Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Expedia Group, Inc. | d8k.htm |
| EX-99.1 - PRESS RELEASE OF EXPEDIA, INC. DATED APRIL 28, 2011 - Expedia Group, Inc. | dex991.htm |
 Q111 Company Overview
Q1 2011
Company Overview
Exhibit 99.2 |
 2
Q111 Company Overview
Forward-Looking Statements
This presentation contains "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are not guarantees of future
performance. These forward-looking statements are based on management’s expectations
as of April 28, 2011 and assumptions which are inherently subject to uncertainties, risks and
changes in circumstances that are difficult to predict. The use of words such as
"intends" and “expects,” among others, generally identify forward-looking statements. However, these words
are not the exclusive means of identifying such statements. In addition, any statements that refer to
expectations, projections or other characterizations of future events or circumstances are
forward-looking statements and may include statements relating to future revenues,
expenses, margins, profitability, net income / (loss), earnings per share and other measures of
results of operations and the prospects for future growth of Expedia, Inc.’s business.
Actual results and the timing and outcome of events may differ materially from those expressed
or implied in the forward-looking statements for a variety of reasons, including, among others:
declines or disruptions in the travel industry; changes in our relationships and contractual
agreements with travel suppliers or supplier intermediaries; risks relating to the announced
spin-off of our TripAdvisor business; increases in the costs of maintaining and enhancing
our brand awareness; changes in search engine algorithms and dynamics, or search engine
disintermediation; our inability to adapt to technological developments or to maintain our
existing technologies; our ability to expand successfully in international markets; changes in senior
management; volatility in our stock price; changing laws, rules and regulations and legal
uncertainties relating to our business; unfavorable new, or adverse application of existing,
tax laws, rules or regulations; adverse outcomes in legal proceedings to which we are party;
provisions in certain credit card processing agreements that could adversely impact our
liquidity and financial positions; fluctuations in our effective tax rate; our inability to
access the capital markets when necessary; risks related to our long term indebtedness; fluctuations in
foreign exchange rates; risks related to the failure of counterparties to perform on financial
obligations; potential liabilities resulting from our processing, storage, use and disclosure
of personal data; the integration of current and acquired businesses; the risk that our
intellectual property is not protected from copying or use by others, including competitors;
and other risks detailed in our public filings with the SEC, including our annual report on
Form 10-K for the year ended December 31, 2010. Except as required by law, we undertake no
obligation to update any forward-looking or other statements in this press release, whether
as a result of new information, future events or otherwise. Reconciliations
of non-GAAP measures included in this presentation to the most comparable GAAP measures are
included in Appendix B. |
 3
Global Opportunity
Sizeable
markets
Higher growth
online
Penetration
tailwinds
OTA Share of
Online
Bookings
OTA share
stabilizing
CAGR
2008
2009
2010 (E)
2011 (E)
‘08 –
‘11
Travel Market Size:
U.S.
274
233
255
271
Flat
Europe
350
313
320
332
-1%
APAC
215
202
212
227
1%
LATAM
56
52
58
63
3%
4 Region Total
895
800
845
893
Flat
Online Bookings:
U.S.
143
132
139
145
Flat
Europe
107
107
118
129
5%
APAC
31
36
44
55
15%
LATAM
5
6
8
11
24%
4 Region Online
285
280
310
339
5%
Europe, APAC &
LATAM
142
148
171
195
8%
Online Penetration:
U.S.
52%
57%
54%
53%
Europe
30%
34%
37%
39%
APAC
14%
18%
21%
24%
LATAM
9%
11%
14%
18%
4 Region Online
Pen.
32%
35%
37%
38%
Figures in $billions
Sources: U.S. Online Travel Overview 10th Edition (November 2010); U.S. Online
Travel Overview 8th Edition Update: 2009 – 2010 (April 2009); U.S.
