PRICELINE GROUP INC.

Transcription

1 PRICELINE GROUP INC. FORM 8-K (Current report filing) Filed 11/09/15 for the Period Ending 11/06/15 Address 800 CONNECTICUT AVE NORWALK, CT Telephone CIK Symbol PCLN SIC Code Business Services, Not Elsewhere Classified Industry Business Services Sector Services Fiscal Year 12/31 Copyright 2015, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

2 SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 DateofReport(Dateofearliesteventreported)November9,2015 The Priceline Group Inc. (Exactnameofregistrantasspecifiedinitscharter) Delaware (StateorotherJurisdictionof Incorporation) (CommissionFileNumber) (IRSEmployerIdentificationNo.) 800 Connecticut Avenue, Norwalk, Connecticut (Addressofprincipaloffice) (zipcode) N/A (Formernameorformeraddress,ifchangedsincelastreport) ChecktheappropriateboxbelowiftheForm8-Kfilingisintendedtosimultaneouslysatisfythefilingobligationoftheregistrantunderanyofthefollowing provisions: owrittencommunicationspursuanttorule425underthesecuritiesact(17cfr ) osolicitingmaterialpursuanttorule14a-12undertheexchangeact(17cfr240.14a-12) opre-commencementcommunicationspursuanttorule14d-2(b)undertheexchangeact(17cfr240.14d-2(b)) opre-commencementcommunicationspursuanttorule13e-4cundertheexchangeact(17cfr240.13e-4(c))

3 Item Results of Operations and Financial Conditions OnNovember9,2015,ThePricelineGroupInc.announceditsfinancialresultsforthequarterendedSeptember30,2015.Thepressreleaseisattachedas Exhibit99.1tothisCurrentReportonForm8-Kandisincorporatedhereinbyreference.CopiesofThePricelineGroup'sunauditedconsolidatedbalancesheetat September30,2015,unauditedconsolidatedstatementsofoperationsforthethreeandninemonthsendedSeptember30,2015andunauditedconsolidated statementofcashflowsfortheninemonthsendedseptember30,2015,areincludedinthefinancialandstatisticalsupplementattachedtothepressrelease.the unauditedconsolidatedbalancesheetatseptember30,2015,unauditedconsolidatedstatementsofoperationsforthethreeandninemonthsendedseptember30, 2015andunauditedconsolidatedstatementofcashflowsfortheninemonthsendedSeptember30,2015shallbetreatedas"filed"forpurposesoftheSecurities ExchangeActof1934,asamended,butallotherinformationinthepressreleaseshallbetreatedas"furnished." Item Financial Statements and Exhibits (d) Exhibits ExhibitDescription 99.1 Pressrelease(whichincludesafinancialandstatisticalsupplementandrelatedinformation)issuedbyThePricelineGroupInc.onNovember9, 2015relatingto,amongotherthings,itsthirdquarter2015earnings.TheunauditedconsolidatedbalancesheetatSeptember30,2015and unauditedconsolidatedstatementofoperationsforthethreeandninemonthsendedseptember30,2015andunauditedconsolidatedstatementof cashflowsfortheninemonthsendedseptember30,2015shallbetreatedas"filed"forthepurposesofthesecuritiesandexchangeactof1934, asamended,andtheremaininginformationshallbetreatedas"furnished."

4 SIGNATURES PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theRegistranthasdulycausedthisreporttobesignedonitsbehalfbythe undersignedhereuntodulyauthorized. Date:November9,2015 THEPRICELINEGROUPINC. By: /s/peterj.millones Name: Title: PeterJ.Millones ExecutiveVicePresident,GeneralCounselandSecretary

5 Exhibit No. Description EXHIBIT INDEX 99.1 Pressrelease(whichincludesafinancialandstatisticalsupplementandrelatedinformation)issuedbyThePricelineGroupInc.onNovember9, 2015relatingto,amongotherthings,itsthirdquarter2015earnings.

