Booking (BKNG)

Glenn Fogel President and CEO
David Goulden CFO
Lloyd Walmsley Deutsche Bank
Mark Mahaney RBC Capital Markets
Douglas Anmuth JP Morgan
Kevin Kopelman Cowen & Company
Justin Post Bank from America
Mark May Citi
Brian Nowak Morgan Stanley
Eric Sheridan UBS
Deepak Mathivanan Barclays
Naved Khan SunTrust
Stephen Ju Credit Suisse
Anthony DiClemente Evercore
Heath Terry Goldman Sachs
Call transcript
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Welcome to the Booking Holdings First Quarter 2019 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’ Holding’s 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. Go ahead, gentlemen.

Glenn Fogel

a I’m end the conference to which nights CFO, first you, is quarter a our by room XX% and joined exceeded guidance afternoon Goulden. XXX year-over-year Booking call. high We David produced booked, of up with our solid welcome quarter range. Holdings’ worldwide this million Thank and

As timing exchange of results we quarter. our impacted Easter call, dollar this U.S. the last movements meaningfully foreign rate and on our discussed financial

of about a year-over-year U.S. dollars on Easter, was increased but slightly adjusting non-GAAP guidance FX down basis when for for for our constant end Adjusted further range when above in and currency which year-over-year revenue and X% up Our by XX%, adjusting but growth the the up quarter. Easter. X% declined was EBITDA about high X%

the see metrics business. encouraging results We are to pleased in with quarter, and continue for we our our

growing our is channels. than faster channel direct Our paid

growing faster and our increasing, business. accommodation than overall our share is business mobile is Our alternative

large drive share returns execute combination organic through shareholder look we investment, M&A. to will opportunity, continue market we growth against opportunistic the of a and repurchases, very As to

call, driving top-line investments primarily acquisition share investing accommodation growth aimed As at gains. merchandising, we we support brand in growth core long-term through are on customer programs. last to These business, our the are marketing, earnings our discussed and and

are we acquisition brand the of the target over to merchandising increase our and it's while some early early, confidence programs on these with have we they also expand move awareness of as with customer our into results will new our We of pleased We're brand travel and launch look that time. season. campaigns. busy And our

Our And X branding of goals in expand of XX% three alternative to which offering as guest approximately as of continue and X.X stays had that in accommodations here. passed the include billion our We improve million Booking.com quarters quarter March driving reported our to XX, to since pleased greater grew accommodation awareness were during we milestone of its listings the year-over-year. approximately XXXX. alternative Booking.com accommodations, announce listings, alternative

is focus More night booked This as possible the our platform. importantly, our selection conversion broadest individually of represent across us the supply and growth. our key fastest of look places room we which for helps area benefits to of stay, owned drive category properties a provide unique to

utilize accelerate strategic growth key We to M&A opportunities. will to continue and investments

market attractions connected we has will enabled accelerate we believe enhance a in us frictionless to For offering. our the has a in capabilities and that loyalty truly experience build to accommodations example, envision FareHarbor customer us where our given growth key trip,

where broader long-term expand in and Our strategic partnerships, have key growth. can believe us investments will these marketing in with we continue help China markets, to Asia, accompanied we local underpenetrated

owned year invest in completed historical of X% quarter. fully with billion XXXX. diluted of to opportunity billion our purchased we during the stock terms the alone, to share advantage of date the approximately our shares. share have in of our repurchase repurchases, in Finally, repurchases, $XX This buying Consistent program, share portion approach to we $X.X our we remaining took

and the a look cash will new color in solid a approved in business. organic execution position, that shareholder repurchases more strong But David years, we the next the our flow we demonstrate some combination execute in reflects our assuming a had of provide to opportunistic stable mode. continue conclusion, future financial to new our generation, his In Directors of Board remarks. confidence conditions. quarter and remains to our share will business through billion team and authorization We'll market returns over investment, drive prepared our M&A. long-term Additionally, three two high $XX this repurchase full as authorization of

of our manage view global to CFO, see, ahead the call actively As pulling levers. for with to on David I'll capture can We that over and the three we the remain financial these review. opportunity business are we’ll it. now Goulden our of on all large you us, lies focused long-term absolutely a turn

David Goulden

unless you, discuss I'll then and Thank rates period, comparable indicated. regarding growth our the to quarter, discuss thoughts in our our results release. can first the All the found on guidance afternoon. are operating prior our our as to reconciliation good the for Glenn, update well an on relative second otherwise quarter provide as capital be GAAP earnings structure, and Information for full-year. year

our the to for results on quarter. Now

considering sluggish room region XX% exceeded for Europe and the challenges room range. the growth slow in Europe, performance marketing growth in of quarter guidance rates environment night our night primary exceeded were a with We Despite end pleased in of booked the growth start channels. our expectations. our the Our high our performance, in the

dollars QX rates rates X% of FX versus basis, changes grew dollars foreign constant X approximately slightly for which and Our in QX ahead ADRs the down by X%. our basis, by X% on Changes about reduced percentage about last gross Average more. and of on rates by growth grew EBITDA by EPS for dollars declined QX currency gross percentage currency rates of about guidance coming than bookings, X.X% rest QX U.S. $X.X growth exchange the revenue range. constant quarter Consolidated estimate X We points grew daily by world expectations a high U.S. the constant by our U.S. a growth of point rates and end the first bookings for and similar our in basis. or grew in in expressed a billion amounts, X% down rate impacted by growth than X% more currency year. non-GAAP in above were and Europe. rates was accommodations the guidance was faster on about night in revenue room and were in

impact timing Easter on in QX had revenue shift the of expected, growth -- rates. an our on X-percentage-point rates approximately As negative growth our holiday

of therefore, quarter. was will Easter reminder, last a with was on majority As Easter-related the recorded April year, QX. XXst, revenue revenue on recorded April in Easter Xst, the and first be travel travel year, This Easter in

