Booking (BKNG)

Glenn Fogel President, CEO & Director
David Goulden EVP & CFO
Mark Mahaney RBC Capital Markets
Kevin Kopelman Cowen and Company
Naved Khan SunTrust Robinson Humphrey
Lloyd Walmsley Deutsche Bank
Stephen Ju Crédit Suisse
Eric Sheridan UBS Investment Bank
Deepak Mathivanan Barclays Bank
Justin Post Bank of America Merrill Lynch
Daniel Powell Goldman Sachs Group
Lee Horowitz Evercore ISI
James Hardiman Wedbush Securities
Call transcript
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Welcome to the Booking Holdings First Quarter 2020 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 guaranteed 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 Holdings' from please Securities to Commission. of results Holdings' forward-looking Exchange earnings list the and recent refer differ at filings well to those the Holdings' press a release that the as Booking could actual statements, end as For of statement Booking Booking most harbor described the in with result statements, of no undertakes information, Unless required whether to publicly otherwise. as any Booking a or by events obligation forward-looking new update future Holdings law, A together copy the Holdings' and is of press Booking Booking Holdings' earnings in with statistical release -- available For release of www.bookingholdings.com. financial Investors section an accompanying website, supplement,

Please Booking speakers to now afternoon, go like And Goulden. for ahead. Holdings I'd Glenn introduce this David Fogel and

Glenn Fogel

welcome Quarter Thank this Goulden. to I'm joined CFO, First by Booking Call. Holdings' afternoon Conference our David you, and

our of Billions been difficult spread ever continue affected travel social [indiscernible]. to uncertainty, living seen. enforce of in of We government orders, have guidelines has times. turmoil orders, strict every and grown restrictions COVID-XX the are call bringing These there and of under in corner been exponentially, Since in stay-at-home February, Difficulty] industry actions people have distancing. and [Technical our be profoundly closures have this last regarding

declined While until mid- business our year-over-year, our March. the we reported negative room force on XX% virus' to QX nights did full not see late

in our the more March, of received over reflect So that meaning our declined truly nights business the during the room XXX%, travel cancellations bookings. XX% does decline today. month reported state nor industry In not new we

different way. a at Looking things

Travel clear virus is gives impact April. currently and the continue impacted eventually levels, year-over-year on to over down And March thereafter. newly are. we is pre-COVID-XX over fundamental grow take confident crisis. And being how again. we this will XX% this to may crisis business a to impact room return while our in eventually. people the am get travel This I of were That unprecedented, to cancellations, will travel down to which it indication much XX% Our booked who expect will by while nights, that and end is said, in time you some we'd of exclude then there travel

So the stabilize immediate through as what business navigate demand One, challenging clear next in the travel the to doing to are quarter, treatments decrease demand anticipated, when the a During now us became these it travel shock significant first capture from returns. optimize anyone initially business for wait the developed business we successful times. when more we that three, effective was impact and plans the for the the we a virus quickly to of position over be it the years; than help of series crisis; for going few two, vaccine? expected

emerge So extend can strong from position. this footing we crisis our and leadership on

pleased change proud this of considering teams, we new a environment. and functioning service few top vast very requirements are the teams As employees of am to cancellations we well accomplishment what home, we was open have the customer although is the -- priority. Asia, now at phase stabilization have But that I beginning no offices requests from working experienced. majority safety crisis, entered the increase huge small the say our in we health technology employees' a which and we are of our that currently in our including and in the our distributed and

Another immediate helping and priority our partners. was supply customers our

typically inbound received. significantly than number we higher For calls daily a of were we a weeks, number fielding of

travel plans. or supporting that no regulations made due were modify bookings to For from longer refunds them possible our their they government customers, entailed as this requests sought to

level whom For ability of by and process service the not a supported partners, such unprecedented modifications the many them cancellations our calls, handling do we volume of customer of to large date have request.

a ahead, it a plans to We trial be stimulate our and stabilization steps partners voluntarily stock and once brand CEOs took our increase the executive increase we'll bring buybacks, compensation, is base spend to know as reducing Directors as of book forgoing crisis behind company with I way. nonessential throughout again cutting conserve be dramatically us. managers partners senior implementing halting cash trial and their to plan, other forgoing of during how this reducing fees. reducing to supply cash the will this orders Looking such to liquidity working marketing and create crisis, Board general demand worldwide, our costs, our Also and with hire critical we to our cost-effective their immediate in salaries part salaries

liquidity reduced significantly raising to to period In people by to long to weather again. liquidity a have the addition when debt. costs, to measures of reducing $X in and travel have bolstered necessary over resources ready enabled us are our we travel invest billion sufficient demand These have demand securing in

vaccine the pandemic witness in having begun to be believe new be adapt not before be through and after now consumers' distribution -- there health that and deep the we very economic a refine execute We've recession pre-COVID-XX reality people in and financial to years, assumes a be freely. it effective, likely we and which our or gone quantity governments optimized plan quarters, the own declared before it them some will confidence to will for days, we global effective and either our before people way of demand. in safe their is futures. traveling overall travel to or that did And a time feel before give vaccine confidence fully is may will efficient comfortable treatment recovery travel started. will to Furthermore, on that the is treatment dependent consumers' economy, they people as even full needed believe We

fully a to recover travel leader than expect industries. other we reasons, these many For

there'll travel be when we However, start growth opportunities. recover, demand attractive does believe to

process of in helping the expected to cost structure company in the plans We market of align entire assessing with it our are demand.

