Welcome to The Priceline Group's Third Quarter 2015 Conference Call. The Priceline Group would like to remind everyone that this call may contain forward-looking statements which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and are subject to certain 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 or expectations and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements. For a list of factors that could cause the Group's actual results to differ materially from those described in the forward-looking statements, please refer to the Safe Harbor statement at the end of the Group's earnings press release, as well as The Group's most recent filings with the Securities and Exchange Commission. Unless required by law, The Priceline Group undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. A copy of The Group's earnings press release, together with an accompanying financial and statistical supplement is available in the For Investors section of The Priceline Group's website, www.pricelinegroup.com. And now, I'd like to introduce The Priceline Group speakers for this afternoon, Darren Huston and Daniel Finnegan. Go ahead, gentlemen. Darren Richard Huston - President, Chief Executive Officer & Director: Well, thank you very much, and welcome to The Priceline Group's third quarter conference call. Thank you for joining us before the markets open this morning in New York. I'm here in Norwalk, Connecticut with Priceline's Group CFO, Dan Finnegan. Let me point out that due to technical difficulties at NASDAQ, our press release is only available…

Thank you Our first question is from Tom White with Macquarie. You may begin. Thomas White - Macquarie Capital (USA), Inc.: Great. Thank you for taking my question. Room nights, it looks like there was a bit of a slowdown there, also in international gross bookings growth ex-FX. But the international gross profit growth ex-FX remained strong and steady. I think it was 29% versus last quarter. So can you maybe just talk a little bit about the drivers of the delta there? Was it geographic mix, take rate improvements? Any impact from M&A? And then just on the U.S. business, and I think your largest competitor grew organic room nights something like 25% in the U.S. last quarter, impressive, given that that market is considered more mature. Just maybe an update around your U.S. business. Is it mostly priceline.com? Is it mostly Booking.com and kind of what's stopping you guys from getting your growth rates up to more competitive levels there? Thank you. Darren Richard Huston - President, Chief Executive Officer & Director: Okay. Well, thanks Tom. I'll let Dan take the first question. I'll take the second question. Daniel J. Finnegan - Chief Financial Officer & Chief Accounting Officer: Hey, Tom. So on the first one, first of all, relative to the growth in Q3, we think our marketing teams did a great job of bringing traffic with a good balance between strong top line growth, and really strong bottom line growth, so we were happy with the margin performance and the top line performance in Q3. In terms of the difference between the growth rate and room nights and constant currency gross bookings growth versus our constant currency gross profit growth, there's a few things in there. First of all, there is little bit of an acquisition…

Thank you. Our next question is from Brian Fitzgerald with Jefferies. You may begin.

Thanks, guys. I had a couple questions around Instant Book. Can you talk a little bit more maybe about the decision process to move forward there? You mentioned the requirement for prominent branding. How different are the mechanics there versus what you do with KAYAK? And then, at the end of the day, do you kind of view it as it's just another ad format where you can proactively judge the ROI of the channel and you can adjust exposure to that type of format accordingly? I mean, you still own the hotel and the customer relationship, so a little bit about that please? Darren Richard Huston - President, Chief Executive Officer & Director: Yeah, thanks Brian. So we – if you – KAYAK was actually the original player to create an Instant Book path, and frankly speaking it's not a very well-branded path. And before we bought KAYAK, we had also decided not to participate in that. We participated in it, and then there was a proliferation of these concepts in various meta partners. I'd say TripAdvisor probably the one taking it on most. So we've stayed out of it mostly as we watched the performance of KAYAK, but we wanted to make sure we had an any future Instant Book partnership with first of all great branding, and secondly, the ability to market to the guests that book on our platform. And over the course of over 12 months, we finally came to an agreement where we think we can achieve that. We also believe we're going to get good ROIs off of the TripAssist platform. We think the branding's going to help us, and we also believe that we've protected our content. We don't want our content being used to help other people book. We want our content to be used to help us book, and I think working with TripAdvisor we came to a nice – a good compromise agreement that allows us to achieve that. It also helps TripAdvisor in their strategic move to try to do more on mobile and other kind of small-screen real estate. So overall, we're really positive. As I said, you guys will be able to see it very soon. We're beginning to test on small samples this week with TripAdvisor, and I'm now quite excited that this will be a nice new addition to places that we can get branded bookings from across our various marketing partners.

