SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported) May 9, 2017
 
The Priceline Group Inc.
(Exact name of registrant as specified in its charter)
 
Delaware
 
1-36691
 
06-1528493
(State or other Jurisdiction of
Incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
800 Connecticut Avenue, Norwalk, Connecticut
 
06854
(Address of principal office)
 
(zip code)
 
N/A 
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o             Soliciting material pursuant to Rule 14a-12  under the Exchange Act (17 CFR 240.14a-12)
 
o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o             Pre-commencement communications pursuant to Rule 13e-4c  under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐







Item 2.02.              Results of Operations and Financial Conditions
 
On May 9, 2017 , The Priceline Group Inc. announced its financial results for the quarter ended March 31, 2017 .  The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. Copies of The Priceline Group's unaudited consolidated balance sheet at March 31, 2017 , unaudited consolidated statements of operations for the three months ended March 31, 2017 and unaudited consolidated statement of cash flows for the three months ended March 31, 2017 , are included in the financial and statistical supplement attached to the press release.  The unaudited consolidated balance sheet at March 31, 2017 , unaudited consolidated statements of operations for the three months ended March 31, 2017 and unaudited consolidated statement of cash flows for the three months ended March 31, 2017 shall be treated as "filed" for purposes of the Securities Exchange Act of 1934, as amended, but all other information in the press release shall be treated as "furnished."

Item 9.01.           Financial Statements and Exhibits
 
(d)    Exhibits

Exhibit      Description

99.1
Press release (which includes a financial and statistical supplement and related information) issued by The Priceline Group Inc. on May 9, 2017 relating to, among other things, its first quarter 2017 earnings. The unaudited consolidated balance sheet at March 31, 2017 and unaudited consolidated statement of operations for the three months ended March 31, 2017 and unaudited consolidated statement of cash flows for the three months ended March 31, 2017 shall be treated as "filed" for the purposes of the Securities and Exchange Act of 1934, as amended, and the remaining information shall be treated as "furnished."
 







SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
THE PRICELINE GROUP INC.
 
 
 
 
 
 
By:
/s/ Daniel J. Finnegan
 
 
Name:
Daniel J. Finnegan
 
 
Title:
Chief Financial Officer
 
 
Date:  May 9, 2017





EXHIBIT INDEX
 
Exhibit No.      Description

99.1
Press release (which includes a financial and statistical supplement and related information) issued by The Priceline Group Inc. on May 9, 2017 relating to, among other things, its first quarter 2017 earnings.








Exhibit 99.1

PRICELINEGROUPLOGOJAN2016A05.JPG

The Priceline Group Reports Financial Results for 1 st Quarter 2017

NORWALK, CT – May 9, 2017 . . . The Priceline Group Inc. (NASDAQ: PCLN) today reported its 1 st quarter 2017 financial results. First quarter gross travel bookings for The Priceline Group (the "Company," the "Group," "we," "our" or "us"), which refers to the total dollar value, generally inclusive of taxes and fees, of all travel services booked by its customers, net of cancellations, were $20.7 billion , an increase of 24% over a year ago (approximately 27% on a constant-currency basis).
The Group's gross profit for the 1 st quarter was $2.3 billion , a 16% increase from the prior year (approximately 17% on a constant-currency basis). International operations contributed gross profit in the 1 st quarter of $2.0 billion , a 17% increase versus a year ago (approximately 19% on a constant-currency basis). Net income in the 1 st quarter was $456 million , a 22% increase versus the prior year. Net income was $9.11 per diluted share, a 22% increase as compared to the prior year.
Non-GAAP net income in the 1 st quarter was $494 million , a 7% increase versus the prior year. Non-GAAP net income was $9.88 per diluted share, a 7% increase compared to $9.20 per diluted share a year ago. Adjusted EBITDA for the 1 st quarter 2017 was $635 million , a 4% increase versus a year ago. The section below entitled " Non-GAAP Financial Measures " provides definitions and information about the use of non-GAAP financial measures in this press release, and the attached financial and statistical supplement reconciles non-GAAP financial information with the Group's financial results under GAAP.
"The Priceline Group is off to a strong start in 2017 with solid growth in room nights and rental car days booked," said Glenn Fogel, Chief Executive Officer of the Priceline Group. "Globally, our brands booked over 173 million room nights during the quarter, up 27% over the same period last year. Booking.com continues to extend its accommodations network, with over 1.2 million properties on its platform, including hotels, homes and apartments, up 36% over last year. Our rental car business grew rental car days by 15% over the 1 st quarter of last year, an acceleration from 14% in the 4 th quarter."
Mr. Fogel further commented: "Our brands executed well in the quarter, delivering strong performance while making smart and sustainable investments to support future growth and to ensure we provide the best possible experience for our customers."