we of our to our evaluating continue the are But projects, efforts, initiatives in or areas significant connected these of key where cost believe also in timing intend reexamining us payments, will the that to strategic and future. trip also delay reduce the the such we where all for we invest to as We position part company we're of well expenditures. see can possible. As

announcing Fortunately, this and the of included oriented lay our some of We strength a costs. recently the allows long-term evaluation actions KAYAK, interest to furlough to week a to decisions Unfortunately, strategic the make off financial series strategic decision and operating towards on last reduce OpenTable employees. business. completed us

adjustments principle in proportionate during a we not employee operating As lower new reductions the business after tough travel for of have realities reached this the made our market. crisis, decision But areas, scope ensure is expense of costs. other the to the to first and we to size making

are the and We other thoughtful structures, we evaluations. their be deliberate working now our with in examine will brands and to cost

announced In would financial we Booking.com on and during support our an the it in impact minimize governmental times, to attempt recently programs. employees have various evaluating these that employing participate been difficult employees place to has offered portion program their significant salary. were United to enabled full-time of the Kingdom. on receive able by employee employees there, furlough a the we And aid which

in support companies funds government a programs, to of support provided. aid the by Dutch the These have to evaluate applied under also covers that time requirement along for and Netherlands. with and employees aid the as the a employment enacted fully salaries companies maintain help is portion environment. jobs this which us steps Dutch we we the to the the will other program operating XXE maintain employee period recently with employment receive during program all the this have continue taken, We This provides crisis impacted X-month to

significantly We will at reduced look during mitigate continue this headcount options help period other available revenue. that near-term reductions to might us of

and is and from this strong ready stabilization our share our and is that people being in to The world actions crisis are so for travel can we We the travel increase to again. done when position on capitalize phases again. and that will a partners safe demand and becomes market it taking we our to for organization equipped to emerge capitalize are quickly deliver when efficiently customers to want optimization are a travel

but the beginning is we newly are our note, room too in some that recovery, positive back with the hope to certainty. a booked somewhat stability road this seeing We of to early On night is smaller say growth simply it trends. but

to we begun still progress limiting They slowly seen new and have for low bookings, economies, reducing travel, although have primarily reopen have governments Some levels. at their the or very domestic pandemic. in seen

makes essential reasons progress show business be Some or canceled, but will we return as the slowly of society travel may reservations believe that pandemic. ultimately personal and for these against it does many

revenue. As returns, in see travel to improvement expect our we

that resurgence of some We distancing restrictions. progress a as are of infections reinstatement of geographies in also government prepared and social relaxation for to may disruption lead in

Our aim to Difficulty]. return the ultimate of is demand the optimize [Technical participate to in business

David Goulden

we are the still Hello line? on


Yes, one moment, please.

David Goulden

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David Goulden

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you Yes, are.

David Goulden

on Thank Glenn, afternoon. line? you. you, Operator, Thank confirm can... please? Can that, and good the I am you I


Yes, you are, sir.

David Goulden

to results and provide our Information prior comparable in you, first review related our indicated. unless our year All GAAP our be quarter, stabilization and in saw for April. liquidity otherwise Thank you. trends to I'll the reconciliation some can growth on Glenn, non-GAAP earnings of to good discuss operating rates afternoon. initiative Thank regarding bolster we color the found release. period,

to see our time business Now largely of our contained meaningful XX, to call of the America. last a Asia, or COVID-XX At impact on North earnings the for quarter. we're in Europe and yet outbreak our to February across results the was on

a of to eventual the and the restrictions saw cancellations global a and shelter-in-place bookings. moved we significant numerous to duration trends a COVID with the sharp levels March, our March declaration line orders. reduction of Europe in of travel into of and continues North surprisingly, throughout in America, substantial Not leading we top new spread pandemic level implementation of outbreak the resulting As and

COVID-XX brunt Although we March, pandemic the QX the mid- late results negatively full our around were impacted. significantly to felt only of still

for room nights quarter. fourth the Our QX reported declined XX%

decline we that cancellation exceeded in new more However, bookings received of month. March, the the in XXX%

for peaked of was the been Our QX, way restrictions which imposition the XX% has steadily to the reported on in the cancellations bookings were that due -- which prior cancellation billion were room structure expected room million, work occur as than nights due to Revenue less later $X.X daily in XX% benefit declines was XX% first in through basis. made -- nights of Consolidated year-on-year highly travel. mid-March, on that about non-GAAP down QX greater bookings for in revenue fact is to quarter EBITDA a cancellation declined then occur were $XXX in constant received to bookings rate rates quarter to the variable impacted improving expect were travel the Adjusted demand. that checks decreasing a currency decline Gross gross and we QX and year-on-year. average low negatively decreased of cost accommodations a having was many the year-on-year. in XX% quarters. naturally for We was from later periods

noted, pandemic as we the actions COVID-XX we pressure Glenn and structure through. some other then stabilize to and in new in line the spend further taking expense of were are environment. related of I'll As you being said, with optimize quarter areas With reducing that walk there our to demand that cost areas move

channels. in variable is demand as reduction Marketing highly expense, year-on-year, XX% expense, decreased paid significant a saw we in the which a

addition, In response demand took brand environment. actions to reduce in marketing to diminished we the travel substantially our spend

million expect XX% will provisions increased expenses for in losses for levels XXXX expense other from COVID-XX expected the increase year-on-year debt year. due of the We below and Sales marketing and primarily significantly the pandemic. $XXX remain to other credit resulting our bad remainder

this Excluding in XX% we in and the increased substantially variable of sales decreased the as the is expense line other provision nature. impact quarter, recorded year-on-year

