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| 8-K - 8-K - KAYAK Software Corp | form8-k8222012.htm |
KAYAK REPORTS Q2 2012 FINANCIAL RESULTS
Norwalk, CT - August 22, 2012 - KAYAK Software Corporation (NASDAQ: KYAK) today announced financial results for the second quarter ended June 30, 2012.
"We're off to a strong start as a public company, with record revenues and adjusted EBITDA," said Steve Hafner, KAYAK Chief Executive Officer and Cofounder. "Our focus remains on ensuring that KAYAK is the best place to plan and book travel globally.”
Second Quarter 2012 Financial Results
• | Total Revenue: $76.9 million, a 36% year-over-year increase from $56.8 million in the second quarter of 2011. |
• | Adjusted EBITDA: $20.6 million, an 85% year-over-year increase from $11.1 million in the second quarter of 2011. |
• | Net Income: $7.3 million, a 93% year-over-year increase from $3.8 million in the second quarter of 2011. |
• | GAAP EPS: $0.19, as compared to $0.10 in the second quarter of 2011. GAAP EPS is calculated based on GAAP net income divided by 38.6 million and 37.4 million weighted average diluted shares outstanding. |
Second Quarter 2012 Operating Metrics
• | Total Queries: We processed 304 million queries, a 33% year-over-year increase from 229 million in the second quarter of 2011. Queries refer to user requests for travel information we process through our websites and mobile applications. |
• | RPM: Revenue per thousand queries, or RPM, was $253, a 2% year-over-year increase from $248 in the second quarter of 2011. |
• | Mobile: We processed 57 million queries through our mobile applications, a 95% year-over-year increase from the second quarter of 2011. Revenue per thousand mobile queries, or mobile RPM of $46, increased 42% year-over-year from $33 in the second quarter of 2011. Mobile RPM figures are KAYAK's best estimation of revenue per thousand mobile queries based on data provided by those travel partners that delineate between mobile and website travel bookings. |
Second Quarter 2012 Financial Results Conference Call: KAYAK will webcast a conference call today at 5 p.m. ET to discuss the second quarter 2012 financial results. The webcast can be accessed on the KAYAK Investor Relations website at http://ir.kayak.com, along with the company's earnings press release, financial tables and accompanying slide presentation. A live domestic dial-in is available at (877) 293-5492 or internationally at (720) 545-0007, using passcode 16409129. A domestic replay will be available at (855) 859-2056 or (404) 537-3406 internationally, using passcode 16409129. Following the call, a replay of the webcast will be available at the same website until September 5, 2012.
About KAYAK
KAYAK allows people to easily compare hundreds of travel sites at once when searching for flights, hotels, and rental cars, and gives travelers choices on where to book. The company processes over 100 million user queries each month and operates websites in 18 countries including the U.S., Germany, the United Kingdom, France, Spain, Italy, Russia and Brazil. KAYAK also offers a leading travel app with over 17 million downloads, available for free on iPhone, iPad, Android, Windows Mobile 7 and Nokia devices.
Use of Forward Looking Statements:
This press release contains forward looking statements regarding our management's future expectations, beliefs, intentions, goals, strategies, plans and prospects. Such statements constitute “forward-looking” statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, our actual results, performance or achievements could be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in the company's Prospectus filed on July 20, 2012 and additional information that will be set forth in our Form 10-Q that will be filed for the quarter ended June 30, 2012, which should be read in conjunction with these financial results. These documents are available on the SEC Filings section of the Investor Relations section of our website at http://ir.kayak.com/. Please also note that forward-looking statements represent our management's beliefs and assumptions only as of the date of this press release. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information, becomes available in the future.
Use of Non-GAAP Financial Measures
Adjusted EBITDA is a financial measure that is not calculated in accordance with accounting principles generally accepted in the United States, or GAAP.
Earnings Before Interest, Taxes, Depreciation and Amortization, or EBITDA, is a metric used by management to measure operating performance. Adjusted EBITDA represents EBITDA excluding the impact of stock-based compensation expense and other income (expense), net. We present Adjusted EBITDA as a supplemental performance measure because we believe it facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting other income (expense), net), tax positions (such as the impact on periods or companies of changes in effective tax rates), the age and book depreciation of fixed assets (affecting relative depreciation expense), the impact of acquisitions and the impact of stock-based compensation expense. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to performance measures derived in accordance with GAAP.
See “Schedule of Non-GAAP Reconciliations” below for a reconciliation of income (loss) from operations to Adjusted EBITDA.