6 Exhibit 99.1 The Priceline Group Reports Financial Results for 3 rd Quarter 2015 NORWALK,CT November9, ThePricelineGroupInc.(NASDAQ:PCLN)todayreportedits3 rd quarter2015financialresults. ThirdquartergrosstravelbookingsforThePricelineGroup(the"Group"),whichreferstothetotaldollarvalue,generallyinclusiveofall taxesandfees,ofalltravelservicespurchasedbyitscustomers,were$14.8billion,anincreaseof7%overayearago(approximately22% onaconstantcurrencybasis). TheGroup'sgrossprofitforthe3 rd quarterwas$2.9billion,a12%increasefromtheprioryear(approximately29%onaconstantcurrency basis).internationaloperationscontributedgrossprofitinthe3 rd quarterof$2.6billion,an11%increaseversusayearago(approximately 29%onaconstantcurrencybasis).TheGrouphadGAAPnetincomeapplicabletocommonshareholdersforthe3 rd quarterof$1.2billion, or$23.41perdilutedshare,whichcomparesto$1.1billionor$20.03perdilutedshare,inthesameperiodayearago. Non-GAAPnetincomeinthe3 rd quarterwas$1.3billion,a10%increaseversustheprioryear.non-gaapnetincomewas$25.35per dilutedshare,comparedto$22.16perdilutedshareayearago.factsetconsensusforthe3 rd quarter2015was$24.21perdilutedshare. AdjustedEBITDAforthe3 rd quarter2015was$1.6billion,anincreaseof12%versusayearago.thesectionbelowentitled"non-gaap Financial Measures "providesdefinitionsandinformationabouttheuseofnon-gaapfinancialmeasuresinthispressrelease,andthe attachedfinancialandstatisticalsupplementreconcilesnon-gaapfinancialinformationwiththegroup'sfinancialresultsundergaap. ThePricelineGroupdeliveredstronggrowthandoperatingresultsduringitshightravelseason, saiddarrenhuston,presidentandceoof ThePricelineGroup. Globally,ouraccommodationbusinessbookedarecord116millionroomnightsinthe3 rd quarter,up22%overthe sameperiodlastyear.grossprofitgrew29%onaconstantcurrencybasis.booking.comshowedcontinuedpositivemomentumwithover 820,000propertiesonitsplatform,up38%overlastyear.Thisrepresentsover21millionpotentiallybookablerooms,thelargest,andmost diverse,selectionofdirectlybookableaccommodationsintheworld. Lookingforward,Mr.Hustonsaid, TheGroup smissionistohelppeopleexperiencetheworld.wecontinuetobethemostvaluable platformintheworldexclusivelydedicatedtothispursuit.wewillcontinuetofocusonmakingtherightinvestmentsacrossoursix brands-inpeople,systems,anddemand-tocontinuetoprofitablygrowourbusiness. ThePricelineGroupsaiditwastargetingthefollowingfor4 th quarter2015: Year-over-yearincreaseintotalgrosstravelbookingsofapproximately1%-8%(anincreaseofapproximately13%-20%ona constantcurrencybasis). Year-over-yearincreaseininternationalgrosstravelbookingsofapproximately3%-10%(anincreaseofapproximately17%- 24%onaconstantcurrencybasis). U.S.grosstravelbookingsareexpectedtodecreaseby5%-10%ascomparedto4 th quarter2014. Year-over-yearincreaseinrevenueofapproximately1%-8%. Year-over-yearincreaseingrossprofitofapproximately3%-10%(anincreaseofapproximately14%-21%onaconstant currencybasis). AdjustedEBITDAofapproximately$710millionto$760million. Non-GAAPnetincomeperdilutedsharebetween$11.10and$ of10

