OpenTable, Inc.
Aug 3, 2010
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OpenTable, Inc. Announces Second Quarter Financial Results

Aug 3, 2010 (GlobeNewswire via COMTEX News Network) --

                Increases Revenue by 37% to $22.5 Million


Grows Installed Restaurants by 27% and Seated Diners by 52% Over Q2 2009


            Achieves EPS of $0.11 and Non-GAAP EPS of $0.15


SAN FRANCISCO, Aug. 3, 2010 (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 second quarter ended June 30, 2010.

OpenTable reported consolidated net revenues for Q2 2010 of $22.5 million, a 37% increase over Q2 2009. Consolidated net income for Q2 2010 was $2.6 million, or $0.11 per diluted share. Non-GAAP consolidated net income for Q2 2010, which excludes tax-affected stock-based compensation expense, was $3.6 million, or $0.15 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 June 30, 2010, totaled 12,250, a 23%
      increase over June 30, 2009.
  --  Seated diners totaled 15.1 million, a 50% increase over Q2 2009.
  --  Revenues totaled $21.2 million, a 36% increase over Q2 2009.
  --  Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation,
      amortization, and stock-based compensation) totaled $8.8 million, or 42%
      of North America revenues, an 85% increase over Q2 2009.


International Results

  --  Installed restaurant base as of June 30, 2010, totaled 1,878, a 57%
      increase over June 30, 2009.
  --  Seated diners totaled 0.5 million, a 125% increase over Q2 2009.
  --  Revenues totaled $1.3 million, a 52% increase over Q2 2009.
  --  Non-GAAP adjusted EBITDA totaled a loss of $1.2 million compared to
      adjusted EBITDA loss of $1.4 million in Q2 2009.


"We were pleased with the continued momentum of the business in the second quarter," said Jeff Jordan, President and CEO of OpenTable. "We experienced healthy growth in the number of seated diners and installed restaurants in both our North America and International segments."

Q2 2010 Consolidated Financial and Operating Summary

  --  Installed restaurant base as of June 30, 2010, totaled 14,128, a 27%
      increase over June 30, 2009.
  --  Seated diners totaled 15.6 million, a 52% increase over Q2 2009.
  --  Total revenues were $22.5 million in Q2 2010, up 37% over Q2 2009
      revenues of $16.4 million.


  --  Subscription revenues were $10.5 million in Q2 2010, up 20% over Q2 2009
      revenues of $8.7 million. Subscription revenues increased as a result of
      the increase in installed restaurants.
  --  Reservation revenues were $10.7 million in Q2 2010, up 55% over Q2 2009
      revenues of $6.9 million. Reservation revenues primarily increased as a
      result of the increase in seated diners.
  --  Installation and other revenues were $1.3 million in Q2 2010, up 65%
      over Q2 2009 revenues of $0.8 million.


  --  Total operating expenses were $18.3 million in Q2 2010, up 22% over Q2
      2009 operating expenses of $15.0 million. The increase was driven by a
      17% increase in headcount and an increase in stock-based compensation.
  --  Operating income was $4.2 million in Q2 2010 compared to $1.4 million in
      Q2 2009. Non-GAAP consolidated operating income, excluding stock-based
      compensation expense, was $6.0 million in Q2 2010 compared to $2.1
      million in Q2 2009.
  --  The Q2 2010 GAAP income tax rate was 39%.
  --  Consolidated net income was $2.6 million, or $0.11 per diluted share, in
      Q2 2010 compared to $0.7 million, or $0.03 per diluted share, in Q2
      2009. Non-GAAP consolidated net income, which excludes tax-affected
      stock-based compensation expense, was $3.6 million, or $0.15 per diluted
      share, in Q2 2010 compared to $1.3 million, or $0.06 per diluted share,
      in Q2 2009.
  --  As of June 30, 2010, OpenTable had cash and cash equivalents and
      short-term investments of $81.1 million.


"We delivered very strong growth across every key financial metric in the second 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 September 30, 2010, 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

The accompanying press release dated August 3, 2010, 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. When used in connection with historical results, the 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 because it does 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. The Company's revenues include installation fees for the Electronic Reservation Book (including training), monthly subscription fees and a fee for each restaurant guest seated through online reservations.

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, 2009, 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 14,000 restaurant customers, and, since its inception in 1998, has seated more than 160 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.

The OpenTable, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6474

  OpenTable, OpenTable.com, OpenTable logos and other service names are
                    the trademarks of OpenTable, Inc.



