2014

OpenTable, Inc. Announces First Quarter Financial Results -- Increases Revenue by 16% over Q1 2012 to $45.5 Million --

-- Grows Seated Diners by 25% over Q1 2012 --

-- Achieves EPS of $0.30 and Non-GAAP EPS of $0.45 --

SAN FRANCISCO, May 2, 2013 /PRNewswire/ -- OpenTable, Inc. (NASDAQ: OPEN), the world's leading provider of online restaurant reservations, today reported its financial results for the first quarter ended March 31, 2013.

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

OpenTable reported consolidated net revenues for Q1 2013 of $45.5 million, a 16% increase over Q1 2012.  Consolidated net income for Q1 2013 was $7.1 million, or $0.30 per diluted share.  Non-GAAP consolidated net income for Q1 2013, which excludes tax-affected stock-based compensation expense, tax-affected acquisition-related expenses and tax-affected amortization of acquired intangibles, was $10.7 million, or $0.45 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, 2013, totaled 20,128, a 13% increase over March 31, 2012.
  • Seated diners totaled 34.3 million, a 24% increase over Q1 2012.
  • Revenues totaled $39.4 million, a 17% increase over Q1 2012. 
  • Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation and acquisition-related expenses) totaled $19.8 million, or 50% of North America revenues, a 16% increase over Q1 2012.

International Results

  • Installed restaurant base as of March 31, 2013, totaled 7,829.  As previously reported, with the relaunch of the toptable site in Q2 2012, in an anticipated one-time event, we removed restaurants that did not migrate to OpenTable technology from our installed restaurant base.  After adjusting for this one-time event, our installed restaurant base as of March 31, 2013, represented a 38% increase over our installed base of OpenTable technology-enabled restaurants as of March 31, 2012.   
  • Seated diners totaled 3.1 million, a 37% increase over Q1 2012. 
  • Revenues totaled $6.1 million, a 7% increase over Q1 2012.
  • Non-GAAP adjusted EBITDA totaled a loss of $1.7 million compared to a loss of $0.6 million in Q1 2012. 

"We're pleased with seated diner growth during the first quarter in both our North America and International business segments," said Matt Roberts, President and CEO of OpenTable. "More than one third of the 34 million diners we seated in North America during the quarter were attributable to mobile, and we're continuing to optimize our mobile products around the globe to further capitalize on the opportunity."

Q1 2013 Consolidated Financial and Operating Summary

  • Installed restaurant base as of March 31, 2013, totaled 27,957.
  • Seated diners totaled 37.4 million, a 25% increase over Q1 2012.
  • Total revenues were $45.5 million in Q1 2013, up 16% over Q1 2012 revenues of $39.4 million
    • Reservation revenues were $27.1 million in Q1 2013, up 21% over Q1 2012 revenues of $22.3 million.  Reservation revenues primarily increased as a result of the increase in seated diners. 
    • Subscription revenues were $14.7 million in Q1 2013, up 8% over Q1 2012 revenues of $13.5 million.  Subscription revenues primarily increased as a result of the increase in installed restaurants using our Electronic Reservation Book solution. 
    • Other revenues were $3.8 million in Q1 2013, up 7% over Q1 2012 revenues of $3.5 million.  The increase is primarily the result of an increase in revenue from advertising. 
  • Total costs and expenses were $35.6 million in Q1 2013, up 11% over Q1 2012 costs and expenses of $32.0 million.  The increase was driven by increases in marketing expense, facilities expense, and amortized capitalized development.
  • Total operating income was $9.9 million in Q1 2013 compared to $7.4 million in Q1 2012.  Non-GAAP consolidated operating income, excluding stock-based compensation expense, acquisition-related expenses and amortization of acquired intangibles, was $15.5 million in Q1 2013 compared to $14.3 million in Q1 2012. 
  • The Q1 2013 GAAP income tax expense was $2.8 million, or a 28% tax rate. 
  • Consolidated net income was $7.1 million, or $0.30 per diluted share, in Q1 2013 compared to $4.8 million, or $0.21 per diluted share, in Q1 2012.  Non-GAAP consolidated net income, which excludes tax-affected stock-based compensation expense, tax-affected acquisition-related expenses, and tax-affected amortization of acquired intangibles, was $10.7 million, or $0.45 per diluted share, in Q1 2013 compared to $9.2 million, or $0.40 per diluted share, in Q1 2012.  
  • As of March 31, 2013, OpenTable had cash and cash equivalents and short-term investments of $96.6 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 2013 and the full year 2013 on revenue, non-GAAP adjusted EBITDA and other consolidated metrics. Given the magnitude of changes in foreign exchange rates during Q1 2013, the International segment guidance has been updated to reflect current foreign exchange rates.