Corporate Travel Distribution 4th Edition (July 2009); US Online figure for 2011 assumes ~$40 million in online
corporate travel bookings; European Online Travel Overview 6th Edition (November
2010); European Online Travel Overview 5th Edition (October 2009);
European figures assume Euro/USD exchange rate in each period of $1.45; APAC data - PhoCusWright
Asia Pacific Online Travel Overview – Third Edition (August 2009) & EyeForTravel APAC Overview
(April 2007). APAC data excludes managed travel. LATAM data – PhoCusWright Latin
America: Navigating the Emerging Online Travel Marketplace (April 2011). LATAM data
excludes managed travel. Q111 Company Overview |
 4
Q111 Company Overview
World’s Largest and Most Intelligent Travel Marketplace
Suppliers
Customers
Hotels
Airlines
Car rental companies
Cruise lines
Global distribution
system (GDS) partners
Advertisers
Leisure travelers
Corporate travelers
Travel service providers
(“white label”)
Offline retail travel
agents
Secure superior quality supply & maintain price competitiveness
Intelligently match supply & demand
Empower and inspire travelers to find and build the right trip
Enable suppliers to reach travelers in a unique & value-additive
way Aggressively expand our global presence & demand
footprint Achieve excellence in technology, people and processes to
make quality, consistency & efficiency the foundation of our
marketplace Travel
products
Travel info
Technology |
 5
Q111 Company Overview
Expedia -
the Travel Sector Leader
Sources: comScore
MediaMetrix, March 2011 & company data; ² See Appendix B for
reconciliation of non-GAAP to GAAP numbers. Adjusted EBITDA is
calculated as operating income plus depreciation, restructuring charges,
intangibles amortization, stock-based compensation, any impairments, and
certain legal reserves and occupancy tax charges. Adj. EBITDA includes
realized gains/(losses) from revenue hedges.
Global presence & portfolio of category leading brands
Premier
Brand
Portfolio
#1
Online
Travel
Agency
(OTA)
globally,
with
presence
in
22 countries
Leading
hotel
specialist
globally,
with
over
75
localized sites
Leading value-based travel provider
#1
online
travel
community,
operating
in
North
America,
Europe & APAC
Key Statistics
•
Traffic (March 2011 unique visitors):
75mm
•
TTM 3.31.11 number of transactions:
67mm
TTM 3.31.11
•Gross bookings:
$ 26.6b
•Revenue:
$ 3.5b
•OIBA
²
:
$817mm
•Adjusted EBITDA
$944mm
•
$6.5b market cap (April 15, 2011)
•
Member of S&P 500 & NASDAQ 100
stock indices
2
1
1 |
 6
Q111 Company Overview
Largest Worldwide Audience
Source: comScore MediaMetrix, March 2011
1
Denotes Expedia’s percentage difference over next largest
competitor +157%
1
+136%
1
+108%
1
+80%
1
+136%
1
+104%
1
Orbitz
Yahoo Travel
Priceline
Travelocity
U.S.
Worldwide
0
100
200
300
400
500
600
700
Min Spent Online
Page Views
UV’s
Min
Spent
Online
Page
Views
UV’s |
 7
Q111 Company Overview
Expedia’s Virtuous Cycle
Scale drives opportunity to enhance supplier, traveler &
advertiser value propositions, reward stakeholders
Growth/
Scale
Compelling
supplier &
advertising
channel
Better
supplier
economics
More
travelers
Improved
traveler
experience
User-
generated
content
Cash flow
to invest in
More ad
revenue |
 8
Q111 Company Overview
Revenue by Product & Geography
Hotel
63%
Revenue
Air
11%
* Hotel & Advertising –
>75% of revenue base
and key revenue / profitability drivers
* Europe & other international markets benefit
from earlier stage online penetration
* Significant international growth anticipated,
with a target of 50+% of total revenue from
international
Domestic
61%
Revenue
International
39%
Advertising
& Media
13%
Car, Cruise & Other
13%
Business mix shifting to hotel & advertising, increasingly global
Source: Company financial reports; some numbers may not add due to
rounding. Geographic Split (TTM 3.31.2011)
Product Categories (TTM 3.31.2011) |
 9
Q111 Company Overview
Product Category -
Hotel
Merchant Model / Illustrative Transaction
Hotels
(Supplier)
Travelers
Revenues to Expedia:
•Spread between the discounted rate provided
by suppliers and sales price paid by travelers
•Service fees from travelers
Other:
•Cash received on booking, revenue recognized
at stay
•Revenue margin higher than the agency model
Sample Expedia Revenue:
$350 night stay at luxury hotel