                         OPENTABLE, INC.
         UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS



                                  June 30,       December 31,
                               ---------------  ---------------

                                    2010             2009
                               ---------------  ---------------
  ASSETS

  CURRENT ASSETS:
   Cash and cash equivalents      $ 29,419,000     $ 19,807,000
   Short-term investments           51,691,000       50,221,000
   Accounts receivable, net          8,768,000        7,617,000
   Prepaid expenses and other
    current assets                   1,527,000        1,301,000
   Deferred tax asset                6,024,000        6,024,000

   Restricted cash                     163,000          172,000
                               ---------------  ---------------

     Total current assets           97,592,000       85,142,000

  Property, equipment and
   software, net                    13,139,000       11,516,000
  Deferred tax asset                   992,000          498,000

  Other assets                       3,082,000        3,175,000
                               ---------------  ---------------


  TOTAL ASSETS                   $ 114,805,000    $ 100,331,000
                               ===============  ===============

  LIABILITIES AND
   STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
   Accounts payable and
    accrued expenses               $ 5,220,000      $ 7,212,000
   Accrued compensation              3,374,000        2,993,000
   Deferred revenue                  1,842,000        1,538,000

   Dining rewards payable           13,474,000       11,611,000
                               ---------------  ---------------
     Total current
      liabilities                   23,910,000       23,354,000

   Deferred revenue --
    non-current                      3,157,000        3,572,000
   Other long-term
    liabilities                        749,000               --
                               ---------------  ---------------


     Total liabilities              27,816,000       26,926,000
                               ---------------  ---------------

  STOCKHOLDERS' EQUITY:
   Common stock                          2,000            2,000
   Additional paid-in capital      136,045,000      127,454,000
   Treasury stock                    (647,000)        (647,000)
   Accumulated other
    comprehensive loss               (243,000)        (128,000)

   Accumulated deficit            (48,168,000)     (53,276,000)
                               ---------------  ---------------

     Total stockholders'
      equity                        86,989,000       73,405,000
                               ---------------  ---------------

  TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY          $ 114,805,000    $ 100,331,000
                               ===============  ===============


                           OPENTABLE, INC.
      UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                         Three Months Ended      Six Months Ended

                               June 30,              June 30,
                        ---------------------  --------------------

                           2010        2009       2010       2009
                        ----------  ---------  ---------  ---------
                         (In thousands, except per share amounts)

  REVENUES                $ 22,453   $ 16,390   $ 43,704   $ 32,385

  COSTS AND EXPENSES:
   Operations and
    support (1)              6,324      5,012     12,326     10,118
   Sales and marketing
    (1)                      5,046      4,010      9,786      7,808
   Technology (1)            3,020      2,599      5,740      5,311
   General and
    administrative (1)       3,879      3,395      7,902      6,942
                        ----------  ---------  ---------  ---------

     Total costs and
      expenses              18,269     15,016     35,754     30,179
                        ----------  ---------  ---------  ---------

  Income from
   operations                4,184      1,374      7,950      2,206

  Other income, net             73         91        142        146
                        ----------  ---------  ---------  ---------

  Income before taxes        4,257      1,465      8,092      2,352

  Income tax expense         1,673        773      2,984      1,294
                        ----------  ---------  ---------  ---------


  NET INCOME               $ 2,584      $ 692    $ 5,108    $ 1,058
                        ==========  =========  =========  =========

  Net income per
   share:

   Basic                    $ 0.11     $ 0.04     $ 0.23     $ 0.08
                        ==========  =========  =========  =========

   Diluted                  $ 0.11     $ 0.03     $ 0.21     $ 0.05
                        ==========  =========  =========  =========

  Weighted average
   shares outstanding:
   Basic                    22,502     15,327     22,352     12,802
   Diluted                  23,801     22,247     23,648     21,602



  --------------------
  (1) Stock-based compensation
   included in above line items:
  Operations and
   support                   $ 232       $ 68      $ 419      $ 154
  Sales and marketing          471        185        865        408
  Technology                   360        117        643        291
  General and
   administrative              737        355      1,407        831
                        ----------  ---------  ---------  ---------
                           $ 1,800      $ 725    $ 3,334    $ 1,684

  Other Operational
   Data:
   Installed
    restaurants (at
    period end):
    North America           12,250      9,971     12,250      9,971

    International            1,878      1,193      1,878      1,193
                        ----------  ---------  ---------  ---------
    Total                   14,128     11,164     14,128     11,164

   Seated diners (in
    thousands):
    North America           15,130     10,071     29,223     19,993

    International              463        206        871        392
                        ----------  ---------  ---------  ---------
    Total                   15,593     10,277     30,094     20,385

