Kayak forecasts 3rd-qtr revenue above estimates
(Reuters) - Kayak Software Corp's KYAK.O first quarterly results as a public company topped estimates on higher sales to online tour agencies, and the travel search website forecast strong third-quarter revenue.
The company, which went public in July, is set to benefit from a surge in mobile data traffic as people increasingly use smartphones apps to book air tickets and hotel rooms.
Mobile queries doubled during the second quarter compared with a 33 percent rise in website queries. Queries refer to user requests for travel information that Kayak processes through its websites and mobile applications.
Deutsche Bank analyst Lloyd Walmsley said Kayak is well poised for the coming quarters due to higher earnings from its mobile platforms and from expansion into new territories.
However, Kayak shares, which closed up 11 percent in regular trading on Wednesday, were down 3 percent in extended trading as investors were expecting better results from the company.
The company forecast third-quarter revenue of $76 million to $78 million. Analysts on average were expecting revenue of $73.6 million, according to Thomson Reuters I/B/E/S.
Net income for the second quarter rose to $7.3 million, or 19 cents per share, from $3.8 million, or 10 cents per share, a year earlier.
Excluding items, the company earned 25 cents per share.
Revenue rose 36 percent to $76.9 million.
Analysts were expecting earnings of 24 cents per share, on sales of $75.2 million.
Kayak, which raised $91 million in its July IPO, has been among the handful of recent listings that have managed to trade above their offer price.
Other internet companies that went public recently such as Facebook Inc (FB.O) and Zynga Inc (ZNGA.O) saw their fortunes fade as their results did not match up to the expectations of the investors.
Kayak said it processed 304 million queries in the quarter, a 33 percent increase from the year-earlier period.
Kayak's software quickly finds, consolidates and sorts airline, hotel and rental-car fares from vendors and online travel agency (OTA) websites with whom they partner.
It makes its revenue through from both referrals to travel suppliers and OTAs, or distribution revenues, and from advertising placements on its websites and mobile applications.
Kayak's rivals include search engines such as Google Inc (GOOG.O) and Microsoft Corp's (MSFT.O) Bing, OTAs such as Expedia Inc (EXPE.O) and Orbitz Worldwide Inc (OWW.N) and other travel information sites such as TripAdvisor Inc (TRIP.O) and Travelzoo Inc (TZOO.O).
(Reporting By Siddharth Cavale, Supantha Mukherjee and Shubham Singhal in Bangalore; Editing by Saumyadeb Chakrabarty)
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