year-over-year, of primarily work offset For by the was QX. received compensation result expense financial stock-based the impacted example, expenses cancellations was associated to Personnel performance volume by in costs COVID-XX pandemic. in in a as outsourced reduction lower decrease which due recorded heavy This as decreased through a service we the we of quarter. higher with we reduced payments X% partially customer

and year-over-year expense although a Excluding last annualized that freeze, were hiring by quarter hires made impacted was personnel year. personnel XX% SBC implemented increased have we this expenses,

move expect we the will personnel through on We as year. the pressure diminish expense

increased expenses indirect largely X% year-over-year taxes. including by higher driven taxes, G&A service digital

year-over-year expense. X% discretionary decreased G&A expense G&A taxes, indirect these Excluding we expenses reduced as as such

last we occurred year. will on enactments the taxes digital of less We year-over-year see G&A pressure from service French lap once QX the in DST, of which

software million higher expenses fees year-on-year, charge This technology of our impairment operating of increased a outsourced is information driven basis, and excluded the we result $XXX Finally, KAYAK. projections an data quarter a a We loss goodwill included $XXX cloud in incurred of as charge our driven an a XX% and the of On operating expenses for costs. GAAP by pandemic. and million impairment center related reduced for goodwill to as the of non-GAAP financial OpenTable by results. impairment COVID-XX GAAP

net GAAP was QX loss Our million. $XXX

Our these pretax We losses Trip.com This by of gains remeasurement FX from million results. exclude on QX $XXX strategic in gains impairment the and million bonds. on losses, related remeasurement and of equity includes euro GAAP charge our our Meituan $XX charge loss impairment million net and offset investments. to our $XXX was partially non-GAAP unrealized investments our

position. liquidity and Now on our to cash

our was billion following balance and QX investment factors, December from to Our drivers. cash due ending including several decreased $X.X the billion, $XX.X which by primary ending balance

bookings operating XXX $XXX the reductions by by expenses to accrued had accounts significant -- in in bookings, that million impacted and as the were offset refunded of the $XXX our the booking was the in in QX. use balance which both driven negatively prepayment mostly of Working merchant QX lower reduction large cash we of rate deferred we The refunds. a merchant in capital tax an was quarter, deferred by working customer of by subsequently outflow our Netherlands driven April. reduction capital $XXX receivable change The in accounts quarter. generated in was payable balances cash million in First, and lower in well earnings million was due as

will We in all balances the seeing these decline bookings level the expect continue in currently of to we low business. are

recognize November. billion repurchased stock all soon $X.X a Second, last buyback growing stock buybacks as almost as We we our in impact filed plan purchased halted we pandemic. of the we of of under was QX, the which

of the Third, million million $XXX impairment our finally, $XXX in investment we had to CapEx by value the quarter. decline securities equity of I earlier. And the the on loss million in parts $XX that related investments unrealized strategic a mentioned and

is in other that prepaid of had of did into reflected sales in between from addition, P&L at and $XXX in the but sales These investments year-end $XXX corporate end impact primarily and in due assets was value In of the decline the the million majority timing March not the at of remaining sheet. cash settlement have settled million investment that March. the difference to balance we The classified cash was XX, April bonds were expenses and moved and investments. on

was of and liquidity In a ensure our And liquidity facility have due XX QX. for of early We continue amended our of in We up timing we've we raised we the covenants visibility we convertible the minimum shock into We refund of April X from on bolster credit several from taken will a made notably, $X.X access source our to until to June offering have a not prepayment repurchases efforts taxes better and previous capital. in recovery in leverage immediate initiate shape liquidity. COVID-XX substitute billion most the the of the bond the of pandemic. we the to to to to a our and Netherlands revolving receive crisis, stabilize April completed show to covenants and of the note in finally, the that position. that repurchase stock, and steps halted business worked

highly investments debt, into billion of occurred offering, on government our balance note cash considering of of XX, tax treasury in bond money including our the Approximately convertible increase after cash settlement sales $X.X billion corporate billion After market If which ending end balance $XX the prepayments, on trip.com the April, taken, and actions ADSs, $XX XXXX. offering bond moving we on about all and corporate $X XX of AAA have and billion you will and of convertible investments recently March funds. bond in of of the the and bonds of investment of moving which and and about and -- $XX.X Dutch investment we've is refund into the before to adjust for our cash March cash corporate the the matures billion. liquid this sale completing

not Due like to guidance the COVID-XX we crisis, I quarterly normally provide will do.

by April However, I preliminary pandemic. will give from impacted was month provide fully our some which color you recent picture trends considering April first a will that clear results, our line top the of the

As Glenn booked XX% nights mentioned, newly our in April year-on-year. over down room were

excludes impact reminder, newly the room As a cancellations. of nights booked

the canceled new made new the to of new Of as were flexible room as especially Reported April high be April future, with in negative course, be in these cancellations bookings. cancellation nights may policies. percentage outpaced in very bookings continue bookings

April our April. We the to decline since for cancellations have Europe, than in hotels, stays. booked were considering year-on-year newly revenue a especially also not the expect greater of April nights, in room in many And open in March impact

bookings April's quarter a results, travel availability revenue second and experienced the depending of demand for combination vary we of May in New and full may from level upon June.

a being their Glenn as in or than country our seeing reducing April we're believe expect room quarter. to with after travel look as newly We a growth to first international travel will level rapidly some safe first through Now decline region booked consistent night rebound we noted, sooner the for home that trends quite travelers for domestic year-on-year rate option. stability

XX%. if about market, business. you of Western represents domestic increases Booking.com's one share a And over approximately consider domestic market, the as business. mix increased XX% one domestic meaningfully in mix April, XX%. the bookings consider Booking.com's higher mix XX%. we increased if In historic And Europe total Western to April, to Europe we Historically, witnessed as our about In domestic accommodation

of Towards we travel Korea, certain and domestic the starting shelter-in-place Vietnam in Germany. very were to including relaxed, China, Greater markets was that some early end April, South return where indications saw rules