X%. and Our rate Easter which other on a revenue, QX constant X% comprised basis grew non-GAAP Advertising non-GAAP mainly is by revenue of currency for OpenTable, revenues in was growth about for exceeded reported on non-intercompany and timing for adjusted KAYAK million, $XXX high basis our adjusted which about range and QX and EBITDA up of Adjusted was guidance a basis. down constant QX. currency X% on was Easter the and end year-over-year a XX% and

expected the margin with points of We marketing, also helped Our of performance ahead spending quarter. after disciplined our was basis for better adjusting in Easter XX% which leverage on our than remained drive forecast. QX adjusted XXX of EBITDA

will an slowing rationally growth. marketing customers, channels to across effective and our we optimize continue to seen to we continue acquire see While have performance way channels, we growth spend as to these

year, growth to and about of last our investments our payment XXX and XX% to to of basis expense with by points deleverage, our XXX websites, of direct gross contributed points basis As grew line spend platform Booking.com. to brand primarily growth contributing efforts due quarter [ph] deleverage. we Sales continued bookings as drive the part growth on the traffic other merchant of QX versus our XXXX well in on our more increase as marketing

Finally, in lower expense the amount personnel quarter. deleverage forecast a than our and of in came contributed small

currency discrete X% versus non-GAAP due EPS than Easter which from of was slightly Non-GAAP prior timing, Our in the non-GAAP XX% our the and and a for estimate prior to non-GAAP XX.X%, reflected down decreased rate higher was net guidance items. quarter. for year, grew the income year EPS tax adjusting $XX.XX,

income X% QX GAAP XXX from basis last income lower share, of in $XXX to up margin net (sic) EPS decreased quarter. operating count to GAAP share GAAP a significantly Our in by QX QX and basis, amounted benefited compared million] $XX.XX [$XXX points, by million declined growth the per year. operating XXXX. QX On XX% or

had Our and from the $XXX year, tax unrealized related a in of QX excluded We income investments tax GAAP million to our which primarily the on Ctrip prior GAAP included net of due unrealized Meituan quarter, equity provisions to discrete rate We the in pre-tax increased XX% Ctrip results. gains. gains non-GAAP from Meituan. gains these and

million full negatively investments We to about quarter in confidence In increase in we $X.X with XXXX. billion and we for to of stock $XX of wanted purchase look billion entered a since $X.X billion opportunities to on strong right we're billion the online our French share quarter, cash to an update court, prepayments believe we trip. capital how with in our the as and steps flow and of in on cash of free asset complete, assessment structure a and our our under and reflecting flow which is authorities $XX.X cash the With and core sheet debt. remaining well our the of repurchase program. you the payment our billion Netherlands. $XX contest $X.X first of approximately billion to $XXX outstanding travel end repurchased this the the impacted tax preserve that were -- reauthorization, completed by May capital both in remaining strategic share operating We buying from announced strategy business. capitalize opportunity the we a an as ended income for authorization thinking also $X.X deliver we tax another execute as We we as ahead next order in the on allocation. QX, in businesses, quarter balance connected growth to XXXX our in And million program, Our the our

fund euro of billion euro-denominated currency our means, no you'll Our $XX a to our conditions. with in a organically from euros flow billion from holding starting M&A strong these in pool. as our with in investing operations were the authorization intend a ratings. fully fluctuations via transactions a assuming repay On downturn. additional line competitive more your expect position, our ongoing cash, gains share income debt this and forward, macro even we billion or next grade The market from QX, top cash X longer April, intend will in capacity non-cash cash into hand, to new capacity our currency authorization we we growth business, have maintaining stable GAAP deployed debt which losses complete credit This euros euro-denominated And and operations. repurchase priorities in inorganically, X business having events decided cash GAAP borrowing at we note, of on hedged our cash statements. resource of flow. as are be of going cash refinance remain enhance purposes. to years, and of investment related well financial economically as our We foreign in liabilities consistent maturity, in hedged both to move have other in $X.X we for generation U.S. the the X.XX by our Board our the to and authorized and it euro-denominated In or And

gains presentation. such, we intend losses financial from As non-cash these exclude our to or non-GAAP

some we year, the and QX. then Turning last discussed for the call to guidance want in outlook on that to I’ll Starting our XXXX. through with walk of guidance. come our impact for you our briefly investments growth will I to the back factors

As acquisition we quarter, discussed growth, in for we’re investing detail and loyalty. last customer

we’re it’s initial we’re with acquisition merchandising days, with results our of from campaigns; programs. While the target some our early of launch and encouraged customer brand on also

growth impact be We continue negative on the points there’ll our growth will by a these XXXX, rate investments first EBITDA growth half. to a reduce in and expect during greater percentage EBITDA few

of that this noted on year. this additional for we We revenue. to a EBITDA to from of payments not in modestly component impact reduction negative payments will expect have the Last any growth of expect and a growth change recognition revenue Booking.com. the do Moving we due year payments now timing merchant on quarter, in EBITDA

