OpenTable, Inc. Announces Second Quarter Financial Results
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North America Results
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Installed restaurant base as of
June 30, 2013 , totaled 20,588, a 12% increase overJune 30, 2012 . - Seated diners totaled 35.0 million, a 25% increase over Q2 2012.
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Revenues totaled
$39.7 million , a 15% increase over Q2 2012. -
Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation and acquisition-related expenses) totaled
$21.2 million , or 53% ofNorth America revenues, a 17% increase over Q2 2012.
International Results
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Installed restaurant base as of
June 30, 2013 , totaled 7,686, a 15% increase overJune 30, 2012 . - Seated diners totaled 3.3 million, a 46% increase over Q2 2012.
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Revenues totaled
$5.8 million , a 15% increase over Q2 2012. -
Non-GAAP adjusted EBITDA totaled a loss of
$0.4 million compared to a loss of$0.8 million in Q2 2012.
"We're pleased with the strong growth in seated diners during the second quarter across both our
Q2 2013 Consolidated Financial and Operating Summary
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Installed restaurant base as of
June 30, 2013 , totaled 28,274. - Seated diners totaled 38.2 million, a 26% increase over Q2 2012.
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Total revenues were
$45.6 million in Q2 2013, up 15% over Q2 2012 revenues of$39.6 million .-
Reservation revenues were
$27.7 million in Q2 2013, up 24% over Q2 2012 revenues of$22.3 million . Reservation revenues primarily increased as a result of the increase in seated diners and yield due to the change in the pricing of our promotional products from flat rate to a pay-for-performance model. -
Subscription revenues were
$15.1 million in Q2 2013, up 8% over Q2 2012 revenues of$13.9 million . Subscription revenues primarily increased as a result of the increase in installed restaurants using our Electronic Reservation Book solution. -
Other revenues were
$2.8 million in Q2 2013, down 15% over Q2 2012 revenues of$3.3 million . The decrease is primarily due to the change in the pricing of our promotional products from flat rate to a pay-for-performance model, which is now classified as Reservation revenues.
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Reservation revenues were
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Total costs and expenses were
$32.5 million in Q2 2013, up 6% over Q2 2012 costs and expenses of$30.7 million . The increase was driven by increases in marketing expense, facilities expense, and amortization of capitalized development, which is partially offset by a decrease in headcount related expenses. -
Total operating income was
$13.1 million in Q2 2013 compared to$8.9 million in Q2 2012. Non-GAAP consolidated operating income, excluding stock-based compensation expense, acquisition-related expenses and amortization of acquired intangibles, was$17.8 million in Q2 2013 compared to$15.2 million in Q2 2012. -
The Q2 2013 GAAP income tax expense was
$4.8 million , or a 36% tax rate. -
Consolidated net income was
$8.3 million , or$0.35 per diluted share, in Q2 2013 compared to$5.7 million , or$0.25 per diluted share, in Q2 2012. 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$12.0 million , or$0.50 per diluted share, in Q2 2013 compared to$9.7 million , or$0.42 per diluted share, in Q2 2012. -
As of
June 30, 2013 ,OpenTable had cash and cash equivalents and short-term investments of$92.0 million .
"During the second quarter the business continued to deliver solid operating metrics, adjusted EBITDA margins and cash flows even as we invest for the future," said
Business Outlook
As of today,
Q3 2013 Guidance:
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In the
North America segment the Company estimates revenue to be in the range of$39.0 million to$39.9 million and non-GAAP adjusted EBITDA to be in the range of$18.3 million to$19.5 million . -
In the International segment the Company estimates revenue to be in the range of
$6.0 million to$6.4 million and non-GAAP adjusted EBITDA loss to be in the range of$0.6 million to$1.0 million . -
On a consolidated basis the Company estimates revenue to be in the range of
$45.0 million to$46.3 million , non-GAAP adjusted EBITDA to be in the range of$17.3 million to$18.9 million , GAAP EPS to be in the range of$0.21 to$0.25 and non-GAAP EPS to be in the range of$0.38 to$0.42 .
Full Year 2013 Guidance:
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In the
North America segment the Company estimates revenue to be in the range of$160.6 million to$163.5 million and non-GAAP adjusted EBITDA to be in the range of$80.2 million to$83.6 million . -
In the International segment the Company estimates revenue to be in the range of
$25.6 million to$26.6 million and non-GAAP adjusted EBITDA loss to be in the range of$1.7 million to$2.8 million . -
On a consolidated basis the Company estimates revenue to be in the range of
$186.2 million to$190.1 million , non-GAAP adjusted EBITDA to be in the range of$77.4 million to$81.9 million , GAAP EPS to be in the range of$1.17 and$1.30 and non-GAAP EPS to be in the range of$1.80 to$1.92 .
Quarterly Conference Call
A conference call will be webcast live today at
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:
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 Q3 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 Company's ability to accurately forecast revenues and expenses; worldwide economic conditions; 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 effects of increased competition; the Company's ability to successfully enter new markets and manage its international expansion; the impact of the fluctuations in currency exchange rates; 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
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