Newly this booked travel to in recent relaxing room global and than domestic states average April, in saw tie improvement only of nights cannot but our happened during a and in the days. and April, U.S. few an shelter-in-place have in declined in we less rules, these we

look again seen the demand impacted an direct emphasize rebound a of a we've significant days. months was as a all months' places Booking.com's decline in where I customer bookings business, must newly drive bookings, and like by -- booking a our also early than close providing change seeing the has combined other behavior. This higher helping April, in to and mix In new for rates mainly change associated customers in meaningful outbreaks. several accompanied very normal also too out. initially, stay booked mobile increase bookings, we experience. behavior anything less we're in broad great over short We've nights for time app, focus the say with like rate booking very few our that first only in is on twice travel both If been decline particularly but of travel room especially mix is customers booking our to continue or across The observed either amount. decreases few app in their to X the was the travel, countries booked now days percent witnessing than with April better a few some demand the Singapore, rate it's last in we'll

demand, to to working emphasized, the has actions, our stabilize cost-savings including initiatives navigate tough presented we road As through look we significant have ahead challenges of that a COVID-XX us through hard Glenn a position reemergence unprecedented bolstering We're business our us. business position. and as and to to with we'll the continue align and expected whenever demand to when occurs. travel our to costs work market and demand, of to ourselves time of upon our that that our liquidity capitalize We'll occurs optimize

that, We this these leadership well to role crisis of extend your With global and we'll actions, take we our have come questions. through the travel confidence positioned be that in marketplace. will the out

Glenn Fogel

can hear you David, And me?

David Goulden

you I can Glenn. hear now,


[Operator Instructions].

Capital. RBC is response Mark Mahaney, from first The

Mark Mahaney

two I'll questions. Maybe try

increase Is secondly, First, direct that at to end, way think any thanks at for Is you too that in this it you you at to the to bookings? points down that direct David, can this are actually in like can it the what's out the Any is data way the South whatever, in your there Korea, tilt something curve -- the of that early? something a may a of rise the to couple that markets. there accelerate bit, app that? And these you or can able randomly? of or transition on crisis those? improvements markets, happened any the if of And or a were of on Vietnam, quantification kind talked draw XX% a just be I more back Like -- bookings this you bookings little coming say margin, then about bookings. drive

David Goulden

Yes, Mark, this is that. David. I'll take

Let go the question first. to me second

where end been We our a have early to in only really in the the to too markets because remarks from trends early of April start improvement of double-digit month through We May kept April the of the call. April. called are there's of out decline rate

end tell like these total, better see start. few at decline markets, rate out improvement the down. So we've of April. But you the in we seen this the it the was course all-in we a to improvements I'm than at mentioned month double-digit that of of the to going in markets that called points room is even month exactly how with the I much during not only they're

XX% to the our take big that volumes, to before, you have first running and trend shift and qualify to caveat, of draw when a that anything all, talk said we not I'll of try XX% it. through towards app, too just terms at normal about in of we're I of In kind as April lens from of terms

more going increase we as course And the or that we saw fact to as saw the app residual the But and was We more come to course there. I'm we're more during that is say we the pleased business. pleased is sure way app often drive the into wouldn't direct see a to well. emphasize the continue understand that, want tied drive continue particular more to drove Genius we there business app, to in we're which did I make the strategy out, things try direct customers, try of how us trend areas that use going was starts of strongest continue the one of saw occur, customers we month app buying saw customers, came we the the that that's We'll because some that and as and demand and app. demand demand to the first our and to are we to recover. ways

Mark Mahaney

you, Thank Wishing Glenn. you, best. Thank you the both David.

David Goulden

Mark. you, Thank

Glenn Fogel

Thank you.


with Your is next Kevin Cowen. response from Kopelman

Kevin Kopelman

into and wanted you're also cost what to dig I the in that for going April Great. forward. you're trends just planning seeing

So And of moving could might chunks bookings new Maybe that and you you're trend help us what personnel big metric? to to your think starting then relative planning about expenses, on advertising, that? there? that how other for with

Glenn Fogel

you... don't why David,

David Goulden

Yes. Thank Glenn. you, Thank you, Kevin.

Let me take that.

room marketing to newly rate quite expenses to correlate closely of are So the booked going nights.

a these a that piece a in bad to you Those to in there. tied that to just debt, the continue was and QX, but as variable a of walked things you with other a to that number -- QX, costs close is So volume, I've can is assume a be prepared obviously, sales platform, may and factor like -- in large summarize, major piece remarks our and of correlation through factor service QX. of saw, is actually QX. merchant customer but

and of QX. that took Next mentioned, in of biggest we course, the area, not freeze actions have impact did much other And is we hiring personnel. the an as

get QX you'll some we QX. are kind generally that extent OpenTable, impact QX, like the the that also optimization will that would help and Also already to with of of actions and taken, aid the KAYAK our application we've of help In full those. for successful

also activities, help QX we expenses. through half. personnel continue that optimization move the not with with the programs as and focused mainly although year, and will upon We So second aid will the year through government the be move

high on expenses of the on a as fair that to the and And in out start volumes. information that had drove even QX, process that line. interesting some we the costs our an QX. last DST year. revenues business were pretty cancellations, through of to those mentioned, G&A, refunds pressure on we I up. As were obviously We That high And the lap cetera, it in our particularly pressure volumes of the costs though decrease and one et amount not technology through to I factors. saw pointed related that is basically was also

We to the expect of there year. on rest through going be the less line that pressure

Kevin Kopelman

dealing also you've And quick then refunds in if talk successful I been hotels? with cancel how could they're out Can who them getting coordinate just you and one when ask helping the follow-up. about refunds to customers have to had

David Goulden

Glenn. Well, Yes.