EBITDA However, for not on XXXX. negative growth impact any additional from we do payments expect

flexibility, merchandising reminder, and important a integrated and payments we a in including expenses As customer reduced provides and ability advantages believe service the areas, to partner customer better coordinate trips. many experience, merge

growth our we impact reduced in X rates rate Now, the Using by guidance our points the full than announced. anticipated and factors let’s on through exchange our euro-dollar will which bookings look year, be revenue the at growth assumed the to is reduction to non-GAAP outlook. greater previous guidance, growth for current percentage in approximately impacting due gross FX EPS last since

will Additionally, rates. of timing of revenue growth impact the shift QX QX Easter and

environment, EPS Finally, XXXX. will sluggish expectation our basis in the outlook the on in a change I it that in remains Europe. which does With low-double-digits remains not as that non-GAAP macro previously grow anticipate our in mentioned, context, currency constant any

We continue by achieve in to each strength region, the year, we’re expect making and reinforced this. geographic to confident that investments us to of accommodations major growth will gain we’re share this in enable our the business

to attention our turn now Let’s QX.

similar will $X.XX factors, revenue, by and on EBITDA dollars dollar we where constant timing booked discussed are year-over-year We forecasting to the growth amounts. room QX, in revenue with guidance, our bookings currency at growth to rate earlier in be QX use points. other to our X approximately impact are flat X% non-GAAP increase euro and Foreign rate we we’re in will quarter growth a consistent percentage of bookings, rates impact X% estimate and basis. timing to We EPS in positive gross exchange looking rates The usual expected XXXX all X-percentage-point X% Based by U.S. to studying rates nights gross a and approximately of which exchange approximately by the be call, to Easter approach on X% on by grow revenue grow QX shift and QX. estimate when of this guidance. to growth will shift headwind

to grow QX constant forecast be EBITDA up represents and growth. to Easter range estimate forecast between and by approximately to both revenue XX% which currency, by constant to currency we QX and Our billion revenue be a ADR XX% is both flat. QX to assumes we be QX to estimate company expected for year-over-year for a XX%. currency, Normalizing We in will approximately QX flat $X.XXX about basis. also for U.S. X% constant X% on to adjusted the EBITDA billion, to X%. X% $X.XXX constant grow down currency Normalizing Easter dollars growth

modest forecasting on performance volumes from marketing line reflecting lower channels are continued focus the acquiring We in our high-quality QX, the expense paid in traffic. leverage and

will meaningfully which in leverage to to continue offset brand and expecting to performance our more marketing deleverage P&L expect We marketing. spend from we're than quarter, grow the the contribute to

Of realized will course, the benefit from brand marketing be over multiple quarters.

grow expense Finally, to expected and Booking.com. at to growth sales and is primarily other remain elevated due than revenue, of platform faster ramp-up to payment continue our

forecasting Easter approximately of estimate Normalizing QX grow approximately we constant are EPS both for $XX.XX QX to to to currency, X% EPS non-GAAP and We $XX.XX. X%. non-GAAP

income which EPS line approximately tax XX%, non-GAAP with last estimated includes Our forecast year. rate QX an is of in

XX.X%. our XX% expect to to continue be rate We full-year to tax non-GAAP

below for forecast QX GAAP EPS is million QX Our $XX.XX guidance $XX.XX of EPS share fully QX. year. non-GAAP last and XX.X XX% between a which about count assumes shares, diluted We

guidance a approximately tax of assumes XX%. for QX Our GAAP rate EPS

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

significant in or any in your particular. change assume in general Our not the take forecast questions. travel in market does conditions now macroeconomic We'll


Instructions] Deutsche [Operator of Walmsley Bank. comes question from line first Our Lloyd the from

is line Your open.

Lloyd Walmsley

I two I have can. if Thanks, questions

not like the of was of targets of performance programs? talk headwind or the share from bit function the a would basis. to spend, the second you your maybe much look anything be from declined acquisition stable, room how bookings changing channels you is outlook? call that you counter year-over-year on XQ? a paid things Easter Wondering ROI it seeing as of on one, anything strange on quarter versus was traffic some how new does about And a the that a looks or guidance just out again First, of deceleration just if a can fairly much Can in helpful? the it revenue remainder And any are assume and then, XQ, bookings nights for to to then,

David Goulden

let remember we first last. take so order, Lloyd, reverse can your Okay, me in question it

room guidance expecting what QX a point of to relative So, and from night are view. we

little deceleration. with of but with line We growth shift. that are of with -- with from of a pressure so, Easter our But impacted holiday, April by night room in the in the range, of was question your impact line timing was high the on the from high end actually guidance end some these answer negative to bit our that timing

consistent of Europe those hasn't some obviously and changed. our what on way taken marketing then, have out with terms your there; guidance, in performance at came that our We've spend, our with looked question be the account, And we share to sluggish. QX we out a we've is the we’re In to factored continues little the on our uncertainty there channels. macro; with approach But, supports first private factors into guidance. those practice really in pleased all

were that of we consistent the be. what the performance them And with that channel. expected we're marketing kind seeing ROIs Our leverage drives in to fairly

Lloyd Walmsley

new us think how terms And acquisition and how in -- Maybe much to programs revenue counter just of can [ph] material there. you add is merchandising? anything the from help