###
Contacts:
Investor Relations:
Denise Garcia
203-682-8335
IR@kayak.com
Media Relations:
Jessica Casano-Antonellis
prcontact@kayak.com
KAYAK Software Corporation and Subsidiaries Consolidated Statements of Operations (Unaudited, in thousands, except share and per share amounts) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenues | $ | 76,938 | $ | 56,753 | $ | 150,276 | $ | 109,427 | |||||||
Cost of revenues (excludes depreciation and amortization) | 4,807 | 4,684 | 9,992 | 9,629 | |||||||||||
Selling, general and administrative expenses: | |||||||||||||||
Marketing | 39,409 | 30,025 | 80,658 | 58,482 | |||||||||||
Personnel, includes stock-based compensation of $2,669 and $3,054 for three months ended June 30, 2012 and 2011 respectively and $5,667 and $6,191 for the six months ended June 30, 2012 and 2011 respectively | 11,306 | 9,800 | 23,219 | 19,839 | |||||||||||
Other general and administrative expenses, includes stock-based compensation of $173 and $0 for three months ended June 30, 2012 and 2011 respectively and $173 and $0 for the six months ended June 30, 2012 and 2011 respectively | 3,615 | 4,164 | 8,447 | 8,381 | |||||||||||
Total selling, general and administrative expenses (excludes depreciation and amortization) | 54,330 | 43,989 | 112,324 | 86,702 | |||||||||||
Depreciation and amortization | 2,050 | 2,341 | 4,100 | 4,402 | |||||||||||
Impairment of intangible assets | — | — | — | 14,980 | |||||||||||
Income (loss) from operations | 15,751 | 5,739 | 23,860 | (6,286 | ) | ||||||||||
Other income (expense) | |||||||||||||||
Interest income | 47 | 24 | 68 | 45 | |||||||||||
Other income (expense) | (613 | ) | 306 | (809 | ) | 917 | |||||||||
Total other income (expense) | (566 | ) | 330 | (741 | ) | 962 | |||||||||
Income (loss) before taxes | 15,185 | 6,069 | 23,119 | (5,324 | ) | ||||||||||
Income tax expense (benefit) | 7,897 | 2,293 | 11,686 | (2,186 | ) | ||||||||||
Net income (loss) | 7,288 | 3,776 | 11,433 | (3,138 | ) | ||||||||||
Redeemable convertible preferred stock dividends | (2,936 | ) | (2,936 | ) | (5,872 | ) | (5,872 | ) | |||||||
Deemed dividend resulting from modification of redeemable convertible preferred stock | (2,929 | ) | — | (2,929 | ) | — | |||||||||
Net income (loss) attributed to common stockholders | $ | 1,423 | $ | 840 | $ | 2,632 | $ | (9,010 | ) | ||||||
Net income (loss) per common share | |||||||||||||||
Basic | $ | 0.20 | $ | 0.11 | $ | 0.37 | $ | (1.21 | ) | ||||||
Diluted | $ | 0.19 | $ | 0.10 | $ | 0.30 | $ | (1.21 | ) | ||||||
Weighted average common shares | |||||||||||||||
Basic | 7,049,863 | 7,505,505 | 7,043,571 | 7,451,737 | |||||||||||
Diluted | 38,620,694 | 37,391,530 | 37,959,369 | 7,451,737 | |||||||||||
KAYAK Software Corporation and Subsidiaries Condensed Balance Sheets (Unaudited, in thousands, except share and per share amounts) | |||||||
June 30, | December 31, | ||||||
2012 | 2011 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 54,550 | $ | 35,127 | |||
Marketable securities | 10,912 | 11,198 | |||||
Accounts receivable, net of allowance for doubtful accounts | 50,247 | 37,332 | |||||
Deferred tax asset | 2,212 | 2,212 | |||||
Prepaid expenses and other current assets | 5,826 | 5,425 | |||||
Total current assets | 123,747 | 91,294 | |||||
Property and equipment, net | 5,268 | 5,474 | |||||
Intangible assets, net | 14,563 | 17,684 | |||||
Goodwill | 155,244 | 155,677 | |||||
Deferred tax asset | 9,441 | 7,488 | |||||
Other assets | 248 | 331 | |||||
Total assets | $ | 308,511 | $ | 277,948 | |||
Liabilities and stockholders’ equity (deficit) | |||||||
Current liabilities | |||||||
Accounts payable | $ | 16,212 | $ | 9,514 | |||
Accrued expenses and other current liabilities | 24,760 | 16,220 | |||||
Total current liabilities | 40,972 | 25,734 | |||||
Warrant liability | 1,319 | 1,150 | |||||
Deferred tax liability | 3,241 | 4,202 | |||||
Other long-term liabilities | 799 | 1,092 | |||||
Total liabilities | 46,331 | 32,178 | |||||