Glenn Fogel


is a difficult issue. So this

in situation. reservations We a is majeure And then force perhaps, have purchased was nonrefundable. the that customers case who a have of were far pandemic a future and there

says, have wait, have we the that there everybody, well, We I who money a I and I even difficult has said may hoteliers government cannot and situation saying, are because customer the here, refund the can't have you it's can't a spent travel situation. where travel

a So for customer. hotel in in refund our which exact the history hoteliers this we contracts this, always like the situation believe majeure situation, travel. case, That situation in should best to do our over for and long the trying up a customers, in -- completely set of is go is force what with

we the provide So what is we'll do hotel. customer to monies will and the recover from

issue. an about there that we've Now talked is

over, get with We good closed relationship are yet We hope with. to there to these with nobody Many There's a you're now. hotels. have right if of hotels want always not with know discussions we people. up actually but significant the don't come talking to a portion

best start So that's want we I we forward. going in has they as way reserves. again, to specific give. the any to do hope in the David don't things the best reopen, I -- put this as for possible. numbers And we think have think


Your Khan SunTrust. next response is of Naved from

Naved Khan

a Just of questions. couple

new So were And are lodging terms or seeing where you more in a sense David, quite gave in bookings think, these are for call. pattern of then terms the people the in of you on your QX hotel people kind versus diverse? cost, coming I of in, the maybe us alternative -- any that of just fixed opting

land than the where of said you the of sense taken you're -- ultimately. think after could give I that -- us or that XX% And less taking will you've these take OpEx. initiatives a

David Goulden

we're Yes. what Naved, current current stay in the What and either is fact out. performed on to patent, pretty hotel I the they're happened alternative seeing a close the of, the a bit new or they're about in means mentioned the call bookings, quarter way that the same. dumbell long which I first that

basically they with longer-term growth of lockstep those a the bookings. from point a quarter. we in view In associated throughout April, almost were saw shift alternative So to

So domestic far saw doing bookings, dumbbell, we in month markets in decent of the the rates markets end we in particularly alternative out the which of where return saw April. the plus domestic combinations at April month the two bookings, some particularly better in the is the

what relative the we mix. that's So saw to

his said, Glenn as detail more still, are commentary. we costs, I think in fixed the have you On

yet. also of for going parts the of We In plans speak. the some be and the And We are segments, to segments of our is still of business through timing tied many we're that doing business. only other around the A place building course, of government to we're in what put we really those our as working one optimized programs. business

the OpenTable, fixed talked took to expenses the cost by want of come be just base there data off will personnel the So you about XX%. and I example, a point, that yet. those that or we And at That's I'll reductions and semi-fixed for give with number that reduced one example. about. KAYAK part don't we

I do Beyond that, really plans we'll do, any cost base. to expect these as our them to don't know our of into to finalize what be let you but yet, come and we to we want when will do go we

Naved Khan

Got it. good luck. you and Thank

Glenn Fogel

you. Thank


Stanley. next Morgan of is Brian Nowak response Your from

Unidentified Analyst

is for on This Wang Alex Brian.

And to specifically talk in the stronger. or Glenn, bit think Just questions. the market home become of to with a drive strong then see state sort approach you about social business use to how coming just social do the of use, the us little out two question, an positioning second downturn? you media coming growth to One, more U.S. and strategies new the opportunity talked given you out about downturn? the you Can advertising of dynamics potentially

Glenn Fogel

in out Thanks, optimize the the Alex. we're in come competitor believe we counter to something past a is become and U.S., be the doing can talked sure to to and better for we that in that U.S. important us we as everything to It's as very that do. under-index is that we We've important make able

-- One the of our talked customers. to more customers making providing proposition believe goes that aware through also in the we trip and things It's the the the as value proposition. this is a or past. value customers we've that overall potential connected better talked better we in And past, of about that

months and a those your with now, right for our been good different media is things something point drive area ROI XX CMO able to we'll try a that the believe the always consumers. that social will It social be waste be the advertising that. albeit absolutely buy future, that consumer. and is get way us message to -- money. to and looking from what's do good Now importantly, we And social to message the does we who Google, we And no doing But came to in about we has about consumer. better how media that here one to think


Walmsley Your response next from Bank. Deutsche of is Lloyd

Lloyd Walmsley

if questions, I can. Two

First, urban lower auctions? in can locations of benefit perhaps somewhat performance bookings? less to out P&L And and a competition urban the then given whole specifically, kind with this? shift wondering that look density. seeing if you shift update think as can and position of from marketing of an type you us about to in see more coming alternative, talk structurally do about on April of secondly, how locations And advertising ski feel people how you beach And you're inventory home perhaps you any just your give between

Glenn Fogel

I say, Well, a specifics is going I increase give slight All one in more beyond And April me home. of the over any in can't let -- a about and first in there's with the skiing can we've lot to described alternative the where no, right. going accommodations of such. people the start not second the what demand already nature for April.

I me, you. your that's question So first tell Remind can what was.

Lloyd Walmsley

First auctions? question there advertising might was see structural do in P&L then you do you competition some longer-term benefits and the -- And how coming of lower out be this?

