Gross margin for the 1st quarter 2001 was a record-high 16%, compared to 15.4% in the 4th quarter 2000. Gross profit rose to $43.1 million, a 23% increase over 4th quarter 2000. Pro forma net loss for the 1st quarter 2001 was $6.2 million, or $0.03 per share, which represents a 12 cent per share improvement over the 4th quarter 2000. Pro forma net loss is stated before restructuring and special charges, and excludes option payroll taxes, amortization of stock-based compensation charges and loss on sale of stock.
Priceline.com added 891,490 new customers during the 1st quarter, with sequential increases in new customers through each month of the quarter. In total, priceline.com has built a base of nearly 10 million U.S. customers. Repeat business for the 1st quarter 2001 was a record 58%, defined as the number of unique purchase offers coming from repeat customers divided by the number of total unique purchase offers. Repeat and new customer demand accelerated through the 1st quarter 2001.
Earlier this year, priceline.com said it expected 2nd quarter 2001 revenue to increase 10% to 15% over 1st quarter 2001 revenue. Based on 1st quarter 2001 performance and preliminary results in April, the Company re-affirmed those projections today and said that it expects to report its first pro forma operating profit for the 2nd quarter 2001. Pro forma operating profit excludes restructuring charges, option payroll taxes and amortization of stock-based compensation charges.
Priceline.com also reported that, in the 1st quarter 2001, it sold a combined 2,115,775 units of travel products, which consist of airline tickets, hotel room nights and rental car days. By comparison, priceline.com sold 1,698,941 units of travel products in the 4th quarter 2000.
Priceline.com was successful in achieving strong sequential improvements in key financial metrics, said priceline.com’s President and CEO Daniel H. Schulman. We are also delighted that our brand continues to rebound, as evidenced by increasing numbers of new and repeat customers throughout the quarter. These achievements reflect a concentrated and ongoing company-wide effort to execute on what we have publicly referred to as our 6-point turnaround plan. In each area of the plan, we believe we have achieved tangible results and demonstrable improvements in the 1st quarter.
Looking forward, Mr. Schulman said, While we are still in a turnaround mode, we are encouraged by the fact that our key customer and financial metrics grew stronger as the 1st quarter went on. Based on our preliminary results in April, we are once again affirming that we expect our first pro forma operating profit in the 2nd quarter 2001. Priceline.com offers real value to our customers and suppliers. That is why we feel confident about our long-term role in the Internet space.
