OpenTable, Inc. Announces Third Quarter Financial Results
(Logo: http://photos.prnewswire.com/prnh/20110606/MM07085LOGO )
North America Results
- Installed restaurant base as of
September 30, 2013 , totaled 23,287, a 23% increase overSeptember 30, 2012 . - Seated diners totaled 35.2 million, a 28% increase over Q3 2012.
- Revenues totaled
$40.6 million , an 18% increase over Q3 2012. - Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation and acquisition-related expenses) totaled
$20.4 million , or 50% ofNorth America revenues, a 15% increase over Q3 2012. - In Q3 2013, Rezbook contributed 2,398 restaurants, approximately 773,000 seated diners and
$0.5 million of revenue.
International Results
- Installed restaurant base as of
September 30, 2013 , totaled 7,677, a 4% increase overSeptember 30, 2012 . - Seated diners totaled 3.4 million, a 46% increase over Q3 2012.
- Revenues totaled
$6.1 million , a 16% increase over Q3 2012. - Non-GAAP adjusted EBITDA totaled a loss of
$0.4 million compared to a loss of$0.3 million in Q3 2012.
"During the third quarter, we marked a significant milestone in seating our half billionth cumulative diner and we're pleased with the strong year-over-year seated diner growth in both our
Q3 2013 Consolidated Financial and Operating Summary
- Installed restaurant base as of
September 30, 2013 , totaled 30,964, a 17% increase overSeptember 30, 2012 . - Seated diners totaled 38.5 million, a 30% increase over Q3 2012.
- Total revenues were
$46.7 million in Q3 2013, up 18% over Q3 2012 revenues of$39.7 million .
- Reservation revenues were
$27.8 million in Q3 2013, up 27% over Q3 2012 revenues of$21.9 million . Reservation revenues primarily increased as a result of the increase in seated diners. In Q3 2013, Rezbook contributed$0.1 million to reservation revenues. - Subscription revenues were
$15.8 million in Q3 2013, up 11% over Q3 2012 revenues of$14.3 million . Subscription revenues primarily increased as a result of the increase in installed restaurants using our Electronic Reservation Book solution. In Q3 2013, Rezbook contributed$0.4 million to subscription revenues. - Other revenues were
$3.0 million in Q3 2013, down 15% over Q3 2012 revenues of$3.6 million . The decrease is primarily due to the change in the pricing of our promotional products from a flat rate to a pay-for-performance model, which is now classified as Reservation revenues.
- Total costs and expenses were
$36.5 million in Q3 2013, up 19% over Q3 2012 costs and expenses of$30.6 million . The increase was driven by increases in marketing expense, headcount-related expense, professional services and amortization of intangibles and capitalized development.
- Total operating income was
$10.2 million in Q3 2013 compared to$9.2 million in Q3 2012. Non-GAAP consolidated operating income, excluding stock-based compensation expense, acquisition-related expenses and amortization of acquired intangibles, was$16.7 million in Q3 2013 compared to$15.2 million in Q3 2012.
- Q3 2013 GAAP income tax expense was
$2.6 million , or a 25% tax rate. In Q3 2013, the Company benefitted from certain discrete items in its tax provision which resulted in a$1.1 million , or$0.05 per diluted share, reduction in Q3 income tax expense.
- Consolidated net income was
$7.6 million , or$0.32 per diluted share, in Q3 2013 compared to$5.9 million , or$0.26 per diluted share, in Q3 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$12.1 million , or$0.50 per diluted share, in Q3 2013 compared to$9.7 million , or$0.42 per diluted share, in Q3 2012.
- As of
September 30, 2013 ,OpenTable had cash and cash equivalents and short-term investments of$102.8 million .