1


The Group's guidance for the 2 nd quarter of 2017 is as follows:
 
 
Guidance Ranges
(U.S. Dollars in millions, except per share amounts)
 
Low
 
High
Metrics
 
 
 
 
Year over year growth - Room nights booked
 
16
%
 
21
%
Year over year growth - Total gross travel bookings
 
12
%
 
17
%
Year over year growth - Total gross travel bookings
(constant currency)
 
15
%
 
20
%
 
 
 
 
 
GAAP
 
 
 
 
Year over year growth - Gross profit
 
14
%
 
19
%
Year over year growth - Gross profit (constant currency)
 
17
%
 
22
%
Net income per diluted share
 
$
12.55

 
$
13.25

 
 
 
 
 
Non-GAAP
 
 
 
 
Non-GAAP Net income per diluted share
 
$
13.30

 
$
14.00

Adjusted EBITDA
 
$
860

 
$
905


Non-GAAP Financial Measures
The Unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operating results.
To supplement the Unaudited Consolidated Financial Statements, the Group uses the following non-GAAP financial measures: Adjusted EBITDA, non-GAAP net income and non-GAAP net income per share. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
The Group uses non-GAAP financial measures for financial and operational decision-making and as a basis to evaluate performance and set targets for employee compensation programs. The Group believes that these non-GAAP financial measures are useful for analysts and investors to evaluate the Group’s ongoing operating performance because they facilitate comparison of the Group’s results for the current period and projected next-period results to those of prior periods and to those of its competitors (though other companies may calculate similar non-GAAP financial measures differently than those calculated by the Group). These non-GAAP financial measures, in particular adjusted EBITDA and non-GAAP net income, are not intended to represent funds available for the Group's discretionary use and are not intended to represent or to be used as a substitute for operating income, net income or cash flow from operations as measured under GAAP. The items excluded from these non-GAAP measures, but included in the calculation of their closest GAAP equivalent, are significant components of our consolidated statements of operations and cash flows and must be considered in performing a comprehensive assessment of overall financial performance.
Non-GAAP net income is net income with the following adjustments:
•
excludes the impact, if any, of significant charges or benefits associated with judgments, rulings and/or settlements related to travel transaction tax (e.g., hotel occupancy taxes, excise taxes, sales taxes, etc.) proceedings,
•
excludes amortization expense of intangibles,
•
excludes the impact, if any, of significant charges related to the impairment of goodwill,
•
excludes non-cash interest expense related to the amortization of debt discount and gains or losses on early debt extinguishment, if any, related to our convertible debt,
•
excludes the impact, if any, of significant gains or losses on the sale of cost-method investments and significant charges related to other-than-temporary impairments of such investments, and

2


•
the tax impact of the non-GAAP adjustments mentioned above.
In addition to the adjustments listed above regarding non-GAAP net income, adjusted EBITDA excludes depreciation expense, interest income, interest expense and income tax expense and includes the impact of foreign currency transactions and other expenses.
We evaluate certain operating and financial measures on both an as-reported and constant-currency basis.  We calculate constant currency by converting our current-year period results for transactions recorded in currencies other than U.S. Dollars using the corresponding prior-year period monthly average exchange rates rather than the current-year period monthly average exchange rates.
The attached financial and statistical supplement includes reconciliations of our financial results under GAAP to non-GAAP financial information for the three months ended March 31, 2017 and 2016.

Information About Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements reflect the views of the Group's management regarding current expectations and projections about future events and are based on currently available information and current foreign currency exchange rates. These forward-looking statements are not guarantees of future performance and are subject to 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 and similar expressions including, "may," "will," "should," "could," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," or "continue," reflecting something other than historical fact are intended to identify forward-looking statements.
The following factors, among others, could cause the Group's actual results to differ materially from those described in the forward-looking statements:
-- adverse changes in general market conditions for travel services;
-- the effects of increased competition;
-- fluctuations in foreign exchange rates and other risks associated with doing business in multiple currencies;
-- our ability to expand successfully in international markets;
-- our performance advertising efficiency;
-- any change by a major search engine in how it presents travel search results or conducts its auction for search placement in a manner that is competitively disadvantageous to us;
-- our ability to respond to and keep up with the rapid pace of technological change;
-- IT systems-related failures and/or security breaches;
-- adverse changes in the Group's relationships with travel service providers and restaurants;
-- the ability to attract and retain qualified personnel;
-- volatility in the price of our common stock; and
-- tax, legal and regulatory risks.
For a detailed discussion of these and other factors that could cause the Group's actual results to differ materially from those described in the forward-looking statements, please refer to the Group's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequently filed Quarterly Reports on Form 10-Q. Unless required by law, the Group undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.