Glenn Fogel


to big players going are the understand, some as in certainly, have very of players They're trouble area. of they are this to think of things industry be is still I we believe who marketing around. the one pandemic, going performance that while the in that, to to the the forward. And important because ones the players past. do they smaller the But going going So the are were sophisticated be in competitive are

to there going So we it's forward. people who've -- are since competing people going a great past I don't change be against been think deal going to the the the same

in don't there. change So I see significant

And we place get a the growing best In be industry what recovered, nicely. sun we terms leading to that's hope terms in one we still the long-term when the forward to about P&L, training margins have the fully have past, and that I prediction. of that the can the of road, where doing in put in did down


Doug report next Your from is JPMorgan. Almond of

Unidentified Analyst

for This Doug. Young is Dave on

maybe into and of in mix, So was that your recovery going first data seeing travel what markets the some? is any And what then about talk COVID-XX are mix some business one, you you helping you suggests can do have the where in are us timeline might recovering were countries countries how educate going help forward? other look those a see you looking recoveries on similar pickup in Just markets in those in if seeing where some like demand, country the manner? can to those business

Glenn Fogel

So why take don't former one. -- I'll I latter take one the the let

seen a begun then then patterns. things the and different travel we've not model outcomes would to that. that in what there's -- apply And trying to back. up infection, go else. I countries little happened a everywhere bit then somewhat then hard of they things that definitely doing the country think roll because the and to that in I better. I entire one has and of can cases is terms And opened how is I something saying, one -- out. not of deceiving to the have in definitely world, take and be economy, they I countries One resurgence up do it's But have the where in think restrictions across that's would reinstatement And think okay, of take what going this is happening have you so different in -- also put And it's also, open

question? a chance terms to that'd with prediction a first of up David, be very the for in come I think And future. bad the

David Goulden

business Nothing update really formal don't major a on percentage. -- we have no as travel

X/X And appreciably an a not that will business not the have extent was it might We -- as estimate self-declared give be a track we as not grew our very still business faster piece That's what of the that it's to maybe much I saw that business it's rates. we I'm travel, number a as obviously, small international talking that lot number. very of in for was or and It's large really a of tell -- always our trying is. It's said, business we're in domestic just obvious is depressed. spend deviation. than saying would a travel What international. -- as say We're What I field. Glenn chunk self-declared at. basically of but rates April. about you, to time color obviously, we a looking pretty just much can as booking and

fact We that's we what international. to for really happened travel have data any versus non-business the of So to to at month April, it. another know versus way business travel happened the look that don't specific domestic what other than


response Crédit next Suisse. Stephen Ju of from Your

Stephen Ju

merchandise wanted Earning are lack you've the to product about because a with of team and travel what what booking what like slow you better terms side talking and connected other customer struggling being data of to I and behavior. in now. achieve is, But terms crisis? the the been innovate the development probably guess strictly, circumstances for comparative as ability for about it think But company down have your themes there's that time to experimenting with guess same as the you some on the the to the consumer competitors of difficult looks and in environment been well. development product of demand does I

Glenn Fogel

You're right.

to because we to well you're And able things more great a and us be been always put or of with say, work insights data, if with things that's And great to One experimentation come the ability demand, a us. no been able for advantage not. does and hard it's How is faster. much our or this up for working that's there's in advantage this something not? right, is develop

And great Don't -- we're and were believe, be with very a agree in come do smaller will be And in help a amount valuable but going this do forward. that we able we still ago insights are and still And able to the I lot believe that, in XX insights. we we're the forward XX going a seeing connected lot but up that small will were because of years can new this to was that. you So we with make forget, but can with going leader way. to X believe were give a in that things still make still do you comparison, what, industry. I COVID data, we before continue innovation data us indicating the we'll that seeing trip right of

back, and with comes demand more more that do able to As data. we'll be


of Eric is Your next Sheridan UBS. response from

Eric Sheridan

benefits the just to and up? tend on the Looking trends, side Glenn. other OTAs supply OTAs better COVID-XX longer and consolidate starts the needing of be of positive of is periods, tend term, share the for some The Any which demand the partner take pick for industry. views to quite could about as inventory demand versus needed hotel of historical scale how a because a might at past back the to be

other long-term So relationship just COVID-XX? of the see and you, evolving curious supply supply the yourself, how on over with about side the

Glenn Fogel

doesn't with commensurate there of isn't areas to and will in up that be what may there very or recovery, forward be to hotel people be supply such. to run, there. long be going in going go will doesn't be, as go But that point. maybe period -- may take there'll it demand, long may here's it The will run, disappear. In quality owner, the may there recapitalized now There just stay. was therefore, with supply But it it right place in match prices a some that before it cheaper the little there's the demand long buildings the will have what building better it are be new the and and this bit adjusted get places The is some a And COVID grab don't run. the decline great the business a there be a will -- that and if there.

chance to doesn't the happening So in consumer our supplier run, that not I ability concerned provide the long about all. I that at I or impacts am supply value great anymore. need a at us think don't the constraint a on to that see all


of Deepak response next is Your Barclays. Mathivanan from

Deepak Mathivanan

also that? the view? Have a accommodations with to in recovery feels accommodation has on meaningful that like I are mean you of homes. hosts direct are to change your traditional brand. it then characterize on going thoughts And second disruption seen from with of markets of channels apartments on inventory also then particularly share Is in It brand question, capture your long-term side? that on using What to like the demand. meaningfully would a previous views was you can invest on vacation you side? behind to going the your alternative I like something urban that's people rentals, answer your any to Glenn, and this ask mix about great initial how support in that U.S., the meaningful some question and investing

