OpenTable, Inc.
Nov 2, 2010
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OpenTable, Inc. Announces Third Quarter Financial Results

Nov 2, 2010 (GlobeNewswire via COMTEX News Network) --

                Increases Revenue by 44% to $24.5 Million


Grows Installed Restaurants by 31% and Seated Diners by 54% Over Q3 2009


            Achieves EPS of $0.16 and Non-GAAP EPS of $0.23


SAN FRANCISCO, Nov. 2, 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 third quarter ended September 30, 2010.

OpenTable reported consolidated net revenues for Q3 2010 of $24.5 million, a 44% increase over Q3 2009. Consolidated net income for Q3 2010 was $3.8 million, or $0.16 per diluted share. Non-GAAP consolidated net income for Q3 2010, which excludes tax-affected stock-based compensation expense and tax-affected acquisition related expense, was $5.6 million, or $0.23 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 September 30, 2010, totaled 13,025, a
      26% increase over September 30, 2009.
  --  Seated diners totaled 15.4 million, a 52% increase over Q3 2009.
  --  Revenues totaled $23.0 million, a 43% increase over Q3 2009.
  --  Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation,
      amortization, stock-based compensation, and acquisition related expense)
      totaled $10.2 million, or 44% of North America revenues, a 77% increase
      over Q3 2009.


International Results

  --  Installed restaurant base as of September 30, 2010, totaled 2,221, a 66%
      increase over September 30, 2009.
  --  Seated diners totaled 0.5 million, a 134% increase over Q3 2009.
  --  Revenues totaled $1.5 million, a 50% increase over Q3 2009.
  --  International results in Q3 2010 include approximately $0.6 million of
      acquisition related expense.
  --  Non-GAAP adjusted EBITDA totaled a loss of $1.2 million compared to a
      loss of $1.4 million in Q3 2009.
  --  The acquisition of toptable.com closed on October 1, 2010. As a result,
      international operations will include toptable.com results starting in
      Q4 2010.


"We're pleased with the solid growth we experienced across the board in the third quarter," said Jeff Jordan, CEO of OpenTable. "We're also excited about closing our acquisition of toptable.com at the beginning of the fourth quarter as it will significantly expand our presence and deepen our offering for restaurants and diners in the United Kingdom."

Q3 2010 Consolidated Financial and Operating Summary

  --  Installed restaurant base as of September 30, 2010, totaled 15,246, a
      31% increase over September 30, 2009.
  --  Seated diners totaled 15.9 million, a 54% increase over Q3 2009.
  --  Total revenues were $24.5 million in Q3 2010, up 44% over Q3 2009
      revenues of $17.0 million.


  --  Subscription revenues were $11.0 million in Q3 2010, up 20% over Q3 2009
      revenues of $9.1 million. Subscription revenues increased as a result of
      the increase in installed restaurants.
  --  Reservation revenues were $11.4 million in Q3 2010, up 61% over Q3 2009
      revenues of $7.1 million. Reservation revenues primarily increased as a
      result of the increase in seated diners.
  --  Installation and other revenues were $2.1 million in Q3 2010, up 157%
      over Q3 2009 revenues of $0.8 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.


  --  Total operating expenses were $20.0 million in Q3 2010, up 36% over Q3
      2009 operating expenses of $14.7 million. The increase was driven by a
      21% increase in headcount, an increase in acquisition related expense
      and an increase in stock-based compensation.
  --  Operating income was $4.6 million in Q3 2010 compared to $2.4 million in
      Q3 2009. Non-GAAP consolidated operating income, excluding stock-based
      compensation expense and acquisition related expense, was $7.3 million
      in Q3 2010 compared to $3.1 million in Q3 2009.
  --  The Q3 2010 GAAP income tax expense was $0.8 million or a 17% tax rate.
      Income tax expense is net of a $1.3 million, or $0.05 per diluted share,
      research and development tax credit benefit related to qualifying
      activities through 2009.
  --  Consolidated net income was $3.8 million, or $0.16 per diluted share, in
      Q3 2010 compared to $0.9 million, or $0.04 per diluted share, in Q3
      2009. Non-GAAP consolidated net income, which excludes tax-affected
      stock-based compensation expense and acquisition related expense, was
      $5.6 million, or $0.23 per diluted share, in Q3 2010 compared to $1.8
      million, or $0.08 per diluted share, in Q3 2009.
  --  As of September 30, 2010, OpenTable had cash and cash equivalents and
      short-term investments of $87.9 million.