Redeemable convertible preferred stock | 256,295 | 247,494 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity (deficit) | |||||||
Common Stock | 7 | 7 | |||||
Class A common stock | — | — | |||||
Class B common stock, 33,864,565 issued and outstanding, on a pro forma basis | — | — | |||||
Additional paid-in capital | 6,575 | 3,296 | |||||
Cumulative translation adjustment | (2,215 | ) | (977 | ) | |||
Accumulated earnings (deficit) | 1,518 | (4,050 | ) | ||||
Total stockholders’ equity (deficit) | 5,885 | (1,724 | ) | ||||
Total liabilities and stockholders’ equity (deficit) | $ | 308,511 | $ | 277,948 | |||
KAYAK Software Corporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited, in thousands) | |||||||
Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
Cash flows from operating activities | |||||||
Net income (loss) | $ | 11,433 | $ | (3,138 | ) | ||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation and amortization | 4,100 | 4,402 | |||||
Stock-based compensation expense | 5,840 | 6,191 | |||||
Excess tax benefits from exercise of stock options | (73 | ) | (226 | ) | |||
Deferred taxes | (2,819 | ) | (9,811 | ) | |||
Mark to market adjustments | 169 | (916 | ) | ||||
Impairment of intangible assets | — | 14,980 | |||||
Other | — | 121 | |||||
Changes in assets and liabilities, net of effect of acquisitions: | |||||||
Accounts receivable, net | (13,277 | ) | (8,901 | ) | |||
Prepaid expenses and other current assets | 461 | 2,989 | |||||
Accounts payable | 6,871 | 5,870 | |||||
Accrued liabilities and other liabilities | 8,171 | (3,061 | ) | ||||
Net cash from operating activities | 20,876 | 8,500 | |||||
Cash flows from investing activities | |||||||
Capital expenditures | (1,162 | ) | (1,068 | ) | |||
Purchase of marketable securities | (7,481 | ) | (18,182 | ) | |||
Maturities of marketable securities | 7,651 | 6,699 | |||||
Cash paid for business combinations, net of cash acquired | — | (9,194 | ) | ||||
Net cash from investing activities | (992 | ) | (21,745 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from exercise of stock options | 302 | 682 | |||||
Tax benefits realized from exercise of stock options | 73 | 226 | |||||
Cash paid for expenses in connection with initial public offering | (411 | ) | (1,118 | ) | |||
Net cash from financing activities | (36 | ) | (210 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (425 | ) | 467 | ||||
Increase (decrease) in cash and cash equivalents | 19,423 | (12,990 | ) | ||||
Cash and cash equivalents, beginning of period | 35,127 | 34,966 | |||||
Cash and cash equivalents, end of period | $ | 54,550 | $ | 21,976 | |||
Supplemental disclosures of cash flow information | |||||||
Cash paid during the period for: | |||||||
Interest | $ | — | $ | — | |||
Income taxes | $ | 11,040 | $ | 7,331 | |||
Key Operating Metrics (Unaudited, in thousands, except RPM) | |||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Mobile Queries | 57,103 | 29,291 | 109,464 | 54,697 | |||||||
Website Queries | 246,936 | 199,457 | 504,890 | 388,270 | |||||||
Total Queries | 304,039 | 228,748 | 614,354 | 442,967 | |||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Mobile RPM (Estimate) | $ | 46 | $ | 33 | $ | 40 | $ | 31 | |||||||
Website RPM (Estimate) | $ | 301 | $ | 278 | $ | 289 | $ | 277 | |||||||
Total RPM | $ | 253 | $ | 248 | $ | 245 | $ | 247 | |||||||
Schedule of Non-GAAP Reconciliations (Unaudited, in thousands) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Income (loss) from operations | $ | 15,751 | $ | 5,739 | $ | 23,860 | $ | (6,286 | ) | ||||||
Other income (expense), net | (613 | ) | 306 | (809 | ) | 917 | |||||||||
Depreciation and amortization | 2,050 | 2,341 | 4,100 | 4,402 | |||||||||||
Impairment of intangible assets | — | — | — | 14,980 | |||||||||||
EBITDA | 17,188 | 8,386 | 27,151 | 14,013 | |||||||||||
Stock-based compensation | 2,842 | 3,054 | 5,840 | 6,191 | |||||||||||
Other (income) expense, net | 613 | (306 | ) | 809 | (917 | ) | |||||||||
Adjusted EBITDA | $ | 20,643 | $ | 11,134 | $ | 33,800 | $ | 19,287 | |||||||