Cost to Traveler
Cost to Expedia
$350
$280
Revenue to Expedia
$70
1
Includes service fee and spread
•Merchant hotel
—Expedia merchant of record with no inventory risk
—Expedia receives cash upfront from travelers, pays hoteliers several
weeks later —Some control over pricing, higher margins &
ability to package with other products —1 -
3 year contracts with major chain lodging properties
—Consultative account management brings industry leading intelligence to
hoteliers •
Agency hotel small but growing in importance with acquisition of Venere &
launch of Expedia Easy Manage
Business Overview
1
Reduced E.com service
fees beginning Apr-09 |
 10
Q111 Company Overview
Trended Worldwide Hotel Growth Statistics (y/y)
Source: Company financial reports . 2005 – 2007 data is for merchant
hotel only; 2008 – 2011 data is for both agency and merchant hotel. |
 11
Q111 Company Overview
Travel supplier advertising on Expedia’s ww sites
Reviews with social networking
Search tool for fares
Travel blogs
European holiday reviews
Destination services, hotels & vacation rentals
Editorial info and deals
Cruise reviews & community
UGC seat maps and airline info
Guides and bargains
Vacation rental
Product Category -
Advertising & Media
•Two primary businesses –
•TripAdvisor Media Group
(leading global collection of
user-generated content sites)
•Expedia Media (monetizing global Expedia, Hotels &
Hotwire sites beyond transactions)
•TTM revenue of $446mm, +32% y/y
•Offer advertisers targeted audiences
•CPC, CPM & subscription based ad models
•TripAdvisor leverages industry-leading SEM & SEO
capabilities
•Robust user-generated content and selection draws in users
Sources: Company reports
Business Overview
Ad & Media Brand Portfolio
Revenue Drivers
Growth in TTM Net Advertising Revenues
1
TripAdvisor Reviews and Opinions -
Robust Growth |
 12
Q111 Company Overview
Product Category -
Air
•
Air revenue = 11% of Expedia’s worldwide trailing twelve months
revenue -
~95% of airplane tickets sold over Expedia’s online properties are
agency transactions, in which Expedia acts as an agent on behalf of a
supplier and collects a commission -
Customer pays supplier directly, Expedia collects its remuneration after
travel -
Lower
revenue
margin
business
vs.
hotel
transactions
•
OTAs in U.S. eliminated most consumer booking fees for air tickets in spring
2009, resulting in reduced revenue per ticket while taking share from
offline & supplier direct Airlines
(Supplier)
GDS
Travelers
Revenue to Expedia:
•Largely unit / volume driven and includes:
•Portion of GDS fee
•Commissions & incentives from carriers
•Booking fees (some sites)
Other:
•Supplier is merchant of record
•Expedia bears no inventory risk
•Revenue recognized at booking, cash received
within weeks
•Agency model is used in other product categories,
including hotel
•Multi-GDS strategy
No online booking
fees on E.com air tickets
Agency Model / Illustrative Transaction
Business Overview |
 13
Q111 Company Overview
Trended Worldwide Air Growth Statistics (y/y)
Source: Company financial reports |
 14
Q111 Company Overview
12.5%
12.5%
12.6%
12.6%
12.4%
12.1%
11.6%
11.3%
11.2%
11.3%
11.3%
13.7%
13.8%
14.0%
14.1%
13.9%
13.6%
13.1%
12.8%
12.8%
12.9%
13.0%
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
Stable Supplier Relationships & Economics
Trended Revenue Margin (TTM)
Stable supplier margins indicate healthy supplier relationships
Reductions driven by traveler fee cuts & rising air ticket prices
Supplier margins largely stable driven by:
Long-term agreements with airlines and GDS providers
Better hotel relationships through PSG investment
Growth in advertising business helping offset fee cut impact
Excluding ad & media revenue
Including ad & media revenue
Source: Company financial reports |
 15
Q111 Company Overview
Q111 Results
Figures in $mm unless otherwise noted
* Excludes stock-based compensation. ** OIBA includes realized
gain/(loss) from revenue hedges *** Adjusted EBITDA is
calculated as operating income plus depreciation, restructuring charges, intangibles
amortization, stock-based compensation, any impairments and certain legal
reserves and occupancy tax charges. Adj. EBITDA includes
realized gains/(losses) from revenue hedges. ¹ See Appendix B for reconciliation
of non-GAAP to GAAP numbers.
