OpenTable, Inc. Announces Fourth Quarter and Full Year 2012 Financial Results -- Increases Revenue by 16% over Q4'11 to $43.0 Million --

-- Grows Seated Diners by 22% over Q4 2011 --

-- Achieves EPS of $0.32 and Non-GAAP EPS of $0.46 --

SAN FRANCISCO, Feb. 7, 2013 /PRNewswire/ -- OpenTable, Inc. (NASDAQ: OPEN), the world's leading provider of online restaurant reservations, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2012.

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

OpenTable reported consolidated net revenues for Q4 2012 of $43.0 million, a 16% increase over Q4 2011.  Consolidated net income for Q4 2012 was $7.5 million, or $0.32 per diluted share.  Non-GAAP consolidated net income for Q4 2012, 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 $0.46 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 December 31, 2012, totaled 19,801, a 15% increase over December 31, 2011.
  • Seated diners totaled 29.9 million, a 21% increase over Q4 2011.
  • Revenues totaled $36.7 million, a 16% increase over Q4 2011. 
  • Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation and acquisition-related expenses) totaled $19.0 million, or 52% of North America revenues, a 16% increase over Q4 2011.

International Results

  • Installed restaurant base as of December 31, 2012, totaled 7,716.  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 December 31, 2012, represented a 62% increase over our installed base of OpenTable technology-enabled restaurants as of December 31, 2011.   
  • Seated diners totaled 3.0 million, a 35% increase over Q4 2011. 
  • Revenues totaled $6.3 million, a 13% increase over Q4 2011.
  • Non-GAAP adjusted EBITDA totaled a loss of $0.1 million compared to a loss of $0.5 million in Q4 2011. 

"Our business continued to demonstrate strong momentum in 2012," said Matt Roberts, President and CEO of OpenTable.  "The shift to mobile coupled with richer customer experiences represent long-term opportunities for the business, and we're pleased with the recent progress in our international segment."

Q4 2012 Consolidated Financial and Operating Summary

  • Installed restaurant base as of December 31, 2012, totaled 27,517.
  • Seated diners totaled 32.8 million, a 22% increase over Q4 2011.
  • Total revenues were $43.0 million in Q4 2012, up 16% over Q4 2011 revenues of $37.2 million
    • Reservation revenues were $24.5 million in Q4 2012, up 21% over Q4 2011 revenues of $20.3 million.  Reservation revenues primarily increased as a result of the increase in seated diners. 
    • Subscription revenues were $14.5 million in Q4 2012, up 10% over Q4 2011 revenues of $13.3 million.  Subscription revenues primarily increased as a result of the increase in installed restaurants using our Electronic Reservation Book solution. 
    • Other revenues were $4.0 million in Q4 2012, up 9% over Q4 2011 revenues of $3.6 million.  The increase is primarily the result of an increase in revenue from gift card sales. 
  • Total costs and expenses were $31.9 million in Q4 2012, up 21% over Q4 2011 costs and expenses of $26.4 million.  The increase was primarily driven by an increase in stock-based compensation expense and a 4% increase in headcount.
  • Total operating income was $11.1 million in Q4 2012 compared to $10.8 million in Q4 2011.  Non-GAAP consolidated operating income, excluding stock-based compensation expense, acquisition-related expenses and amortization of acquired intangibles was $16.4 million in Q4 2012 compared to $13.7 million in Q4 2011.
  • The Q4 2012 GAAP income tax expense was $3.7 million, or a 33% tax rate. 
  • Consolidated net income was $7.5 million, or $0.32 per diluted share, in Q4 2012 compared to $7.0 million, or $0.29 per diluted share, in Q4 2011.  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 $0.46 per diluted share, in Q4 2012 compared to $8.9 million, or $0.37 per diluted share, in Q4 2011.  
  • As of December 31, 2012, OpenTable had cash and cash equivalents and short-term investments of $103.5 million

2012 Consolidated Financial and Operating Summary

  • Total revenues were $161.6 million in 2012, up 16% over 2011 revenues of $139.5 million.
  • Operating income totaled $36.5 million in 2012, or 23% of consolidated revenues, a 12% increase over 2011.  Non-GAAP consolidated operating income, excluding stock-based compensation expense, acquisition-related expenses and amortization of acquired intangibles, was $61.0 million in 2012, or 38% of consolidated revenues, a 29% increase over 2011.
  • Non-GAAP adjusted EBITDA totaled $70.1 million in 2012, or 43% of consolidated revenues, a 27% increase over 2011.