Q2 2013 Guidance:

  • In the North America segment the Company estimates revenue to be in the range of $39.1 million to $40.0 million and non-GAAP adjusted EBITDA to be in the range of $20.4 million to $21.2 million.   
  • In the International segment the Company estimates revenue to be in the range of $5.8 million to $6.2 million and non-GAAP adjusted EBITDA loss to be in the range of $0.4 million to $0.8 million.
  • On a consolidated basis the Company estimates revenue to be in the range of $44.9 million to $46.2 million, non-GAAP adjusted EBITDA to be in the range of $19.6 million to $20.8 million, GAAP EPS to be in the range of $0.30 to $0.33 and non-GAAP EPS to be in the range of $0.45 to $0.49.

Full Year 2013 Guidance:

  • In the North America segment the Company estimates revenue to be in the range of $159.6 million to $164.0 million and non-GAAP adjusted EBITDA to be in the range of $83.1 million to $86.6 million
  • In the International segment the Company estimates revenue to be in the range of $25.7 million to $26.9 million and non-GAAP adjusted EBITDA loss to be in the range of $0.6 million to $2.2 million.
  • On a consolidated basis the Company estimates revenue to be in the range of $185.3 million to $190.9 million, non-GAAP adjusted EBITDA to be in the range of $80.9 million to $86.0 million, GAAP EPS to be in the range of $1.33 and $1.47 and non-GAAP EPS to be in the range of $1.88 to $2.02.

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, 2013, 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, 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. 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 2013 and the full year 2013 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 Company's ability to accurately forecast revenues and expenses; worldwide economic conditions; 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 websites and mobile applications and convert those visitors into diners; the Company's ability to retain existing restaurant customers and diners or encourage repeat reservations; the effects of increased competition; the Company's ability to successfully enter new markets and manage its international expansion; the impact of the fluctuations in currency exchange rates; 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; costs associated with defending intellectual property infringement and other claims; and the impact of natural catastrophic events.  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, 2012 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 the world's leading provider of online restaurant reservations, seating over 12 million diners per month via online bookings across approximately 28,000 restaurants. The OpenTable network connects restaurants and diners, helping diners discover and book the perfect table and helping restaurants deliver personalized hospitality to keep guests coming back. The OpenTable service enables diners to see which restaurants have available tables, select a restaurant based on verified diner reviews, menus and other helpful information, and easily book a reservation. In addition to the Company's website and mobile apps, OpenTable powers online reservations for nearly 600 partners, including many of the Internet's most popular global and local brands. For restaurants, the OpenTable hospitality solutions enable them to manage their reservation book, streamline their operations and enhance their service levels. Since its inception in 1998, OpenTable has seated more than 450 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 UK. OpenTable also owns and operates toptable, the leading consumer destination site for restaurant reservations in the UK.

OpenTable, OpenTable.com, OpenTable logos, toptable 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,


2013


2012


(In thousands)

ASSETS








CURRENT ASSETS:




  Cash and cash equivalents

$               94,543


$             102,772

  Short-term investments

2,009


733

  Accounts receivable, net 

23,500


22,015

  Prepaid expenses and other current assets

2,610


2,924

  Deferred tax asset

15,196


14,353





           Total current assets

137,858


142,797





Property, equipment and software, net

26,370


21,271

Goodwill

50,189


46,304

Intangibles, net

17,792


15,226

Deferred tax asset

12,162


10,628

Other assets

978


1,021





TOTAL ASSETS

$             245,349


$             237,247





LIABILITIES AND STOCKHOLDERS' EQUITY








CURRENT LIABILITIES:




  Accounts payable and accrued expenses

$               13,981


$               13,847

  Accrued compensation

5,853


5,167

  Deferred revenue

1,692


1,563

  Deferred tax liability

781


107

  Dining rewards payable

30,002


27,611

           Total current liabilities

52,309


48,295





  Deferred revenue — non-current

1,971


2,054

  Deferred tax liability

3,815


3,268

  Income tax liability

15,177


15,639

  Other long-term liabilities

83


76





           Total liabilities

73,355


69,332









STOCKHOLDERS' EQUITY:




  Common stock

2


2

  Additional paid-in capital

220,189


211,408

  Treasury stock

(58,993)


(50,685)

  Accumulated other comprehensive income (loss)

(2,674)


861

  Retained earnings

13,470


6,329





           Total stockholders' equity

171,994


167,915





TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$             245,349


$             237,247

 

OPENTABLE, INC.

UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS








Three Months Ended



March 31,



2013


2012



(In thousands, except per share amounts)






REVENUES


$                45,501


$                39,369






COSTS AND EXPENSES:





  Operations and support (1)


11,363


10,519

  Sales and marketing (1)


10,502


8,860

  Technology (1)


4,500


3,248

  General and administrative (1)


9,219


9,351






           Total costs and expenses


35,584


31,978






Income from operations


9,917


7,391

Other income, net


13


17






Income before taxes


9,930


7,408

Income tax expense 


2,789


2,592






NET INCOME


$                  7,141


$                  4,816






Net income per share:





  Basic


$                  0.31


$                  0.21

  Diluted


$                  0.30


$                  0.21






Weighted average shares outstanding:





  Basic


22,937


22,536

  Diluted


23,785


23,174











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





  Operations and support


$                               23


$                             301

  Sales and marketing


1,127


1,381

  Technology


1,063


522

  General and administrative


2,380


3,720



$                           4,593


$                           5,924






Other Operational Data:





  Installed restaurants (at period end):





    North America


20,128


17,753

    International


7,829


8,091

    Total


27,957


25,844






  Seated diners (in thousands):





    North America


34,268


27,716

    International


3,088


2,254

    Total


37,356


29,970






  Headcount (at period end):





    North America


401


392

    International


158


164

    Total


559


556






Additional Financial Data:





  Revenues:





    North America





Reservation


$                23,492


$                19,215

Subscription


12,890


11,900

Other


3,063


2,608

Total North America Revenues


$                39,445


$                33,723

    International





Reservation


$                  3,565


$                  3,113

Subscription


1,792


1,639

Other


699


894

Total International Revenues


6,056


5,646

    Total Revenues


$                45,501


$                39,369






  Income (loss) from operations:





    North America


$                12,976


$                  9,981

    International


(3,059)


(2,590)

    Total


$                  9,917


$                  7,391






  Depreciation and amortization:





    North America


$                  2,549


$                  1,690

    International


993


1,487

    Total


$                  3,542


$                  3,177






  Stock-based compensation:





    North America


$                  4,207


$                  5,435

    International


386


489

    Total


$                  4,593


$                  5,924

 

OPENTABLE, INC.

RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS













Three Months Ended



March 31,



2013


2012



(In thousands, except per share amounts)






Non-GAAP consolidated net income per share:





GAAP net income "as reported"


$             7,141


$             4,816

Add back: stock-based compensation expense


4,593


5,924

Income tax effect of stock-based compensation


(1,783)


(2,280)

Add back: acquisition-related expenses


90


-

Income tax effect of acquisition-related expenses


(34)


-

Add back: amortization of acquired intangibles


946


971

Income tax effect of amortization of intangibles


(270)


(257)






NON-GAAP CONSOLIDATED NET INCOME 


$            10,683


$             9,174






Non-GAAP diluted net income per share


$               0.45


$               0.40






Weighted average diluted shares outstanding


23,785


23,174






Non-GAAP consolidated operating income:





GAAP income from operations "as reported"


$             9,917


$             7,391

Add back: stock-based compensation expense


4,593


5,924

Add back: acquisition-related expenses


90


-

Add back: amortization of acquired intangibles


946


971






NON-GAAP OPERATING INCOME


$            15,546


$            14,286






North America Adjusted EBITDA:





GAAP operating income "as reported"


$            12,976


$             9,981






Adjustments:





  Stock-based compensation expense


4,207


5,435

  Acquisition-related expense


90


-

  Amortization of acquired intangibles


586


88

  Depreciation and other amortization expense


1,963


1,602






           North America Adjusted EBITDA


$            19,822


$            17,106






International Adjusted EBITDA:





GAAP operating loss "as reported"


$            (3,059)


$            (2,590)






Adjustments:





  Stock-based compensation expense


386


489

  Amortization of acquired intangibles


360


883

  Depreciation and other amortization expense


633


604






           International Adjusted EBITDA


$            (1,680)


$               (614)






Consolidated Adjusted EBITDA:





GAAP operating income "as reported"


$             9,917


$             7,391






Adjustments:





  Stock-based compensation expense


4,593


5,924

  Acquisition-related expense


90


-

  Amortization of acquired intangibles


946


971

  Depreciation and other amortization expense


2,596


2,206






           Consolidated Adjusted EBITDA


$            18,142


$            16,492

 

OPENTABLE, INC.

RECONCILIATION OF GAAP TO NON-GAAP FORWARD-LOOKING GUIDANCE





















Forward-Looking Guidance



Three Months Ending


Twelve Months Ending



June 30, 2013


December 31, 2013



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


$         7,201


$         7,981


$        32,013


$        35,393

Add back: stock-based compensation expense


4,576


4,576


16,760


16,760

Income tax effect of stock-based compensation


(1,711)


(1,711)


(6,330)


(6,330)

Add back: amortization of acquired intangibles


1,115


1,115


3,939


3,939

Income tax effect of amortization of intangibles


(368)


(368)


(1,300)


(1,300)

Add back: acquisition-related expenses


-


-


90


90

Income tax effect of acquisition-related expenses


-


-


(30)


(30)










NON-GAAP CONSOLIDATED NET INCOME 


$        10,813


$        11,593


$        45,142


$        48,522










GAAP diluted net income per share


$           0.30


$           0.33


$           1.33


$           1.47

Non-GAAP diluted net income per share


$           0.45


$           0.49


$           1.88


$           2.02










Weighted average diluted shares outstanding


23,900


23,900


24,000


24,000










North America Adjusted EBITDA:









GAAP operating income


$        13,066


$        13,866


$        54,835


$        58,335










Adjustments:









  Stock-based compensation expense


4,212


4,212


15,242


15,242

  Amortization of acquired intangibles


765


765


2,880


2,880

  Acquisition-related expense


-


-


90


90

  Depreciation and other amortization expense


2,357


2,357


10,053


10,053










           North America Adjusted EBITDA


$        20,400


$        21,200


$        83,100


$        86,600










International Adjusted EBITDA:









GAAP operating loss


$        (2,019)


$        (1,619)


$        (6,663)


$        (5,063)










Adjustments:









  Stock-based compensation expense


364


364


1,518


1,518

  Amortization of acquired intangibles


350


350


1,059


1,059

  Depreciation and other amortization expense


505


505


1,886


1,886










           International Adjusted EBITDA


$           (800)


$           (400)


$        (2,200)


$           (600)










Consolidated Adjusted EBITDA:









GAAP operating income 


$        11,047


$        12,247


$        48,172


$        53,272










Adjustments:









  Stock-based compensation expense


4,576


4,576


16,760


16,760

  Amortization of acquired intangibles


1,115


1,115


3,939


3,939

  Acquisition-related expense


-


-


90


90

  Depreciation and other amortization expense


2,862


2,862


11,939


11,939










           Consolidated Adjusted EBITDA


$        19,600


$        20,800


$        80,900


$        86,000

 

SOURCE OpenTable, Inc.



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