Source: Company financial reports
Q111
Q110
y/y
Transactions (mm)
17.1
15.8
8%
Gross Bookings
$7,294
$6,632
10%
Revenue
822
718
15%
Cost of Revenue *
177
157
13%
Selling & Marketing *
337
277
22%
Tech & Content *
98
82
19%
General & Administrative *
75
62
22%
Total Costs and Expenses *
688
578
19%
OIBA **
129
143
-9%
OIBA Margin
16%
20%
(413bps)
Adjusted EBITDA ***
163
168
-3%
Adj. EBITDA Margin
20%
23%
(365bps)
Free Cash Flow
678
590
15%
Unit Growth
•
Q111 worldwide room night growth of 15%
•
Q111 worldwide air tickets declined 10%
1
1
1
1
1
1
1
1
1
1 |
 Trended Free Cash Flow
(TTM) $millions
‘08 cash flows down due
to taxes, slowing
merchant hotel & one-
time cap ex
Approximately $1.7B in free cash flow* generated in past 3 years
‘09 cash flows improved
due to higher earnings,
merchant hotel recovery
& normalized cap ex
Source: Company financial reports
‘10 cash flows improved
due to higher earnings,
lower occupancy tax
assessment payments
and lower cash tax
payments
16
Q111 Company Overview
*
Free cash flow is a non-GAAP measure calculated by adding capital
expenditures to net cash provided by or used in operating activities. See Appendix B for reconciliation of non-GAAP to
GAAP numbers |
 17
Q111 Company Overview
Efficiently Managing Dilution
15% reduction in share base since Q107
millions of adjusted diluted shares
Source: Company financial reports
2007 repurchased 55mm
shares for $1.4b
2010 repurchased 20.6mm
shares for $489mm |
 18
Q111 Company Overview
Capitalization
3/31/11
Cash and Cash Equivalents
$953
Revolving Credit Facility
--
5.950% Notes due 2020
750
7.456% Notes due 2018
500
8.500% Notes due 2016
395
Total Debt
$1,645
Net Debt
692
Market Value of Equity
$6,468
Total Capitalization
$7,160
Adjusted EBITDA TTM
$944
Total Debt / Adj. EBITDA
1.7
Net Debt / Adj. EBITDA
0.7
Source: Company financial reports. Some numbers may not add due to
rounding. Modest leverage;
minimal net debt
3 debt issues with long-
term maturities
(2018 Notes have 2013
investor put)
1
Does not include restricted cash, short-term investments and corporate bond investments that are
included in long-term assets.
2
Total size of revolving credit facility closed in February 2010 is $750 million; available capacity
reduced by $27mm in outstanding letters of credit as of March 31, 2011.
3
Based on 273mm outstanding shares and April 15, 2011 closing share price of $23.66. 4
Adjusted EBITDA is calculated as operating income plus depreciation, intangibles expense,
restructuring charges, stock-based compensation, any impairments, certain legal reserves
and occupancy tax charges. Adjusted EBITDA includes any realized gains/(losses) from revenue hedges. See Appendix B for reconciliation of non-GAAP to GAAP
numbers.
1
2
3
4
4
4 |
 19
Q111 Company Overview
12.31.07
12.31.08
12.31.09
12.31.10
TTM
3.31.11
Leverage Measures
Total Debt / TTM Adjusted EBITDA
¹
1.5
2.0
1.0
1.7
1.7
Net Debt / TTM Adjusted EBITDA
¹
0.6
1.1
0.3
1.0
0.7
Coverage Measures
TTM Adj. EBITDA / TTM Interest
Expense
¹
13.8
10.8
10.3
9.4
8.5
TTM Free Cash Flow / TTM Int.
Expense
¹
11.8
5.0
6.9
6.1
6.4
Trended Credit Metrics
Demonstrated strong credit metrics, consistent with investment grade rating
See Appendix B for reconciliation of non-GAAP to GAAP numbers.
Source: Company financial reports
1 |
 20
Q111 Company Overview
Rating Agency Snapshot
S&P (Analyst: Andy Liu)
Rating ‘BBB-’
on CreditWatch with negative implications
April 7, 2011 Research Update:
“The CreditWatch placement is based on the company’s plan to split off
its TripAdvisor unit…we believe it will reduce Expedia’s growth
rate, EBITDA margin, and discretionary cash flow going forward.”
