Priceline.com Reports Financial Results for 3rd Quarter 2013

         Priceline.com Reports Financial Results for 3rd Quarter 2013

PR Newswire

NORWALK, Conn., Nov. 7, 2013

NORWALK, Conn., Nov. 7, 2013 /PRNewswire/ -- The Priceline Group (NASDAQ:
PCLN) today reported its 3^rd quarter 2013 financial results. Third quarter
gross travel bookings for The Priceline Group (the "Group"), which refers to
the total dollar value, generally inclusive of all taxes and fees, of all
travel services purchased by its customers, were $10.8 billion, an increase of
37.5% over a year ago (approximately 36% on a local currency basis).

The Group's gross profit for the 3^rd quarter was $2.0 billion, a 42.4%
increase from the prior year. International operations contributed gross
profit in the 3^rd quarter of $1.8 billion, a 42.1% increase versus a year ago
(approximately 39% on a local currency basis). The Group had GAAP net income
applicable to common shareholders for the 3^rd quarter of $833 million, or
$15.72 per diluted share, which compares to $597 million or $11.66 per diluted
share, in the same period a year ago.

Non-GAAP net income in the 3^rd quarter was $920 million, a 44.2% increase
versus the prior year. Non-GAAP net income was $17.30 per diluted share,
compared to $12.40 per diluted share a year ago. FactSet consensus for the
3^rd quarter 2013 was $16.23 per diluted share. Adjusted EBITDA for the 3^rd
quarter 2013 was $1.1 billion, an increase of 42.6% over 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 finished the summer travel season with strong growth and
operating performance," said Jeffery H. Boyd, Chairman and Chief Executive
Officer of The Priceline Group. "Booking.com and Agoda posted solid third
quarter results leading to 36% room night growth for the Group, and the U.S.
business of priceline.com showed positive momentum with accelerating bookings
growth."

Looking forward, Mr. Boyd said: "Our brands are performing well in a very
competitive environment. We believe the Group is well positioned to drive
future growth through investments in geographic expansion, supply and content,
product and marketing."

The Priceline Group said it was targeting the following for 4^th quarter 2013:

  oYear-over-year increase in total gross travel bookings of approximately
    27% - 34% (an increase of approximately 26% - 33% on a local currency
    basis).
  oYear-over-year increase in international gross travel bookings of
    approximately 29% - 36% (an increase of approximately 28% - 35% on a local
    currency basis).
  oYear-over-year increase in domestic gross travel bookings of approximately
    17% - 24%.
  oYear-over-year increase in revenue of approximately 19% - 26%.
  oYear-over-year increase in gross profit of approximately 30% - 37%.
  oAdjusted EBITDA of approximately $510 million to $540 million.
  oNon-GAAP net income per diluted share between $7.80 and $8.30.

Non-GAAP guidance for the 4^th quarter 2013:

  oexcludes non-cash amortization expense of intangibles,
  oexcludes non-cash stock-based employee compensation expense,
  oexcludes non-cash interest expense and gains or losses on early debt
    extinguishment, if any, related to cash settled convertible debt,
  oexcludes 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,
  oexcludes non-cash income tax expense and reflects the impact on income
    taxes of certain of the non-GAAP adjustments, and
  oincludes the dilutive impact of unvested restricted stock units and
    performance share units because non-GAAP net income has been adjusted to
    exclude stock-based employee compensation.

In addition to the adjustments above, adjusted EBITDA excludes depreciation
and amortization expense, interest income, interest expense and income taxes
and includes the impact of foreign currency transactions and other expenses.

When aggregated, the non-GAAP adjustments are expected to increase adjusted
EBITDA over GAAP net income by approximately $177 million in the 4^th quarter
2013. In addition, the non-GAAP adjustments are expected to increase non-GAAP
net income over GAAP net income by approximately $75 million in the 4^th
quarter 2013. The Group estimates GAAP net income per diluted share between
$6.40 and $6.90 for the 4^th quarter 2013.

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:

  oadverse changes in general market conditions for leisure and other travel
    services;
  othe effects of increased competition;
  oour ability to expand successfully in international markets;
  oour online advertising efficiency;
  ofluctuations in foreign exchange rates and other risks associated with
    doing business in multiple currencies;
  othe ability to attract and retain qualified personnel;
  oadverse changes in the Group's relationships with travel service
    providers;
  oa change by a major search engine to its search engine algorithms that
    negatively affects our placement in search results;
  osystems-related failures and/or security breaches;
  oan adverse outcome in one or more travel transaction tax (e.g., hotel
    occupancy taxes, excise taxes, sales taxes, etc.) proceedings in which we
    are involved; and
  olegal 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 Quarterly
Report on Form 10-Q and Annual Report on Form 10-K filed with the Securities
and Exchange Commission. 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.