"During the fourth 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 Q1 2013 and the full year 2013 on revenue, non-GAAP adjusted EBITDA and other consolidated metrics. 

Q1 2013 Guidance:

  • In the North America segment the Company estimates revenue to be in the range of $38.6 million to $39.6 million and non-GAAP adjusted EBITDA to be in the range of $19.3 million to $20.4 million.   
  • In the International segment the Company estimates revenue to be in the range of $6.1 million to $6.5 million and non-GAAP adjusted EBITDA loss to be in the range of $1.8 million to $2.4 million.
  • On a consolidated basis the Company estimates revenue to be in the range of $44.7 million to $46.1 million, non-GAAP adjusted EBITDA to be in the range of $16.9 million to $18.6 million, GAAP EPS to be in the range of $0.25 to $0.29 and non-GAAP EPS to be in the range of $0.39 to $0.44.

Full Year 2013 Guidance:

  • In the North America segment the Company estimates revenue to be in the range of $158.8 million to $164.2 million and non-GAAP adjusted EBITDA to be in the range of $82.6 million to $87.2 million
  • In the International segment the Company estimates revenue to be in the range of $27.3 million to $28.9 million and non-GAAP adjusted EBITDA loss to be in the range of $0.7 million to $2.9 million.
  • On a consolidated basis the Company estimates revenue to be in the range of $186.1 million to $193.1 million, non-GAAP adjusted EBITDA to be in the range of $79.7 million to $86.5 million, GAAP EPS to be in the range of $1.27 and $1.45 and non-GAAP EPS to be in the range of $1.79 to $1.96.

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 February 28, 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 Q1 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 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 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 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; 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 approximately 10 million diners per month via online bookings across more than 27,000 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 400 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










December 31,


December 31,


2012


2011


(In thousands)

ASSETS








CURRENT ASSETS:




  Cash and cash equivalents

$            102,772


$              36,519

  Short-term investments

733


13,411

  Accounts receivable, net 

22,015


18,795

  Prepaid expenses and other current assets

2,924


2,708

  Deferred tax asset

14,353


11,238





           Total current assets

142,797


82,671





Property, equipment and software, net

21,271


16,150

Goodwill

46,304


42,312

Intangibles, net

15,226


16,403

Deferred tax asset

10,628


5,466

Other assets

1,021


813





TOTAL ASSETS

$            237,247


$            163,815





LIABILITIES AND STOCKHOLDERS' EQUITY








CURRENT LIABILITIES:




  Accounts payable and accrued expenses

$              13,847


$                7,004

  Accrued compensation

5,167


4,518

  Deferred revenue

1,563


1,752

  Deferred tax liability

107


-

  Dining rewards payable

27,611


20,827

           Total current liabilities

48,295


34,101





  Deferred revenue — non-current

2,054


2,249

  Deferred tax liability

3,268


3,915

  Income tax liability

15,639


13,215

  Other long-term liabilities

76


108





           Total liabilities

69,332


53,588









STOCKHOLDERS' EQUITY:




  Common stock

2


2

  Additional paid-in capital

211,408


171,465

  Treasury stock

(50,685)


(41,963)

  Accumulated other comprehensive income (loss)

861


(1,634)

  Retained earnings (accumulated deficit)

6,329


(17,643)





           Total stockholders' equity

167,915


110,227





TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$            237,247


$            163,815

 

OPENTABLE, INC.

UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS












Three Months Ended


Twelve Months Ended



December 31,


December 31,



2012


2011


2012


2011



(In thousands, except per share amounts)










REVENUES


$         42,967


$         37,165


$      161,632


$     139,518










COSTS AND EXPENSES:









  Operations and support (1)


10,506


10,276


41,908


39,350

  Sales and marketing (1)


8,972


7,005


34,531


28,697

  Technology (1)


3,965


3,365


14,564


14,691

  General and administrative (1)


8,407


5,740


34,080


24,157










           Total costs and expenses


31,850


26,386


125,083


106,895










Income from operations


11,117


10,779


36,549


32,623

Other income, net


33


30


99


98










Income before taxes


11,150


10,809


36,648


32,721

Income tax expense 


3,687


3,821


12,676


11,167










NET INCOME


$           7,463


$           6,988


$        23,972


$       21,554










Net income per share:









  Basic


$           0.33


$           0.30


$         1.06


$        0.92

  Diluted


$           0.32


$           0.29


$         1.03


$        0.88










Weighted average shares outstanding:









  Basic


22,802


23,509


22,639


23,525

  Diluted


23,459


24,094


23,249


24,436



















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








  Operations and support


$                    331


$                    376


$               1,297


$              1,665

  Sales and marketing


1,128


480


5,174


2,054

  Technology


1,101


384


3,285


1,703

  General and administrative


1,999


680


10,890


5,307



$                 4,559


$                 1,920


$             20,646


$            10,729










Other Operational Data:









  Installed restaurants (at period end):









    North America


19,801


17,150


19,801


17,150

    International


7,716


7,969


7,716


7,969

    Total


27,517


25,119


27,517


25,119










  Seated diners (in thousands):









    North America


29,861


24,649


113,053


89,533

    International


2,971


2,202


9,771


7,141

    Total


32,832


26,851


122,824


96,674










  Headcount (at period end):









    North America


423


398


423


398

    International


157


160


157


160

    Total


580


558


580


558










Additional Financial Data:









  Revenues:









    North America









Reservation


$         20,801


$         17,061


$        78,929


$       62,751

Subscription


12,696


11,667


49,371


44,784

Other


3,154


2,829


11,038


11,119

Total North America Revenues


$         36,651


$         31,557


$      139,338


$     118,654

    International









Reservation


$           3,678


$           3,236


$        12,099


$       11,464

Subscription


1,834


1,583


6,890


5,983

Other


804


789


3,305


3,417

Total International Revenues


6,316


5,608


22,294


20,864

    Total Revenues


$         42,967


$         37,165


$      161,632


$     139,518










  Income (loss) from operations:









    North America


$         12,739


$         13,150


$        45,674


$       44,007

    International


(1,622)


(2,371)


(9,125)


(11,384)

    Total


$         11,117


$         10,779


$        36,549


$       32,623










  Depreciation and amortization:









    North America


$           2,072


$           1,690


$         7,532


$        6,852

    International


1,003


1,487


5,216


5,153

    Total


$           3,075


$           3,177


$        12,748


$       12,005










  Stock-based compensation:









    North America


$           4,046


$           1,537


$        18,493


$        7,713

    International


513


383


2,153


3,016

    Total


$           4,559


$           1,920


$        20,646


$       10,729

 

OPENTABLE, INC.

RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS





















Three Months Ended


Twelve Months Ended



December 31,


December 31,



2012


2011


2012


2011



(In thousands, except per share amounts)










Non-GAAP consolidated net income per share:









GAAP net income "as reported"


$         7,463


$         6,988


$        23,972


$        21,554

Add back: stock-based compensation expense


4,559


1,920


20,646


10,729

Income tax effect of stock-based compensation


(1,729)


(675)


(8,027)


(3,996)

Add back: acquisition-related expenses


95


-


199


-

Income tax effect of acquisition-related expenses


(35)


-


(75)


-

Add back: amortization of acquired intangibles


600


972


3,638


3,958

Income tax effect of amortization of intangibles


(273)


(268)


(1,099)


(1,089)










NON-GAAP CONSOLIDATED NET INCOME 


$        10,680


$         8,937


$        39,254


$        31,156










Non-GAAP diluted net income per share


$           0.46


$           0.37


$           1.69


$           1.28










Weighted average diluted shares outstanding


23,459


24,094


23,249


24,436










Non-GAAP consolidated operating income:









GAAP income from operations "as reported"


$        11,117


$        10,779


$        36,549


$        32,623

Add back: stock-based compensation expense


4,559


1,920


20,646


10,729

Add back: acquisition-related expenses


95


-


199


-

Add back: amortization of acquired intangibles


600


972


3,638


3,958










NON-GAAP OPERATING INCOME


$        16,371


$        13,671


$        61,032


$        47,310










North America Adjusted EBITDA:









GAAP operating income "as reported"


$        12,739


$        13,150


$        45,674


$        44,007










Adjustments:









  Stock-based compensation expense


4,046


1,537


18,493


7,713

  Acquisition-related expense


95


-


199


-

  Amortization of acquired intangibles


228


88


605


351

  Depreciation and other amortization expense


1,844


1,602


6,927


6,501










           North America Adjusted EBITDA


$        18,952


$        16,377


$        71,898


$        58,572










International Adjusted EBITDA:









GAAP operating loss "as reported"


$        (1,622)


$        (2,371)


$        (9,125)


$      (11,384)










Adjustments:









  Stock-based compensation expense


513


383


2,153


3,016

  Amortization of acquired intangibles


372


884


3,033


3,607

  Depreciation and other amortization expense


631


603


2,183


1,546










           International Adjusted EBITDA


$          (106)


$          (501)


$        (1,756)


$        (3,215)

 

OPENTABLE, INC.

RECONCILIATION OF GAAP TO NON-GAAP FORWARD-LOOKING GUIDANCE





















Forward-Looking Guidance



Three Months Ending


Twelve Months Ending



March 31, 2013


December 31, 2013



Range of Estimate


Range of Estimate



From


To


From


To



(In thousands, except per share amounts)










Consolidated net income per share:









GAAP CONSOLIDATED NET INCOME 


$         5,832


$         6,937


$        30,417


$        34,701

Add back: stock-based compensation expense


4,743


4,743


17,414


17,414

Income tax effect of stock-based compensation


(1,660)


(1,660)


(6,443)


(6,443)

Add back: amortization of acquired intangibles


600


600


2,027


2,027

Income tax effect of amortization of intangibles


(210)


(210)


(750)


(750)










NON-GAAP CONSOLIDATED NET INCOME 


$         9,305


$        10,410


$        42,665


$        46,949










GAAP diluted net income per share


$           0.25


$           0.29


$           1.27


$           1.45

Non-GAAP diluted net income per share


$           0.39


$           0.44


$           1.79


$           1.96










Weighted average diluted shares outstanding


23,700


23,700


23,900


23,900










North America Adjusted EBITDA:









GAAP operating income


$        12,532


$        13,632


$        55,225


$        59,825










Adjustments:









  Stock-based compensation expense


4,275


4,275


15,814


15,814

  Amortization of acquired intangibles


227


227


909


909

  Depreciation and other amortization expense


2,266


2,266


10,652


10,652










           North America Adjusted EBITDA


$        19,300


$        20,400


$        82,600


$        87,200










International Adjusted EBITDA:









GAAP operating loss


$        (3,592)


$        (2,992)


$        (7,071)


$        (4,871)










Adjustments:









  Stock-based compensation expense


468


468


1,600


1,600

  Amortization of acquired intangibles


373


373


1,118


1,118

  Depreciation and other amortization expense


351


351


1,453


1,453










           International Adjusted EBITDA


$        (2,400)


$        (1,800)


$        (2,900)


$          (700)










Consolidated Adjusted EBITDA:









GAAP operating income 


$         8,940


$        10,640


$        48,154


$        54,954










Adjustments:









  Stock-based compensation expense


4,743


4,743


17,414


17,414

  Amortization of acquired intangibles


600


600


2,027


2,027

  Depreciation and other amortization expense


2,617


2,617


12,105


12,105










           Consolidated Adjusted EBITDA


$        16,900


$        18,600


$        79,700


$        86,500

 

SOURCE OpenTable, Inc.



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