Published: November 01, 2011
OpenTable, Inc. Announces Third Quarter Financial Results
SAN FRANCISCO, Nov. 1, 2011 /PRNewswire/ -- 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, 2011.
(Logo: http://photos.prnewswire.com/prnh/20110606/MM07085LOGO)
OpenTable reported consolidated net revenues for Q3 2011 of $34.4 million, a 40% increase over Q3 2010. Consolidated net income for Q3 2011 was $4.1 million, or $0.17 per diluted share. Non-GAAP consolidated net income for Q3 2011, which excludes tax-affected stock-based compensation expense and tax-affected amortization of acquired intangibles, was $7.4 million, or $0.30 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, an acquisition which closed on October 1, 2010.
North America Results
-- Installed restaurant base as of September 30, 2011, totaled 16,237, a
25% increase over September 30, 2010.
-- Seated diners totaled 21.8 million, a 42% increase over Q3 2010.
-- Revenues totaled $29.1 million, a 26% increase over Q3 2010.
-- Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization and stock-based compensation) totaled $13.6 million, or 47%
of North America revenues, a 33% increase over Q3 2010.
International Results
-- Installed restaurant base as of September 30, 2011, totaled 7,629, a
243% increase over September 30, 2010.
-- Seated diners totaled 1.8 million, a 233% increase over Q3 2010.
-- Revenues totaled $5.3 million, a 254% increase over Q3 2010.
-- Non-GAAP adjusted EBITDA totaled a loss of $0.7 million compared to a
loss of $1.2 million in Q3 2010.
-- In Q3 2011, toptable.com contributed approximately 665,000 seated
diners, $2.9 million of revenue and loss of approximately $0.1 million
of non-GAAP adjusted EBITDA to the Company's results.
"Our business continued to demonstrate strong momentum in the third quarter," said Matt Roberts, President and CEO of OpenTable. "In particular, we're pleased with the progress we made in our International segment."
Q3 2011 Consolidated Financial and Operating Summary
-- Installed restaurant base as of September 30, 2011, totaled 23,866, a
57% increase over September 30, 2010.
-- Seated diners totaled 23.6 million, a 48% increase over Q3 2010.
-- Total revenues were $34.4 million in Q3 2011, up 40% over Q3 2010
revenues of $24.5 million.
-- Subscription revenues were $12.9 million in Q3 2011, up 17% over Q3
2010 revenues of $11.0 million. Subscription revenues increased as
a result of the increase in installed restaurants using our
Electronic Reservation Book solution.
-- Reservation revenues were $18.0 million in Q3 2011, up 58% over Q3
2010 revenues of $11.4 million. Reservation revenues primarily
increased as a result of the increase in seated diners. In Q3 2011,
toptable.com contributed $2.0 million to reservation revenues.
-- Installation and other revenues were $3.4 million in Q3 2011, up 60%
over Q3 2010 revenues of $2.1 million. The increase is primarily
the result of an increase in revenue from other product offerings,
including advertising sales, web service licensing and third-party
restaurant coupon sales. In Q3 2011, toptable.com contributed $0.9
million to installation and other revenues.
-- Total operating expenses were $28.5 million in Q3 2011, up 43% over Q3
2010 operating expenses of $20.0 million. The increase was primarily
driven by a 51% 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 $5.8 million in Q3 2011 compared to $4.6
million in Q3 2010. Non-GAAP consolidated operating income, excluding
stock-based compensation expense, amortization of acquired intangibles
and acquisition-related expenses was $10.8 million in Q3 2011 compared
to $7.4 million in Q3 2010.
-- The Q3 2011 GAAP income tax expense was $1.8 million, or a 30% tax rate.
-- Consolidated net income was $4.1 million, or $0.17 per diluted share, in
Q3 2011 compared to $3.8 million, or $0.16 per diluted share, in Q3
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 $7.4
million, or $0.30 per diluted share, in Q3 2011 compared to $5.7
million, or $0.23 per diluted share, in Q3 2010.
-- As of September 30, 2011, OpenTable had cash and cash equivalents and
short-term investments of $79.9 million.