Non-GAAP Financial Measures

Adjusted EBITDA represents GAAP net income excluding depreciation and
amortization expense, interest income, interest expense, net income (loss)
attributable to noncontrolling interests and income taxes and is adjusted to
exclude stock-based employee compensation expense, gains and losses on early
debt extinguishment, 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 and
significant acquisition costs.

Non-GAAP gross profit, adjusted EBITDA, non-GAAP operating income, non-GAAP
net income and non-GAAP net income per share are "non-GAAP financial
measures," as such term is defined by the Securities and Exchange Commission,
and may differ from non-GAAP financial measures used by other companies. The
Group believes that non-GAAP gross profit, adjusted EBITDA, non-GAAP operating
income, non-GAAP net income and non-GAAP net income per share that exclude
certain non-cash or non-recurring income or expense items are useful for
analysts and investors to evaluate the Group's on-going performance because
they provide a useful comparison of the Group's projected cash earnings and
performance with its historical results from prior periods and to those of its
competitors. These non-GAAP metrics, in particular adjusted EBITDA, non-GAAP
operating income, 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 flows
from operations data as measured under GAAP. The items excluded from these
non-GAAP metrics, but included in the calculation of their closest GAAP
equivalent, are significant components of consolidated statements of income
and must be considered in performing a comprehensive assessment of overall
financial performance.

Non-GAAP financial information for the three and nine months ended September
30, 2013 is adjusted for the following items:

  oAmortization expense of intangibles is excluded because it does not impact
    cash earnings.
  oStock-based employee compensation expense is excluded because it does not
    impact cash earnings and is reflected in earnings per share through
    increased share count.
  oInterest expense related to the amortization of debt discount and gains or
    losses on early debt extinguishment related to convertible debt are
    excluded because they are non-cash in nature.
  oSignificant 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, including the $20.5
    million charge (including estimated interest and penalties) recorded in
    the 1^st quarter 2013, principally related to unfavorable rulings in the
    State of Hawaii and the District of Columbia, are excluded because the
    amount and timing of these items are unpredictable, not driven by core
    operating results and render comparisons with prior periods less
    meaningful.
  oSignificant costs related to acquisitions are excluded because the expense
    is not driven by core operating results and renders comparisons with prior
    periods less meaningful.
  oIncome tax expense is adjusted for the tax impact of certain of the
    non-GAAP adjustments described above and to exclude tax expense recorded
    where no actual tax payments are owed because of available net operating
    loss carryforwards. 
  oNet income (loss) attributable to noncontrolling interests is adjusted for
    the impact of certain of the non-GAAP adjustments described above.
  oFor calculating non-GAAP net income per share:

       onet income is adjusted for the impact of the non-GAAP adjustments
         described above; and
       oadditional unvested restricted stock units and performance share
         units are included in the calculation of non-GAAP net income per
         share because non-GAAP net income has been adjusted to exclude
         stock-based employee compensation expense.

The presentation of this financial information should not be considered in
isolation or as a substitute for the financial information prepared and
presented in accordance with generally accepted accounting principles in the
United States. The attached financial and statistical supplement reconciles
non-GAAP financial information with the Group's financial results under GAAP.

About The Priceline Group

The Priceline Group (NASDAQ: PCLN) is a leader in global online travel
reservations. The Group is composed of five primary brands - Booking.com,
priceline.com, Agoda.com, KAYAK and rentalcars.com and several ancillary
brands. The Priceline Group provides online travel services in over 180
countries and territories in Europe, North America, South America, the
Asia-Pacific region, the Middle East and Africa.