Glenn Fogel

one. first back the go we'll about talk one, me to the Let second

say, have be and go So they bother how many a to You need their the is did about question not. the does of decide lot there having to in environment, there restraints of flip beforehand in of increase nature. going thing something this in them, one. do great now or was just because an for? terms isn't Two, to about well, are will concerned of I'm in alternative demand is interesting on don't XXXX, about just trends homes a and for pandemic the the a there's not where side have this issue course, the this regulatory this, business is no to spare -- The really very I long that, accommodations, and they're bedroom income, where supply issue decline lot right want Airbnb strangers that come people of because of XXXX, of out get rent of Great that people that the out or said of also Recession so extra regulatory the I'll supply my interesting,

more much I professional, a it's think. more course, of Now to do

now, people good is good properties, doing business are alternative everybody. in a like cone this end, as money. people think those the The it. for And industries, It's they People own will just host, supply it. it. these accommodations. need the people, meet side. I see comes alone, they'll right there demand like do back, a continue in be the People, that see to you as people for to demand on April demand And

I I lot think of don't changes. good. a that's see really

run. terrible flu, Hong in past. to different willing world I the world to be the And was? want things the been go But people There be the end, back don't to and just that I'll to the we back, your -- go been pandemics question be this. there the point is supply is don't accommodations. past to that I been this pandemics. XXX once going a great get use One have I'll other people in in to think There is and have different Kong, hugely so years, And change are things. of see going think there's have question people long travel, your to going

Deepak Mathivanan

it, U.S., with channels be on it capture something advertising the like lot curve. markets during recovery just and of was demand about are like you initial that's think at efficient feels certain direct the advertising to How supported initially? more thinking brand a It where can incremental in that's Yes. possible? using Do least brand you

Glenn Fogel

whole we're Well, about with the marketing team talking that.

One I out listening not want are of who right spreading who money. the be want not is of in money is interested The now. things advertising to this. right talked this really or a nobody the very are and message don't be traveling ROI-efficient number an reason spending putting doing. people brand to we a efficient the really you're listening you you're to That's we're earlier people want for it you use when little in really don't not to few the be to about of now message

it'd -- message that sure to very we certainly, carefully pushing are see think The when is that to critical be measuring to time good enough to not then when right people them. travel, when I'm So is. start thing point. We'll that right is, ready out be that


of Your next Bank response is of America. from Justin Post

Justin Post

countries that? their international, your versus if like or assume market secondly, things change you Two come bigger help first, to than share hotels back questions, that today, own much or ADRs have engaging and or people apologize take And to anything platform and different your ready pricing asked. where before. offers are in travel or are that I with Does for But been going about rates? you does thinking your are people I merchant then when

Glenn Fogel

putting why to one great still a things point believe out being that through do and do this believe The providing very That's able unimportant to the one. a continue I'll price, first payments we is really right in it's about the will Well, We a one. because, in together talked together platform trip. product Dave providing talk second put way. our consumers, lot. as important, to out, different of the value, it the get be and that connected to let invest we've for I'll thing packages that's you is merchant

be a of to thing customer -- much and is the their hotel, we'll too, it maybe better So car, deal different with getting package doing able in are of to from the their and They if By a from platform, it the connected control through get attractions. did other our clearly, over cash when easier from having us their things refunds from refund. they refund instead give that things, much one paying one air, way from. to they more one makes they have buy if is needed to be refund talked trip even a all and doing people us in merchant payment deal with one to value, time both with try it having

think. that's about what more David, So you do you important. ADRs let And talk and I'll

David Goulden

Thanks, Yes, Justin. sure.

So stay a historically, and towards shorter be they've both been and ADRs going and length higher trips domestic people's little would length travel longer of international been because for long ADRs therefore, stay. of

may short-term-oriented the that those may and back shift the extent vacations, that really cetera, domestic et it that major the marketplace take big the international not as as it actually distinction the be be to to moved rate. trips difference factor if generally more not get longer want becomes where place go Now domestic into people Because great. was marketplace, for before. was a no there's as And mix and to more


Daniel from response of next is Goldman Powell Your Sachs.

Daniel Powell

may. I if Two, Great.

when your your as you you what the if one? look this of in relationships, could crisis, relationships second of able to maintaining of around what spend is on looking of for expect gas. better? financial give sort things the of be a that bit from around to then I guess hotels being not to sort on what coming created and willing vacuum global environment build would with ROIs, perhaps you your a are the sort you timing little us question First to And advertising or inventory kind good out access step good start mentioned of in? a to And question, to when suppliers. you somewhat the decide sense step other a what did would of and like back your what if did when time been during indicate look versus expectation of of partners might be there's sort Wondering

Glenn Fogel


So half when going desktop what -- going able regarding the I'm signals you'll me is earlier now sure to brand are advertising that lot on through we're going the brand the our so I'm we that video little forgive question though, video, bit Look, And the don't start to response of away it. as for competitors some all a that. jump want advertising, put can half not put and channels the give to I gas out do that -- important, using sure a exactly can there's of are a enhanced of use seeing really I'm better effective things saying, or for that. half be you that. in what about not can able it where through and understand how and to better we us performance feel then you brand that selective get is sense your are be a to on more in ROIs you be

think definitely way. pushing I we're going that to be

helpful we and you're into them. how to the in obvious see talk as suppliers a forward, for past, the to is deep it comfortable supply this running to leaned very were going to can to and XX% why because relationships recession in be that or rate, you provide confident and need regards pleased -- and demand here model get heavily the that the a to a we're In have distributors to distributors Great and XX% demand, feel about hotel if we Recession that the reason, you're who

build that and agree. And better what see I that's helps to that do going So forward. think do you're I relationship going

of not in may flow. they and where were things a constraints due past. cash I cash maintaining think perhaps make much other they're them the be of need some as be That'd to certain doing to amount sure that as advertising they brand

Daniel Powell

Appreciate Great. it.


from Your is next Lee Evercore response of Horowitz ISI.