David Goulden

about. the during investments Obviously, to about those as specifically year, that's ramp talked talk increase. that we QX, fact We nothing through going go will to the material year. the

be impact the through year. go we will QX as smallest So, the


comes Mahaney Capital the of Markets. RBC from question Mark next Our line from

open. line is Your

Unidentified Analyst

questions. Hi, guys. for This Mark. is Thanks for Ben my taking on

quarter, performance the performance there, Last just the the in or U.S. Europe traffic non-urban accommodations. results inventory call single Any, home versus are talked and you U.S. brand of update market? any to any relative out? campaign, like building alternative the significant and kind in out progress any upticks there of report destinations can preliminary in kind from direct of the secondly, on you. on just specifically you vacations And marketing Firstly, about Thank

Glenn Fogel

we but felt So, portfolio, how important we owners. grow make it’s we we grow more portfolio we it in portion area say, did smaller continue single to a types out breadth alternative And fast, that property I'm about to to alternative of marked the the we pleased still And need was of think accommodations. previously to we very call the all our that progress of accommodations. is of there, overall an have to continue

to room are declare grow campaigns. there's early, in early you with part So, And I out time any rolling not. regard have there. campaign pleased you or brand, we think In type new of to to some before the need of the our victory

will we so just that early, so So, good. say and far, it's

Unidentified Analyst

Thanks, overall, any been Glenn. kind performance comments in in how Europe U.S. versus like And your on of general? the has AA

Glenn Fogel

the Europe, went and probably you where would the in U.S., to that I Booking.com, part if to likelihood that that go terms our always is don't somebody out in And pointed think in of you're if on the higher in Europe get walking the we said other much like a But we've past world. Booking.com. overall bigger they capital of than the they I how city break awareness, street we but business any that. would say in out of home a can said, have not portion a


from comes the question JP Morgan. of next Douglas from line Our Anmuth

open. Your line is

Douglas Anmuth

two. have I

David. for one First

natural color notice in this bit of next of expecting there what something guide, opportunistic of help April months the room quarters? Thanks. then, kind and I helpful? of you've kind of looking to times that I script. booked, terms you're mentioned terms be for the that X%. things little couldn’t was in is kinds are of Is previous And give curious just had I decel If over a X% Glenn, that you expectation or color M&A, would could that kind any was three in at, couple in hoping X% your think you kind but I'm of guys you more considering nights your your

David Goulden


guidance mentioned Not pressure go put quarter, maybe I from goal, bit to little me at first haven't in more we our had on our in When guidance on comments. it. with timing a look to of guidance flavor the of approach. the said, repeat Easter. was the end high guidance April bit I changed the range. of for we the we what Let April our on guidance a line

macro, We there, in uncertainty are again hasn't things guidance, looking at the our some changed. but a our approach of lays to guidance of but that are happening number there's really the out kind always and marketplace, not into out

than So, into don’t read more that. anything

Glenn Fogel

or And what in teams, company any terms of in about that But, over nature. you built And know, we’ve great by to of M&A, opportunistic as talk we're anything do. great to wouldn't products. targets going continue specific time we this bringing that's

which at of think And ago, in It OpenTable days a a money, terms provide a way more best acquisition, operating how a have. couple we but overall it It I acquisition, of the our with experience Venga, the look of our our for system. brings it recent in the we years restaurant idea that where powerful we've this restaurants. is didn't closed makes really operation over I'll consumer, to bringing personalized just can for the most to platform much diner. things we of a couple just makes in point past been spending CRM of small

single than could site we're any do create together that more own. this That's trip. traveler, than Now, in that all trying a to a providing way the our going of things the on service, a hotel. on is its provide a part there's do is what more past a to of about service we in just connected value a these And significantly overall to talked different and about strategy value booking much


of question Our from line Kopelman & Cowen comes next Kevin Company. the from

Your is open. line

Kevin Kopelman

Thanks lot. a

that you area us product? more of you time, a kind a kind had haven't in but detail pilot seen just First, the of a an Can on where long rollout on your give place It’s follow-up of for attractions there. broader we last product. your comment

So, what we can in expect attractions?

Glenn Fogel

speaking Sure, Glenn here.

we room been than either XXX we We digital So, cheaper, to can you the the these a talked sized to get. don't we're enable like QR way to cities smaller quicker, up the things skip and it get sit or where it different be do not be to now our in kind with it's create where and offering idea just thing provides the huge We for negotiate know, past about up called are to attractions. code backend using, attraction overall demand. these this enables the attraction able benefits suppliers something we a our And out these customers that a that to go to went of hotel others you which business things. benefit because easy as That's through of may of can we've provided who you whole suppliers the frictionless medium type a say, get see and it's more out solution on you're very to Booking.com a get line for idea. in the or to do bought now and because And whole city do and can some the you seamless home; go a the do attraction a providing building with you in for FareHarbor, and go all a company frictionless, this while. go to city in you And app, to able is consumer to is things you just can because board.

continue go Now, in And think, in cities you we it it time. near terms the the and of out, able as out more to to will I add roll more be we rolling attractions to cities all future. more

Kevin Kopelman

merchandising And strong I Can if was and puts what takes then, color question new on lower than give may extent us little other in the Thanks. you some the the nights? expected, just on the first and despite one by that to a was impacted -- programs? there, quarter revenue

David Goulden

David. this is Kevin,

that. take me Let

at I in room nights really impact the the in about during nights, clearly therefore, those if of due think, nights, the have of room it timing you you they less the room And a future And in to that's QX the were impact to was more [indiscernible] February. came later more it, on speaking last we month of quarters. end quarter. March. an an Therefore, in and of think


comes the America. line Bank question from of Post Justin from from Our next

Your open. line is

Justin Post

guess, this as quarter's you to think bookings so last just at the X I trying growth of more there. and X I'm quarter's to look guidance long-term deceleration rate. ex-FX, about

time So, could to that X% the Other level over And you. talk Obviously if in in can unusual improve you're growth seeing there's XQ? you're you from some declines. your things factors you rate like about seeing? X% XQ here? ADR do from feel, X% Thank the

