Delaware | 001- 35604 | 54-2139807 | ||
(State or Other Jurisdiction | (Commission | (IRS Employer | ||
of Incorporation) | File Number) | Identification No.) | ||
55 North Water Street, Suite 1 Norwalk, CT 06854 (Address of Principal Executive Offices)(Zip Code) |
KAYAK SOFTWARE CORPORATION | ||
Date: August 22, 2012 | By: /s/ Melissa H. Reiter | |
Melissa H. Reiter | ||
Chief Financial Officer and Treasurer |
• | 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. |
• | 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. |
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 |