"We delivered very strong growth across every key financial metric in the third 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 November 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 November 2, 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, 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 and acquisition related expenses 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. 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 15,000 restaurant customers, and, since its inception in 1998, has seated more than 175 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 and other service
   names are the trademarks of OpenTable, Inc. and/or its affiliates.


                         OPENTABLE, INC.
         UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


                                September 30,    December 31,
                               ---------------  ---------------

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

  CURRENT ASSETS:
   Cash and cash equivalents      $ 74,278,000     $ 19,807,000
   Short-term investments           13,604,000       50,221,000
   Accounts receivable, net          9,906,000        7,617,000
   Prepaid expenses and other
    current assets                   1,922,000        1,301,000
   Deferred tax asset                6,463,000        6,024,000

   Restricted cash                     171,000          172,000
                               ---------------  ---------------

    Total current assets           106,344,000       85,142,000

  Property, equipment and
   software, net                    13,757,000       11,516,000
  Deferred tax asset                 1,787,000          498,000

  Other assets                       5,942,000        3,175,000
                               ---------------  ---------------


  TOTAL ASSETS                   $ 127,830,000    $ 100,331,000
                               ===============  ===============

  LIABILITIES AND
   STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
   Accounts payable and
    accrued expenses               $ 7,095,000      $ 7,212,000
   Accrued compensation              3,838,000        2,993,000
   Deferred revenue                  1,891,000        1,538,000

   Dining rewards payable           14,084,000       11,611,000
                               ---------------  ---------------
    Total current liabilities       26,908,000       23,354,000

   Deferred revenue --
    non-current                      2,971,000        3,572,000
   Other long-term
    liabilities                      2,190,000               --
                               ---------------  ---------------


    Total liabilities               32,069,000       26,926,000
                               ---------------  ---------------


  STOCKHOLDERS' EQUITY:
   Common stock                          2,000            2,000
   Additional paid-in capital      140,844,000      127,454,000
   Treasury stock                    (647,000)        (647,000)
   Accumulated other
    comprehensive loss               (105,000)        (128,000)

   Accumulated deficit            (44,333,000)     (53,276,000)
                               ---------------  ---------------

    Total stockholders'
     equity                         95,761,000       73,405,000
                               ---------------  ---------------

  TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY          $ 127,830,000    $ 100,331,000
                               ===============  ===============


                           OPENTABLE, INC.
     UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                        Three Months Ended     Nine Months Ended

                           September 30,         September 30,
                       ---------------------  --------------------

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

  REVENUES               $ 24,520   $ 17,042   $ 68,224   $ 49,427

  COSTS AND EXPENSES:
   Operations and
    support (1)             6,769      5,077     19,095     15,195
   Sales and
    marketing (1)           5,185      3,845     14,971     11,652
   Technology (1)           2,967      2,378      8,707      7,689
   General and
    administrative
    (1)                     5,045      3,379     12,947     10,321
                       ----------  ---------  ---------  ---------

     Total costs and
      expenses             19,966     14,679     55,720     44,857
                       ----------  ---------  ---------  ---------

  Income from
   operations               4,554      2,363     12,504      4,570

  Other income, net            67        111        209        256
                       ----------  ---------  ---------  ---------

  Income before taxes       4,621      2,474     12,713      4,826

  Income tax expense          786      1,578      3,770      2,872
                       ----------  ---------  ---------  ---------


  NET INCOME              $ 3,835      $ 896    $ 8,943    $ 1,954
                       ==========  =========  =========  =========

  Net income per
   share:

   Basic                   $ 0.17     $ 0.04     $ 0.39     $ 0.12
                       ==========  =========  =========  =========

   Diluted                 $ 0.16     $ 0.04     $ 0.37     $ 0.09
                       ==========  =========  =========  =========

  Weighted average
   shares
   outstanding:
   Basic                   22,706     21,640     22,471     15,791
   Diluted                 24,102     23,713     23,866     22,360



  -------------------
  (1) Stock-based
   compensation
   included in above
   line items:
   Operations and
    support                 $ 229       $ 79      $ 648      $ 232
   Sales and
    marketing                 494        180      1,359        588
   Technology                 416         91      1,059        382
   General and
    administrative            888        297      2,295      1,128
                       ----------  ---------  ---------  ---------
                          $ 2,027      $ 647    $ 5,361    $ 2,330

  Other Operational
   Data:
   Installed
    restaurants (at
    period end):
    North America          13,025     10,338     13,025     10,338

    International           2,221      1,337      2,221      1,337
                       ----------  ---------  ---------  ---------
    Total                  15,246     11,675     15,246     11,675

   Seated diners (in
    thousands):
    North America          15,368     10,114     44,591     30,106

