The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from GlobeNewswire (a Nasdaq OMX company)

OpenTable, Inc. Announces First Quarter Financial Results

Tuesday, May 03, 2011

OpenTable, Inc. Announces First Quarter Financial Results13:31 EDT Tuesday, May 03, 2011-- Increases Revenue by 59% to $33.7 Million ---- Grows Installed Restaurants by 62% and Seated Diners by 55% Over Q1 2010 ---- Achieves EPS of $0.17 and Non-GAAP EPS of $0.28 -- SAN FRANCISCO, May 3, 2011 (GLOBE NEWSWIRE) -- 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, 2011. OpenTable reported consolidated net revenues for Q1 2011 of $33.7 million, a 59% increase over Q1 2010. Consolidated net income for Q1 2011 was $4.2 million, or $0.17 per diluted share. Non-GAAP consolidated net income for Q1 2011, which excludes tax-affected stock-based compensation expense and tax-affected amortization of acquired intangibles, was $6.8 million, or $0.28 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. International operations include the operating results of toptable.com, a recent acquisition which closed on October 1, 2010.North America Results Installed restaurant base as of March 31, 2011, totaled 14,522, a 26% increase over March 31, 2010. Seated diners totaled 20.9 million, a 48% increase over Q1 2010. Revenues totaled $28.8 million, a 44% increase over Q1 2010. Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and stock-based compensation) totaled $13.8 million, or 48% of North America revenues, a 69% increase over Q1 2010.International Results Installed restaurant base as of March 31, 2011, totaled 6,692, a 308% increase over March 31, 2010. Seated diners totaled 1.6 million, a 281% increase over Q1 2010.  Revenues totaled $4.9 million, a 302% increase over Q1 2010.  Non-GAAP adjusted EBITDA totaled a loss of $1.5 million compared to a loss of $1.3 million in Q1 2010.  In Q1 2011, toptable.com contributed approximately 704,000 seated diners, $3.0 million of revenue and $0.2 million of non-GAAP adjusted EBITDA to the Company's results. "Our first quarter results marked a solid start to the year for OpenTable," said Jeff Jordan, CEO of OpenTable.  "We're pleased with our performance and momentum in the business globally.  And, we're excited about our progress across a variety of initiatives designed to help our restaurant partners grow their business."Q1 2011 Consolidated Financial and Operating Summary - Installed restaurant base as of March 31, 2011, totaled 21,214, a 62% increase over March 31, 2010. - Seated diners totaled 22.4 million, a 55% increase over Q1 2010. - Total revenues were $33.7 million in Q1 2011, up 59% over Q1 2010 revenues of $21.3 million.  Subscription revenues were $12.0 million in Q1 2011, up 20% over Q1 2010 revenues of $10.1 million. Subscription revenues increased as a result of the increase in installed restaurants using our Electronic Reservation Book solution.  Reservation revenues were $17.6 million in Q1 2011, up 75% over Q1 2010 revenues of $10.0 million. Reservation revenues primarily increased as a result of the increase in seated diners. In Q1 2011, toptable.com contributed $2.1 million to reservation revenues. Installation and other revenues were $4.1 million in Q1 2011, up 251% over Q1 2010 revenues of $1.2 million. Installation and other revenues increased primarily as a result of an increase in revenue from other product offerings, including advertising sales, web service licensing, featured private dining listings and third-party restaurant coupon sales. In Q1 2011, toptable.com contributed $0.9 million to installation and other revenues. - Total operating expenses were $27.2 million in Q1 2011, up 56% over Q1 2010 operating expenses of $17.5 million. The increase was primarily driven by a 50% increase in headcount including those from the acquisition of toptable.com, the addition of other toptable.com expenses, an increase in amortization of acquired intangibles and an increase in stock-based compensation. - Total operating income was $6.5 million in Q1 2011 compared to $3.8 million in Q1 2010.  Non-GAAP consolidated operating income, excluding stock-based compensation expense and amortization of acquired intangibles, was $10.5 million in Q1 2011 compared to $5.4 million in Q1 2010.  - The Q1 2011 GAAP income tax expense was $2.4 million, or a 36% tax rate.  - Consolidated net income was $4.2 million, or $0.17 per diluted share, in Q1 2011 compared to $2.5 million, or $0.11 per diluted share, in Q1 2010.  Non-GAAP consolidated net income, which excludes tax-affected stock-based compensation expense and tax-affected amortization of acquired intangibles, was $6.8 million, or $0.28 per diluted share, in Q1 2011 compared to $3.4 million, or $0.15 per diluted share, in Q1 2010.   - As of March 31, 2011, OpenTable had cash and cash equivalents and short-term investments of $55.4 million.  "The growth in our key metrics drove strong financial performance in the first quarter," said Matt Roberts, CFO of OpenTable.  "The business continues to deliver significant operating margins even as we invest for long-term growth."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, 2011, 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 Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures 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, stock-based compensation and acquisition-related expenses.   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, acquisition-related expenses 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; it does not charge any fees to diners for reservations. The Company's revenues primarily include installation fees for the Electronic Reservation Book (including training), monthly subscription fees and a fee for each restaurant guest seated through online reservations. The financial results and other information in this press release reflect the acquisition of toptable.com, as applicable.