Glenn Fogel

little continues. bit too. So, But, we why a in Europe sure about don't I comment so more sluggishness I think, start Justin, then mentioned I'm David can some add

than in before, player world. the in we of As other we mentioned we're bigger areas Europe are

is this In as huge what what long-term of this, I'm certainly, consumer, terms out of going our thing. strategy -- that point. that's that come that point for. providing And up And inflection is all stitching again, come believe to to significantly a And it of actually travel. machine opportunity our then, doing better different we're we spending question provide really to, your learning big better to things, lay and your can one no for the macro aiming a our better that amount these it's point, really really believe experts, And why the improve, providing on we we're not which some that layering we is data at to hits something something with thing really can do It data, that's on just Booking.com to using use analysis do. can together an is. money service, that else we’re all

absolutely So, I stuff. that's you you that's more? have why asked think building do believe we're it's possible? possible, and me, do I any this And David,

David Goulden

to this into more And Justin, little year. bit kind of drill Yes. numbers a just

to get do in of guide to bottom-line. couple from to think on. we a That's year. this things some top-line investments we about some about. addition did give the got as one But, the on additional going didn't benefits the year, spoke we the the year, our Bear factors we guidance factors move Glenn term You've that of to throughout expect mind, for longer you the in


question Mark from May Next the Citi. of from comes line

Your open. line is

Mark May

I if have two could. I

curious on hotel it some as the pricing and sort so of factor, efforts to of pressure that ADR how competition. in other and more bookings is up pricing be, bookings slowdown a not response also Just early competition? sort payment of kind around benefits much the much efforts might picked seem of We've macro

wondering how pressure declines some in that non-GAAP account on the much talked EPS slowdown low-double-digits accounts in XX%. of is this is that you to believe then, in second And I the Just year. ADRs? growth question of my and about about -- fact for around bookings share

kind non-GAAP is of this So, the so the the EPS that in growth kind low-single-digits? year, should it’s the Thanks. about we be buyback, very thinking of way for ex

Glenn Fogel

beginning, hotels. off me let about the about -- and by you saying started talk So, talking

thing particularly of we've out that can competition price into the talked discounting merchandising. could even anybody more platform things to general. for which be think, Asia, something. to payment And in building that's compete that we price strong. in about but idea you going do. What quarters, the of be package And on expand of appropriately, a not about whole when have can just instead price And not competition could do and may do, hotel, have to is previous necessarily the talk areas Booking.com, an one merchandise certain so to so the ability very we’re world, I that question is we that where

a much hotel. overall So, Asia. And in we to we platform, that for into customer an cost the Grab investment investment us. the on we along with consumer them it idea made different offer come ground Southeast us that things to overall do price, And the way comes an into merchandise to more advantageous a that the that with consumer in made to we can example, DiDi, to makes up the is can transportation, and

out. in don’t add continue these to as competing high in advantage to to roll areas is And an we competition. that have you of David, I'm anything that we'll way the And that's there there? know, looking So, I want forward

David Goulden

couple Well, I a things. are there Yes. think

asked more the a for It rounding were They because So, we you factor. quarter. little really important wasn't color a more than on I’ll that. bit bit [ph] expected Mark, a fairly was you ADRs. the down that form about give full

do share reduction. to or about of with get benefit down the down there by currency was higher than X%. almost countries some year-on-year it but constant will quarter low-double-digit was from more to with two thought, count. factors share weighting. less We really pricing. for mix the I question year. your EPS, equal QX some just clearly And And this impact say So, other wouldn't That growth heavily you rate are was that XX% we the pricing ADRs. country I were about there to of we very geo pressure that than reduction talked going the then, share marketplace. non-GAAP kind Obviously, were And account impacts lower a are are the in bought the month and reduction. that we the QX first One necessarily rate creating, that count pressure moving as pricing of was and was and a basis. the to X% and rate on in

the making investors driving about for fact year mind that than EBITDA little us a bit something points So, well. growth rates. the less basis We this we’re few in full investments a as of are bear year. significant that we're costing talked But that also

a reduction as share at look investments as there going you because the they income statement have rate. the in that an of year. on well different So, things But, kind few both need the account this upon to growth are

EPS So, very I level year significant low-double-digits investments, would say, here and that currency the making we're a news basis that to that is of some when return still constant making we're even growth spend. looking good though non-GAAP in we’re

Mark May

Thanks. Helpful.


line Nowak the from Stanley. from Our of next Morgan comes Brian question

Your open. line is

Brian Nowak

any you the about couple on your non-hotels alternative I adjustments learnings Could sort more for talk think we to of accommodations? then, in alternative OpenTable how accommodation guess, how just accommodations. think about should other wanted to on investment, commission areas rate into any integrating the from take And of us space? talk strategy travelers you've rate, you about experience? to maybe or rate on take had a And ask alternative about just about attach I driving platform, Thanks. more the adjustments

Glenn Fogel

Hi, Brian, it's Glenn.

