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)
This news release was distributed by GlobeNewswire, www.globenewswire.com
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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