OpenTable, Inc. Announces Fourth Quarter and Full Year 2011 Financial Results
(Logo: http://photos.prnewswire.com/prnh/20110606/MM07085LOGO )
North America Results
- Installed restaurant base as of
December 31, 2011 , totaled 17,150, a 24% increase overDecember 31, 2010 . - Seated diners totaled 24.6 million, a 38% increase over Q4 2010.
- Revenues totaled
$31.6 million , a 22% increase over Q4 2010. - Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and stock-based compensation) totaled
$16.4 million , or 52% ofNorth America revenues, a 36% increase over Q4 2010.
International Results
- Installed restaurant base as of
December 31, 2011 , totaled 7,969, a 27% increase overDecember 31, 2010 . - Seated diners totaled 2.2 million, a 45% increase over Q4 2010.
- Revenues totaled
$5.6 million , a 15% increase over Q4 2010. - Non-GAAP adjusted EBITDA totaled a loss of
$0.5 million compared to a loss of$0.7 million in Q4 2010.
"Our business continued to demonstrate strong momentum in 2011," said
Q4 2011 Consolidated Financial and Operating Summary
- Installed restaurant base as of
December 31, 2011 , totaled 25,119, a 25% increase overDecember 31, 2010 . - Seated diners totaled 26.9 million, a 39% increase over Q4 2010.
- Total revenues were
$37.2 million in Q4 2011, up 21% over Q4 2010 revenues of$30.8 million .- Reservation revenues were
$20.3 million in Q4 2011, up 32% over Q4 2010 revenues of$15.4 million . Reservation revenues primarily increased as a result of the increase in seated diners. - Subscription revenues were
$13.3 million in Q4 2011, up 14% over Q4 2010 revenues of$11.6 million . Subscription revenues increased as a result of the increase in installed restaurants using our Electronic Reservation Book solution. - Other revenues were
$3.6 million in Q4 2011, down 5% over Q4 2010 revenues of$3.8 million . The decrease is primarily the result of a decrease in revenue from third-party restaurant coupon sales, partially offset by an increase in advertising revenues.
- Reservation revenues were
- Total operating expenses were
$26.4 million in Q4 2011, up 4% over Q4 2010 operating expenses of$25.4 million . The increase was primarily driven by a 13% increase in headcount and an increase in depreciation and amortization.
- Total operating income was
$10.8 million in Q4 2011 compared to$5.4 million in Q4 2010. Non-GAAP consolidated operating income, excluding stock-based compensation expense, amortization of acquired intangibles and acquisition-related expenses was$13.7 million in Q4 2011 compared to$9.7 million in Q4 2010.
- The Q4 2011 GAAP income tax expense was
$3.8 million , or a 35% tax rate.
- Consolidated net income was
$7.0 million , or$0.29 per diluted share, in Q4 2011 compared to$5.1 million , or$0.21 per diluted share, in Q4 2010. Non-GAAP consolidated net income, which excludes tax-affected stock-based compensation expense, tax-affected amortization of acquired intangibles and tax-affected acquisition-related expenses, was$8.9 million , or$0.37 per diluted share, in Q4 2011 compared to$8.0 million , or$0.33 per diluted share, in Q4 2010.
- During Q4 2011 the Company repurchased 1,089,300 shares of common stock at an average price of
$37.91 per share.
- As of
December 31, 2011 ,OpenTable had cash and cash equivalents and short-term investments of$49.9 million .
2011 Consolidated Financial and Operating Summary
- Total revenues were
$139.5 million in 2011, up 41% over 2010 revenues of$99.0 million .
- Operating income totaled
$32.6 million in 2011, or 23% of consolidated revenues, an 82% increase over 2010. Non-GAAP consolidated operating income, excluding stock-based compensation expense, acquisition-related expense and amortization of acquired intangibles, was$47.3 million in 2011, or 34% of consolidated revenues, a 66% increase over 2010.
- Non-GAAP adjusted EBITDA totaled
$55.4 million in 2011, or 40% of consolidated revenues, a 59% increase over 2010.