Booking.com is the number one online hotel reservation service in the world,
offering over 355,000 hotels and accommodations (as of November 4, 2013), and
is available in 42 languages. More recent counts are available on the
Booking.com website. Priceline.com gives leisure travelers multiple ways to
save on their airline tickets, hotel rooms, rental cars, vacation packages and
cruises. In addition to getting compelling published prices, travelers can
take advantage of priceline.com's famous Name Your Own Price® service, which
can deliver the lowest prices available, or the recently launched Express
Deals^SM, where travelers can take advantage of hotel discounts without
bidding. Agoda.com is an Asia-based online hotel reservation service that is
available in 38 languages. KAYAK is a leading travel meta-search service that
allows consumers to easily compare airline ticket, hotel room reservation and
rental car reservation information from hundreds of travel websites at once
through its websites and mobile apps. Rentalcars.com is a multinational
rental car reservation service, offering its services in over 6,000 locations
and providing customer support in 40 languages.





priceline.com Incorporated

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)
                                                   September 30,  December 31,
                                                   2013           2012
ASSETS
Current assets:
Cash and cash equivalents                          $ 1,096,094    $ 1,536,349
Restricted cash                                    9,034          6,641
Short-term investments                             5,487,526      3,646,845
Accounts receivable, net of allowance for
doubtful accounts of $12,256 and $10,322,          706,234        367,512
respectively
Prepaid expenses and other current assets          107,688        84,290
Deferred income taxes                              82,471         40,738
Total current assets                               7,489,047      5,682,375
Property and equipment, net                        119,766        89,269
Intangible assets, net                             1,038,863      208,113
Goodwill                                           1,761,194      522,672
Deferred income taxes                              827            31,485
Other assets                                       35,958         35,828
Total assets                                       $ 10,445,655   $ 6,569,742
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                                   $ 312,896      $ 184,648
Accrued expenses and other current liabilities     544,021        387,911
Deferred merchant bookings                         430,661        368,823
Convertible debt                                   538,266        520,344
Total current liabilities                          1,825,844      1,461,726
Deferred income taxes                              371,498        45,159
Other long-term liabilities                        83,934         68,944
Convertible debt                                   1,731,027      881,996
Total liabilities                                  4,012,303      2,457,825
Redeemable noncontrolling interests                —              160,287
Convertible debt                                   36,730         54,655
Stockholders' equity:
Common stock, $0.008 par value; authorized
1,000,000,000 shares, 60,274,497 and 58,055,586    468            450
shares issued, respectively
Treasury stock, 9,214,110 and 8,184,787 shares,    (1,943,615)    (1,060,607)
respectively
Additional paid-in capital                         4,459,333      2,612,197
Accumulated earnings                               3,840,675      2,368,611
Accumulated other comprehensive income (loss)      39,761         (23,676)
Total stockholders' equity                         6,396,622      3,896,975
Total liabilities and stockholders' equity         $ 10,445,655   $ 6,569,742



priceline.com Incorporated
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
                        Three Months Ended          Nine Months Ended
                        September 30,               September 30,
                        2013          2012          2013          2012
Agency revenues         $ 1,576,434   $ 1,118,128   $ 3,411,002   $ 2,427,751
Merchant revenues       620,904       584,969       1,729,692     1,632,402
Advertising and other   72,565        3,213         111,459       10,163
revenues
Total revenues          2,269,903     1,706,310     5,252,153     4,070,316
Cost of revenues        280,838       309,809       869,568       926,385
Gross profit            1,989,065     1,396,501     4,382,585     3,143,931
Operating expenses:
Advertising — Online    533,164       375,204       1,399,452     966,820
Advertising — Offline   39,891        8,441         99,750        29,519
Sales and marketing     65,274        52,961        177,392       145,943
Personnel, including
stock-based
compensation of         186,443       135,210       486,658       343,916
$34,551, $17,555,
$90,996 and $51,690,
respectively
General and             63,113        42,287        178,195       122,768
administrative
Information technology  18,536        10,799        48,717        31,974
Depreciation and        35,747        16,007        80,854        47,513
amortization
Total operating         942,168       640,909       2,471,018     1,688,453
expenses
Operating income        1,046,897     755,592       1,911,567     1,455,478
Other income
(expense):
Interest income         867           905           2,882         3,004
Interest expense        (24,135)      (17,067)      (61,097)      (45,208)
Foreign currency        (3,278)       (8,256)       (7,002)       (7,427)
transactions and other
Total other income      (26,546)      (24,418)      (65,217)      (49,631)
(expense)
Earnings before income  1,020,351     731,174       1,846,350     1,405,847
taxes
Income tax expense      187,362       131,201       331,629       271,405
Net income              832,989       599,973       1,514,721     1,134,442
Less: net income
attributable to         —             3,387         135           3,539
noncontrolling
interests
Net income applicable   $ 832,989     $ 596,586     $ 1,514,586   $ 1,130,903
to common stockholders
Net income applicable
to common stockholders  $ 16.22       $ 11.97       $ 29.88       $ 22.70
per basic common share
Weighted average
number of basic common  51,363        49,851        50,690        49,830
shares outstanding
Net income applicable
to common stockholders  $ 15.72       $ 11.66       $ 29.00       $ 22.05
per diluted common
share
Weighted average
number of diluted       52,984        51,185        52,226        51,295
common shares
outstanding