    International             531        227      1,403        620
                       ----------  ---------  ---------  ---------
    Total                  15,899     10,341     45,994     30,726

   Headcount (at
    period end):
    North America             302        247        302        247

    International              74         63         74         63
                       ----------  ---------  ---------  ---------
    Total                     376        310        376        310

  Additional
   Financial Data:
   Revenues:
    North America
     Subscription         $ 9,868    $ 8,321   $ 28,409   $ 24,048
     Reservation           11,059      6,932     31,325     20,522
     Installation and
      other                 2,101        797      4,474      2,205
                       ----------  ---------  ---------  ---------
     Total North
      America
      Revenues           $ 23,028   $ 16,050   $ 64,208   $ 46,775
    International
     Subscription         $ 1,146      $ 820    $ 3,118    $ 2,182
     Reservation              323        143        825        386
     Installation and
      other                    23         29         73         84
                       ----------  ---------  ---------  ---------
     Total
      International
      Revenues              1,492        992      4,016      2,652
                       ----------  ---------  ---------  ---------
    Total Revenues       $ 24,520   $ 17,042   $ 68,224   $ 49,427

   Income (loss) from
    operations:
    North America         $ 6,646    $ 3,972   $ 17,592    $ 9,256

    International         (2,092)    (1,609)    (5,088)    (4,686)
                       ----------  ---------  ---------  ---------
    Total                 $ 4,554    $ 2,363   $ 12,504    $ 4,570

   Depreciation and
    amortization:
    North America         $ 1,546    $ 1,138    $ 4,444    $ 3,457

    International             163        124        436        339
                       ----------  ---------  ---------  ---------
    Total                 $ 1,709    $ 1,262    $ 4,880    $ 3,796

   Stock-based
    compensation:
    North America         $ 1,932      $ 559    $ 5,100    $ 2,049

    International              95         88        261        281
                       ----------  ---------  ---------  ---------
    Total                 $ 2,027      $ 647    $ 5,361    $ 2,330


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

                                              Three Months Ended       Nine Months Ended

                                                 September 30,           September 30,
                                            ----------------------  ----------------------

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

  Non-GAAP consolidated net income per
   share:
   GAAP net income "as reported"               $ 3,835       $ 896     $ 8,943     $ 1,954
   Add back: stock-based compensation
    expense                                      2,027         647       5,361       2,330
   Income tax effect of stock-based
    compensation                                 (922)         201     (2,375)       (203)
   Add back: acquisition related expenses          710         115         710         140
   Income tax effect of acquisition
    related expenses                              (36)        (46)        (36)        (56)
                                            ----------  ----------  ----------  ----------


  NON-GAAP CONSOLIDATED NET INCOME             $ 5,614     $ 1,813    $ 12,603     $ 4,165
                                            ==========  ==========  ==========  ==========


  Non-GAAP diluted net income per share         $ 0.23      $ 0.08      $ 0.53      $ 0.19
                                            ==========  ==========  ==========  ==========

  Weighted average diluted shares
   outstanding                                  24,102      23,713      23,866      22,360

  Non-GAAP consolidated operating income:
   GAAP income from operations "as
    reported"                                  $ 4,554     $ 2,363    $ 12,504     $ 4,570
   Add back: stock-based compensation
    expense                                      2,027         647       5,361       2,330

   Add back: acquisition related expenses          710         115         710         140
                                            ----------  ----------  ----------  ----------


  NON-GAAP OPERATING INCOME                    $ 7,291     $ 3,125    $ 18,575     $ 7,040
                                            ==========  ==========  ==========  ==========

  North America Adjusted EBITDA:
  GAAP operating income "as reported"          $ 6,646     $ 3,972    $ 17,592     $ 9,256

  Adjustments:
   Stock-based compensation expense              1,932         559       5,100       2,049
   Acquisition related expenses                     91         115          91         140

   Depreciation and amortization expense         1,546       1,138       4,444       3,457
                                            ----------  ----------  ----------  ----------

    North America Adjusted EBITDA             $ 10,215     $ 5,784    $ 27,227    $ 14,902

  International Adjusted EBITDA:
  GAAP operating loss "as reported"          $ (2,092)   $ (1,609)   $ (5,088)   $ (4,686)

  Adjustments:
   Stock-based compensation expense                 95          88         261         281
   Acquisition related expenses                    619          --         619          --

   Depreciation and amortization expense           163         124         436         339
                                            ----------  ----------  ----------  ----------

    International Adjusted EBITDA            $ (1,215)   $ (1,397)   $ (3,772)   $ (4,066)

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SOURCE: OpenTable, Inc.

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

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