"The fourth
quarter highlights continued growth in our core operating and financial metrics," said
Quarterly Conference Call
A conference call will be webcast live today at
About Non-GAAP Financial Information
The accompanying press release dated
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:
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
About
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
December 31, | ||||
2011 | 2010 | |||
ASSETS | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 36,519,000 | $ 33,444,000 | ||
Short-term investments | 13,411,000 | 9,080,000 | ||
Accounts receivable, net | 18,795,000 | 13,292,000 | ||
Prepaid expenses and other current assets | 2,708,000 | 2,919,000 | ||
Deferred tax asset | 11,238,000 | 7,882,000 | ||
Restricted cash | - | 167,000 | ||
Total current assets | 82,671,000 | 66,784,000 | ||
Property, equipment and software, net | 16,150,000 | 14,612,000 | ||
Goodwill | 42,312,000 | 42,347,000 | ||
Intangibles, net | 16,403,000 | 20,248,000 | ||
Deferred tax asset | 5,466,000 | 5,539,000 | ||
Other assets | 813,000 | 366,000 | ||
TOTAL ASSETS | $ 163,815,000 | $ 149,896,000 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
CURRENT LIABILITIES: | ||||
Accounts payable and accrued expenses | $ 7,004,000 | $ 7,666,000 | ||
Accrued compensation | 4,518,000 | 4,189,000 | ||
Deferred revenue | 1,752,000 | 1,852,000 | ||
Dining rewards payable | 20,827,000 | 15,398,000 | ||
Total current liabilities | 34,101,000 | 29,105,000 | ||
Deferred revenue — non-current | 2,249,000 | 2,802,000 | ||
Deferred tax liability | 3,915,000 | 5,644,000 | ||
Income tax liability | 13,215,000 | 8,577,000 | ||
Other long-term liabilities | 108,000 | 1,623,000 | ||
Total liabilities | 53,588,000 | 47,751,000 | ||
STOCKHOLDERS' EQUITY: | ||||
Common stock | 2,000 | 2,000 | ||
Additional paid-in capital | 171,465,000 | 143,292,000 | ||
Treasury stock | (41,963,000) | (647,000) | ||
Accumulated other comprehensive loss | (1,634,000) | (1,305,000) | ||
Accumulated deficit | (17,643,000) | (39,197,000) | ||
Total stockholders' equity | 110,227,000 | 102,145,000 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 163,815,000 | $ 149,896,000 | ||
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
December 31, | |||||||||
2011 | 2010 | 2011 | 2010 | ||||||
(In thousands, except per share amounts) | |||||||||
REVENUES | |||||||||
COSTS AND EXPENSES: | |||||||||
Operations and support (1) | 10,276 | 8,708 | 39,350 | 27,803 | |||||
Sales and marketing (1) | 7,005 | 6,702 | 28,697 | 21,673 | |||||
Technology (1) | 3,365 | 3,638 | 14,691 | 12,345 | |||||
General and administrative (1) | 5,740 | 6,305 | 24,157 | 19,252 | |||||
Total costs and expenses | 26,386 | 25,353 | 106,895 | 81,073 | |||||
Income from operations | 10,779 | 5,414 | 32,623 | 17,918 | |||||
Other income, net | 30 | 32 | 98 | 241 | |||||
Income before taxes | 10,809 | 5,446 | 32,721 | 18,159 | |||||
Income tax expense | 3,821 | 310 | 11,167 | 4,080 | |||||
NET INCOME | $ 6,988 | $ 5,136 | $ 21,554 | ||||||
Net income per share: | |||||||||
Basic | $ 0.30 | $ 0.22 | $ 0.92 | $ 0.62 | |||||
Diluted | $ 0.29 | $ 0.21 | $ 0.88 | $ 0.58 | |||||
Weighted average shares outstanding: | |||||||||
Basic | 23,509 | 22,991 | 23,525 | 22,602 | |||||
Diluted | 24,094 | 24,286 | 24,436 | 23,979 | |||||
(1) Stock-based compensation included in above line items: | |||||||||
Operations and support | $ 376 | $ 295 | $ 1,665 | $ 943 | |||||
Sales and marketing | 480 | 513 | 2,054 | 1,872 | |||||
Technology | 384 | 488 | 1,703 | 1,547 | |||||
General and administrative | 680 | 1,394 | 5,307 | 3,689 | |||||
$ 1,920 | $ 2,690 | $ 10,729 | $ 8,051 | ||||||
Other Operational Data: | |||||||||
Installed restaurants (at period end): | |||||||||
North America | 17,150 | 13,795 | 17,150 | 13,795 | |||||
International | 7,969 | 6,254 | 7,969 | 6,254 | |||||
Total | 25,119 | 20,049 | 25,119 | 20,049 | |||||