7 Non-GAAPguidanceforthe4 th quarter2015: excludesnon-cashamortizationexpenseofintangibles, excludesnon-cashstock-basedemployeecompensationexpense, excludesnon-cashinterestexpenserelatedtotheamortizationofdebtdiscountandgainsorlossesonearlydebtextinguishment,if any,relatedtocash-settledconvertibledebt, excludestheimpact,ifany,ofsignificantchargesorbenefitsassociatedwithjudgments,rulingsand/orsettlementsrelatedtotravel transactiontax(e.g.,hoteloccupancytaxes,excisetaxes,salestaxes,etc.)proceedings, excludestheimpact,ifany,ofsignificantcostsrelatedtoacquisitions, excludesnon-cashincometaxexpenseandreflectstheimpactonincometaxesofcertainofthenon-gaapadjustments,and includesthedilutiveimpactofunvestedrestrictedstockunitsandperformanceshareunitsbecausenon-gaapnetincomehasbeen adjustedtoexcludestock-basedemployeecompensation. ThePricelineGrouphighlightedthatitsforecastassumescurrencyexchangeratesof$1.07perEuroand$1.51perBritishPoundforthe remainderofthequarter,whichresultsinaverageexchangeratesforthequarterthatwouldbe13%weakerfortheeuroand4%weakerfor thebritishpoundascomparedtotheprioryear.therefore,currencyexchangeratesareexpectedtosignificantlyreducethecompany's growthratesexpressedinu.s.dollars. Inadditiontotheadjustmentsabove,adjustedEBITDAexcludesdepreciationandamortizationexpense,interestincome,interestexpense andincometaxesandincludestheimpactofforeigncurrencytransactionsandotherexpenses. Whenaggregated,thenon-GAAPadjustmentsareexpectedtoincreaseadjustedEBITDAoverGAAPnetincomebyapproximately$265 millioninthe4 th quarter2015.inaddition,thenon-gaapadjustmentsareexpectedtoincreasenon-gaapnetincomeovergaapnet incomebyapproximately$104millioninthe4 th quarter2015.thegroupestimatesgaapnetincomeperdilutedsharebetween$9.10and $9.90forthe4 th quarter2015. Information About Forward-Looking Statements Thispressreleasecontainsforward-lookingstatements.Theseforward-lookingstatementsreflecttheviewsoftheGroup'smanagement regardingcurrentexpectationsandprojectionsaboutfutureeventsandarebasedoncurrentlyavailableinformationandcurrentforeign currencyexchangerates.theseforward-lookingstatementsarenotguaranteesoffutureperformanceandaresubjecttorisks,uncertainties andassumptionsthataredifficulttopredict;therefore,actualresultsmaydiffermateriallyfromthoseexpressed,impliedorforecastedinany suchforward-lookingstatements.expressionsoffuturegoalsandsimilarexpressionsincluding,"may,""will,""should,""could,""expects," "plans,""anticipates,""intends,""believes,""estimates,""predicts,""potential,""targets,"or"continue,"reflectingsomethingotherthan historicalfactareintendedtoidentifyforward-lookingstatements. Thefollowingfactors,amongothers,couldcausetheGroup'sactualresultstodiffermateriallyfromthosedescribedintheforward-looking statements: --adversechangesingeneralmarketconditionsforleisureandothertravelservices; --theeffectsofincreasedcompetition; --fluctuationsinforeignexchangeratesandotherrisksassociatedwithdoingbusinessinmultiplecurrencies; --ourabilitytoexpandsuccessfullyininternationalmarkets; --ouronlineadvertisingefficiency; --anychangebyamajorsearchengineinhowitpresentstravelsearchresultsorconductsitsauctionforsearchplacementinamannerthatis competitivelydisadvantageoustous; --adversechangesinthegroup'srelationshipswithtravelserviceproviders; --systems-relatedfailuresand/orsecuritybreaches; --theabilitytoattractandretainqualifiedpersonnel;and 2of10

