kind have broader which to think I important both our years is to for where incredibly that context this $XX it opportunity our value of have us in a But commitment think building return ability invest organically our which to is I in we significant I is put to opportunity want step of

So if how we about it. think that helps, that's


And question comes our next with James Wedbush. Hardiman from

James Hardiman

bit bit. little but a You've a little on touched clarify maybe this

the travel to fourth to how fourth quarter. that, us I'm would headwind whether figure to or booking coincidence. as to that's give maybe as get a until fourth fourth were today more itself momentum trying versus summer I'm You the figure to scenario. in a side, that we is or time changes then as quarter guidance geographically. But to finish about quarter you of beyond. out don't third out a look wouldn't tailwind had And better-than-expected Europe ago? of you and I are think you at, that the the Obviously, I'm affect now. quarter. talk delayed fourth much. of quarter for if mix But optimistic strong Europe and the not Europe very a end overall quarter the maybe much quarter and little sort maybe of a trying into at bit guide somewhat spoke the the fourth resolved we day, than But I is just a the of trying a guess, Obviously, talked. months then you was X out last called headwind growth a

David Goulden

Yes, James, let me that. start with

question, are to the Yes. now we more QX about did guidance were our time? we when So direct last optimistic than we answer

want time control, impacted were marketplace were the through out last and period, and and and kind were clear where people when we where the most ridiculous XXs Europe pretty by there. some pattern that we're the didn't at raining, we south sitting didn't our sorry, seen north was want think anywhere people basically warm the weather was ever June to was in guiding, was which in of facets and macro -- and July looking were south being biggest the to vacation; we've the going go of the go I dry,

World impacts compounded doing going change, big So that really tournament. affected couldn't that also on our Cup was by going that business. had which, to on, well big We countries in predict the and when with was again, Europe, the

looking were we degree high seeing at a uncertainty. that of So

And rate the I the ended our in back biggest higher expect in a better. that mentioned, As And because at we did geographies. one, certainly got obviously, was quarter average of on got expected call. as than the for quarter we we than Europe our the we most improve developed things things quarter, better and August Things we the a commented Europe. deceleration growth through

And we our lens if QX mentioned, stronger are I things deceleration growth saw for be, QX expected So guidance we looking rate would October. at as from what some a we from from in a than hadn't to reflect improved.

into our yes, are of is, we the QX things the been, improved which guidance. are if position the is are that have takes. answer would those question QX in in about we've stronger QX, short and which now what we have not hopefully, factors, puts But looking our the built than we And view at. So to clarifies a

James Hardiman

question, concerns Got been tailwind Europe it Europe, the sounds there to have growth it. going alleviated. now a forward? like Is And geographic the largely

David Goulden

segments. of the going obviously, not of we how But it our were control, talked growth different things view I'm the of impacted relative to that a get lot out rate into our QX early level of Europe. into happening of in that talked QX acceleration world yes, the most geographies. across And saw major QX, of some about in were and we we from our


from And our last with question Deepak Mathivanan Barclays. comes

Deepak Mathivanan

from on question the XX% a mix mobile. Just transaction

front quarters, mobile significant mobile to given on as terms -- cost our that economics in crossed there customer over change last hold going we unit and an the now between ramped behavior a acquisition of treasure And is be the devices? significantly positive repeat on that forward several meaningful been organic have could has paid mix of potentially As incremental the XX%?

Glenn Fogel

for don't to desktop. not does obvious I costs about talking people not sometimes the caution relative of app -- get mobile we're into mean some or mean this thing, and we mobile to but free. going So course, the not that seem forget would, does

everybody just want the I page to that So because make on on same sure one it's not. is

mobile with their to in good not and on continue things we're loyal us Again, or very to again their That's Dave, then travel better, to anything so I these now all more of over make about end different that the always add us equilibrium experience, they are things lower. because with the great come mobile. That's wrap that people not And higher as doing to the work continue if I gives they're travel back where opportunity at. trip, you time, cost really area knows. the and up more them to markets. it's -- them or desktop, We That's device wouldn't it the around imagine mobile, because doing are a that. their offering customer in making move throughout more believe, get is part is who with whether a point probably towards about services, pleased And to are better much to mobile. competitive mobile. my to providing the going too want great the an to we where

David Goulden

No, Glenn.

the to to the talk go I It's interact think occasionally, desktop, always mobile they device to key point. back take with that customer their always not The with it trip, that's we able them. but can on. about their desktop The is during them. the trip and with when they the be is point key tend

there So may they is laptops at device if But maybe the night, today. [indiscernible] their the want entire they to open time. try mobile

like as out business shift on it's all much mobile So can strategic interacting very us they device. We of with often more aspects and the we trip. particularly a build the customers than desktop in a the our on

Glenn Fogel

us our much, joining updating with for you today. Very you you very remain very Thank forward call about the prospects company. and for future the of night. quarter look thank quarterly good the after I excited and So to results, pleased our fourth we call.


program, disconnect. wonderful and Ladies does in conference. today's and participating Everyone, This today's thank day. may you all gentlemen, you have a for conclude