we’ve about dissimilar alternative the talked So, from hotels. accommodations, rates the take not are

so, in be and reason than costs spread one, so we hotel, because only hotel. area you in board, other getting have as than have for that somebody to one the the more for a the those of really talked [ph] on can’t property can't customer is you too. higher We have the the for room. it’s people accommodations Even commented your And things or cost to the accommodations usually type is, night costs, in as speak, higher mentioned account the us we've though that terms get you contacts hotels well costlier can of to

the So, strategy the got you you'll market, the ability is market. a you've the up And have a in you get rates always, more match more have, take to you're demand the want. look,

the right As responses develop in processing mentioned to technology, area get past, costs our and language works automated business, so bigger, you you bigger the like do -- chatbot can with will accommodations area. Booking.com how us, lower the hopefully your particularly continue help more well to as lower in we learn the Along using and in now provide to the you the to more leverage it of technology, about also natural English. customers, more can across you and

the develop that that here portion reduce cost of can will business. we As

them provide I'm we're better, on future, OpenTable it’s customer we integrating And of talk that our yet. platform, them for haven't terms something a me with to frustrated encouraged very got for this. probably platform do OpenTable, just And I In see a tried But marketing restaurant customer about customers often the value. that you've I'm heard way coming by. to it we it's the more in it’s out it traveling, side them package using the effective our the data using And who's travels, we’ve give provide are able for to We at because that benefit We of who know to we where that they're that, talk something going those going have product, always a all be because to our together do combined home. be able is Doing believe not going. And a all I about restaurant need to to significant XXX% somebody the habits. people tours. for know I provide are, their customers. not

make the to happen? and past loyal to to continue reason is them to we I us, fast has repeat. them that faster more Another make more the come back, to How work with team. hope going than it in

future in I encouraging. stuff distant coming think we'll that not some so see So road is the down


Our next UBS. of Eric line comes Sheridan from question from the

Your line is open.

Eric Sheridan

but and from versus from across also core Maybe users users so and your your you of up call of the direct be along growing to the your direct and made following you What on realigning points spend up couple during longer on performance acquisition, far. marketing loyalty against behavior on How growing platform. a goals? of sort are to traffic against where retention far want term channels, type reward comes lining

and the of get ROI far guys. how what you understand to Thanks, for up think you're broader we to still trying of kind want broader process the line your points that of what goals friction that some through to big you'll Just how are, and budget? against solve from marketing stand

Glenn Fogel

return, a day loyalty terms be always getting, we're every that benefit looking out the we out with Historically, in Now, get data? people, the with we to marketing, what's much and these harder we think data in want the of harder that it's always you comes of where a to looking been don't are deals in what's we're marketing, at balance of it’s we're different the of think terms campaign lot are ROI, that ways between a company the we've where the we with it? the of yet. spend brand it’s and in out new we the Well, that to response going what going process, long-term getting at what's the and have

word in -- that. on mentioned we're as and spend able early we the I building making dynamic are -- But, competitors that that absolutely are develop And important been the we path earlier, to that share we're use brand being to continue in out all that their how areas. believe So, I achieve I it’s provide a very brand awareness, moves. of time, so, always where we've use And looking is there’d -- said, are it’s market of that believe other of we type under we very service, where changing. what the That at the always moving areas U.S. in against are where everybody same good particularly index, develop we you're customers doing stuff, there’d markets be and and they're these matching dynamic, more that paid aware that. to always brand, people products and the and good

steady we're where think to be with going we're pleased good think fairly right in I now. are And we the I I'm the ROIs. near future.

Eric Sheridan

Maybe one I follow-up. if just could ask

you channels conversion from you measured donate thinking There environment, the terms what they traffic kind them declining you and they thinking to of against and of channels you're of are performance the volume some seen are what neutral, what takes puts evolve, how about sort of getting? about in a XQ? which and you’ve of is As ROI can't ROI deliver you of your abandon how the some standpoint, a sort of performance

Glenn Fogel

I’d should When also thing. we of we we not actually, time, but form. not whether a every -- or spending in or shape way not channel, always of is get individual say, we're more, should spend going what’s that spend certainly spend, to and any at the details this the get elasticity back all less, we're good into our I'm it’s we data factors. all looking on we’re And any at look part at marketing doing the

David Goulden

just channels add are these us. I’d Erick, that to important all

customers It’s to versus both. move not always so acquire we one new from channels the channels. it's And sometimes other. through And lease people dynamic. channels, there's little So,

just kind point, or, channels? we it’s a of So these not how question it’s really and, one of of at look always question a


Barclays. Mathivanan Deepak comes the question next from line of from The

Deepak Mathivanan

questions. Two guys. thanks, Great,

the brand Obviously, every some program on Which market. how So, performance, the program? the size inning one, first, we respect the to is reach prior to related there somewhat side. marketing constraints but in currently the with can of big are unlike in

is offerings than prior -- by it of at you run you. David, mean, we’ll some you. sufficient think grow be when of you driven a of do higher second drivers where Thank the these incremental -- then higher guys margin markets? So on are payment you there's payments programs pressure Is in volumes to on about expectations ,I expecting your key rate from well. adoption as primary are And noted XQ in you can in that And for scale that? or talk

Glenn Fogel

first So, world. And we company. don't I'm take use the baseball the We're not one. And I’m going to is in a much of like say words actually going global to innings. played

talk when hit the ball. the did, So, we about you we to way going I'm use term it football and

school in depending you're say, which game. on one I’d still quarter, game out in a playing high first half, So world you're first look, or playing, it’s

is to commit that but getting may And So, But, of is area to this go response. again definitely to done. in first continue still half terms I maybe going of things to the said, an continue be to early and important early spend. to We There's have we're I spend. of we're lot this change that. as things part a to down want road the going

David Goulden

just on And answer the payments. Glenn, follow up and let question me

going what's with let me again recap So, just on payments.