8 --tax,legalandregulatoryrisks. ForadetaileddiscussionoftheseandotherfactorsthatcouldcausetheGroup'sactualresultstodiffermateriallyfromthosedescribedinthe forward-lookingstatements,pleaserefertothegroup'smostrecentquarterlyreportonform10-qandannualreportonform10-kfiled withthesecuritiesandexchangecommission.unlessrequiredbylaw,thegroupundertakesnoobligationtoupdatepubliclyanyforwardlookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise. Non-GAAP Financial Measures TheUnauditedConsolidatedFinancialStatementshavebeenpreparedinaccordancewithaccountingprinciplesgenerallyacceptedinthe UnitedStatesofAmerica("GAAP")andallnormalandrecurringadjustmentsthatmanagementoftheCompanyconsidersnecessaryfora fairpresentationofitsfinancialpositionandoperatingresults.adjustedebitdarepresentsgaapnetincomeexcludingdepreciationand amortizationexpense,interestincome,interestexpenseandisadjustedtoexcludestock-basedemployeecompensationexpense,gainsand lossesonearlydebtextinguishment,significantchargesorbenefitsassociatedwithjudgments,rulingsand/orsettlementsrelatedtotravel transactiontax(e.g.,hoteloccupancytaxes,excisetaxes,salestaxes,etc.)proceedingsandsignificantacquisitioncosts. Non-GAAPgrossprofit,adjustedEBITDA,non-GAAPoperatingincome,non-GAAPnetincomeandnon-GAAPnetincomepershareare "non-gaapfinancialmeasures,"assuchtermisdefinedbythesecuritiesandexchangecommission,andmaydifferfromnon-gaap financialmeasuresusedbyothercompanies.thegroupbelievesthatnon-gaapgrossprofit,adjustedebitda,non-gaapoperating income,non-gaapnetincomeandnon-gaapnetincomepersharethatexcludecertainnon-cashornon-recurringincomeorexpenseitems areusefulforanalystsandinvestorstoevaluatethegroup'son-goingperformancebecausetheyprovideausefulcomparisonofthegroup's projectedcashearningsandperformancewithitshistoricalresultsfrompriorperiodsandtothoseofitscompetitors(thoughcompetitorsmay calculatesimilarnon-gaapfinancialmeasuresdifferentlythanthosecalculatedbythegroup).thesenon-gaapmetrics,inparticular adjustedebitda,non-gaapoperatingincome,andnon-gaapnetincomearenotintendedtorepresentfundsavailableforthegroup's discretionaryuseandarenotintendedtorepresentortobeusedasasubstituteforoperatingincome,netincomeorcashflowsfrom operationsdataasmeasuredundergaap.theitemsexcludedfromthesenon-gaapmetrics,butincludedinthecalculationoftheirclosest GAAPequivalent,aresignificantcomponentsofconsolidatedstatementsofincomeandmustbeconsideredinperformingacomprehensive assessmentofoverallfinancialperformance. Non-GAAPfinancialinformationforthethreeandninemonthsendedSeptember30,2015and2014areadjustedforthefollowingitems: Amortizationexpenseofintangiblesisexcludedbecauseitdoesnotimpactcashearnings. Stock-basedemployeecompensationexpenseisexcludedbecauseitdoesnotimpactcashearningsandisreflectedinearningsper sharethroughincreasedsharecount. Interestexpenserelatedtotheamortizationofdebtdiscountandgainsorlossesonearlydebtextinguishmentrelatedtoconvertible debtareexcludedbecausetheyarenon-cashinnature. Significantchargesorcreditsassociatedwithjudgments,rulingsand/orsettlementsrelatedtotraveltransactiontax(e.g.,hotel occupancytaxes,excisetaxes,salestaxes,etc.)proceedings,includingthenetreversalofpreviouslyaccruedtraveltransaction taxes(includingestimatedinterestandpenalties)of$13.7millionand$30.1million,inthethreeandninemonthsendedseptember 30,2015,respectively,principallyrelatedtoafavorablerulingintheStateofHawaii,areexcludedbecausetheamountandtiming oftheseitemsareunpredictable,arenotdrivenbycoreoperatingresultsandrendercomparisonswithpriorperiodsless meaningful.therewerenosuchchargesorcreditsineitherthethreeorninemonthsendedseptember30,2014. Incometaxexpenseisadjustedforthetaximpactofcertainofthenon-GAAPadjustmentsdescribedaboveandtoexcludetax expenserecordedwherenoactualtaxpaymentsareowedbecauseofavailablenetoperatinglosscarryforwards. Forcalculatingnon-GAAPnetincomepershare: netincomeisadjustedfortheimpactofthenon-gaapadjustmentsdescribedabove;and additionalunvestedrestrictedstockunitsandperformanceshareunitsareincludedinthe 3of10