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 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, 2010 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 20,000 restaurant customers, and, since its inception in 1998, has seated more than 200 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.       The OpenTable, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6474 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,  20112010ASSETS           CURRENT ASSETS:     Cash and cash equivalents  $ 37,876,000   $ 33,444,000  Short-term investments  17,496,000   9,080,000  Accounts receivable, net   14,705,000   13,292,000  Prepaid expenses and other current assets  2,761,000   2,919,000  Deferred tax asset  7,931,000   7,882,000  Restricted cash  173,000   167,000        Total current assets  80,942,000   66,784,000        Property, equipment and software, net  14,885,000   14,612,000  Goodwill  43,721,000   42,347,000  Intangibles, net  19,961,000   20,248,000  Deferred tax asset  5,541,000   5,539,000  Other assets  388,000   366,000        TOTAL ASSETS  $ 165,438,000   $ 149,896,000       LIABILITIES AND STOCKHOLDERS' EQUITY           CURRENT LIABILITIES:     Accounts payable and accrued expenses  $ 7,474,000   $ 7,666,000  Accrued compensation  4,644,000   4,189,000  Deferred revenue  2,066,000   1,852,000  Dining rewards payable  16,569,000   15,398,000  Total current liabilities  30,753,000   29,105,000        Deferred revenue — non-current  2,607,000   2,802,000  Deferred tax liability  5,694,000   5,644,000  Income tax liability  10,718,000   8,577,000  Other long-term liabilities  1,161,000   1,623,000        Total liabilities  50,933,000   47,751,000              STOCKHOLDERS' EQUITY:      Common stock  2,000   2,000   Additional paid-in capital  149,383,000   143,292,000   Treasury stock  (647,000)  (647,000)  Accumulated other comprehensive income (loss)  779,000   (1,305,000)  Accumulated deficit  (35,012,000)  (39,197,000)        Total stockholders' equity  114,505,000   102,145,000        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 165,438,000   $ 149,896,000     OPENTABLE, INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS        Three Months Ended  March 31,  20112010   (In thousands, except per share amounts)       REVENUES  $ 33,707  $ 21,251       COSTS AND EXPENSES:     Operations and support (1)  9,472  6,002 Sales and marketing (1)  7,812  4,740 Technology (1)  4,047  2,720 General and administrative (1)  5,862  4,023       Total costs and expenses  27,193  17,485       Income from operations  6,514  3,766 Other income, net  21  69       Income before taxes  6,535  3,835 Income tax expense   2,350  1,311       NET INCOME  $ 4,185  $ 2,524       Net income per share:     Basic  $ 0.18   $ 0.11  Diluted  $ 0.17   $ 0.11        Weighted average shares outstanding:     Basic  23,332  22,199 Diluted  24,530  23,537             (1) Stock-based compensation included in above line items:     Operations and support  $ 412  $ 187 Sales and marketing  510  394 Technology  451  283 General and administrative  1,631  670    $ 3,004  $ 1,534      Other Operational Data:     Installed restaurants (at period end):     North America  14,522  11,487 International  6,692  1,642 Total  21,214  13,129       Seated diners (in thousands):     North America  20,870  14,093 International  1,553  408 Total  22,423  14,501       Headcount (at period end):     North America  358  275 International  156  68 Total  514  343      Additional Financial Data:     Revenues:     North America     Subscription  $ 10,621  $ 9,091 Reservation  14,976  9,798 Installation and other  3,177  1,135 Total North America Revenues  $ 28,774  $ 20,024  International     Subscription  $ 1,397  $ 960 Reservation  2,631  239 Installation and other  905  28 Total International Revenues  4,933  1,227 Total Revenues  $ 33,707  $ 21,251       Income (loss) from operations:     North America  $ 10,085  $ 5,293 International  (3,571)  (1,527) Total  $ 6,514  $ 3,766       Depreciation and amortization:     North America  $ 1,695  $ 1,403 International  1,136  138 Total  $ 2,831  $ 1,541       Stock-based compensation:     North America  $ 2,019  $ 1,479 International  985  55 Total  $ 3,004  $ 1,534    OPENTABLE, INC.RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS              Three Months Ended  March 31,  20112010   (In thousands, except per share amounts)      Non-GAAP consolidated net income per share:     GAAP net income "as reported"  $ 4,185  $ 2,524 Add back: stock-based compensation expense  3,004  1,534 Income tax effect of stock-based compensation  (1,126)  (673) Add back: amortization of acquired intangibles  988  74 Income tax effect of amortization of intangibles  (285)  (30)       NON-GAAP CONSOLIDATED NET INCOME   $ 6,766  $ 3,429       Non-GAAP diluted net income per share  $ 0.28  $ 0.15       Weighted average diluted shares outstanding  24,530  23,537      Non-GAAP consolidated operating income:     GAAP income from operations "as reported"  $ 6,514  $ 3,766 Add back: stock-based compensation expense  3,004  1,534 Add back: amortization of acquired intangibles  988  74       NON-GAAP OPERATING INCOME  $ 10,506  $ 5,374      North America Adjusted EBITDA:     GAAP operating income "as reported"  $ 10,085  $ 5,293       Adjustments:      Stock-based compensation expense  2,019  1,479  Amortization of acquired intangibles  88  74  Depreciation and other amortization expense  1,607  1,329       North America Adjusted EBITDA  $ 13,799  $ 8,175      International Adjusted EBITDA:     GAAP operating loss "as reported"  $ (3,571)  $ (1,527)       Adjustments:      Stock-based compensation expense  985  55  Amortization of acquired intangibles  900  --   Depreciation and other amortization expense  236  138       International Adjusted EBITDA  $ (1,450)  $ (1,334)CONTACT: Investor Relations: 415-344-6520 investors@opentable.com Media Relations Contact: 415-344-4275 pr@opentable.com