"The third quarter highlights continued growth in our core operating and financial metrics," said Duncan Robertson, CFO of OpenTable. "The business continues to deliver solid operating margins and cash flows 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, 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. 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 250 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.
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
September
30, December 31,
---------- ------------
2011 2010
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $58,890,000 $33,444,000
Short-term investments 21,021,000 9,080,000
Accounts receivable, net 15,216,000 13,292,000
Prepaid expenses and other current
assets 3,534,000 2,919,000
Deferred tax asset 7,896,000 7,882,000
Restricted cash - 167,000
--- -------
Total current assets 106,557,000 66,784,000
Property, equipment and software,
net 15,566,000 14,612,000
Goodwill 42,732,000 42,347,000
Intangibles, net 17,545,000 20,248,000
Deferred tax asset 5,377,000 5,539,000
Other assets 862,000 366,000
------- -------
TOTAL ASSETS $188,639,000 $149,896,000
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued
expenses $6,987,000 $7,666,000
Accrued compensation 4,541,000 4,189,000
Deferred revenue 2,000,000 1,852,000
Dining rewards payable 19,363,000 15,398,000
---------- ----------
Total current liabilities 32,891,000 29,105,000
Deferred revenue - non-current 2,343,000 2,802,000
Deferred tax liability 4,630,000 5,644,000
Income tax liability 12,758,000 8,577,000
Other long-term liabilities 444,000 1,623,000
------- ---------
Total liabilities 53,066,000 47,751,000
---------- ----------
STOCKHOLDERS' EQUITY:
Common stock 2,000 2,000
Additional paid-in capital 161,749,000 143,292,000
Treasury stock (647,000) (647,000)
Accumulated other comprehensive
income (loss) (900,000) (1,305,000)
Accumulated deficit (24,631,000) (39,197,000)
----------- -----------
Total stockholders' equity 135,573,000 102,145,000
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $188,639,000 $149,896,000
============ ============
OPENTABLE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Nine Months
Ended Ended
September 30, September 30,
------------- -------------
2011 2010 2011 2010
---- ---- ---- ----
(In thousands, except per share
amounts)
REVENUES $34,356 $24,520 $102,353 $68,224
COSTS AND EXPENSES:
Operations and support
(1) 9,916 6,769 29,074 19,095
Sales and marketing (1) 7,477 5,185 21,692 14,971
Technology (1) 3,748 2,967 11,326 8,707
General and
administrative (1) 7,407 5,045 18,417 12,947
----- ----- ------ ------
Total costs and expenses 28,548 19,966 80,509 55,720
------ ------ ------ ------
Income from operations 5,808 4,554 21,844 12,504
Other income, net 23 67 68 209
--- --- --- ---
Income before taxes 5,831 4,621 21,912 12,713
Income tax expense 1,775 786 7,346 3,770
----- --- ----- -----
NET INCOME $4,056 $3,835 $14,566 $8,943
====== ====== ======= ======
Net income per share:
Basic $0.17 $0.17 $0.62 $0.39
===== ===== ===== =====
Diluted $0.17 $0.16 $0.59 $0.37
===== ===== ===== =====
Weighted average shares
outstanding:
Basic 23,695 22,706 23,530 22,471
Diluted 24,488 24,102 24,545 23,866
(1) Stock-based compensation
included in above line items:
Operations and support $431 $229 $1,289 $648
Sales and marketing 571 494 1,574 1,359
Technology 431 416 1,319 1,059
General and
administrative 2,536 888 4,627 2,295
----- --- ----- -----
$3,969 $2,027 $8,809 $5,361
Other Operational Data:
Installed restaurants (at
period end):
North America 16,237 13,025 16,237 13,025
International 7,629 2,221 7,629 2,221
----- ----- ----- -----