9 calculationofnon-gaapnetincomepersharebecausenon-gaapnetincomehasbeenadjustedtoexcludestock-based employeecompensationexpense. Thepresentationofthisfinancialinformationshouldnotbeconsideredinisolationorasasubstituteforthefinancialinformationprepared andpresentedinaccordancewithgenerallyacceptedaccountingprinciplesintheunitedstates.theattachedfinancialandstatistical supplementreconcilesnon-gaapfinancialinformationwiththegroup'sfinancialresultsundergaap. About The Priceline Group ThePricelineGroup(NASDAQ:PCLN)istheworldleaderinonlinetravelandrelatedservices,providedtocustomersandpartnersinover 200countriesthroughsixprimarybrands-Booking.com,priceline.com,KAYAK,agoda.com,rentalcars.com,andOpenTable.The PricelineGroup smissionistohelppeopleexperiencetheworld.formoreinformation,visitpricelinegroup.com. For Press Information For Investor Relations ### 4of10

10 The Priceline Group Inc. UNAUDITED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) 2015 ASSETS December 31, 2014 Currentassets: Cashandcashequivalents $ 1,841,658 $ 3,148,651 Restrictedcash Short-terminvestments 1,211,184 1,142,182 Accountsreceivable,netofallowancefordoubtfulaccountsof$17,149and$14,212,respectively 890, ,894 Prepaidexpensesandothercurrentassets 264, ,050 Deferredincometaxes 90, ,754 Totalcurrentassets 4,298,957 5,267,374 Propertyandequipment,net 257, ,953 Intangibleassets,net 2,203,270 2,334,761 Goodwill 3,386,519 3,326,474 Long-terminvestments 6,327,630 3,755,653 Otherassets 141,259 57,348 Totalassets $ 16,614,770 $ 14,940,563 LIABILITIES AND STOCKHOLDERS' EQUITY Currentliabilities: Accountspayable $ 388,528 $ 281,480 Accruedexpensesandothercurrentliabilities 780, ,758 Deferredmerchantbookings 413, ,558 Convertibledebt 37,195 Totalcurrentliabilities 1,582,807 1,379,991 Deferredincometaxes 952,388 1,040,260 Otherlong-termliabilities 131, ,533 Long-termdebt 5,421,328 3,849,756 Totalliabilities 8,087,997 6,373,540 Convertibledebt 329 Stockholders'equity: Commonstock,$0.008parvalue;authorized1,000,000,000shares,62,026,743and61,821,097sharesissued, respectively Treasurystock,11,847,933and9,888,024shares,respectively (5,073,400) (2,737,585) Additionalpaid-incapital 5,097,560 4,923,196 Accumulatedearnings 8,687,596 6,640,505 Accumulatedothercomprehensiveloss (185,465) (259,902) Totalstockholders'equity 8,526,773 8,566,694 Totalliabilitiesandstockholders'equity $ 16,614,770 $ 14,940,563 5of10

