Priceline.com
today increased its 2nd quarter 2004 financial
guidance, reflecting continued strong business momentum.Priceline.com’s previous guidance, issued on May 3, 2004, called for
2nd quarter 2004 pro forma earnings per share in the range of $0.25 to
$0.30. The Company now said it is targeting 2nd quarter pro forma
earnings in the range of $0.29 to $0.32 per share. Pro forma earnings
per share do not include the effects of non-cash, acquisition-related
amortization expense associated with priceline.com’s acquisition of a
majority of the equity of Travelweb.com, stock-based compensation
expense and option payroll tax expense.

  Priceline.com also said that a number of operating metrics are now
targeted to exceed earlier guidance for annualized growth. Second
quarter gross bookings are now targeted to grow by approximately 55%
to 57% (as compared to previous guidance of 44% to 50%); revenue is
expected grow by approximately 6% to 9% (as compared to previous
guidance of 5%); gross profit is expected to grow by approximately 32%
to 34% (as compared to previous guidance of 25%); airline ticket unit
bookings are expected to grow by 58% to 60% (as compared to previous
guidance of 42% to 50%), hotel room night unit bookings are expected
to grow by 30% to 32% (as compared to previous guidance of 25%); and
rental car day unit bookings are expected to grow by approximately 54%
to 56% (as compared to previous guidance of 50% to 60%). Priceline.com
said it will report full 2nd quarter financials on August 2, 2004,
after market-close and, at that time, will update its 3rd quarter 2004
financial guidance.

  “We are pleased with the strong gross bookings momentum we are
experiencing this quarter,” said priceline.com President and Chief
Executive Officer Jeffery H. Boyd. “Our retail choice product in
airline tickets has clearly struck a chord with consumers and our
other retail products are also performing well, including
Travelweb.com. Given our strong results in the quarter, we elected to
re-invest in advertising and expect to spend approximately $15.5
million to $16 million in the 2nd quarter.” Previous guidance for
second quarter advertising expenditures had been $14 to $15 million.
——-