priceline.com Incorporated

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


                                               Nine Months Ended September 30,
                                               2013              2012
OPERATINGACTIVITIES:
Net income                                     $  1,514,721      $  1,134,442
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation                                   33,965            23,321
Amortization                                   46,889            24,192
Provision for uncollectible accounts, net      12,678            11,287
Deferred income taxes                          11,450            16,446
Stock-based compensation expense and other     91,810            52,042
stock-based payments
Amortization of debt issuance costs            4,352             3,790
Amortization of debt discount                  41,225            28,831
Changes in assets and liabilities:
Accounts receivable                            (283,961)         (232,660)
Prepaid expenses and other current assets      (8,514)           (97,057)
Accounts payable, accrued expenses and other   280,945           318,054
current liabilities
Other                                          1,403             6,243
Net cash provided by operating activities      1,746,963         1,288,931
INVESTING ACTIVITIES:
Purchase of investments                        (7,100,081)       (4,790,106)
Proceeds from sale of investments              5,341,488         3,069,242
Additions to property and equipment            (56,958)          (38,950)
Acquisitions and other equity investments,     (331,557)         (13,871)
net of cash acquired
Proceeds from settlement of foreign currency   3,266             78,828
contracts
Payments on foreign currency contracts         (56,045)          (2,222)
Change in restricted cash                      (1,506)           (3,474)
Net cash used in investing activities          (2,201,393)       (1,700,553)
FINANCING ACTIVITIES:
Proceeds from the issuance of convertible      980,000           1,000,000
debt
Payment of debt issuance costs                 (910)             (20,916)
Payments related to conversion of senior       (8)               (1)
notes
Repurchase of common stock                     (883,008)         (255,397)
Payments to purchase subsidiary shares from    (192,530)         (61,079)
noncontrolling interests
Payments of stock issuance costs               (1,191)           —
Proceeds from exercise of stock options        86,310            2,655
Excess tax benefit on stock-based              13,318            12,911
compensation
Net cash provided by financing activities      1,981             678,173
Effect of exchange rate changes on cash and    12,194            (917)
cash equivalents
Net (decrease) increase in cash and cash       (440,255)         265,634
equivalents
Cash and cash equivalents, beginning of        1,536,349         632,836
period
Cash and cash equivalents, end of period       $  1,096,094      $  898,470
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes   $  265,303        $  205,256
Cash paid during the period for interest       $  18,614         $  13,463
Non-cash fair value increase for redeemable    $  42,522         $  59,255
noncontrolling interests
Non-cash financing activity for acquisitions   $  1,546,748      $  —



priceline.com Incorporated
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)


