OpenTable, Inc.
May 3, 2011
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OpenTable, Inc. Announces First Quarter Financial Results

-- Increases Revenue by 59% to $33.7 Million --

-- Grows Installed Restaurants by 62% and Seated Diners by 55% Over Q1 2010 --

-- Achieves EPS of $0.17 and Non-GAAP EPS of $0.28 --

SAN FRANCISCO, May 3, 2011 (GLOBE NEWSWIRE) -- OpenTable, Inc. (Nasdaq:OPEN), a leading provider of free, real-time online restaurant reservations for diners and reservation and guest management solutions for restaurants, today reported its financial results for the first quarter ended March 31, 2011.

OpenTable reported consolidated net revenues for Q1 2011 of $33.7 million, a 59% increase over Q1 2010. Consolidated net income for Q1 2011 was $4.2 million, or $0.17 per diluted share. Non-GAAP consolidated net income for Q1 2011, which excludes tax-affected stock-based compensation expense and tax-affected amortization of acquired intangibles, was $6.8 million, or $0.28 per diluted share.

OpenTable provides operating results by geography as the Company is at different stages of development in its North America and International operations. International operations include the operating results of toptable.com, a recent acquisition which closed on October 1, 2010.

North America Results

International Results


"Our first quarter results marked a solid start to the year for OpenTable," said Jeff Jordan, CEO of OpenTable.  "We're pleased with our performance and momentum in the business globally.  And, we're excited about our progress across a variety of initiatives designed to help our restaurant partners grow their business."

Q1 2011 Consolidated Financial and Operating Summary

- Installed restaurant base as of March 31, 2011, totaled 21,214, a 62% increase over March 31, 2010.
- Seated diners totaled 22.4 million, a 55% increase over Q1 2010.
- Total revenues were $33.7 million in Q1 2011, up 59% over Q1 2010 revenues of $21.3 million. 

- Total operating expenses were $27.2 million in Q1 2011, up 56% over Q1 2010 operating expenses of $17.5 million. The increase was primarily driven by a 50% increase in headcount including those from the acquisition of toptable.com, the addition of other toptable.com expenses, an increase in amortization of acquired intangibles and an increase in stock-based compensation.

- Total operating income was $6.5 million in Q1 2011 compared to $3.8 million in Q1 2010.  Non-GAAP consolidated operating income, excluding stock-based compensation expense and amortization of acquired intangibles, was $10.5 million in Q1 2011 compared to $5.4 million in Q1 2010. 

- The Q1 2011 GAAP income tax expense was $2.4 million, or a 36% tax rate. 

- Consolidated net income was $4.2 million, or $0.17 per diluted share, in Q1 2011 compared to $2.5 million, or $0.11 per diluted share, in Q1 2010.  Non-GAAP consolidated net income, which excludes tax-affected stock-based compensation expense and tax-affected amortization of acquired intangibles, was $6.8 million, or $0.28 per diluted share, in Q1 2011 compared to $3.4 million, or $0.15 per diluted share, in Q1 2010.  

- As of March 31, 2011, OpenTable had cash and cash equivalents and short-term investments of $55.4 million. 

"The growth in our key metrics drove strong financial performance in the first quarter," said Matt Roberts, CFO of OpenTable.  "The business continues to deliver significant operating margins even as we invest for long-term growth."

Quarterly Conference Call

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET and will be available through May 31, 2011, at http://investors.opentable.com/events.cfm. This call may contain forward-looking statements and other material information regarding the Company's financial and operating results.

About Non-GAAP Financial Information

This press release contains certain non-GAAP financial measures. Tables are provided in the press release that reconcile the non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP consolidated net income and the related per diluted share amounts, non-GAAP consolidated operating income and non-GAAP adjusted EBITDA. Non-GAAP financial measure adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation and acquisition-related expenses.   Within the Company's reconciliation to non-GAAP diluted net income per share, the impact of undistributed earnings allocated to participating securities has been excluded.

To supplement the Company's consolidated financial statements presented on a GAAP basis, management believes that these non-GAAP measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. Management believes it is useful to exclude stock-based compensation, acquisition-related expenses and amortization of acquired intangibles because they do not reflect the underlying performance of the Company's business operations. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results and trends and performance. Management uses these non-GAAP measures to evaluate the Company's financial results. The presentation of non-GAAP measures is not meant to be considered in isolation or as a substitute for or superior to financial results determined in accordance with GAAP.