3


About The Priceline Group
The Priceline Group (NASDAQ: PCLN) is the world leader in online travel and related services, provided to customers and partners in over 220 countries through six primary brands - Booking.com , priceline.com , KAYAK, agoda.com , Rentalcars.com , and OpenTable . The Priceline Group’s mission is to help people experience the world.  For more information, visit PricelineGroup.com and follow us on Twitter @PricelineGroup.


###
For Press Information : Leslie Cafferty (203) 299-8128 leslie.cafferty@pricelinegroup.com
For Investor Relations : Michael Noonan (203) 299-8489 michael.noonan@pricelinegroup.com


4



The Priceline Group Inc.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)

 
 
March 31,
2017
 
December 31,
2016
ASSETS
 
 

 
 

Current assets:
 
 

 
 

Cash and cash equivalents
 
$
2,434,020

 
$
2,081,075

Short-term investments
 
2,936,158

 
2,218,880

Accounts receivable, net of allowance for doubtful accounts of $27,179 and $25,565, respectively
 
934,254

 
860,115

Prepaid expenses and other current assets
 
683,450

 
241,449

Total current assets
 
6,987,882

 
5,401,519

Property and equipment, net
 
381,197

 
347,017

Intangible assets, net
 
1,951,999

 
1,993,885

Goodwill
 
2,402,306

 
2,396,906

Long-term investments
 
10,140,630

 
9,591,067

Other assets
 
130,238

 
108,579

Total assets
 
$
21,994,252

 
$
19,838,973

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 

 
 

Current liabilities:
 
 

 
 

Accounts payable
 
$
407,575

 
$
419,108

Accrued expenses and other current liabilities
 
986,681

 
857,467

Deferred merchant bookings
 
879,405

 
614,361

Convertible debt
 
974,538

 
967,734

Total current liabilities
 
3,248,199

 
2,858,670

Deferred income taxes
 
497,847

 
822,334

Other long-term liabilities
 
128,564

 
138,767

Long-term debt
 
7,286,102

 
6,170,522

  Total liabilities
 
11,160,712

 
9,990,293

 
 
 
 
 
Convertible debt
 
22,521

 
28,538

 
 
 
 
 
Stockholders' equity:
 
 

 
 

Common stock, $0.008 par value; authorized 1,000,000,000 shares, 62,495,991 and 62,379,247 shares issued, respectively
 
486

 
485

Treasury stock, 13,315,844 and 13,190,929 shares, respectively
 
(7,067,508
)
 
(6,855,164
)
Additional paid-in capital
 
5,558,194

 
5,482,653

Retained earnings
 
12,072,792

 
11,326,852

Accumulated other comprehensive income (loss)
 
247,055

 
(134,684
)
  Total stockholders' equity
 
10,811,019

 
9,820,142

Total liabilities and stockholders' equity
 
$
21,994,252

 
$
19,838,973





5


The Priceline Group Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

 
 
Three Months Ended
March 31,
 
 
2017
 
2016
Agency revenues
 
$
1,785,313

 
$
1,500,029

Merchant revenues
 
442,045

 
470,032

Advertising and other revenues
 
192,046

 
178,058

Total revenues
 
2,419,404

 
2,148,119

Cost of revenues
 
85,169

 
128,669

Gross profit
 
2,334,235

 
2,019,450

Operating expenses:
 
 

 
 

Performance advertising
 
980,773

 
779,909

Brand advertising
 
73,012

 
69,845

Sales and marketing
 
114,036

 
92,323

Personnel, including stock-based compensation of $58,948 and $66,000, respectively
 
351,030

 
308,351

General and administrative
 
135,547

 
113,045

Information technology
 
39,945

 
32,788

Depreciation and amortization
 
83,430

 
72,871

Total operating expenses
 
1,777,773

 
1,469,132

Operating income
 
556,462

 
550,318

Other income (expense):
 
 

 
 

Interest income
 
31,992

 
20,347

Interest expense
 
(55,717
)
 
(46,894
)
Foreign currency transactions and other
 
(5,127
)
 
(12,928
)
Impairment of cost-method investment
 
—

 
(50,350
)
Total other expense
 
(28,852
)
 