RECONCILIATION OF
GAAP GROSS PROFIT   ThreeMonthsEnded            NineMonthsEnded
TO NON-GAAP GROSS   September 30,                 September 30,
PROFIT
                    2013           2012           2013           2012
    GAAP Gross      $ 1,989,065    $ 1,396,501    $ 4,382,585    $ 3,143,931
    profit
    Charges
    related to
(a) travel          —              —              20,550         —
    transaction
    tax rulings
    Non-GAAP Gross  $ 1,989,065    $ 1,396,501    $ 4,403,135    $ 3,143,931
    profit
RECONCILIATION OF
GAAP OPERATING      ThreeMonthsEnded            NineMonthsEnded
INCOME TO NON-GAAP  September 30,                 September 30,
OPERATING INCOME
                    2013           2012           2013           2012
    GAAP Operating  $ 1,046,897    $ 755,592      $ 1,911,567    $ 1,455,478
    income
    Charges
    related to
(a) travel          —              —              20,550         —
    transaction
    tax rulings
    Stock-based
(b) employee        34,551         17,555         90,996         51,690
    compensation
(c) Acquisition     —              —              6,444          —
    costs
    Amortization
(d) of intangible   22,850         7,836          46,889         24,192
    assets
    Non-GAAP
    Operating       $ 1,104,298    $ 780,983      $ 2,076,446    $ 1,531,360
    income
    Non-GAAP
    Operating
    income as a %   55.5        %  55.9        %  47.2        %  48.7        %
    of Non-GAAP
    Gross profit
RECONCILIATION OF   ThreeMonthsEnded            NineMonthsEnded
GAAP NET INCOME TO  September 30,                 September 30,
ADJUSTED EBITDA
                    2013           2012           2013           2012
    GAAP Net
    income
    applicable to   $ 832,989      $ 596,586      $ 1,514,586    $ 1,130,903
    common
    stockholders
    Charges
    related to
(a) travel          —              —              20,550         —
    transaction
    tax rulings
    Stock-based
(b) employee        34,551         17,555         90,996         51,690
    compensation
(c) Acquisition     —              —              6,444          —
    costs
    Depreciation
(e) and             35,747         16,007         80,854         47,513
    amortization
(f) Interest        (867)          (905)          (2,882)        (3,004)
    income
(f) Interest        24,135         17,067         61,097         45,208
    expense
(h) Income tax      187,362        131,201        331,629        271,405
    expense
    Net income
    attributable
(i) to              —              3,387          135            3,539
    noncontrolling
    interests
    Adjusted        $ 1,113,917    $ 780,898      $ 2,103,409    $ 1,547,254
    EBITDA
RECONCILIATION OF
GAAP NET INCOME TO  ThreeMonthsEnded            NineMonthsEnded
NON-GAAP NET        September 30,                 September 30,
INCOME
                    2013           2012           2013           2012
    GAAP Net
    income
    applicable to   $ 832,989      $ 596,586      $ 1,514,586    $ 1,130,903
    common
    stockholders
    Charges
    related to
(a) travel          —              —              20,550         —
    transaction
    tax rulings
    Stock-based
(b) employee        34,551         17,555         90,996         51,690
    compensation
(c) Acquisition     —              —              6,444          —
    costs
    Amortization
(d) of intangible   22,850         7,836          46,889         24,192
    assets
    Debt discount
    amortization
(g) related to      16,350         10,859         40,368         28,831
    convertible
    debt
    Adjustments
    for the tax
    impact of
    certain of the
(j) Non-GAAP        13,351         5,527          6,184          28,999
    adjustments
    and to exclude
    non-cash
    income taxes
    Impact on
    noncontrolling
(k) interests of    —              (127)          (440)          (923)
    certain other
    Non-GAAP
    adjustments
    Non-GAAP Net
    income
    applicable to   $ 920,091      $ 638,236      $ 1,725,577    $ 1,263,692
    common
    stockholders
RECONCILIATION OF
GAAP TO NON-GAAP    ThreeMonthsEnded            NineMonthsEnded
NET INCOME PER      September 30,                 September 30,
DILUTED COMMON
SHARE
                    2013           2012           2013           2012
    GAAP weighted
    average number
    of diluted      52,984         51,185         52,226         51,295
    common shares
    outstanding
    Adjustment for
    unvested
    restricted
(l) stock units     209            290            182            267
    and
    performance
    units
    Non-GAAP
    weighted
    average number  53,193         51,475         52,408         51,562
    of diluted
    common shares
    outstanding
    Net income
    applicable to
    common
    stockholders
    per diluted
    common share
    GAAP            $ 15.72        $ 11.66        $ 29.00        $ 22.05
    Non-GAAP        $ 17.30        $ 12.40        $ 32.93        $ 24.51



    Adjustment for an accrual for travel transaction taxes (including
(a) estimated interest and penalties), principally related to unfavorable
    rulings in the State of Hawaii and the District of Columbia.
(b) Stock-based employee compensation is recorded in Personnel expense.
(c) Adjustment for KAYAK acquisition costs is recorded in General and
    administrative expense.
(d) Amortization of intangible assets is recorded in Depreciation and
    amortization.
(e) Depreciation and amortization are excluded from Net income to calculate
    Adjusted EBITDA.
(f) Interest income and Interest expense are excluded from Net income to
    calculate Adjusted EBITDA.
(g) Non-cash interest expense related to the amortization of debt discount is
    recorded in Interest expense.
(h) Income tax expense is excluded from Net income to calculate Adjusted
    EBITDA.
(i) Net income attributable to noncontrolling interests is excluded from Net
    income to calculate Adjusted EBITDA.
(j) Adjustments for the tax impact of certain of the non-GAAP adjustments and
    to exclude non-cash income taxes.
(k) Impact of other non-GAAP adjustments on Net income attributable to
    noncontrolling interests.
    Additional unvested restricted stock units and performance share units are
(l) included in the calculation of non-GAAP net income per share because
    non-GAAP net income has been adjusted to exclude stock-based compensation
    expense.
    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.