Background Information

The Company reports consolidated operations in U.S. dollars and operates in two geographic segments: North America and International. The North America segment is comprised of all operations in the United States, Canada and Mexico, and the International segment is comprised of all non-North America operations, which includes operations in Europe and Asia. The Company generates substantially all of its revenues from its restaurant customers; it does not charge any fees to diners for reservations. The Company's revenues primarily include installation fees for the Electronic Reservation Book (including training), monthly subscription fees and a fee for each restaurant guest seated through online reservations. The financial results and other information in this press release reflect the acquisition of toptable.com, as applicable.

Forward-Looking Statements

This press release and its attachments contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding the Company's strategic and operational plans. The Company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may contribute to such differences include, among others, the impact of the current economic climate on the Company's business; the Company's ability to maintain an adequate rate of growth; the Company's ability to effectively manage its growth; the Company's ability to attract new restaurant customers; the Company's ability to increase the number of visitors to its website and convert those visitors into diners; the Company's ability to retain existing restaurant customers and diners or encourage repeat reservations; the Company's ability to successfully enter new markets and manage its international expansion; the Company's ability to successfully manage any acquisitions of businesses, solutions or technologies; interruptions in service and any related impact on the Company's reputation; and costs associated with defending intellectual property infringement and other claims.  More information about potential factors that could affect the Company's business and financial results is contained in the Company's annual report on Form 10-K for the year ended December 31, 2010 and the Company's other filings with the SEC. The Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

About OpenTable, Inc. 

OpenTable is a leading provider of free, real-time online restaurant reservations for diners and reservation and guest management solutions for restaurants. The OpenTable network delivers the convenience of online restaurant reservations to diners and the operational benefits of a computerized reservation book to restaurants. OpenTable has more than 20,000 restaurant customers, and, since its inception in 1998, has seated more than 200 million diners around the world. The Company is headquartered in San Francisco, California, and the OpenTable service is available throughout the United States, as well as in Canada, Germany, Japan, Mexico, and the United Kingdom. OpenTable also owns and operates toptable.com, a leading restaurant reservation site in the United Kingdom.      

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

OpenTable, OpenTable.com, OpenTable logos, toptable.com and other service names are the trademarks of OpenTable, Inc. and/or its affiliates.

 

OPENTABLE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
     
     
 March 31,December 31,
 20112010
ASSETS    
     
CURRENT ASSETS:    
Cash and cash equivalents  $ 37,876,000   $ 33,444,000 
Short-term investments  17,496,000   9,080,000 
Accounts receivable, net   14,705,000   13,292,000 
Prepaid expenses and other current assets  2,761,000   2,919,000 
Deferred tax asset  7,931,000   7,882,000 
Restricted cash  173,000   167,000 
     
Total current assets  80,942,000   66,784,000 
     
Property, equipment and software, net  14,885,000   14,612,000 
Goodwill  43,721,000   42,347,000 
Intangibles, net  19,961,000   20,248,000 
Deferred tax asset  5,541,000   5,539,000 
Other assets  388,000   366,000 
     
TOTAL ASSETS  $ 165,438,000   $ 149,896,000 
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
CURRENT LIABILITIES:    
Accounts payable and accrued expenses  $ 7,474,000   $ 7,666,000 
Accrued compensation  4,644,000   4,189,000 
Deferred revenue  2,066,000   1,852,000 
Dining rewards payable  16,569,000   15,398,000 
Total current liabilities  30,753,000   29,105,000 
     
Deferred revenue — non-current  2,607,000   2,802,000 
Deferred tax liability  5,694,000   5,644,000 
Income tax liability  10,718,000   8,577,000 
Other long-term liabilities  1,161,000   1,623,000 
     
Total liabilities  50,933,000   47,751,000 
     
     
STOCKHOLDERS' EQUITY:    
 Common stock  2,000   2,000 
 Additional paid-in capital  149,383,000   143,292,000 
 Treasury stock  (647,000)  (647,000)
 Accumulated other comprehensive income (loss)  779,000   (1,305,000)
 Accumulated deficit  (35,012,000)  (39,197,000)
     