11 The Priceline Group Inc. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended Nine Months Ended Agencyrevenues $ 2,345,673 $ 2,099,629 $ 5,127,174 $ 4,615,169 Merchantrevenues 596, ,535 1,637,191 1,707,786 Advertisingandotherrevenues 160, , , ,919 Totalrevenues 3,102,901 2,836,497 7,223,992 6,601,874 Costofrevenues 155, , , ,429 Grossprofit 2,947,282 2,619,978 6,712,424 5,909,445 Operatingexpenses: Advertising Online 801, ,814 2,215,181 1,860,317 Advertising Offline 51,440 71, , ,093 Salesandmarketing 93,069 86, , ,456 Personnel,includingstock-basedcompensationof$58,274,$46,136,$172,446 and$120,108,respectively 305, , , ,854 Generalandadministrative 109,706 97, , ,950 Informationtechnology 28,830 24,802 81,347 72,068 Depreciationandamortization 69,054 57, , ,262 Totaloperatingexpenses 1,458,575 1,297,273 4,111,417 3,415,000 Operatingincome 1,488,707 1,322,705 2,601,007 2,494,445 Otherincome(expense): Interestincome 14,682 2,490 39,315 5,165 Interestexpense (41,436) (22,953) (116,462) (57,804) Foreigncurrencytransactionsandother (5,783) 3,347 (12,070) (4,399) Totalotherincome(expense) (32,537) (17,116) (89,217) (57,038) Earningsbeforeincometaxes 1,456,170 1,305,589 2,511,790 2,437,407 Incometaxexpense 259, , , ,485 Netincome $ 1,196,732 $ 1,062,253 $ 2,047,091 $ 1,969,922 Netincomeapplicabletocommonstockholdersperbasiccommonshare $ $ $ $ Weighted-averagenumberofbasiccommonsharesoutstanding 50,550 52,405 51,344 52,319 Netincomeapplicabletocommonstockholdersperdilutedcommonshare $ $ $ $ Weighted-averagenumberofdilutedcommonsharesoutstanding 51,130 53,024 51,952 53,048 6of10

12 The Priceline Group Inc. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Nine Months Ended OPERATINGACTIVITIES: Netincome $ 2,047,091 $ 1,969,922 Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities: Depreciation 73,520 54,704 Amortization 128,210 81,558 Provisionforuncollectibleaccounts,net 17,242 14,150 Deferredincometaxes (63,675) 46,451 Stock-basedcompensationexpenseandotherstock-basedpayments 174, ,120 Amortizationofdebtissuancecosts 5,913 3,818 Amortizationofdebtdiscount 49,868 39,079 Lossonearlyextinguishmentofdebt 3 6,254 Changesinassetsandliabilities: Accountsreceivable (289,604) (353,357) Prepaidexpensesandothercurrentassets (86,808) (35,341) Accountspayable,accruedexpensesandothercurrentliabilities 191, ,557 Other (26,550) 202 Netcashprovidedbyoperatingactivities 2,221,159 2,159,117 INVESTINGACTIVITIES: Purchaseofinvestments (5,597,897) (7,327,635) Proceedsfromsaleofinvestments 3,180,981 9,703,032 Additionstopropertyandequipment (126,637) (90,725) Acquisitionsandotherinvestments,netofcashacquired (135,664) (2,496,084) Proceedsfromforeigncurrencycontracts 453,818 14,354 Paymentsonforeigncurrencycontracts (448,640) (94,661) Changeinrestrictedcash 9,309 Netcashusedininvestingactivities (2,674,039) (282,410) FINANCINGACTIVITIES: Proceedsfromrevolvingcreditfacility 995,000 Paymentsrelatedtorevolvingcreditfacility (995,000) Proceedsfromtheissuanceoflong-termdebt 1,619,951 2,282,217 Paymentofdebtissuancecosts (13,507) (16,241) Paymentsrelatedtoconversionofseniornotes (147,629) (121,925) Repurchaseofcommonstock (2,267,384) (245,456) Paymentsofcontingentconsideration (10,700) Proceedsfromexerciseofstockoptions 19,139 12,434 Excesstaxbenefitsonstock-basedawards 90,935 14,139 Netcash(usedin)providedbyfinancingactivities (709,195) 1,925,168 Effectofexchangeratechangesoncashandcashequivalents (144,918) (48,145) Net(decrease)increaseincashandcashequivalents (1,306,993) 3,753,730 Cashandcashequivalents,beginningofperiod 3,148,651 1,289,994 Cashandcashequivalents,endofperiod $ 1,841,658 $ 5,043,724 SUPPLEMENTALCASHFLOWINFORMATION: Cashpaidduringtheperiodforincometaxes $ 499,421 $ 412,185 Cashpaidduringtheperiodforinterest $ 50,400 $ 14,531 Non-cashinvestingactivityforcontingentconsideration $ 9,170 $ 13,310 Non-cashfinancingactivityforacquisitions $ $ 13,752