Moody’s (Analyst: Stephen Sohn)
Rating Affirmed at Ba1 / Outlook Stable
April 7, 2011 and April 11, 2011 Credit Opinions:
“The revised stable outlook for Expedia reflects our view that a near term
upgrade is unlikely until there is more clarity regarding the capital
structure post spin-off of TripAdvisor.” “Expedia’s Ba1
rating is supported by the company’s leading position in the consumer online travel agency
market, moderate leverage, solid profitability, and steady cash flow
generation.” Although
Expedia
is
a
globally
recognized
brand,
the
company
may
have
to
pursue
opportunistic
acquisitions
to
maintain its leadership position while achieving its growth
objectives.” Fitch Rates Expedia, Inc.'s 'BBB-'; Outlook Stable
Issuer Default Rating (IDR) 'BBB-‘; Senior unsecured notes
'BBB-'; Senior unsecured bank credit facility 'BBB-’; Rating
Outlook is Stable February 14, 2011 Research Update:
“Results should benefit from a continued strengthening of industry travel
trends and be positively impacted by continued share gains at Expedia as
consumers increasingly utilize online travel agents (OTAs).”
“Advertising revenue, which is growing significantly faster than airline and
hotel revenue and now represents over 10% of total revenue, represents a
strong source of revenue diversification and positively impacts overall
profitability.”
Solid execution & adequate liquidity |
 21
Q111 Company Overview
Summary
•
Attractive macro tailwind as travel industry shifts online
•
World’s #1 online provider of travel-related services
Leading traffic, supply, scale, bookings, revenue & cash flows
Strong and complementary portfolio of brands and products
Important partner to airlines, hotels and other travel suppliers
Diversified brands, business models and geographic reach
•
Compelling platforms for travel suppliers, travelers & advertisers
•
Strong business model, execution & credit metrics
Substantial free cash flow
1
(TTM 3.31.11: $710mm)
Modest leverage (1.7x)
Strong interest coverage (8.5x)
High operating margins
Roughly 55% variable / 45% fixed cost base
•
Proven management
1
See Appendix B for reconciliation of non-GAAP to GAAP numbers.
|
 22
Q410 Company Overview
Appendix A |
 23
Q111 Company Overview
Business Model –
Income Statement (FY 2010)
Source: Company financial reports
1
Excludes stock-based compensation. See Appendix B for reconciliation of
non-GAAP to GAAP numbers. $ in millions
Gross bookings
$25,962
Revenue
3,348
Cost of revenue
1
690
Selling and marketing
1
1,190
General and administrative
1
285
Technology and content
1
348
“OIBA”
1
831
OIBA
margin
1
25%
Stock-based compensation
60
Amortization of intangibles
37
Legal reserves, occupancy tax & restructuring
6
Operating income (GAAP)
732
Customer books travel product or
service; total retail value (incl taxes
and fees) constitutes “Gross
Bookings.”
Expedia’s portion of the gross
booking gets recorded as revenue
(inc. commissions, fees, etc.). Also
includes advertising & media
revenue. Revenue = 12.9% of ‘10
bookings.
(1) Personnel–related costs,
including executive leadership,
finance, legal, tax and HR
functions. (2) Fees for professional
services typically related to legal,
tax and accounting engagements.
Annual employee awards granted
each Q1; company switched to
options from RSUs in 2009.
Amortization of M&A activity
•
Customer operations
•
Credit card & fraud expense
•
Data center & other costs
Consists of direct (73%)
advertising expenses (search
engine marketing & other online
advertising, TV, etc.) and
indirect, personnel-related costs
(27%), including our supplier
relationship function (PSG).
Principally relates to payroll and
related expenses, hardware &
software, licensing &
maintenance and software
development cost amortization. |
 24
Q111 Company Overview
Growth
2006
2007
2008
2009
2010
2007
2008
2009
2010
Gross Bookings
$16,882
$19,632
$21,269
$21,811
$25,962
16%
8%
3%
19%
Revenue
2,238
2,665
2,937
2,955
3,348
19%
10%
1%
13%
Cost & Expenses *
1,639
1,996
2,239
2,183
2,514
22%
12%
(3%)
15%
OIBA***
599
670
698
762
831
12%
4%
9%
9%
OIBA Margin***
27%
25%
24%
26%
25%
(165bps)
(136bps)
201bps
(96bps)
Adj. EBITDA**
648
729
775
864
949
13%
6%
12%
10%
EBITDA Margin***
29%
27%
26%
29%
28%
(160bps)
(98bps)
287bps
(90bps)
Free Cash Flow***
525
625
361
584
622
19%
(42%)
62%
7%
Trended Historical Results
•
Positive top-line growth
•
Investing in business to drive accelerated transaction growth.