Seated diners (in thousands): | |||||||||
North America | 24,649 | 17,839 | 89,533 | 62,430 | |||||
International | 2,202 | 1,522 | 7,141 | 2,925 | |||||
Total | 26,851 | 19,361 | 96,674 | 65,355 | |||||
Headcount (at period end): | |||||||||
North America | 398 | 344 | 398 | 344 | |||||
International | 160 | 149 | 160 | 149 | |||||
Total | 558 | 493 | 558 | 493 | |||||
Additional Financial Data: | |||||||||
Revenues: | |||||||||
North America | |||||||||
Reservation | $ 62,751 | ||||||||
Subscription | 11,667 | 10,302 | 44,784 | 38,711 | |||||
Other | 2,829 | 3,003 | 11,119 | 7,477 | |||||
Total North America Revenues | |||||||||
International | |||||||||
Reservation | $ 3,236 | $ 2,775 | $ 11,464 | $ 3,600 | |||||
Subscription | 1,583 | 1,296 | 5,983 | 4,414 | |||||
Other | 789 | 796 | 3,417 | 869 | |||||
Total International Revenues | 5,608 | 4,867 | 20,864 | 8,883 | |||||
Total Revenues | |||||||||
Income (loss) from operations: | |||||||||
North America | $ 8,447 | $ 44,007 | |||||||
International | (2,371) | (3,033) | (11,384) | (8,121) | |||||
Total | $ 5,414 | $ 32,623 | |||||||
Depreciation and amortization: | |||||||||
North America | $ 1,690 | $ 1,592 | $ 6,852 | $ 6,036 | |||||
International | 1,487 | 1,096 | 5,153 | 1,532 | |||||
Total | $ 3,177 | $ 2,688 | $ 12,005 | $ 7,568 | |||||
Stock-based compensation: | |||||||||
North America | $ 1,537 | $ 2,016 | $ 7,713 | $ 7,117 | |||||
International | 383 | 674 | 3,016 | 934 | |||||
Total | $ 1,920 | $ 2,690 | $ 10,729 | $ 8,051 | |||||
RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
December 31, | |||||||||
2011 | 2010 | 2011 | 2010 | ||||||
(In thousands, except per share amounts) | |||||||||
Non-GAAP consolidated net income per share: | |||||||||
GAAP net income "as reported" | $ 6,988 | $ 5,136 | $ 21,554 | ||||||
Add back: stock-based compensation expense | 1,920 | 2,690 | 10,729 | 8,051 | |||||
Income tax effect of stock-based compensation | (675) | (1,072) | (3,996) | (3,447) | |||||
Add back: acquisition related expenses | - | 597 | - | 1,307 | |||||
Income tax effect of acquisition related expenses | - | (9) | - | (45) | |||||
Add back: amortization of acquired intangibles | 972 | 980 | 3,958 | 1,207 | |||||
Income tax effect of amortization of intangibles | (268) | (285) | (1,089) | (376) | |||||
NON-GAAP CONSOLIDATED NET INCOME | $ 8,937 | $ 8,037 | $ 31,156 | ||||||
Non-GAAP diluted net income per share | $ 0.37 | $ 0.33 | $ 1.28 | $ 0.87 | |||||
Weighted average diluted shares outstanding | 24,094 | 24,286 | 24,436 | 23,979 | |||||
Non-GAAP consolidated operating income: | |||||||||
GAAP income from operations "as reported" | $ 5,414 | $ 32,623 | |||||||
Add back: stock-based compensation expense | 1,920 | 2,690 | 10,729 | 8,051 | |||||
Add back: acquisition related expenses | - | 597 | - | 1,307 | |||||
Add back: amortization of acquired intangibles | 972 | 980 | 3,958 | 1,207 | |||||
NON-GAAP OPERATING INCOME | $ 9,681 | $ 47,310 | |||||||
North America Adjusted EBITDA: | |||||||||
GAAP operating income "as reported" | $ 8,447 | $ 44,007 | |||||||
Adjustments: | |||||||||
Stock-based compensation expense | 1,537 | 2,016 | 7,713 | 7,117 | |||||
Acquisition related expenses | - | 22 | - | 113 | |||||
Amortization of acquired intangibles | 88 | 91 | 351 | 318 | |||||
Depreciation and other amortization expense | 1,602 | 1,501 | 6,501 | 5,718 | |||||
North America Adjusted EBITDA | $ 58,572 | ||||||||
International Adjusted EBITDA: | |||||||||
GAAP operating loss "as reported" | |||||||||
Adjustments: | |||||||||
Stock-based compensation expense | 383 | 674 | 3,016 | 934 | |||||
Acquisition related expenses | - | 575 | - | 1,194 | |||||
Amortization of acquired intangibles | 884 | 889 | 3,607 | 889 | |||||
Depreciation and other amortization expense | 603 | 207 | 1,546 | 643 | |||||
International Adjusted EBITDA | $ (501) | $ (688) | $ (3,215) | ||||||
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