"During the third 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,
Q4 2013 Guidance:
- In the
North America segment the Company estimates revenue to be in the range of$43.1 million to$44.1 million and non-GAAP adjusted EBITDA to be in the range of$22.1 million $23.1 million . - In the International segment the Company estimates revenue to be in the range of
$7.6 million to$8.0 million and non-GAAP adjusted EBITDA to be in the range of a loss of$0.2 million to income of$0.2 million . - On a consolidated basis the Company estimates revenue to be in the range of
$50.7 million to$52.1 million , non-GAAP adjusted EBITDA to be in the range of$21.9 million to$23.3 million , GAAP EPS to be in the range of$0.33 to$0.37 and non-GAAP EPS to be in the range of$0.49 to$0.53 .
Full Year 2013 Guidance:
- In the
North America segment the Company estimates revenue to be in the range of$162.9 million to$163.9 million and non-GAAP adjusted EBITDA to be in the range of$83.5 million to$84.5 million . - In the International segment the Company estimates revenue to be in the range of
$25.6 million to$26.0 million and non-GAAP adjusted EBITDA loss to be in the range of$2.3 million to$2.7 million . - On a consolidated basis the Company estimates revenue to be in the range of
$188.5 million to$189.9 million , non-GAAP adjusted EBITDA to be in the range of$80.8 million to$82.2 million , GAAP EPS to be in the range of$1.29 to$1.33 and non-GAAP EPS to be in the range of$1.94 to$1.98 .
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.
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 Q4 2013 and the full year 2013, quotations from management in this press release, and 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
About
| |||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||
|
| ||
2013 |
2012 | ||
(In thousands) | |||
ASSETS |
|||
CURRENT ASSETS: |
|||
Cash and cash equivalents |
$ 90,467 |
$ 102,772 | |
Short-term investments |
12,283 |
733 | |
Accounts receivable, net |
22,807 |
22,015 | |
Prepaid expenses and other current assets |
7,024 |
2,924 | |
Deferred tax asset |
17,210 |
14,353 | |
Total current assets |
149,791 |
142,797 | |
Property, equipment and software, net |
29,854 |
21,271 | |
Goodwill |
69,798 |
46,304 | |
Intangibles, net |
21,454 |
15,226 | |
Deferred tax asset |
14,724 |
10,628 | |
Other assets |
894 |
1,021 | |
TOTAL ASSETS |
$ 286,515 |
$ 237,247 | |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
CURRENT LIABILITIES: |
|||
Accounts payable and accrued expenses |
$ 9,842 |
$ 13,847 | |
Accrued compensation |
5,968 |
5,167 | |
Deferred revenue |
2,003 |
1,563 | |
Deferred tax liability |
49 |
107 | |
Dining rewards payable |
35,165 |
27,611 | |
Total current liabilities |
53,027 |
48,295 | |
Deferred revenue — non-current |
1,922 |
2,054 | |
Deferred tax liability |
3,673 |
3,268 | |
Income tax liability |
14,737 |
15,639 | |
Other long-term liabilities |
3,248 |
76 | |
Total liabilities |
76,607 |
69,332 | |
STOCKHOLDERS' EQUITY: |
|||
Common stock |
2 |
2 | |
Additional paid-in capital |
254,204 |
211,408 | |
Treasury stock |
(74,247) |
(50,685) | |