Lee Horowitz


given wondering you sheet and with things thinking you're your private crisis, of this travel the an moves public the and your shorten during up ability to strong your acquirer about be how across valuations, and obviously guys Given space depressed balance have I'm potential sheet? assets made balance

Glenn Fogel

And like Well, -- being have for know, as having valuations, we we them. reason. but for changed reasons, sheet that of changed a drastically, they've balance like course, drastically strong a we always one many of

ago. time increased And so factor significantly than short risk is a a was it

we the of terms always we higher for about will have add do way terms we the we we about which do because our are And type want we acquiring factors So they're our anything and good? any know, they us to in we But to frothy management if be our that will or recognize this and of careful this do is sheet consumers what to company is picky you something this of assets be we risk measure and is built balance we Do not? think for or team? through This continue or add Do going think partners, we that franchise And acquisition, is approach and time, what we're what now. the Dave, much M&A, out always to management? to is you great. can to help help same, a going in business not, no? that look that's can operate without What think or we to more the as talk that.

David Goulden




Our is Hardiman from final Securities. of question James Wedbush

James Hardiman

normality, reengage which are thinking of appreciate the position those and a about your to points April, I hotels, sort work, step some most have most resume travel if are types which on likely are seems you there's of of, rental, of apartments, homes, you limited. consumers Obviously, So a to travel, in all vacation in data to March understand all guys air to soonest? have how car take quickest? the you -- guys you're curious back. even the likely really piece restaurants, a of somewhat obviously, But I wanted unique like done consumer what was

Glenn Fogel

Well, that's, go you for we've really clean is about of travel. amounts seen Europe, the of RyanAir somewhat fearful situation. a little countries good Dave almost all or it's government almost it's It things. also but people hotel But RyanAir like a their certain talked essentially is about, economic nothing, just that, just comfortable what available, and restrictions, in other talked lot about to and as to what Europe out whether now. extremely times And have area, still a on about April. in treatment of It's will nothing. is feel limited, a entire people may situation, bellwether came seen what it's world, air low the together for a those and bit more data we've amount how in their parts air travel on in the right the perhaps, air all unfortunately, in that go people of seen, example, getting we vaccine And was the extremely we've seen in by flights

other So I see yes, back, the things overall, some start come back as be similar. I it all think things pretty will very we'll But coming will think one. what

James Hardiman

Got then me, takes. may. cash puts of optimization for some of walk maybe going just number, a expense But and still it. And that's question sort I like It monthly if on. the some the through last give burn sounds ready any us you're given of to quite not

taking customers you You've you're merchant number then deferred provide interest differences as $X given us quickly And those of that's refunds that transactions late? the hotels? coming getting with versus got to when help from bookings. down? you the Are in billion place can refunds is an there when between timing about How

David Goulden

Yes. Well, thank you, James.

I'll with Dave, wrap up this one. is this So

the more did a year. we offering. kind that. indication bond because for as give given than an you XXXX $X.X have like We our of look haven't of did we cash before So to now at we billion flow cash projection end would significantly our position the what And

to movements think to reduce to walk handle working balance to rate not head, top our until is our where Those I where gone burn. really you through optimization you a are. I going we we'll So we're sheet an get have we've for once And again. occurring with we once that the best plans, of cost more to interest but get balances monthly in QX. we as into our can follow-up to capital we changes it that time, my give off not going to the in do will for We number demand reset you start with continue travel through and too, point the decided everybody to forward at we're color one. way base

James Hardiman

Appreciate enough. Good it.


further over queue no this questions back in to I'd at the turn call are like There Glenn the Fogel. time. to

Glenn Fogel

I understand difficulty. you. technical there Thank was a

remarks And the speech some was -- of my part cut my last of prepared off.

were because works I which off. actually close last in out this what the think to well actually a paragraphs, way nice X

Look, times a So disruptive for let geographies of lead be resurgence some distancing know in the is as and/or progress against the infections to all restrictions. reinstatement me going everyone. of of relaxation social we to at government pandemic that may disclose

our aim is the optimize position to and in invest forward. and demand, manage that participate shape of our estimate in shareholder our serve best Our return, value to build in to of of our in industry employees business light leadership of return business our and the the on customers, expenses build the ultimate partners going

we road we many the ahead issues of to tough have come. past, quarters are and day, impact doing and weeks, going we be side, we COVID-XX we're navigate us. on of difficult scale will one the we positioned and can been future, in challenging the are to months the and to pace in everything know have unprecedented. last We these And to The ensure is times. a the the we through other through well have some weeks, few But

role confidence the some global brand are and crisis of and travel our cash to strong extend come highly in that positioned the best global structure, have of We people variable ecosystem. awareness the out with we liquidity, great leadership a well cost this anywhere, and

our going days the employees, and customers, the a together. to heartfelt giving you our to partners these by close difficult thank I'm Now work as we all governments through

frontline as days tough all ahead. world. so And everywhere. confident trying And vaccine, get and be workers delivery been come for or people will Good in is enormous Holdings. that you cure us basically, just designated there. working the there people We up will sure say employees, us, to out they'll through nurses, everybody this. with to and to you from know our But stores, more lastly, food night. get over I job Booking I you efforts more be have day to The all to customers, want our a we I help many it. to making the you support Thank of the critical. of through To will at night the to doctors all but our in people, the of industries the all proud am scientists and for thank Not your a never partners


conference Thank concludes today's call. This you.

a good Have You day. may now disconnect.