 Total stockholders' equity  114,505,000   102,145,000 
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 165,438,000   $ 149,896,000 
 
 
OPENTABLE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     
 Three Months Ended
 March 31,
 20112010
  (In thousands, except per share amounts)
     
REVENUES  $ 33,707  $ 21,251
     
COSTS AND EXPENSES:    
Operations and support (1)  9,472  6,002
Sales and marketing (1)  7,812  4,740
Technology (1)  4,047  2,720
General and administrative (1)  5,862  4,023
     
Total costs and expenses  27,193  17,485
     
Income from operations  6,514  3,766
Other income, net  21  69
     
Income before taxes  6,535  3,835
Income tax expense   2,350  1,311
     
NET INCOME  $ 4,185  $ 2,524
     
Net income per share:    
Basic  $ 0.18   $ 0.11 
Diluted  $ 0.17   $ 0.11 
     
Weighted average shares outstanding:    
Basic  23,332  22,199
Diluted  24,530  23,537
     
     
(1) Stock-based compensation included in above line items:    
Operations and support  $ 412  $ 187
Sales and marketing  510  394
Technology  451  283
General and administrative  1,631  670
   $ 3,004  $ 1,534
     
Other Operational Data:    
Installed restaurants (at period end):    
North America  14,522  11,487
International  6,692  1,642
Total  21,214  13,129
     
Seated diners (in thousands):    
North America  20,870  14,093
International  1,553  408
Total  22,423  14,501
     
Headcount (at period end):    
North America  358  275
International  156  68
Total  514  343
     
Additional Financial Data:    
Revenues:    
North America    
Subscription  $ 10,621  $ 9,091
Reservation  14,976  9,798
Installation and other  3,177  1,135
Total North America Revenues  $ 28,774  $ 20,024
 International    
Subscription  $ 1,397  $ 960
Reservation  2,631  239
Installation and other  905  28
Total International Revenues  4,933  1,227
Total Revenues  $ 33,707  $ 21,251
     
Income (loss) from operations:    
North America  $ 10,085  $ 5,293
International  (3,571)  (1,527)
Total  $ 6,514  $ 3,766
     
Depreciation and amortization:    
North America  $ 1,695  $ 1,403
International  1,136  138
Total  $ 2,831  $ 1,541
     
Stock-based compensation:    
North America  $ 2,019  $ 1,479
International  985  55
Total  $ 3,004  $ 1,534
 
 
OPENTABLE, INC.
RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS
     
     
 Three Months Ended
 March 31,
 20112010
  (In thousands, except per share amounts)
     
Non-GAAP consolidated net income per share:    
GAAP net income "as reported"  $ 4,185  $ 2,524
Add back: stock-based compensation expense  3,004  1,534
Income tax effect of stock-based compensation  (1,126)  (673)
Add back: amortization of acquired intangibles  988  74
Income tax effect of amortization of intangibles  (285)  (30)
     
NON-GAAP CONSOLIDATED NET INCOME   $ 6,766  $ 3,429
     
Non-GAAP diluted net income per share  $ 0.28  $ 0.15
     
Weighted average diluted shares outstanding  24,530  23,537
     
Non-GAAP consolidated operating income:    
GAAP income from operations "as reported"  $ 6,514  $ 3,766
Add back: stock-based compensation expense  3,004  1,534
Add back: amortization of acquired intangibles  988  74
     
NON-GAAP OPERATING INCOME  $ 10,506  $ 5,374
     
North America Adjusted EBITDA:    
GAAP operating income "as reported"  $ 10,085  $ 5,293
     
Adjustments:    
 Stock-based compensation expense  2,019  1,479
 Amortization of acquired intangibles  88  74
 Depreciation and other amortization expense  1,607  1,329
     
North America Adjusted EBITDA  $ 13,799  $ 8,175
     
International Adjusted EBITDA:    
GAAP operating loss "as reported"  $ (3,571)  $ (1,527)
     
Adjustments:    
 Stock-based compensation expense  985  55
 Amortization of acquired intangibles  900  -- 
 Depreciation and other amortization expense  236  138
     
International Adjusted EBITDA  $ (1,450)  $ (1,334)
CONTACT: Investor Relations:

         415-344-6520

         investors@opentable.com

         

         Media Relations Contact:

         415-344-4275

         pr@opentable.com