•
$3.6B in cumulative OIBA & $2.7B in cumulative free cash flow
(Figures in $millions)
*
Excludes stock-based compensation. See reconciliation of non-GAAP to GAAP numbers in Appendix
B.
**
Adjusted EBITDA is calculated as operating income plus depreciation, intangibles expense,
restructuring charges, stock-based compensation, any impairments and certain legal reserves
and occupancy tax charges. Adjusted EBITDA includes any gains/(losses) from revenue hedges. See Appendix B for reconciliation of non-GAAP to GAAP numbers.
*** See Appendix B for reconciliation of non-GAAP to GAAP numbers. |
 25
Q111 Company Overview
Appendix B |
 26
Q111 Company Overview
Tabular Reconciliations For Non-GAAP Data
Operating Income Before Amortization
3 Months
Ended
3 Months
Ended
(figures in $000s)
Mar 31,
2010
Mar 31,
2011
OIBA
$ 142,544
$ 129,258
Amortization of intangible assets
(9,028)
(7,951)
Stock-based compensation
(18,892)
(17,272)
Legal reserves and occupancy tax
assessments
-
(1,100)
Restructuring charges
-
-
Realized (gain) loss on revenue hedges
(2,450)
5,306
Operating income
112,174
108,241
Operating income margin
16%
13%
Interest expense, net
(20,608)
(27,839)
Other, net
568
(6,217)
Provision for income taxes
(31,535)
(21,976)
Net income attributable to noncontrolling
interests
(1,204)
(170)
Net income attributable to Expedia, Inc.
$ 59,395
$
52,039 |
 27
Q111 Company Overview
Tabular Reconciliations For Non-GAAP Data
Operating Income Before Amortization
(figures in $000s)
Year Ended
Dec. 31,
2006
Year Ended
Dec. 31,
2007
Year Ended
Dec. 31,
2008
Year Ended
Dec. 31,
2009
Year Ended
Dec. 31,
2010
OIBA
$ 599,018
$ 669,487
$ 697,774
$ 761,532
$ 830,721
OIBA margin
27%
25%
24%
26%
25%
Amortization of intangible assets
(110,766)
(77,569)
(69,436)
(37,681)
(37,123)
Amortization of non-cash distribution and
marketing
(9,638)
-
-
-
-
Stock-based compensation
(80,285)
(62,849)
(61,291)
(61,661)
(59,690)
Restructuring charges
-
-
-
(34,168)
-
Legal reserves and occupancy tax assessments
-
-
-
(67,658)
(5,542)
Impairment of goodwill
-
-
(2,762,100)
-
-
Impairment of intangible & other long-lived assets
(47,000)
-
(233,900)
-
-
Realized loss on revenue hedges
-
-
-
11,050
3,549
Operating income / (loss)
351,329
529,069
(2,428,953)
571,414
731,915
Operating income margin
16%
20%
n/a
19%
22%
Interest income (expense), net
14,799
(13,478)
(41,573)
(78,027)
(94,131)
Other, net
18,770
(18,607)
(44,178)
(35,364)
(17,216)
Provision for income taxes
(139,451)
(203,114)
(5,966)
(154,400)
Net (income) loss attributable to noncontrolling
interests
(513)
1,994
2,907
(4,097)
(4,060) Net
income / (loss) attributable to Expedia, Inc. $ 244,934
$ 295,864
$(2,517,763)
$ 299,526
$ 421,500
Source:
Company financial reports
(195,008) |
 28
Q111 Company Overview
Tabular Reconciliations For Non-GAAP Data
Costs & Expenses
(figures in $000s)
Year Ended
Dec. 31, 2006
Year Ended
Dec. 31, 2007
Year Ended
Dec. 31, 2008
Year Ended
Dec. 31, 2009
Year Ended
Dec. 31, 2010
Total costs and expenses*
$ 1,718,853
$ 2,058,694
$ 2,300,530
$ 2,244,505
$ 2,573,529
Less: stock-based compensation
(80,285)
(62,849)
(61,291)
(61,661)
(59,690)
Costs and expenses excluding stock-based
compensation
1,638,568
1,995,845
2,239,239
2,182,844
2,513,839
* Includes cost of revenue, selling and marketing, general and administrative and