Accumulated other comprehensive income |
549 |
861 | |
Retained earnings |
29,400 |
6,329 | |
Total stockholders' equity |
209,908 |
167,915 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 286,515 |
$ 237,247 |
| ||||||||
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS | ||||||||
Three Months Ended |
Nine Months Ended | |||||||
|
| |||||||
2013 |
2012 |
2013 |
2012 | |||||
(In thousands, except per share amounts) | ||||||||
REVENUES |
$ 46,693 |
$ 39,738 |
$ 137,759 |
$ 118,665 | ||||
COSTS AND EXPENSES: |
||||||||
Operations and support (1) |
12,829 |
10,544 |
35,650 |
31,402 | ||||
Sales and marketing (1) |
10,070 |
8,216 |
29,527 |
25,559 | ||||
Technology (1) |
5,194 |
3,741 |
14,305 |
10,599 | ||||
General and administrative (1) |
8,385 |
8,072 |
25,075 |
25,673 | ||||
Total costs and expenses |
36,478 |
30,573 |
104,557 |
93,233 | ||||
Income from operations |
10,215 |
9,165 |
33,202 |
25,432 | ||||
Other income, net |
(30) |
36 |
(19) |
66 | ||||
Income before taxes |
10,185 |
9,201 |
33,183 |
25,498 | ||||
Income tax expense |
2,571 |
3,253 |
10,112 |
8,989 | ||||
NET INCOME |
$ 7,614 |
$ 5,948 |
$ 23,071 |
$ 16,509 | ||||
Net income per share: |
||||||||
Basic |
$ 0.33 |
$ 0.26 |
$ 1.01 |
$ 0.73 | ||||
Diluted |
$ 0.32 |
$ 0.26 |
$ 0.97 |
$ 0.71 | ||||
Weighted average shares outstanding: |
||||||||
Basic |
23,093 |
22,641 |
22,953 |
22,585 | ||||
Diluted |
24,043 |
23,261 |
23,868 |
23,188 | ||||
(1) Stock-based compensation included in above line items: |
||||||||
Operations and support |
$ 261 |
$ 332 |
$ 507 |
$ 966 | ||||
Sales and marketing |
997 |
1,290 |
2,703 |
4,046 | ||||
Technology |
1,535 |
1,020 |
3,765 |
2,184 | ||||
General and administrative |
1,877 |
2,268 |
5,566 |
8,891 | ||||
$ 4,670 |
$ 4,910 |
$ 12,541 |
$ 16,087 | |||||
Other Operational Data: |
||||||||
Installed restaurants (at period end): |
||||||||
|
23,287 |
18,975 |
23,287 |
18,975 | ||||
International |
7,677 |
7,385 |
7,677 |
7,385 | ||||
Total |
30,964 |
26,360 |
30,964 |
26,360 | ||||
Seated diners (in thousands): |
||||||||
|
35,150 |
27,438 |
104,373 |
83,192 | ||||
International |
3,364 |
2,302 |
9,723 |
6,800 | ||||
Total |
38,514 |
29,740 |
114,096 |
89,992 | ||||
Headcount (at period end): |
||||||||
|
438 |
425 |
438 |
425 | ||||
International |
166 |
162 |
166 |
162 | ||||
Total |
604 |
587 |
604 |
587 | ||||
Additional Financial Data: |
||||||||
Revenues: |
||||||||
|
||||||||
Reservation |
$ 23,768 |
$ 19,193 |
$ 71,012 |
$ 58,128 | ||||
Subscription |
13,910 |
12,510 |
40,098 |
36,675 | ||||
Other |
2,933 |
2,789 |
8,672 |
7,884 | ||||
Total North America Revenues |
$ 40,611 |
$ 34,492 |
$ 119,782 |
$ 102,687 | ||||
International |
||||||||
Reservation |
$ 4,080 |
$ 2,718 |
$ 11,578 |
$ 8,421 | ||||
Subscription |
1,900 |
1,754 |
5,447 |
5,056 | ||||
Other |
102 |
774 |
952 |
2,501 | ||||
Total International Revenues |
6,082 |
5,246 |
17,977 |
15,978 | ||||
Total Revenues |
$ 46,693 |
$ 39,738 |
$ 137,759 |
$ 118,665 | ||||
Income (loss) from operations: |
||||||||
|
$ 12,028 |
$ 11,581 |
$ 39,839 |
$ 32,935 | ||||
International |
(1,813) |
(2,416) |
(6,637) |