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14 The Priceline Group Inc. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (In thousands, except per share data) RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT Three Months Ended Nine Months Ended GAAPGrossprofit $ 2,947,282 $ 2,619,978 $ 6,712,424 $ 5,909,445 (a) Adjustmenttoexcludefavorableimpactoftraveltransactiontaxjudgments, rulingsandsettlements (13,655) (30,059) Non-GAAPGrossprofit $ 2,933,627 $ 2,619,978 $ 6,682,365 $ 5,909,445 RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME Three Months Ended Nine Months Ended GAAPOperatingincome $ 1,488,707 $ 1,322,705 $ 2,601,007 $ 2,494,445 (a) Adjustmenttoexcludefavorableimpactoftraveltransactiontaxjudgments, rulingsandsettlements (13,655) (30,059) (b) Stock-basedemployeecompensation 58,274 46, , ,108 (c) Amortizationofintangibleassets 42,229 35, ,210 81,558 Non-GAAPOperatingincome $ 1,575,555 $ 1,404,625 $ 2,871,604 $ 2,696,111 Non-GAAP Operating income as a % of Non-GAAP Gross profit 53.7% 53.6% 43.0% 45.6% RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA Three Months Ended Nine Months Ended GAAPNetincomeapplicabletocommonstockholders $ 1,196,732 $ 1,062,253 $ 2,047,091 $ 1,969,922 (a) Adjustmenttoexcludefavorableimpactoftraveltransactiontaxjudgments, rulingsandsettlements (13,655) (30,059) (b) Stock-basedemployeecompensation 58,274 46, , ,108 (d) Depreciationandamortization 69,054 57, , ,262 (e) Interestincome (14,682) (2,490) (39,315) (5,165) (e) Interestexpense 41,436 22, ,462 57,804 (f) Lossonearlyextinguishmentofconvertibledebt ,254 (g) Incometaxexpense 259, , , ,485 AdjustedEBITDA $ 1,596,597 $ 1,429,911 $ 2,933,057 $ 2,752,670 8of10

15 The Priceline Group Inc. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (In thousands, except per share data) RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME Three Months Ended Nine Months Ended GAAPNetincomeapplicabletocommonstockholders $ 1,196,732 $ 1,062,253 $ 2,047,091 $ 1,969,922 (a) Adjustmenttoexcludefavorableimpactoftraveltransactiontaxjudgments, rulingsandsettlements (13,655) (30,059) (b) Stock-basedemployeecompensation 58,274 46, , ,108 (c) Amortizationofintangibleassets 42,229 35, ,210 81,558 (f) Debtdiscountamortizationrelatedtoconvertibledebt 15,703 14,133 47,053 37,080 (f) Lossonearlyextinguishmentofconvertibledebt ,254 (h) AdjustmentsforthetaximpactofcertainoftheNon-GAAPadjustmentsandto excludenon-cashincometaxes 4,959 24,016 21,007 51,103 Non-GAAPNetincomeapplicabletocommonstockholders $ 1,304,242 $ 1,182,446 $ 2,385,751 $ 2,266,025 RECONCILIATION OF GAAP TO NON-GAAP NET INCOME PER DILUTED COMMON SHARE Three Months Ended Nine Months Ended GAAPweighted-averagenumberofdilutedcommonsharesoutstanding 51,130 53,024 51,952 53,048 (i) Adjustmentforunvestedrestrictedstockunitsandperformanceshareunits Non-GAAPweighted-averagenumberofdilutedcommonsharesoutstanding 51,449 53,362 52,230 53,341 Netincomeapplicabletocommonstockholdersperdilutedcommonshare GAAP $ $ $ $ Non-GAAP $ $ $ $ (a) (b) (c) (d) (e) (f) (g) (h) (i) Adjustmentfortraveltransactiontaxes(includingestimatedinterestandpenalties)principallyrelatedtoafavorablerulinginthe StateofHawaiiisrecordedinCostofrevenues. Stock-basedemployeecompensationisrecordedinPersonnelexpense. AmortizationofintangibleassetsisrecordedinDepreciationandamortization. DepreciationandamortizationareexcludedfromNetincometocalculateAdjustedEBITDA. InterestincomeandInterestexpenseareexcludedfromNetincometocalculateAdjustedEBITDA. Non-cashinterestexpenserelatedtotheamortizationofdebtdiscountandlossonearlyextinguishmentofconvertibledebtare recordedininterestexpenseandforeigncurrencytransactionsandother,respectively. IncometaxexpenseisexcludedfromNetincometocalculateAdjustedEBITDA. Adjustmentsforthetaximpactofcertainofthenon-GAAPadjustmentsandtoexcludenon-cashincometaxes. Additionalsharesrelatedtounvestedrestrictedstockunitsandperformanceshareunitsareincludedinthecalculationofnon-GAAP netincomepersharebecausenon-gaapnetincomehasbeenadjustedtoexcludeemployeestock-basedcompensationexpense. 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. 9of10

