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OpenTable, Inc. Announces First Quarter Financial Results
May 01, 2012 (04:05 PM EDT)


-- Increases Revenue by 17% to $39.4 Million --

-- Grows Installed Restaurants by 22% and Seated Diners by 34% over Q1 2011 --

-- Achieves EPS of $0.21 and Non-GAAP EPS of $0.40 --

SAN FRANCISCO, May 1, 2012 /PRNewswire/ -- OpenTable, Inc. (NASDAQ: OPEN), a leading provider of free, real-time online restaurant reservations for diners and reservation and guest management solutions for restaurants, today reported its financial results for the first quarter ended March 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20110606/MM07085LOGO )

OpenTable reported consolidated net revenues for Q1 2012 of $39.4 million, a 17% increase over Q1 2011.  Consolidated net income for Q1 2012 was $4.8 million, or $0.21 per diluted share.  Non-GAAP consolidated net income for Q1 2012, which excludes tax-affected stock-based compensation expense and tax-affected amortization of acquired intangibles, was $9.2 million, or $0.40 per diluted share. 

OpenTable provides operating results by geography as the Company is at different stages of development in its North America and International operations. 

North America Results

  • Installed restaurant base as of March 31, 2012, totaled 17,753, a 22% increase over March 31, 2011.
  • Seated diners totaled 27.7 million, a 33% increase over Q1 2011.
  • Revenues totaled $33.7 million, a 17% increase over Q1 2011. 
  • Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and stock-based compensation) totaled $17.1 million, or 51% of North America revenues, a 24% increase over Q1 2011.

International Results

  • Installed restaurant base as of March 31, 2012, totaled 8,091, a 21% increase over March 31, 2011.
  • Seated diners totaled 2.3 million, a 45% increase over Q1 2011. 
  • Revenues totaled $5.6 million, a 14% increase over Q1 2011. 
  • Non-GAAP adjusted EBITDA totaled a loss of $0.6 million compared to a loss of $1.5 million in Q1 2011. 

"We're focusing our efforts in areas that we believe position the business to realize the long-term opportunity in both our North America and International segments," said Matt Roberts, President and CEO of OpenTable.  "In our International segment, we're pleased that the final phase of integrating OpenTable technology into toptable – our consumer destination site in the UK – is on track for completion by the end of June and that the value of the combined solution is resonating with existing and prospective restaurant customers." 

Q1 2012 Consolidated Financial and Operating Summary

  • Installed restaurant base as of March 31, 2012, totaled 25,844, a 22% increase over March 31, 2011.
  • Seated diners totaled 30.0 million, a 34% increase over Q1 2011.
  • Total revenues were $39.4 million in Q1 2012, up 17% over Q1 2011 revenues of $33.7 million
    • Reservation revenues were $22.3 million in Q1 2012, up 27% over Q1 2011 revenues of $17.6 million.  Reservation revenues primarily increased as a result of the increase in seated diners. 
    • Subscription revenues were $13.5 million in Q1 2012, up 13% over Q1 2011 revenues of $12.0 million.  Subscription revenues primarily increased as a result of the increase in installed restaurants using our Electronic Reservation Book solution. 
    • Other revenues were $3.5 million in Q1 2012, down 14% over Q1 2011 revenues of $4.1 million.  The decrease is primarily the result of a decrease in revenue from third-party restaurant coupon sales, partially offset by an increase in advertising revenues and featured private dining sales. 
  • Total operating expenses were $32.0 million in Q1 2012, up 18% over Q1 2011 operating expenses of $27.2 million.  The increase was primarily driven by an increase in stock based compensation and an 8% increase in headcount.
  • Total operating income was $7.4 million in Q1 2012 compared to $6.5 million in Q1 2011.  Non-GAAP consolidated operating income, excluding stock-based compensation expense and amortization of acquired intangibles was $14.3 million in Q1 2012 compared to $10.5 million in Q1 2011. 
  • The Q1 2012 GAAP income tax expense was $2.6 million, or a 35% tax rate. 
  • Consolidated net income was $4.8 million, or $0.21 per diluted share, in Q1 2012 compared to $4.2 million, or $0.17 per diluted share, in Q1 2011.  Non-GAAP consolidated net income, which excludes tax-affected stock-based compensation expense and tax-affected amortization of acquired intangibles, was $9.2 million, or $0.40 per diluted share, in Q1 2012 compared to $6.8 million, or $0.28 per diluted share, in Q1 2011.  
  • As of March 31, 2012, OpenTable had cash and cash equivalents and short-term investments of $57.7 million

"During the first quarter the business continued to deliver solid operating metrics, adjusted EBITDA margins and cash flows even as we invest for the future," said Duncan Robertson, CFO of OpenTable.