(7,503) | ||||
Total |
$ 10,215 |
$ 9,165 |
$ 33,202 |
$ 25,432 | ||||
Depreciation and amortization: |
||||||||
|
$ 3,734 |
$ 1,912 |
$ 9,419 |
$ 5,460 | ||||
International |
1,035 |
1,455 |
3,010 |
4,213 | ||||
Total |
$ 4,769 |
$ 3,367 |
$ 12,429 |
$ 9,673 | ||||
Stock-based compensation: |
||||||||
|
$ 4,297 |
$ 4,221 |
$ 11,407 |
$ 14,447 | ||||
International |
373 |
689 |
1,134 |
1,640 | ||||
Total |
$ 4,670 |
$ 4,910 |
$ 12,541 |
$ 16,087 |
| ||||||||
RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS | ||||||||
Three Months Ended |
Nine Months Ended | |||||||
|
| |||||||
2013 |
2012 |
2013 |
2012 | |||||
(In thousands, except per share amounts) | ||||||||
Non-GAAP consolidated net income per share: |
||||||||
GAAP net income "as reported" |
$ 7,614 |
$ 5,948 |
$ 23,071 |
$ 16,509 | ||||
Add back: stock-based compensation expense |
4,670 |
4,910 |
12,541 |
16,087 | ||||
Income tax effect of stock-based compensation |
(1,421) |
(1,996) |
(3,956) |
(6,298) | ||||
Add back: acquisition-related expenses |
334 |
53 |
751 |
104 | ||||
Income tax effect of acquisition-related expenses |
(127) |
(21) |
(282) |
(40) | ||||
Add back: amortization of acquired intangibles |
1,488 |
1,089 |
3,604 |
3,038 | ||||
Income tax effect of amortization of intangibles |
(507) |
(311) |
(1,031) |
(826) | ||||
NON-GAAP CONSOLIDATED NET INCOME |
$ 12,051 |
$ 9,672 |
$ 34,698 |
$ 28,574 | ||||
Non-GAAP diluted net income per share |
$ 0.50 |
$ 0.42 |
$ 1.45 |
$ 1.23 | ||||
Weighted average diluted shares outstanding |
24,043 |
23,261 |
23,868 |
23,188 | ||||
Non-GAAP consolidated operating income: |
||||||||
GAAP income from operations "as reported" |
$ 10,215 |
$ 9,165 |
$ 33,202 |
$ 25,432 | ||||
Add back: stock-based compensation expense |
4,670 |
4,910 |
12,541 |
16,087 | ||||
Add back: acquisition-related expenses |
334 |
53 |
751 |
104 | ||||
Add back: amortization of acquired intangibles |
1,488 |
1,089 |
3,604 |
3,038 | ||||
NON-GAAP OPERATING INCOME |
$ 16,707 |
$ 15,217 |
$ 50,098 |
$ 44,661 | ||||
North America Adjusted EBITDA: |
||||||||
GAAP operating income "as reported" |
$ 12,028 |
$ 11,581 |
$ 39,839 |
$ 32,935 | ||||
Adjustments: |
||||||||
Stock-based compensation expense |
4,297 |
4,221 |
11,407 |
14,447 | ||||
Acquisition-related expense |
334 |
53 |
751 |
104 | ||||
Amortization of acquired intangibles |
1,129 |
201 |
2,529 |
377 | ||||
Depreciation and other amortization expense |
2,605 |
1,711 |
6,890 |
5,083 | ||||
North America Adjusted EBITDA |
$ 20,393 |
$ 17,767 |
$ 61,416 |
$ 52,946 | ||||
International Adjusted EBITDA: |
||||||||
GAAP operating loss "as reported" |
$ (1,813) |
$ (2,416) |
$ (6,637) |
$ (7,503) | ||||
Adjustments: |
||||||||
Stock-based compensation expense |
373 |
689 |
1,134 |
1,640 | ||||
Amortization of acquired intangibles |
359 |
888 |
1,075 |
2,661 | ||||
Depreciation and other amortization expense |
676 |
567 |
1,935 |
1,552 | ||||
International Adjusted EBITDA |
$ (405) |
$ (272) |
$ (2,493) |
$ (1,650) | ||||
Consolidated Adjusted EBITDA: |
||||||||
GAAP operating income "as reported" |
$ 10,215 |
$ 9,165 |
$ 33,202 |
$ 25,432 | ||||
Adjustments: |