technology and content expenses. Source:
Company financial reports
(figures in $000s)
Quarter Ended
Mar 31, 2010
Quarter Ended
Mar 31, 2011
Total costs and expenses*
596,717
704,885
Less: stock-based compensation
(18,892)
(17,272)
Costs and expenses excluding stock-based
compensation
577,825
687,613 |
 29
Q111 Company Overview
Tabular Reconciliations For Non-GAAP Data
Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization
(figures in $000s)
Year Ended
Dec. 31,
2006
Year Ended
Dec. 31,
2007
Year Ended
Dec. 31,
2008
Year Ended
Dec. 31,
2009
Year Ended
Dec. 31,
2010
Adjusted EBITDA
647,797
729,013
774,574
864,314
949,123
Adjusted EBITDA margin
29%
27%
26%
29%
28%
Depreciation
(48,779)
(59,526)
(76,800)
(102,782)
(118,402)
OIBA
599,018
669,487
697,774
761,532
830,721
Source:
Company financial reports
(figures in $000s)
Qtr
Ended
Mar 31,
2010
Qtr
Ended
Mar 31,
2011
TTM
3.31.11
Adjusted EBITDA
168,159
162,545
943,509
Adjusted EBITDA margin
23%
20%
27%
Depreciation
(25,615)
(33,287)
(126,074)
OIBA
142,544
129,258
817,435 |
 30
Q111 Company Overview
Tabular Reconciliations For Non-GAAP Data
Costs & Expenses
12 Months
Ended
12 Months
Ended
3 Months
Ended
3 Months
Ended
(figures in $000s)
12.31.09
12.31.10
3.31.10
3.31.11
Cost of revenue
607,251
692,832
158,030
177,842
Less: stock-based compensation
(2,285)
(2,401)
(789)
(810)
Cost of revenue excluding stock-based
compensation
604,966
690,431
157,241
177,032
Selling and marketing
1,027,062
1,204,141
280,838
341,158
Less: stock-based compensation
(12,440)
(13,867)
(4,317)
(4,314)
Selling and marketing excluding stock-based
compensation
1,014,622
1,190,274
276,521
336,844
Technology and content
319,708
362,447
86,791
103,184
Less: stock-based compensation
(15,700)
(14,326)
(4,381)
(4,751)
Technology and content excluding stock-
based compensation
304,008
348,121
82,410
98,433
General and administrative
290,484
314,109
71,058
82,701
Less: stock-based compensation
(31,236)
(29,096)
(9,405)
(7,397)
General and administrative excluding stock-
based compensation
259,248
285,013
61,653
75,304
Source:
Company financial reports |
 31
Q111 Company Overview
Tabular Reconciliations For Non-GAAP Data
Free Cash Flow
(figures in $000s)
3 months
ended
Mar 31, 2010
3 months
ended
Mar 31, 2011
Net cash used in operating
activities
619,527
729,090
Less: capital expenditures
(29,675)
(51,079)
Free cash flow
589,852
678,011 |
 32
Q111 Company Overview
Tabular Reconciliations For Non-GAAP Data
Free Cash Flow
TTM = Trailing Twelve Month periods ended
(figures in $000s)
TTM 6.07
TTM 9.07
TTM 12.07
TTM 3.08
TTM 6.08
TTM 9.08
TTM 12.08
TTM 3.09
Net cash provided by operating
activities
831,140
859,228
712,069
737,792
660,510
514,242
520,688
458,913
Less: capital expenditures
(97,576)
(82,671)
(86,658)
(101,514)
(118,417)
(148,022)
(159,827)
(150,025)
Free cash flow
733,564
776,557
625,411
636,278
542,093
366,220
360,861
308,888
TTM 6.09
TTM 9.09
TTM 12.09
TTM 3.10
TTM 6.10
TTM 9.10
TTM 12.10
TTM 3.11
Net cash provided by operating
activities
494,184
573,491
676,004
793,527
764,787
793,389
777,483
887,046
Less: capital expenditures
(131,146)
(103,775)
(92,017)
(98,306)
(123,093)
(142,409)
(155,189)
(176,593)
Free cash flow
363,038
469,715
583,987
695,221
641,694
650,980
622,294
710,453
Source:
Company financial reports. Numbers may not add due to rounding.
|