Kayak Forecasts Strong Q3 Growth
Kayak Software's 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 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 USD$76 million to USD$78 million.
Net income for the second quarter rose to USD$7.3 million, from USD$3.8 million a year earlier.
Revenue rose 36 percent to USD$76.9 million.
Kayak, which raised USD$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 and Zynga 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.