||||||||
Stock-based compensation expense |
4,670 |
4,910 |
12,541 |
16,087 | ||||
Acquisition-related expense |
334 |
53 |
751 |
104 | ||||
Amortization of acquired intangibles |
1,488 |
1,089 |
3,604 |
3,038 | ||||
Depreciation and other amortization expense |
3,281 |
2,278 |
8,825 |
6,635 | ||||
Consolidated Adjusted EBITDA |
$ 19,988 |
$ 17,495 |
$ 58,923 |
$ 51,296 |
| ||||||||
RECONCILIATION OF GAAP TO NON-GAAP FORWARD-LOOKING GUIDANCE | ||||||||
Forward-Looking Guidance | ||||||||
Three Months Ending |
Twelve Months Ending | |||||||
|
| |||||||
Range of Estimate |
Range of Estimate | |||||||
From |
To |
From |
To | |||||
(In thousands, except per share amounts) | ||||||||
Non-GAAP consolidated net income per share: |
||||||||
GAAP net income |
$ 7,964 |
$ 8,846 |
$ 31,013 |
$ 31,895 | ||||
Add back: stock-based compensation expense |
4,367 |
4,367 |
16,908 |
16,908 | ||||
Income tax effect of stock-based compensation |
(1,190) |
(1,190) |
(5,146) |
(5,146) | ||||
Add back: acquisition-related expenses |
- |
- |
751 |
751 | ||||
Income tax effect of acquisition-related expenses |
- |
- |
(282) |
(282) | ||||
Add back: amortization of acquired intangibles |
1,281 |
1,281 |
4,885 |
4,885 | ||||
Income tax effect of amortization of intangibles |
(481) |
(481) |
(1,512) |
(1,512) | ||||
NON-GAAP CONSOLIDATED NET INCOME |
$ 11,941 |
$ 12,823 |
$ 46,617 |
$ 47,499 | ||||
GAAP diluted net income per share |
$ 0.33 |
$ 0.37 |
$ 1.29 |
$ 1.33 | ||||
Non-GAAP diluted net income per share |
$ 0.49 |
$ 0.53 |
$ 1.94 |
$ 1.98 | ||||
Weighted average diluted shares outstanding |
24,200 |
24,200 |
24,000 |
24,000 | ||||
North America Adjusted EBITDA: |
||||||||
GAAP operating income |
$ 14,000 |
$ 15,000 |
$ 53,824 |
$ 54,824 | ||||
Adjustments: |
||||||||
Stock-based compensation expense |
3,888 |
3,888 |
15,295 |
15,295 | ||||
Acquisition-related expense |
- |
- |
751 |
751 | ||||
Amortization of acquired intangibles |
1,281 |
1,281 |
3,810 |
3,810 | ||||
Depreciation and other amortization expense |
2,931 |
2,931 |
9,820 |
9,820 | ||||
North America Adjusted EBITDA |
$ 22,100 |
$ 23,100 |
$ 83,500 |
$ 84,500 | ||||
International Adjusted EBITDA: |
||||||||
GAAP operating loss |
$ (1,396) |
$ (996) |
$ (8,040) |
$ (7,640) | ||||
Adjustments: |
||||||||
Stock-based compensation expense |
479 |
479 |
1,613 |
1,613 | ||||
Amortization of acquired intangibles |
- |
- |
1,075 |
1,075 | ||||
Depreciation and other amortization expense |
717 |
717 |
2,652 |
2,652 | ||||
International Adjusted EBITDA |
$ (200) |
$ 200 |
$ (2,700) |
$ (2,300) | ||||
Consolidated Adjusted EBITDA: |
||||||||
GAAP operating income "as reported" |
$ 12,604 |
$ 14,004 |
$ 45,784 |
$ 47,184 | ||||
Adjustments: |
||||||||
Stock-based compensation expense |
4,367 |
4,367 |
16,908 |
16,908 | ||||
Acquisition-related expense |
- |
- |
751 |
751 | ||||
Amortization of acquired intangibles |
1,281 |
1,281 |
4,885 |
4,885 | ||||
Depreciation and other amortization expense |
3,648 |
3,648 |
12,472 |
12,472 | ||||
Consolidated Adjusted EBITDA |
$ 21,900 |
$ 23,300 |
$ 80,800 |
$ 82,200 |
SOURCE
News Provided by Acquire Media