KAYAK Q2 2012 Earnings Presentation

7/31/2019 KAYAK Q2 2012 Earnings Presentation

1/19

1 /2012 KAYAK


2/19

2 /2012 KAYAK

Second Quarter 2012 ResultsAugust 22, 2012


3/19

3 /2012 KAYAK

Safe Harbor

This presentation, the accompanying conference call and the related earnings press release contain forward-lookingstatements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements include all statements that are not historical facts, including statements about our plannedinvestments in key strategic areas and our expected financial metrics such as revenue, adjusted EBITDA, stock-basedcompensation and other matters. 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, ouractual 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 mattersset forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth inthe section entitled Risk Factors in the companys Prospectus filed on July 20, 2012 and additional information that will be setforth in our Form 10-Q that will be filed for the quarter ended June 30, 2012, which should be read in conjunction with thesefinancial results. These documents are available on the SEC Filings section of the Investor Relations section of our website athttp://ir.kayak.com/. Please also note that forward-looking statements represent our managements beliefs and assumptionsonly as of the date of this presentation, August 22, 2012. Except as required by law, we assume no obligation to update theseforward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in theforward-looking statements, even if new information becomes available in the future.

In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP measuresare in addition to, and not a substitute for, measures of financial performance prepared in accordance with U.S. GAAP. Areconciliation of those non-GAAP measures to the most directly comparable GAAP measures is available in the Appendix.


4/19

4 /2012 KAYAK

The best place to planand book travel.


5/19

5 /2012 KAYAK

Q2 Highlights

Revenue ($MM)

36% Growth

Adjusted EBITDA ($MM)

33% Growth 85% Growth

56.8

76.9

2Q 2011 2Q 2012

11.1

20.6

2Q 2011 2Q 2012

Queries (MM)

229

304

2Q 2011 2Q 2012


6/19

6 /2012 KAYAK

Booking Path

2.7%

11.3%

2Q 2011 2Q 2012

Note: KAYAK booking path launched in March 11, 2011.

Booking Path Revenue (% of total)Partners

Expedia

Travelocity

Getaroom

Air Canada

Hertz / Advantage

Avis / Budget


7/19

7 /2012 KAYAK

9.9

15.0

2Q 2011 2Q 2012

International Expansion

International Revenue ($MM)

52% Growth

Launched in 4 new markets(18 total)

Brazil (August 2012) Russia (July 2012) Poland (June 2012) Portugal (May 2012)


8/19

8 /2012 KAYAK

Mobile

Queries (MM)

95% Growth

Estimated RPM ($)


App Downloads (MM)

1.7

2.3

2Q 2011 2Q 2012

29

57

2Q 2011 2Q 2012

$33

$46

2Q 2011 2Q 2012

Note: Mobile RPM are KAYAKs best estimation of revenue per thousand mobile queries based on data provided bythose travel partners that delineate between mobile and website travel bookings.


9/19

9 /2012 KAYAK

Other Developments

Resolved arbitration with Orbitz

Extended our partnership with Amadeus

Partner since 2006 Multi-year agreement


10/19

10 /2012 KAYAK

56.8

76.9

109.4

150.3

2Q 2011 2Q 2012 1H 2011 1H 2012

199 247

388

50529

57

55

109

229

304

443

614

2Q 2011 2Q 2012 1H 2011 1H 2012

Growth

Web

Mobile


Queries (MM) Revenue ($MM)



11/19

11 /2012 KAYAK

Revenue per thousand Queries

$33$46

2Q 2011 2Q 2012

$280

$301

2Q 2011 2Q 2012

$248 $253

2Q 2011 2Q 2012

Note: Mobile and website RPM are KAYAKs best estimation of revenue per thousand mobile or website queriesbased on data provided by those travel partners that delineate between mobile and website travel bookings.

Estimated Website ($)

8% Growth

Estimated Mobile ($)


Total ($)


12/19

12 /2012 KAYAK

Marketing

Geographic split (%)Spend ($MM)

93%78% 79%

71%

7%22% 21%

29%

2010 2011 2Q 2011 2Q 2012

US

Intl

16.1 19.131.0

40.012.0 18.7

23.5

37.3

30.0

39.4

58.5

80.7

2Q 2011 2Q 2012 1H 2011 1H 2012

Brand

Online

Other


13/19

13 /2012 KAYAK

SBC 3.0 2.7 6.2 5.7

Personnel

Personnel ($MM / % of Revenue) Total Employee Headcount (1)

9.811.3

19.823.2

17.3%

14.7%

18.1% 15.5%

2Q 2011 2Q 2012 1H 2011 1H 2012

145

165

185

2Q 2011 1Q 2012 2Q 2012

(1) Excludes part-time employees and contractors.


14/19

14 /2012 KAYAK

Cost of Revenue and G&A

Cost of Revenue($MM / % of revenue)

4.7 4.8

9.6 10.0

8.3% 6.2%

8.8%

6.6%

2Q 2011 2Q 2012 1H 2011 1H 2012

G&A ($MM / % of Revenue)

4.2 3.6

8.4 8.4

7.3% 4.7%7.7% 5.6%

2Q 2011 2Q 2012 1H 2011 1H 2012

SBC 0.0 0.2 0.0 0.2


15/19

15 /2012 KAYAK

Effective Tax Rate (%)

Profitability & Taxes

Adjusted EBITDA($MM / % Margin)

11.1

20.6

19.6%

26.8%

2Q 2011 2Q 2012

$0.10

$0.19

2Q 2011 2Q 2012

GAAP EPS($ per share)

38%

52%

2Q 2011 2Q 2012


16/19

16 /2012 KAYAK

Appendix


17/19

17 /2012 KAYAK

Adjusted EBITDA Reconciliation

($MM) Q1 Q2 Q3 Q4 FY 2011Q1

2012Q2

2012

Income from operations (12.0) 5.7 12.7 7.9 14.3 8.1 15.8

Depreciation &amortization

2.1 2.3 1.9 2.2 8.5 2.1 2.0

Impairment of intangibleassets

15.0 - - - 15.0 - -

Stock-basedcompensation expense

3.1 3.1 3.1 3.1 12.4 3.0 2.8

Adjusted EBITDA 8.2 11.1 17.7 13.2 50.2 13.2 20.6


18/19

18 /2012 KAYAK

Balance Sheet

($MM)As of

June 2012Pro forma

for IPO

Cash, Equivalentsand Marketable Securities

$65.5 $168.8

Total Assets

$308.5

$408.0

Working Capital $82.8 $182.5

Long-Term Debt $0.0 $0.0

Total Liabilities and

Stockholders Equity $308.5 $408.0

Cash balance pro forma for IPO proceeds, net of unpaid offering costs, of $97.3MM and

$6 million from a private placement immediately after the IPO.


19/19

19 /2012 KAYAK

Cash Flow Statement

($MM)6 months

endedJune 2012

6 months ended

June 2011

Cash flows from operatingactivities

$20.7 $8.3

Cash flows from investing activities ($1.2) ($10.2)

Cash flows from financing activities ($0.0) ($0.2)

Effect of exchange rate changes ($0.4) $0.4

Net change in Cash, Equivalents

and Marketable Securities$19.3

($1.7)

KAYAK Q2 2012 Earnings Presentation

Documents

Transcript of KAYAK Q2 2012 Earnings Presentation