priceline.com Incorporated

Statistical Data

In millions

(Unaudited)
Gross          3Q11         4Q11       1Q12         2Q12         3Q12         4Q12         1Q13         2Q13         3Q13
Bookings
International  $ 4,989      $ 3,912    $ 5,451      $ 5,952      $ 6,473      $ 5,494      $ 7,783      $ 8,579      $ 9,179
Domestic       1,268        1,044      1,260        1,377        1,359        1,090        1,370        1,538        1,586
Total          $ 6,257      $ 4,956    $ 6,712      $ 7,329      $ 7,831      $ 6,584      $ 9,153      $ 10,118     $ 10,765
Agency         $ 5,121      $ 3,982    $ 5,528      $ 6,031      $ 6,423      $ 5,302      $ 7,648      $ 8,425      $ 9,023
Merchant       1,136        973        1,184        1,298        1,408        1,282        1,505        1,692        1,742
Total          $ 6,257      $ 4,956    $ 6,712      $ 7,329      $ 7,831      $ 6,584      $ 9,153      $ 10,118     $ 10,765
Year/Year
Growth
International  72.9      %  65.5    %  54.2      %  33.1      %  29.7      %  40.4      %  42.8      %  44.1      %  41.8      %
excluding F/X  61        %  67      %  58        %  44        %  41        %  43        %  43        %  44        %  41        %
impact
Domestic       13.1      %  15.8    %  11.7      %  5.3       %  7.2       %  4.4       %  8.7       %  11.7      %  16.7      %
Agency         61.6      %  55.7    %  46.2      %  27.6      %  25.4      %  33.1      %  38.3      %  39.7      %  40.5      %
Merchant       35.6      %  37.5    %  34.0      %  23.1      %  24.0      %  31.8      %  27.1      %  30.3      %  23.7      %
Total          56.2      %  51.8    %  43.9      %  26.8      %  25.2      %  32.9      %  36.4      %  38.0      %  37.5      %
excluding F/X  48        %  53      %  47        %  35        %  34        %  35        %  37        %  38        %  36        %
impact
Units Sold     3Q11         4Q11       1Q12         2Q12         3Q12         4Q12         1Q13         2Q13         3Q13
Hotel          40.6         33.6       45.9         50.2         55.2         46.2         63.2         69.4         74.8
Room-Nights
Year/Year      47.4      %  52.8    %  47.0      %  39.1      %  35.9      %  37.6      %  37.7      %  38.2      %  35.6      %
Growth
Rental Car     7.0          5.3        6.9          8.6          9.4          7.2          9.9          12.5         12.0
Days
Year/Year      35.6      %  34.3    %  40.6      %  29.4      %  34.9      %  36.5      %  43.3      %  46.3      %  27.5      %
Growth
Airline        1.6          1.4        1.6          1.7          1.7          1.4          1.7          1.7          1.8
Tickets
Year/Year      7.7       %  5.6     %  4.9       %  (1.8)%       6.1       %  1.7       %  1.4       %  1.8       %  8.6       %
Growth
               3Q11         4Q11       1Q12         2Q12         3Q12         4Q12         1Q13         2Q13         3Q13
Revenue        $ 1,452.8    $ 990.8    $ 1,037.2    $ 1,326.8    $ 1,706.3    $ 1,190.6    $ 1,302.0    $ 1,680.2    $ 2,269.9
Year/Year      45.0      %  35.5    %  28.2      %  20.3      %  17.4      %  20.2      %  25.5      %  26.6      %  33.0      %
Growth
Gross Profit   $ 1,100.1    $ 724.7    $ 743.3      $ 1,004.1    $ 1,396.5    $ 939.8      $ 1,009.7    $ 1,383.9    $ 1,989.1
Year/Year      65.1      %  51.5    %  47.0      %  34.0      %  26.9      %  29.7      %  35.8      %  37.8      %  42.4      %
Growth



 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.

SOURCE The Priceline Group

Contact: For Press Information: Leslie Cafferty, (203) 299-8128,
leslie.cafferty@priceline.com; or For Investor Relations: Matthew Tynan, (203)
299-8487, matt.tynan@priceline.com