February. the So, in expect payments year. a we growth payments through negative didn't a long in will additional We reduction last for call, now EBITDA expect have on this XXXX. said EBITDA from growth on payments in we year that went we explanation And impact any

changed will revenue And in the So this a What’s of changed adoption again some payments. the to of of cash flow revenue we change what's in timing this year. payments not and recognize of economics due terms the XXXX. to component a of recognition expect revenue is merchant changed? recording in of start Nothing's

change So, change economics, it on. going underlying issue flow timing will cash the it's that's long-term And It us impact in recognition, revenue doesn't a doesn't XXXX. it economics. of what's


of from comes the Khan Naved question next line Our from SunTrust.

Your line open. is

Naved Khan

Europe around call, And months on a out, is seemed can us when additional your view Glenn, now, you incrementally how two some follow-up. in not do European you or the were Back the give macro? commentary maybe have was then, great. the kind it better you Feb that And like of macro. I view

Glenn Fogel

we've to the hurts in Even going think to though France, we Germany reduced the just the in decisions. got outlook, mind. confidence something the and I'm past in last Things Brexit. out to continuing seem -- the call. it fell. have the And confidence it’s I called growth is stick UK sluggish, Germany to be also compared somewhat, full-year making off it people's cliff, still about to

more So, I believe we and than say can't sluggish it’s not it's dissimilar.

Naved Khan

down And then, of the down dynamic to hotels Is -- of being was expectation ADR there kind they being terms not down I trade about percent in levels? versus had booking, your some versus follow-up be places stay ADR in rate might previous this question are on guess consumers or that of selecting are just same I what X%.

David Goulden

specifically. Not

geographies part different which growth are. mix and the of impact, impacted terms a the the it’s by some of impact, it’s more mix In where markets component, is really ADR of higher

have some the like lower and are markets; Europe Asia relative Vietnam Western of of lower in and Some places some higher ADRs the the growth higher where -- of U.S. the country growth markets, ADR.

local factor bigger a is than trading impact particular mix up trading a that marketplace. down or within So,


from Suisse. comes Ju is Our Credit line Stephen from next the question

is line Your open.

Stephen Ju

to behind to will merchant what's the in more versus your and push every do users you get and about accommodations your have Agoda, to easier the would you also Agoda, pay these Asia emerging growth? source run difficult or and influencing alternative plugging much for Thanks. into scenes apps do how agency factors single time? Glenn, versus hotels, talk payments, those super demand, to Booking how or to you for it so think be may to be be these may not you second, own where And booking So, transactions on going between markets come directly your you

Glenn Fogel

we because hypotheses, say know don't up it apps, the Grab, easy example, or super but we come don't the with data to people regarding yet out yet. And direct product how not. So, we get is to like I rolled for come have we haven't to

that then hypothesis. answer and start can’t we'll some have getting sense. data I much better a So, until just have We we

for Regarding and that mentioned I think alternative Agoda is -- you their the business, Agoda, home accommodations correct?

Stephen Ju

payments of you're and versus versus hotels alternative at else and expense accommodations agency. I think that's Agoda growth pushing rate, the consumer the how merchant the the maybe influencing behavior, bookings choosing and everything

Glenn Fogel


about me the David I’ll talk let I’ll Agoda just -- and payment payments. So, about let so, talk

be instantly Booking too. Booking aware bookable. an absolutely not that single alternate localized instantly property Agoda one people is in every on thing has that So, not some where accommodation Agoda on is unlike may where And where product Asia areas in the Asia have because it's important bookable. of they're instantly properties, their of And of some to they're certain not product that is is bookable,

one accommodation is in there nicely, as the than difference market growth Asia, part, And little But is fast. So, alternative about… Booking the it's have Agoda the but I’ll very it's product, very, it in out seen and between important you the David growing Booking.com much let talk smaller the one. probably

David Goulden


in their years continue from payments we dramatically relatively that last booking, changing. that’s on it expect and shift a agency before been year-on-year mixed this year small more But, towards the shift of to platforms growth terms XX% and is payments [ph] Booking.com. total a going business kind the mix isn't payments, at and Booking.com Priceline year. percentage had of has the driving, to at rise many Agoda by Both TTV, year, a within I of went just growth we versus if In on mentioned, as mixed for payments of to and driven you look payment merchant

at statement Booking.com. of and due to payments what's to as property remains part important products We happening -- portfolio. that that very few our shift that through continue our believe But, agency meaningfully expect seeing ripping income we over impact you’re our years the higher you’re move also at having But our the really a next it mix as to also is the is well. Booking.com


Terry line The comes Heath from from the Goldman of question next Sachs.

open. Your line is

Heath Terry

a Great, thanks. to been dig little of deeper we around marketing wanted I there's bit I realize into bit a already. But, if that discussion little efficiency could.

on of advertising the revenue. of you what willing is growth when you in when advertising that perspective or revenue at you’ve and you of in this saw the there targeting accept last feel see terms from six-quarter total or back this that. like marketing For driven as we terms return? in level sort around optimizing Is or kind And of bookings profit deleverage -- In acceleration significant that or terms the where past, appropriate of spend. really went a that that of that you're is gross looking trying your your a or to reported through you've had again, gone growth to thoughts so leverage are growth percentage of terms growth of you're return of we kind efficiency standard it's a where to where in Just trade? get now sense for that this in of in quarters a now deleverage, strategy through advertising started on last period effort, your just couple