(89,825
)
Earnings before income taxes
 
527,610

 
460,493

Income tax expense
 
71,987

 
86,069

Net income
 
$
455,623

 
$
374,424

Net income applicable to common stockholders per basic common share
 
$
9.26

 
$
7.54

Weighted-average number of basic common shares outstanding
 
49,192

 
49,630

Net income applicable to common stockholders per diluted common share
 
$
9.11

 
$
7.47

Weighted-average number of diluted common shares outstanding
 
50,025

 
50,129




6


The Priceline Group Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
 
Three Months Ended
March 31,
 
 
2017
 
2016
OPERATING ACTIVITIES:
 
 

 
 

Net income
 
$
455,623

 
$
374,424

Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 

Depreciation
 
40,412

 
30,486

Amortization
 
43,018

 
42,385

Provision for uncollectible accounts, net
 
13,530

 
6,812

Deferred income tax benefit
 
(24,441
)
 
(25,681
)
Stock-based compensation expense and other stock-based payments
 
59,059

 
66,034

Amortization of debt issuance costs
 
2,067

 
1,837

Amortization of debt discount
 
17,625

 
17,009

Impairment of cost-method investment
 
—

 
50,350

Excess tax benefits on stock-based awards and other equity deductions
 
—

 
18,073

Changes in assets and liabilities:
 
 

 
 

Accounts receivable
 
(78,428
)
 
(191,704
)
Prepaid expenses and other current assets
 
(443,643
)
 
(340,485
)
Accounts payable, accrued expenses and other current liabilities
 
305,758

 
294,349

Other
 
(9,962
)
 
869

Net cash provided by operating activities
 
380,618

 
344,758

 
 
 
 
 
INVESTING ACTIVITIES:
 
 
 
 
Purchase of investments
 
(1,498,723
)
 
(1,051,346
)
Proceeds from sale of investments
 
676,474

 
1,252,604

Additions to property and equipment
 
(70,559
)
 
(53,256
)
Acquisitions and other investments, net of cash acquired
 
(6
)
 
(723
)
Net cash (used in) provided by investing activities
 
(892,814
)
 
147,279

 
 
 
 
 
FINANCING ACTIVITIES:
 
 
 
 
Proceeds from short-term borrowing
 
—

 
100,000

Proceeds from the issuance of long-term debt
 
1,051,722

 
2,500

Payments related to conversion of senior notes
 
(4
)
 
—

Payments for repurchase of common stock
 
(209,797
)
 
(241,719
)
Proceeds from exercise of stock options
 
1,479

 
4,815

Net cash provided by (used in) financing activities
 
843,400

 
(134,404
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
21,737

 
22,296

Net increase in cash, cash equivalents and restricted cash
 
352,941

 
379,929

Cash, cash equivalents and restricted cash, beginning of period
 
2,082,007

 
1,478,071

Cash, cash equivalents and restricted cash, end of period
 
$
2,434,948

 
$
1,858,000

SUPPLEMENTAL CASH FLOW INFORMATION:
 
 
 
 
Cash paid during the period for income taxes
 
$
536,192

 
$
449,314

Cash paid during the period for interest
 
$
38,496

 
$
40,119

Non-cash financing activity
 
$
1,000

 
$
—


7



The Priceline Group Inc.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
 
Three Months Ended
March 31,
 
 
2017
 
2016
 
Net income
 
$
455,623

 
$
374,424

 
 
 
 
 
 
(a)
Depreciation and amortization
 
83,430

 
72,871

(a)
Interest income
 
(31,992
)
 
(20,347
)
(a)
Interest expense
 
55,717

 
46,894

(b)
Impairment of cost-method investment
 
—

 
50,350

(a)
Income tax expense
 
71,987

 
86,069

 
Adjusted EBITDA
 
$
634,765

 
$
610,261

 
 
 


 


 
GAAP Gross profit
 
$
2,334,235

 
$
2,019,450

 
 
 
 
 
 
 
Adjusted EBITDA as a % of GAAP Gross profit
 
27.2
%
 
30.2%

RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER DILUTED COMMON SHARE
Three Months Ended
March 31,
 
 
2017
 
2016
 
Net income
 
$
455,623

 
$
374,424

 
 
 
 
 
 
(c)
Amortization of intangible assets
 
43,018

 
42,385

(d)
Debt discount amortization related to convertible debt
 
16,493

 
15,962

(b)
Impairment of cost-method investment
 
—

 
50,350

(e)
Tax impact of Non-GAAP adjustments
 
(21,068
)
 
(22,140
)
 
Non-GAAP Net income
 
$
494,066

 
$
460,981

 
 
 
 
 
 
 
GAAP weighted-average number of diluted common shares outstanding
 
50,025

 
50,129

 
 
 
 
 
 
 
Non-GAAP Net income per diluted common share
 
$
9.88

 
$
9.20

 
Notes:
(a)
Amounts are excluded from Net income to calculate Adjusted EBITDA.
(b)
Impairment of cost-method investment is recorded in Other income (expense) and related to our investment in Hotel Urbano.
(c)
Amortization of intangible assets is recorded in Depreciation and amortization expense.
(d)
Non-cash interest expense related to the amortization of debt discount on convertible debt is recorded in Interest expense.
(e)
Reflects the tax impact of non-GAAP adjustments.
 