16 The Priceline Group Inc. Statistical Data Inmillions (Unaudited) Gross Bookings 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 International $ 9,179 $ 7,758 $ 10,643 $ 11,682 $ 12,080 $ 9,233 $ 12,104 $ 13,092 $ 13,078 U.S. 1,586 1,379 1,637 1,856 1,743 1,426 1,672 1,868 1,700 Total $ 10,765 $ 9,138 $ 12,280 $ 13,538 $ 13,823 $ 10,659 $ 13,775 $ 14,960 $ 14,778 Agency $ 9,023 $ 7,576 $ 10,516 $ 11,581 $ 11,821 $ 8,974 $ 11,908 $ 12,867 $ 12,850 Merchant 1,742 1,562 1,764 1,957 2,002 1,685 1,867 2,094 1,928 Total $ 10,765 $ 9,138 $ 12,280 $ 13,538 $ 13,823 $ 10,659 $ 13,775 $ 14,960 $ 14,778 Year/Year Growth International 41.8% 41.2% 36.8% 36.2% 31.6% 19.0 % 13.7 % 12.1% 8.3 % excluding F/X impact 41% 42% 38% 35% 32% 27 % 29 % 30% 25 % U.S. 16.7% 26.5% 19.5% 20.6% 9.9% 3.4 % 2.1 % 0.7% (2.5)% Agency 40.5% 42.9% 37.5% 37.4% 31.0% 18.5 % 13.2 % 11.1% 8.7 % Merchant 23.7% 21.8% 17.2% 15.7% 15.0% 7.9 % 5.8 % 7.0% (3.7)% Total 37.5% 38.8% 34.2% 33.8% 28.4% 16.7 % 12.2 % 10.5% 6.9 % excluding F/X impact 36% 39% 35% 32% 29% 23 % 26 % 26% 22 % Units Sold 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 HotelRoom-Nights Year/Year Growth 35.6% 36.5% 32.0% 29.2% 26.7% 24.0 % 25.4 % 26.2% 22.0 % RentalCarDays Year/Year Growth 27.5% 32.3% 24.6% 14.4% 18.1% 16.1 % 18.0 % 20.1% 13.0 % AirlineTickets Year/Year Growth 8.6% 28.1% 22.6% 22.3% 8.0% (4.0)% (3.2)% 0.3% (1.1)% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Revenue $ 2,269.9 $ 1,541.2 $ 1,641.8 $ 2,123.6 $ 2,836.5 $ 1,840.1 $ 1,840.7 $ 2,280.4 $ 3,102.9 Year/Year Growth 33.0% 29.4% 26.1% 26.4% 25.0% 19.4 % 12.1 % 7.4% 9.4 % Gross Profit $ 1,989.1 $ 1,333.3 $ 1,406.5 $ 1,883.0 $ 2,620.0 $ 1,674.7 $ 1,672.2 $ 2,092.9 $ 2,947.3 Year/Year Growth 42.4% 41.9% 39.3% 36.1% 31.7% 25.6 % 18.9 % 11.1% 12.5 % 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. International gross bookings consist of the gross bookings of Booking.com, agoda.com and rentalcars.com, in each case regardless of where the consumer is resident, from where the consumer makes a reservation or where the travel service is provided. 10of10