Great. Thanks, Darren.

Thank you. Our next question is from Eric Sheridan with UBS. You may begin.

So maybe just following up on that, wondering long-term, when you think about these platforms for sort of book on Trip or book on Google, how do you think about the ROI developing long-term on these platforms, and the interplay between auction and commission rates on those platforms? And then maybe just one quick follow-up on health of consumer. Curious if there were any comments you had around the health of the consumer travel trends you saw coming out of the summer season, especially in Europe? Thanks. Darren Richard Huston - President, Chief Executive Officer & Director: Yeah, okay. So let me take both those questions. We are on margin ROI agnostic across various sources of demand. Of course, there are types of demand that work well for us where we will get really healthy customer repeat, that we like the way that the channel's working that we might lean-in a little bit more. And then other channels where we may be getting customers, but we don't like the nature of the customer or they're not repeating in the right fashion, then we'll lean back from that. So we're agnostic in that sense. I think the TripAssist execution is one that we would like to use across other partners. We will make some changes on KAYAK. We have been working very closely with Google, with trivago, other players. And I don't think it's going to enhance our lives. I don't think it will bleed away from our lives, and we're going to have to watch as these things come together and we really get used to the consumer behavior, and whether or not this is a channel we will lean-in to or lean back from. But overall, we always try to earn money on every transaction regardless, and this will…

Thanks.

Thank you. Our next question is from Naved Khan with Cantor Fitzgerald. You may begin.

Yeah, thanks. Darren, how do you balance sort of the visibility you have on the TripAdvisor meta auction versus now your participation in Instant Book? How do you sort of decide where do you want to play more? And then in terms of just the cost side of the integration, are there any one-time costs that are baked into your 4Q guidance for the Instant Book? Darren Richard Huston - President, Chief Executive Officer & Director: Okay. Your first question, I didn't - Daniel J. Finnegan - Chief Financial Officer & Chief Accounting Officer: Balance between meta and Instant Book. Darren Richard Huston - President, Chief Executive Officer & Director: Oh, balance between meta and Instant Book. Okay. Well first, I'll take the second question first, there aren't really any costs. There wasn't a lot of dev work that had to happen to make the Instant Book path work. We've been working with TripAdvisor very closely, and already have established fees and things like that. So that was not a big cost on our side. Yeah, certainly, when we look at all of our sources of paid demand, we're always looking for the right balance. We tend to prefer blue links, I call them, versus paths where somebody else tries to build a booking path, probably because we think our booking path is the absolute best in the industry, or an agency model. So we use the credit card as a form of guarantee, not a form of payment. These are all reasons why these Instant Book paths at times have not been as strong of opportunities for us as blue links or meta links. On the other hand, there are some benefits in terms of the branding and the marketing and also the connectedness that we will be showing with TripAdvisor, because when they pick you to do their Instant Book, they're basically saying, hey, here's a great preferred partner to do business with. And that positive shine on us as well as TripAdvisor, I think, is something that we're going to have to see how that works over time. And I'm actually kind of excited to see that, because in a way, we never really – in many of our other channels we don't get that kind of endorsement. But in an Instant Book path, that is one of the positives, given that it's a branded path, that we're looking forward to. And you guys will be able to see again very soon what that looks like, and you'll get a better sense of what I'm referring to.

Okay. Thanks. And then quickly on the – I think you mentioned a new tech stack for priceline.com which you're launching. So can you elaborate a little bit on that and what do you expect to see there? Darren Richard Huston - President, Chief Executive Officer & Director: Yeah, priceline has been an outstanding business for many, many years. But we found that the tech stack wasn't near as flexible and fungible as for instance, the tech stacks we have at Booking.com or even rentalcars.com. So now that we're getting into that, it'll be – we've already had an experimentation framework, but it is just a much more flexible stack to allow for much more rapid philosophy in innovation, and we hope in Q1 that will be fully in place. Paul who's leading that business has decided to put the focus there. Forever, we had sort of two stacks running in parallel and now we'll be able to go onto a single stack that'll also increase innovation speed so people aren't creating code for two different stacks of software. It's not the funnest thing to go through, but we're seeing the light at the end of the tunnel, and we expect hopefully to get some good innovation velocity out of that, and certainly the team at priceline.com is very excited to get through this process.