   Headcount (at
    period end):
    North America              293        252        293        252

    International               73         61         73         61
                        ----------  ---------  ---------  ---------
    Total                      366        313        366        313

  Additional Financial
   Data:
   Revenues:
    North America
     Subscription          $ 9,450    $ 7,992   $ 18,541   $ 15,726
     Reservation            10,468      6,800     20,266     13,590
     Installation and
      other                  1,238        743      2,373      1,408
                        ----------  ---------  ---------  ---------
     Total North
      America Revenues    $ 21,156   $ 15,535   $ 41,180   $ 30,724
    International
     Subscription          $ 1,012      $ 708    $ 1,972    $ 1,363
     Reservation               263        128        502        242
     Installation and
      other                     22         19         50         56
                        ----------  ---------  ---------  ---------
     Total
      International
      Revenues               1,297        855      2,524      1,661
                        ----------  ---------  ---------  ---------
    Total Revenues        $ 22,453   $ 16,390   $ 43,704   $ 32,385

   Income (loss) from
    operations:
    North America          $ 5,653    $ 2,958   $ 10,946    $ 5,284

    International          (1,469)    (1,584)    (2,996)    (3,078)
                        ----------  ---------  ---------  ---------
    Total                  $ 4,184    $ 1,374    $ 7,950    $ 2,206

   Depreciation and
    amortization:
    North America          $ 1,495    $ 1,163    $ 2,898    $ 2,322

    International              135        111        273        215
                        ----------  ---------  ---------  ---------
    Total                  $ 1,630    $ 1,274    $ 3,171    $ 2,537

   Stock-based
    compensation:
    North America          $ 1,689      $ 656    $ 3,168    $ 1,490

    International              111         69        166        194
                        ----------  ---------  ---------  ---------
    Total                  $ 1,800      $ 725    $ 3,334    $ 1,684


                                       OPENTABLE, INC.
                    RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS

                                              Three Months Ended       Six Months Ended

                                                   June 30,                June 30,
                                            ----------------------  ----------------------

                                               2010        2009        2010        2009
                                            ----------  ----------  ----------  ----------
                                               (In thousands, except per share amounts)

  Non-GAAP consolidated net income per
   share:
   GAAP net income "as reported"               $ 2,584       $ 692     $ 5,108     $ 1,058
   Add back: stock-based compensation
    expense                                      1,800         725       3,334       1,684
   Income tax effect of stock-based
    compensation                                 (780)       (143)     (1,453)       (403)
                                            ----------  ----------  ----------  ----------


  NON-GAAP CONSOLIDATED NET INCOME             $ 3,604     $ 1,274     $ 6,989     $ 2,339
                                            ==========  ==========  ==========  ==========


  Non-GAAP diluted net income per share         $ 0.15      $ 0.06      $ 0.30      $ 0.11
                                            ==========  ==========  ==========  ==========

  Weighted average diluted shares
   outstanding                                  23,801      22,247      23,648      21,602

  Non-GAAP consolidated operating income:
   GAAP income from operations "as
    reported"                                  $ 4,184     $ 1,374     $ 7,950     $ 2,206
   Add back: stock-based compensation
    expense                                      1,800         725       3,334       1,684
                                            ----------  ----------  ----------  ----------


  NON-GAAP OPERATING INCOME                    $ 5,984     $ 2,099    $ 11,284     $ 3,890
                                            ==========  ==========  ==========  ==========

  North America Adjusted EBITDA:
  GAAP operating income "as reported"          $ 5,653     $ 2,958    $ 10,946     $ 5,284

  Adjustments:
   Stock-based compensation expense              1,689         656       3,168       1,490

   Depreciation and amortization expense         1,495       1,163       2,898       2,322
                                            ----------  ----------  ----------  ----------

     North America Adjusted EBITDA             $ 8,837     $ 4,777    $ 17,012     $ 9,096

  International Adjusted EBITDA:
  GAAP operating loss "as reported"          $ (1,469)   $ (1,584)   $ (2,996)   $ (3,078)

  Adjustments:
   Stock-based compensation expense                111          69         166         194

   Depreciation and amortization expense           135         111         273         215
                                            ----------  ----------  ----------  ----------

     International Adjusted EBITDA           $ (1,223)   $ (1,404)   $ (2,557)   $ (2,669)

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: OpenTable, Inc.

CONTACT: OpenTable, Inc.
Investor Relations:
415-344-6520
investors@opentable.com
Media Relations:
415-344-4275
pr@opentable.com

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