David Goulden

David. This is

Let me take that.

the We right. some had to optimize basically ROIs. period for explicitly lapped spend performance points in the ‘XX. a fairly improve up of So, of period was example of you of went We ‘XX, example, execution time, QX leverage XXXX, And where you're performance with QX or late marketing over leverage that dramatic we of strategy essentially through had in basis a amounts XXXX from through of QX a great time saw strategy the as we spend. XXX marketing that

been from dynamic in function that a against much how traffic of opportunities try see, balance that that and now spend ROI is or the being presented find the and themselves, of and presented look us, those we lean ROIs? of feel to what the happens gets function a optimized profitability. haven't point onwards, changed, opportunity QX to in ‘XX from traffic more to in where it's growth So, We attractive and we us targets of really can ROI amount traffic god What find where between we appropriate our the is the always view channels. are. marketplaces, growth really do actual Our

those subject are and ROI for targets pushing that So pleased. always growth our ROI incremental quite to we we're returns our

of for post is like more of us opportunistic we efficiency represent the dynamic those change point big also the function to and now channels what time. in in in we’re And those at So, any volume we channels, operate how else, they where channels. kind optimization, into most driving everybody in competitive much

Heath Terry

But like that from you're is this this started even the though what efficiencies to it growth, stabilizing saying, so you effort, XX% versus that fair growth still level stabilized on sounds or before versus you’ve -- you at of had the where is say? focus

David Goulden

-- So, -- responding. for are been to certain example themselves then, very channels those this Well, in can I'd channels say from channels, our fact you has and other different see approach how right?

courses rates those But still we've also channels are of as noted growing. declining core some we experienced growth Our prior. of search with channels

way. no at of longer are other external fact, the some quite Some results you and the in growing, channels opposite can the major of channels, look

So, pushing against those presented at of targets, really got kind are our targets. once a lot dynamic opportunities of our lapse of we Once to growth through channels it us. we ROI those is the optimization, growth and resulting in new the we

pushing -- happen market. within to higher ROI a to wind up pushing if our kind drive happened the targets dynamics, you to what up, because are ROI it's we're of So, quarter, the during we with the

good are this ROI that feel to we looking time, about. we consistent at target point push So our growth in with


next Anthony from Evercore. DiClemente Your comes the from question of line

is Your line open.

Anthony DiClemente

Thank for David. Maybe first you.

One the specifically. deceleration its of your in competitors in segment’s alternative QX a accommodation reported bookings

loyalty don't acquisition the reporting. QX, you out you you alternative accommodations to stable alternative investments compared in maybe your about But, break explicitly talked in in as did And so, on know growth this for or then, I bookings you've in see and customer likewise in a the see call XQ? past secondly, customers, there And Glenn, your and programs. deceleration the did

me or Holdings? to retention a customers features you? the loyalty drive can maybe more examples couple are just loyalty what give Booking of customer value And more you from to of for incremental Thank things Just you. do working can broadly, are that deliver you specific

David Goulden

you take… Do to want

Glenn Fogel

times. we This easy, is because said several one this

our accommodation faster to Our grow business continues alternative than core business.

we're product. that's the So, been pleased on that on long we're very to grow going out and way for time building very and continues with a

Anthony DiClemente

is is decelerating it to the -- periods? But last keeping was or it versus itself relative it year-over-year stable growth it growth, accelerating quarter, prior in is rates

Glenn Fogel

that but out in that don't that granularity. detail break to Right, we

Anthony DiClemente


Glenn Fogel

loyalty. stuff. So, way and it’s to Booking.com you're it, you’ve genius And we'll for hotel, or getting your customer seeing you're Well, where do some of at one, OpenTable go one seen to the a whether significantly the it’d second reduced dining loyalty you're certainly points prices you're getting over that. and be at

instead and restaurant those the it just get I'm that can we’re hotel but those fact you just like just starting, and you points, both So, you of is use a it dining love. out, we cannot going to I to small experiment pick can actually one you cheaper use meal, is it's some using to can seen are a what going that. do you've OpenTable. room. KAYAK out ads doing And is there maybe referring. And that's TV it of the an get those there, actually cheaper example the one That's where we with

these that with things, transportation. ground deals, Now, other services primarily we different experimenting been the have with in we've some

Those got also ground give hotel testing good QR I've want -- I booked the used point, actually we're And doing. standard, attractions my I've give like which And to I've do And -- in discount, et cars, you then and lots ground in company has don’t types with of that this the lot cars. much black value actually where services sharing, is obviously, than of we're the more which that are all is And Booking.com out with and ways. code transportation, are a more have cetera. a see now different particular that We are sorts standard to rental ways part. got ride in a with we’re things all there Its my with a just And just of called experimenting Rentalcars.com, I app, and things it different relationships cetera. these I et city. to I package customer. different rolling better too detail royalty. transportation

much different bundle, more it’s think together all things types I creative regarding and putting different of that. services into one like


further speakers. back are turn I like call would your at no There time. to over questions this the now to

Glenn Fogel

Thank you.

very future So execute I excited say as how just pleased with plans. to remain on our solid you long-term much. growth results were Thank and our we QX we continue about want to our


you call. your conference today's concludes This for participation. Thank

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