Thank you. Darren Richard Huston - President, Chief Executive Officer & Director: Thank you.

Thank you. Our next question is from Mark Mahaney with RBC Capital Markets. You may begin.

Two questions please. First has to do with consumer fees. Darren, you mentioned earlier that you're not charging consumer fees, do you? And there's two, you know, Expedia, HomeAway talk about doing that with the HomeAway asset, and obviously Airbnb is doing that. Is it something that your research indicates is important to consumers? And is that why you're sticking with it or do you think that that's something you could toggle on at some point? And then could you also secondly just talk about Facebook as a marketing channel and any new thoughts you've had on that? Thank you. Darren Richard Huston - President, Chief Executive Officer & Director: Okay. Thanks, Mark. Basically, in vacation rentals, we're building a very different product than what Airbnb has, or what HomeAway has. And our whole business is based on no fees for consumer. So it wasn't a strategic move. It's just a reflection of the way that our business works, and we charge our accommodation partners between 12% and 15% commission, so that's where the take rate is. When you're in a classified ad business, it's more difficult to get that kind of take rate from the accommodation partner, so many players will try to also charge a fee or increase fees to consumers. We certainly believe that having a no-fee product drives conversion for us, but we obviously have the benefit of having a digital calendar and an instantly verifiable booking, even the online bookings on HomeAway are on request – or on Airbnb, are on request, so the whole process where the consumers are still deciding, and the properties still deciding whether they want the product that they booked. So no, we feel really good about our positioning. It's more just reflective of the way our entire business works…

Thank you, Darren. Darren Richard Huston - President, Chief Executive Officer & Director: Thanks, Mark.

Thank you. Our next question is from Ken Sena with Evercore ISI. You may begin.

Hi. Thanks. On the U.S. bookings metric, I understand the limitations that you cite, but are there modifications to the metric that you considered before deciding to discontinue it? And maybe, as we look forward, maybe any substitute metrics that we might be able to have to kind of give us a sense of your traction in the U.S. more on the bookings basis? Thanks. Darren Richard Huston - President, Chief Executive Officer & Director: Hey, Ken. We could consider at some point giving some stats on the U.S. in terms of our total hotel business. We haven't until now, but as we've have given milestones like on the size of our European business, or our Latin America business. So I wouldn't preclude the possibility of us doing that at some point. We've opted not to do that as an ongoing metric. We split our business now based upon where the brand is located, and we've stuck with that for a long time, and we'll stick with that for the future. But we will consider that at some point in the future.

Okay. Thank you. Darren Richard Huston - President, Chief Executive Officer & Director: You're welcome.

Thank you. Our next question is from Lloyd Walmsley with Deutsche Bank. You may begin.

Thanks. Going back to just online advertising, it looked like that as a percent of gross profit was only slightly higher than a year ago. How much of that was just more mature like, markets like Europe increasing the mix versus better efficiencies within those geographical regions? Darren Richard Huston - President, Chief Executive Officer & Director: Dan, you want to take that? Daniel J. Finnegan - Chief Financial Officer & Chief Accounting Officer: Yeah, I won't parse our ROIs by region for you, Lloyd, but I'd just say we were very pleased with the performance that the marketing group delivered. We're pleased with top line growth, we're pleased with the improvement in ROIs that we saw in the quarter, and then that metric also benefited by some of that flow-through of bookings that we had made in prior quarters, incurred the advertising then, and recognized the gross profit as our customers traveled in Q3. So it was a good performance. I wouldn't split it by region for you.