 
 
For a more detailed discussion of the adjustments described above, please see the section in our press release entitled "Non-GAAP Financial Measures" which provides a definition and information about the use of non-GAAP financial measures.

8


The Priceline Group Inc.
Statistical Data
In millions
(Unaudited)
Gross Bookings
 
1Q15
 
2Q15
 
3Q15
 
4Q15
 
1Q16
 
2Q16
 
3Q16
 
4Q16
 
1Q17
Agency
 
$
11,908

 
$
12,867

 
$
12,850

 
$
10,344

 
$
14,534

 
$
15,369

 
$
15,757

 
$
12,978

 
$
18,140

Merchant
 
1,867

 
2,094

 
1,928

 
1,670

 
2,119

 
2,494

 
2,703

 
2,134

 
2,546

Total
 
$
13,775

 
$
14,960

 
$
14,778

 
$
12,015

 
$
16,653

 
$
17,862

 
$
18,460

 
$
15,112

 
$
20,687

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year/Year Growth
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
13.2
 %
 
11.1
%
 
8.7
 %
 
15.3
 %
 
22.1
 %
 
19.4
 %
 
22.6
 %
 
25.5
 %
 
24.8
 %
Merchant
 
5.8
 %
 
7.0
%
 
(3.7
)%
 
(0.9
)%
 
13.5
 %
 
19.1
 %
 
40.2
 %
 
27.8
 %
 
20.2
 %
Total
 
12.2
 %
 
10.5
%
 
6.9
 %
 
12.7
 %
 
20.9
 %
 
19.4
 %
 
24.9
 %
 
25.8
 %
 
24.2
 %
Constant
Currency
 
26
 %
 
26
%
 
22
 %
 
24
 %
 
26
 %
 
21
 %
 
26
 %
 
28
 %
 
27
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Units Sold
 
1Q15
 
2Q15
 
3Q15
 
4Q15
 
1Q16
 
2Q16
 
3Q16
 
4Q16
 
1Q17
Room Nights
 
104.6

 
113.1

 
115.6

 
99.1

 
136.5

 
140.7

 
149.6

 
129.7

 
173.9

Year/Year Growth
 
25.4
 %
 
26.2
%
 
22.0
 %
 
26.6
 %
 
30.5
 %
 
24.4
 %
 
29.4
 %
 
31.0
 %
 
27.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rental Car Days
 
14.6

 
17.2

 
16.0

 
12.2

 
16.2

 
18.5

 
18.0

 
14.0

 
18.6

Year/Year Growth
 
18.0
 %
 
20.1
%
 
13.0
 %
 
10.6
 %
 
10.9
 %
 
7.9
 %
 
12.5
 %
 
14.4
 %
 
15.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Airline Tickets
 
2.0

 
2.1

 
2.0

 
1.7

 
1.8

 
2.0

 
1.9

 
1.6

 
1.8

Year/Year Growth
 
(3.2
)%
 
0.3
%
 
(1.1
)%
 
(2.6
)%
 
(7.2
)%
 
(6.6
)%
 
(2.5
)%
 
(4.3
)%
 
(2.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1Q15
 
2Q15
 
3Q15
 
4Q15
 
1Q16
 
2Q16
 
3Q16
 
4Q16
 
1Q17
Gross Profit
 
$
1,672.2

 
$
2,092.9

 
$
2,947.3

 
$
1,879.4

 
$
2,019.5

 
$
2,429.8

 
$
3,589.1

 
$
2,276.4

 
$
2,334.2

Year/Year Growth
 
18.9
 %
 
11.1
%
 
12.5
 %
 
12.2
 %
 
20.8
 %
 
16.1
 %
 
21.8
 %
 
21.1
 %
 
15.6
 %

Amounts may not total due to rounding.

Gross bookings is an operating and statistical metric that captures the total dollar value, generally inclusive of taxes and fees, of all travel services booked by our customers, net of cancellations.

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