Business Outlook

As of today, OpenTable is providing guidance for Q2 2012 and the full year 2012 on revenue, non-GAAP adjusted EBITDA and other consolidated metrics. 

Q2 2012 Guidance:

  • In the North America segment the Company estimates revenue to be in the range of $33.6 million to $34.6 million and non-GAAP adjusted EBITDA to be in the range of $16.8 million to $17.8 million
  • In the International segment the Company estimates revenue to be in the range of $4.9 million to $5.2 million and non-GAAP adjusted EBITDA loss to be in the range of $1.0 million to $1.3 million.
  • On a consolidated basis the Company estimates revenue to be in the range of $38.5 million to $39.8 million, non-GAAP adjusted EBITDA to be in the range of $15.5 million to $16.8 million and non-GAAP EPS to be in the range of $0.36 to $0.39.

Full Year 2012 Guidance:

  • In the North America segment the Company estimates revenue to be in the range of $136 million to $141 million and non-GAAP adjusted EBITDA to be in the range of $68 million to $72.5 million
  • In the International segment the Company estimates revenue to be in the range of $22 million to $23 million and non-GAAP adjusted EBITDA loss to be in the range of $2 million to $3 million.
  • On a consolidated basis the Company estimates revenue to be in the range of $158 million to $164 million, non-GAAP adjusted EBITDA to be in the range of $65 million to $70.5 million and non-GAAP EPS to be in the range of $1.49 to $1.64.

Quarterly Conference Call

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET and will be available through May 31, 2012, at http://investors.opentable.com/events.cfm.  This call may contain forward-looking statements and other material information regarding the Company's financial and operating results.

About Non-GAAP Financial Information

This press release contains certain non-GAAP financial measures.  Tables are provided in the press release that reconcile the non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP).    The reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures in the tables below include all information reasonably available to the Company at the date of this press release and adjustments that the Company can reasonably predict.  Events that could cause the reconciliation to change include, but are not limited, to acquisitions and divestitures of businesses, goodwill and other asset impairments, and sales of available-for-sale debt securities and other investments. 

The non-GAAP financial measures in this press release include non-GAAP consolidated net income and the related per diluted share amounts, non-GAAP consolidated operating income and non-GAAP adjusted EBITDA.  Non-GAAP financial measure adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and stock-based compensation.   Within the Company's reconciliation to non-GAAP diluted net income per share, the impact of undistributed earnings allocated to participating securities has been excluded.

To supplement the Company's consolidated financial statements presented on a GAAP basis, management believes that these non-GAAP measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. Management believes it is useful to exclude stock-based compensation and amortization of acquired intangibles because they do not reflect the underlying performance of the Company's business operations. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results and trends and performance.  Management uses these non-GAAP measures to evaluate the Company's financial results.  The presentation of non-GAAP measures is not meant to be considered in isolation or as a substitute for or superior to financial results determined in accordance with GAAP.

Background Information

The Company reports consolidated operations in U.S. dollars and operates in two geographic segments: North America and International. The North America segment is comprised of all operations in the United States, Canada and Mexico, and the International segment is comprised of all non-North America operations, which includes operations in Europe and Asia. The Company generates substantially all of its revenues from its restaurant customers. The Company's revenues primarily include monthly subscription fees, a fee for each restaurant guest seated through online reservations, and other revenue, including installation fees for the Electronic Reservation Book (including training). 

Forward-Looking Statements

This press release and its attachments contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties.  These forward-looking statements include guidance for Q2 2012 and the full year 2012 and the quotations from management in this press release, as well as any statements regarding the Company's strategic and operational plans.  The Company's actual results may differ materially from those anticipated in these forward-looking statements.  Factors that may contribute to such differences include, among others, the impact of the current economic climate on the Company's business; the Company's ability to maintain an adequate rate of growth; the Company's ability to effectively manage its growth; the Company's ability to attract new restaurant customers; the Company's ability to increase the number of visitors to its website and convert those visitors into diners; the Company's ability to retain existing restaurant customers and diners or encourage repeat reservations; the Company's ability to successfully enter new markets and manage its international expansion; the Company's ability to successfully manage any acquisitions of businesses, solutions or technologies; interruptions in service and any related impact on the Company's reputation; and costs associated with defending intellectual property infringement and other claims.  More information about potential factors that could affect the Company's business and financial results is contained in the Company's annual report on Form 10-K for the year ended December 31, 2011 and the Company's other filings with the SEC.  The Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

About OpenTable, Inc.