Yeah, okay. And then, if I can ask another on BookingSuite, can you just give us any sense for how big that might be right now in terms of the partnerships? And then, how you're kind of going to market with that? Are you leveraging your existing sales force, and kind of what are response rates like from hotels there? Darren Richard Huston - President, Chief Executive Officer & Director: Okay, Lloyd. Yeah, overall our BookingSuite is going very well. For competitive reasons, we don't want to talk about how many contracts or anything, but we have multiples more than when buuteeq was an independent business. The way it's basically working is our account managers will introduce the concept of websites and other technical solutions to partners and then ask them would you like to hear more. And then we have a secondary team that will then speak with the partner about the offerings that we have. We started out with websites. We've now bought a company called PriceMatch out of France, so we're developing business intelligence tools. The ultimate goal of BookingSuite is to have a whole suite of products that meets the needs of accommodation partners in the cloud, and that's what we are building towards. So a lot of innovation happening in the business. I am very happy with where it is. It's not a big contributor to EBITDA or anything at this point, but it's on a good pace, and certainly ahead of where I thought it would have been at this point. It's really strategic for us. It's an area that getting into the software business scenario we can build close relationships with our partners and more to come.

Thanks.

Thank you. Our next question is from Ron Josey with JMP Securities. You may begin.

Great. Thanks for taking the question. I wanted to switch topics and maybe ask about business travel. I think it's now 20% of bookings. Is it something that's ramped relatively recently for you all, and have you placed an emphasis on this before? I'm just wondering, 20% number seems very high. And then also wanted to ask about loyalty rates of these travelers, please, meaning, do you see them coming back in higher amounts for repeat usage? Thanks. Darren Richard Huston - President, Chief Executive Officer & Director: Well, thanks Ron. Yeah, we've – it's funny, before we launched Booking.com for Business, we had never really specifically targeted the business traveler, but we had a pretty good sense that business people were starting to show up to the platform. You see them using their business email address is the one indication we have. So starting about two years ago, we began to say, okay, how do we address the business traveler better? As you'll notice on our website, you don't even have to sign up for the tool, but if you say you're traveling on business, we'll highlight the hotels that are great for business people, we'll show you the review score just from business people, we'll show you amenities that business people care about, things like free Wi-Fi, breakfast, fitness facilities, things like that. That was the beginning of it. And then we started to see that people who marked their booking as business booking was growing faster than even leisure bookers. So then we built a really lightweight tool that helped the systems book on behalf of business bookers, help them track budgets, things like that. And then we saw another pretty good boost to the business. So yeah, it's one out of five today. There's various people who think that it should be, I would say, one out of two sometime in the long-term, because business is basically half of accommodations around the world. There's different reports. It might be 40%, might be 60%, but it's a wide variance. So we're going to continue to build in this space, but we've seen really positive traction. The benefits of business bookings to us are, generally they smooth out seasonality, which is nice; don't cancel as much, generally higher ADR than leisure bookings. So is a lot of positive benefits to business bookers, but I always remind people of is, every business person is a leisure traveler, not every leisure traveler is a business person. But when you do both kinds of travel, and if you're able to do them on one platform, there are a lot of benefits to that, and we of course give the tool for free, we give customer service for free, which is not the case with a lot of the travel management companies who support businesses today. So step-by-step, we're optimizing the product and we're quite optimistic about it for the future.

Great. Thank you.