Total 23,866 15,246 23,866 15,246
Seated diners (in thousands):
North America 21,818 15,368 64,884 44,591
International 1,768 531 4,939 1,403
----- --- ----- -----
Total 23,586 15,899 69,823 45,994
Headcount (at period end):
North America 403 302 403 302
International 165 74 165 74
--- --- --- ---
Total 568 376 568 376
Additional Financial Data:
Revenues:
North America
Subscription $11,406 $9,868 $33,117 $28,409
Reservation 15,154 11,059 45,690 31,325
Installation and other 2,521 2,101 8,290 4,474
----- ----- ----- -----
Total North America
Revenues $29,081 $23,028 $87,097 $64,208
International
Subscription $1,531 $1,146 $4,400 $3,118
Reservation 2,861 323 8,228 825
Installation and other 883 23 2,628 73
--- --- ----- ---
Total International
Revenues 5,275 1,492 15,256 4,016
----- ----- ------ -----
Total Revenues $34,356 $24,520 $102,353 $68,224
Income (loss) from operations:
North America $8,532 $6,646 $30,857 $17,592
International (2,724) (2,092) (9,013) (5,088)
------ ------ ------ ------
Total $5,808 $4,554 $21,844 $12,504
Depreciation and amortization:
North America $1,726 $1,546 $5,162 $4,444
International 1,321 163 3,666 436
----- --- ----- ---
Total $3,047 $1,709 $8,828 $4,880
Stock-based compensation:
North America $3,295 $1,932 $6,176 $5,100
International 674 95 2,633 261
--- --- ----- ---
Total $3,969 $2,027 $8,809 $5,361
OPENTABLE, INC.
RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS
Three Months Nine Months
Ended Ended
September 30, September 30,
------------- -------------
2011 2010 2011 2010
---- ---- ---- ----
(In thousands, except per share
amounts)
Non-GAAP
consolidated net
income per share:
GAAP net income
"as reported" $4,056 $3,835 $14,566 $8,943
Add back: stock-
based
compensation
expense 3,969 2,027 8,809 5,361
Income tax effect
of stock-based
compensation (1,403) (922) (3,321) (2,375)
Add back:
acquisition
related expenses - 710 - 710
Income tax effect
of acquisition
related expenses - (36) - (36)
Add back:
amortization of
acquired
intangibles 993 79 2,986 227
Income tax effect
of amortization
of intangibles (264) (32) (822) (91)
---- --- ---- ---
NON-GAAP
CONSOLIDATED NET
INCOME $7,351 $5,661 $22,218 $12,739
====== ====== ======= =======
Non-GAAP diluted
net income per
share $0.30 $0.23 $0.91 $0.53
===== ===== ===== =====
Weighted average
diluted shares
outstanding 24,488 24,102 24,545 23,866
Non-GAAP
consolidated
operating income:
GAAP income from
operations "as
reported" $5,808 $4,554 $21,844 $12,504
Add back: stock-
based
compensation
expense 3,969 2,027 8,809 5,361
Add back:
acquisition
related expenses - 710 - 710
Add back:
amortization of
acquired
intangibles 993 79 2,986 227
--- --- ----- ---
NON-GAAP
CONSOLIDATED
OPERATING INCOME $10,770 $7,370 $33,639 $18,802
======= ====== ======= =======
North America
Adjusted EBITDA:
GAAP operating
income "as
reported" $8,532 $6,646 $30,857 $17,592
Adjustments:
Stock-based
compensation
expense 3,295 1,932 6,176 5,100
Acquisition
related expenses - 91 - 91
Amortization of
acquired
intangibles 87 79 263 227
Depreciation and
other
amortization
expense 1,639 1,467 4,899 4,217
----- ----- ----- -----
North America
Adjusted EBITDA $13,553 $10,215 $42,195 $27,227
International
Adjusted EBITDA:
GAAP operating
loss "as
reported" $(2,724) $(2,092) $(9,013) $(5,088)
Adjustments:
Stock-based
compensation
expense 674 95 2,633 261
Acquisition
related expenses - 619 - 619
Amortization of
acquired
intangibles 906 - 2,723 -
Depreciation and
other
amortization
expense 415 163 943 436
--- --- --- ---
International
Adjusted EBITDA $(729) $(1,215) $(2,714) $(3,772)
SOURCE OpenTable, Inc.
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