OpenTable is a leading provider of free, real-time online restaurant reservations for diners and reservation and guest management solutions for restaurants.  The OpenTable network delivers the convenience of online restaurant reservations to diners and the operational benefits of a computerized reservation book to restaurants.  OpenTable has more than 25,000 restaurant customers, and, since its inception in 1998, has seated more than 325 million diners around the world.  The Company is headquartered in San Francisco, California, and the OpenTable service is available throughout the United States, as well as in Canada, Germany, Japan, Mexico and the United Kingdom.  OpenTable also owns and operates toptable.com, a leading restaurant reservation site in the United Kingdom.      

OpenTable, OpenTable.com, OpenTable logos, toptable.com and other service names are the trademarks of OpenTable, Inc. and/or its affiliates.

 







OPENTABLE, INC.



UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
















March 31,


December 31,




2012


2011



ASSETS












CURRENT ASSETS:






  Cash and cash equivalents

$     44,564,000


$     36,519,000



  Short-term investments

13,165,000


13,411,000



  Accounts receivable, net 

18,821,000


18,795,000



  Prepaid expenses and other current assets

2,736,000


2,708,000



  Deferred tax asset

11,121,000


11,238,000









           Total current assets

90,407,000


82,671,000









Property, equipment and software, net

17,488,000


16,150,000



Goodwill

43,616,000


42,312,000



Intangibles, net

15,962,000


16,403,000



Deferred tax asset

6,909,000


5,466,000



Other assets

788,000


813,000









TOTAL ASSETS

$   175,170,000


$   163,815,000









LIABILITIES AND STOCKHOLDERS' EQUITY












CURRENT LIABILITIES:






  Accounts payable and accrued expenses

$       7,405,000


$       7,004,000



  Accrued compensation

4,757,000


4,518,000



  Deferred revenue

1,908,000


1,752,000



  Dining rewards payable

22,647,000


20,827,000



           Total current liabilities

36,717,000


34,101,000









  Deferred revenue — non-current

2,114,000


2,249,000



  Deferred tax liability

3,867,000


3,915,000



  Income tax liability

13,810,000


13,215,000



  Other long-term liabilities

68,000


108,000









           Total liabilities

56,576,000


53,588,000















STOCKHOLDERS' EQUITY:






  Common stock

2,000


2,000



  Additional paid-in capital

181,803,000


171,465,000



  Treasury stock

(50,673,000)


(41,963,000)



  Accumulated other comprehensive loss

289,000


(1,634,000)



  Accumulated deficit

(12,827,000)


(17,643,000)









           Total stockholders' equity

118,594,000


110,227,000









TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$   175,170,000


$   163,815,000



























 






OPENTABLE, INC.

UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS








Three Months Ended



March 31,



2012


2011



(In thousands, except per share amounts)






REVENUES


$ 39,369


$ 33,707






COSTS AND EXPENSES:





  Operations and support (1)


10,519


9,472

  Sales and marketing (1)


8,860


7,812

  Technology (1)


3,248


4,047

  General and administrative (1)


9,351


5,862






           Total costs and expenses


31,978


27,193






Income from operations


7,391


6,514

Other income, net


17


21






Income before taxes


7,408


6,535

Income tax expense 


2,592


2,350






NET INCOME


$   4,816


$   4,185






Net income per share:





  Basic


$   0.21


$   0.18

  Diluted


$   0.21


$   0.17






Weighted average shares outstanding:





  Basic


22,536


23,332

  Diluted


23,174


24,530











(1) Stock-based compensation included in above line items:





  Operations and support


$          301


$          412

  Sales and marketing


1,381


510

  Technology


522


451

  General and administrative


3,720


1,631



$       5,924


$       3,004






Other Operational Data:





  Installed restaurants (at period end):





    North America


17,753


14,522

    International


8,091


6,692

    Total


25,844


21,214






  Seated diners (in thousands):





    North America


27,716


20,870

    International


2,254


1,553

    Total


29,970


22,423






  Headcount (at period end):





    North America


392


358

    International


164


156

    Total


556


514






Additional Financial Data:





  Revenues:





    North America





Reservation


$ 19,215


$ 14,976

Subscription


11,900


10,621

Other


2,608


3,177

Total North America Revenues


$ 33,723


$ 28,774

    International





Reservation


$   3,113


$   2,631

Subscription


1,639


1,397

Other


894


905

Total International Revenues


5,646


4,933

    Total Revenues


$ 39,369


$ 33,707






  Income (loss) from operations:





    North America


$   9,981


$ 10,085

    International


(2,590)


(3,571)

    Total


$   7,391


$   6,514






  Depreciation and amortization:





    North America


$   1,690


$   1,695

    International


1,487


1,136

    Total


$   3,177


$   2,831






  Stock-based compensation:





    North America


$   5,435


$   2,019

    International


489


985

    Total


$   5,924


$   3,004

  






OPENTABLE, INC.

RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS













Three Months Ended



March 31,



2012


2011



(In thousands, except per share amounts)






Non-GAAP consolidated net income per share:





GAAP net income "as reported"


$  4,816


$  4,185

Add back: stock-based compensation expense


5,924


3,004

Income tax effect of stock-based compensation


(2,280)


(1,126)

Add back: amortization of acquired intangibles


971


988

Income tax effect of amortization of intangibles


(257)


(285)






NON-GAAP CONSOLIDATED NET INCOME 


$  9,174


$  6,766






Non-GAAP diluted net income per share


$    0.40


$    0.28






Weighted average diluted shares outstanding


23,174


24,530






Non-GAAP consolidated operating income:





GAAP income from operations "as reported"


$  7,391


$  6,514

Add back: stock-based compensation expense


5,924


3,004

Add back: amortization of acquired intangibles


971


988






NON-GAAP OPERATING INCOME


$ 14,286


$ 10,506






North America Adjusted EBITDA:





GAAP operating income "as reported"


$  9,981


$ 10,085






Adjustments:





  Stock-based compensation expense


5,435


2,019

  Amortization of acquired intangibles


88


88

  Depreciation and other amortization expense


1,602


1,607






           North America Adjusted EBITDA


$ 17,106


$ 13,799






International Adjusted EBITDA:





GAAP operating loss "as reported"


$ (2,590)


$ (3,571)






Adjustments:





  Stock-based compensation expense


489


985

  Amortization of acquired intangibles


883


900

  Depreciation and other amortization expense


604


236






           International Adjusted EBITDA


$   (614)


$ (1,450)

  










OPENTABLE, INC.

RECONCILIATION OF GAAP TO NON-GAAP FORWARD-LOOKING GUIDANCE





















Forward-Looking Guidance



Three Months Ending


Twelve Months Ending



June 30, 2012


December 31, 2012



Range of Estimate


Range of Estimate



From


To


From


To



(In thousands, except per share amounts)










Non-GAAP consolidated net income per share:









GAAP net income


$  4,446


$  5,252


$ 20,400


$ 23,810

Add back: stock-based compensation expense


5,137


5,137


19,599


19,599

Income tax effect of stock-based compensation


(1,963)


(1,963)


(7,448)


(7,448)

Add back: amortization of acquired intangibles


996


996


3,392


3,392

Income tax effect of amortization of intangibles


(264)


(264)


(899)


(899)










NON-GAAP CONSOLIDATED NET INCOME 


$  8,352


$  9,158


$ 35,044


$ 38,454










Non-GAAP diluted net income per share


$    0.36


$    0.39


$    1.49


$    1.64










Weighted average diluted shares outstanding


23,500


23,500


23,500


23,500










North America Adjusted EBITDA:









GAAP operating income


$ 10,150


$ 11,150


$ 42,060


$ 46,560










Adjustments:









  Stock-based compensation expense


4,667


4,667


17,997


17,997

  Amortization of acquired intangibles


88


88


320


320

  Depreciation and other amortization expense


1,895


1,895


7,623


7,623










           North America Adjusted EBITDA


$ 16,800


$ 17,800


$ 68,000


$ 72,500










International Adjusted EBITDA:









GAAP operating loss


$ (3,004)


$ (2,704)


$ (9,281)


$ (8,281)










Adjustments:









  Stock-based compensation expense


470


470


1,602


1,602

  Amortization of acquired intangibles


908


908


3,072


3,072

  Depreciation and other amortization expense


326


326


1,607


1,607










           International Adjusted EBITDA


$ (1,300)


$ (1,000)


$ (3,000)


$ (2,000)










Consolidated Adjusted EBITDA:









GAAP operating income 


$  7,146


$  8,446


$ 32,779


$ 38,279










Adjustments:









  Stock-based compensation expense


5,137


5,137


19,599


19,599

  Amortization of acquired intangibles


996


996


3,392


3,392

  Depreciation and other amortization expense


2,221


2,221


9,230


9,230










           Consolidated Adjusted EBITDA


$ 15,500


$ 16,800


$ 65,000


$ 70,500

 

SOURCE OpenTable, Inc.