Thank you. Our next question is from Mike Olson with Piper Jaffray. You may begin. Mike J. Olson - Piper Jaffray & Co (Broker): Hey, good morning. I have two questions. First, is there any detail that you could give us to quantify the impact that the bombing in Thailand had on Agoda during the quarter, and any impact that has on your guidance? And then secondly, when you talked about adding hotels in China, is that in partnership with Ctrip or are you adding that inventory independently from Ctrip? Essentially, what I'm wondering is if you're doing much or anything in China outside of your partnership with Ctrip at this point? Thanks. Darren Richard Huston - President, Chief Executive Officer & Director: Okay, Mike. I'll get Dan to take the first one. Daniel J. Finnegan - Chief Financial Officer & Chief Accounting Officer: Yeah. Darren Richard Huston - President, Chief Executive Officer & Director: I'll take the second. Daniel J. Finnegan - Chief Financial Officer & Chief Accounting Officer: Yeah Mike, I won't quantify for you specifically, but I will say it's a significant impact for Agoda, because it's by far their largest market as a destination. Definitely noticeable principally for our Agoda business. Darren Richard Huston - President, Chief Executive Officer & Director: Yeah, and to the increase of properties in China, it's good you asked, actually the vast majority of them were built by Booking.com. They weren't acquired through the Ctrip partnership. We do have let's call it a small handful of hotels that we have with the Ctrip partnership, we're still optimizing; we had a lot of issues connecting systems, a lot of issues with the high bar that Booking.com has on content, and we want to make sure that the product in China is working absolutely in an outstanding fashion, and the Ctrip team has been responding to that. We haven't given up on it, but the numbers you're seeing have been largely self-built by Booking with a few handfuls. The other side of the commercial partnership with Ctrip is our product on their site, and that's gone very well and continues to grow. So I appreciate you asking, but if we do unlock on Ctrip, it will provide an extra boost to our property count, but right now, this is organic efforts going on at Booking. Mike J. Olson - Piper Jaffray & Co (Broker): Thank you. Darren Richard Huston - President, Chief Executive Officer & Director: Thanks.

Thank you. Our next question is from Justin Post with Bank of America Merrill Lynch. You may begin.

Thank you. I have a couple of questions. It looks like the booking upside you had this quarter versus prior quarters was a little bit less, were there any changes in trends in the quarter that you'd like to call out versus say 2Q? And then the TripAdvisor partnership, after not being partners for a while, is very interesting. Any concerns you might have on kind of helping build a competitive platform over time, and just how are you are thinking about that? Thank you. Daniel J. Finnegan - Chief Financial Officer & Chief Accounting Officer: Hey, Justin. So I'll take the first one. No change, nothing that I'd call out in terms of any kind of change in our approach. I think it was a really spectacular performance in the first couple of quarters for the business to accelerate, and if anything, maybe that's more the outlier than seeing a little bit of deceleration in Q3. If you look at the business over kind of the balance of the three quarters I think it's just very solid growth, and that's pretty much what we've seen over a number of years now is business that's been very resilient, growing at very high rates. Every now and then there will be a step down maybe a little bit bigger than what we're anticipating, and then there's other points there will be a quarter where we accelerate. But overall, we're pleased with the performance year-to-date and in the third quarter specifically. Darren Richard Huston - President, Chief Executive Officer & Director: Yeah, and on the TripAdvisor thing, I think I've largely answered this; obviously, it's a very tricky area and what we would never want to do is be a dumb pipe to somebody else's brand and we would never want to give our content away to somebody to book other people's bookings. And you'll see that we've done neither of those, so I feel great about where we came out at, and time will tell. Of course, every paid marketing partner we have, starting with Google all the way down, there's always that threat and you have to make a really strong balance between the challenge you're participating and how you're participating relative to the ROIs, and I think we do a really good job of that every single day, and I believe time will tell. I also by the way think it's great for TripAdvisor, and that's kind of the nature of partnership is they've got something that they need to achieve, we've got something we need to achieve and there was opportunity to come up with an answer and that's what we did, so let's see. I mean the best thing to do in these situations is find a good way to get in and begin experimenting and optimizing, and ultimately we both win if we can find a way to get a lot more bookings.

Okay. Thanks. Maybe if I could ask a follow-up. If TripAdvisor goes well for you, could it be actually material for your overall bookings at all? Daniel J. Finnegan - Chief Financial Officer & Chief Accounting Officer: We didn't build any assumption in, Justin. I think it's premature to make a call in that fashion. We'll see what the trade-off is between meta and Instant Book, and how much traction it gets, and then we'll report back to you after we have more information. Darren Richard Huston - President, Chief Executive Officer & Director: Yeah, we have a very – I guess it's worth saying, we're a very large business and we have a lot of varied channels and some are coming and going at all times. As Dan said, there's a whole cannibalization impact we don't know. A lot of that's going to be up to TripAdvisor as the media owner, how much do they expose of this product versus the other product, what's the balance that the customer wants to go to, do they want to go down the meta path, do they want to go down the Assist path, lots to learn. TripAdvisor's obviously a big player for us, but they're still overall a small percentage of our overall business. So it would have to be quite a significant incremental uptick to have a material impact on our results.

Great. Thanks. Thank you. I appreciate it.

Thank you. Our next question is from Steven Zhu with Credit Suisse. You may begin. Steven Zhu - Credit Suisse (Hong Kong) Ltd.: Okay. Thanks. So Darren, my understanding is that Agoda is a merchant-based platform, and now it seems like you're integrating Booking.com's agency inventory there. So is agency the direction you want to take with Agoda in the future, or are you leaving the option open to the consumer? Thanks. Darren Richard Huston - President, Chief Executive Officer & Director: Yeah thanks, Steven. I would say more leaving the option. If you look at priceline.com, it's a real mix of merchant and agency and there's ways to merchandise the product. We've always had Booking.com on Agoda, although it was pretty varied, and only recently did we really up Booking.com's presence on Agoda, and now there's a really nice mix. For the customer, often it comes down to, well, do I pay now or do I pay later, how cancellable is the product, things like that, which can be messaged in the path. They don't necessarily see it as an agency versus a merchant product. It's just a different way to experience the accommodation from a payment standpoint. Steven Zhu - Credit Suisse (Hong Kong) Ltd.: Thank you.

Thank you. Our next question is from Heath Terry with Goldman Sachs. Heath Patrick Terry - Goldman Sachs & Co.: Great. Thanks. I wanted to dig a little bit deeper into the math behind the advertising deleverage that you talked to, and just get a bit of an update on the mix there in terms of what you're seeing that's driving that, whether it's deleverage within specific channels, sort of a same-store sales basis, or it's just a mix shift to less efficient channels as you've sort of maxed out the traffic that you can get through more efficient channels like Google? And then Dan, I do want to come back on this U.S. bookings question, and just get a sense, I know you've talked about maybe some incremental disclosures, but as we try and analyze the business going forward, and obviously, the trends in the U.S. or the trends as you guys pointed out in your comments, the trends in individual geographic regions start to matter a lot more. Is there a sense or any sort of guidance you want to give us in terms of the best way to look at that geographic exposure in the business since we're not going to be getting the kind of disclosure that you've given in the past? Daniel J. Finnegan - Chief Financial Officer & Chief Accounting Officer: Sure, Heath. So I'll take both of those. On ad deleverage, what are you talking about specifically? In the guidance, or in the Q3? Heath Patrick Terry - Goldman Sachs & Co.: More in the guidance, but just sort of general trends either way. But the comments that you made earlier in the call during the prepared remarks on the ad deleverage implied for Q4; mainly just looking to get a better sense…

Thank you. Our last question is from Kevin Kopelman with Cowen & Company. You may begin. Kevin Kopelman - Cowen & Co. LLC: Hi. Thanks a lot. I just had a question on your vacation rental business. Can you give us an update there? Are you seeing any increase in competitiveness from Airbnb? And can you talk about your strategy for the U.S. in that business, because it seems like you only have a few listings there today? Thanks. Darren Richard Huston - President, Chief Executive Officer & Director: Yeah, thanks, Kevin. Well, first of all, it's always worth reminding people this is a very large market, so it's a competition you don't necessarily see on a day-to-day basis, and most of this market is booked in quite an inefficient way. But when we look at what we call vacation rentals which is our self-cater product, we have an inventory of 1.8 million bookable rooms. That's in the ballpark of what HomeAway and what Airbnb have. We may be booking different kinds of properties. HomeAway is actually quite focused on vacation homes. We're quite heavy in in-city apartments and things like that. We're also indexed very heavily in Europe. HomeAway indexes and Airbnb quite heavily in the United States. But we feel really good about the scale of our business, its growth. The nature of our booker may be different. There may be somebody who's looking for any form of accommodation versus a vacation home specifically. And this is a really critical market for us in the future. When you think about where we've come from, we came from the hotel space. We've now built a massive amount of inventory and multi-room unique accommodations that one wouldn't technically call a hotel, and now we're adding vacation homes, so that's the…