OpenTable, Inc. Announces First Quarter Financial Results
OpenTable, Inc. Announces First Quarter Financial Results
—Increases Revenue by 17% to $39.4 Million—
—Grows Installed Restaurants by 22% and Seated Diners by 34% over Q1 2011—
—Achieves EPS of $0.21 and Non-GAAP EPS of $0.40—
SAN FRANCISCO, May 1, 2012 - 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 first quarter ended March 31, 2012.
(Logo: http://photos.prnewswire.com/prnh/20110606/MM07085LOGO )
OpenTable reported consolidated net revenues for Q1 2012 of $39.4 million, a 17% increase over Q1 2011. Consolidated net income for Q1 2012 was $4.8 million, or $0.21 per diluted share. Non-GAAP consolidated net income for Q1 2012, which excludes tax-affected stock-based compensation expense and tax-affected amortization of acquired intangibles, was $9.2 million, or $0.40 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 March 31, 2012, totaled 17,753, a 22%
increase over March 31, 2011.
— Seated diners totaled 27.7 million, a 33% increase over Q1 2011.
— Revenues totaled $33.7 million, a 17% increase over Q1 2011.
— Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization and stock-based compensation) totaled $17.1 million, or 51%
of North America revenues, a 24% increase over Q1 2011.
International Results
— Installed restaurant base as of March 31, 2012, totaled 8,091, a 21%
increase over March 31, 2011.
— Seated diners totaled 2.3 million, a 45% increase over Q1 2011.
— Revenues totaled $5.6 million, a 14% increase over Q1 2011.
— Non-GAAP adjusted EBITDA totaled a loss of $0.6 million compared to a
loss of $1.5 million in Q1 2011.
“We’re focusing our efforts in areas that we believe position the business to realize the long-term opportunity in both our North America and International segments,” said Matt Roberts, President and CEO of OpenTable. “In our International segment, we’re pleased that the final phase of integrating OpenTable technology into toptable - our consumer destination site in the UK - is on track for completion by the end of June and that the value of the combined solution is resonating with existing and prospective restaurant customers.”
Q1 2012 Consolidated Financial and Operating Summary
— Installed restaurant base as of March 31, 2012, totaled 25,844, a 22%
increase over March 31, 2011.
— Seated diners totaled 30.0 million, a 34% increase over Q1 2011.
— Total revenues were $39.4 million in Q1 2012, up 17% over Q1 2011
revenues of $33.7 million.
— Reservation revenues were $22.3 million in Q1 2012, up 27% over Q1
2011 revenues of $17.6 million. Reservation revenues primarily
increased as a result of the increase in seated diners.
— Subscription revenues were $13.5 million in Q1 2012, up 13% over Q1
2011 revenues of $12.0 million. Subscription revenues primarily
increased as a result of the increase in installed restaurants using
our Electronic Reservation Book solution.
— Other revenues were $3.5 million in Q1 2012, down 14% over Q1 2011
revenues of $4.1 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 and featured
private dining sales.
— Total operating expenses were $32.0 million in Q1 2012, up 18% over Q1
2011 operating expenses of $27.2 million. The increase was primarily
driven by an increase in stock based compensation and an 8% increase in
headcount.
— Total operating income was $7.4 million in Q1 2012 compared to $6.5
million in Q1 2011. Non-GAAP consolidated operating income, excluding
stock-based compensation expense and amortization of acquired
intangibles was $14.3 million in Q1 2012 compared to $10.5 million in Q1
2011.
— The Q1 2012 GAAP income tax expense was $2.6 million, or a 35% tax rate.
— Consolidated net income was $4.8 million, or $0.21 per diluted share, in
Q1 2012 compared to $4.2 million, or $0.17 per diluted share, in Q1
2011. Non-GAAP consolidated net income, which excludes tax-affected
stock-based compensation expense and tax-affected amortization of
acquired intangibles, was $9.2 million, or $0.40 per diluted share, in
Q1 2012 compared to $6.8 million, or $0.28 per diluted share, in Q1
2011.
— As of March 31, 2012, OpenTable had cash and cash equivalents and
short-term investments of $57.7 million.
“During the first quarter the business continued to deliver solid operating metrics, adjusted EBITDA margins and cash flows even as we invest for the future,” said Duncan Robertson, CFO of OpenTable.
Business Outlook
As of today, OpenTable is providing guidance for Q2 2012 and the full year 2012 on revenue, non-GAAP adjusted EBITDA and other consolidated metrics.
Q2 2012 Guidance:
— In the North America segment the Company estimates revenue to be in the
range of $33.6 million to $34.6 million and non-GAAP adjusted EBITDA to
be in the range of $16.8 million to $17.8 million.
— In the International segment the Company estimates revenue to be in the
range of $4.9 million to $5.2 million and non-GAAP adjusted EBITDA loss
to be in the range of $1.0 million to $1.3 million.
— On a consolidated basis the Company estimates revenue to be in the range
of $38.5 million to $39.8 million, non-GAAP adjusted EBITDA to be in the
range of $15.5 million to $16.8 million and non-GAAP EPS to be in the
range of $0.36 to $0.39.
Full Year 2012 Guidance:
— In the North America segment the Company estimates revenue to be in the
range of $136 million to $141 million and non-GAAP adjusted EBITDA to be
in the range of $68 million to $72.5 million.
— In the International segment the Company estimates revenue to be in the
range of $22 million to $23 million and non-GAAP adjusted EBITDA loss to
be in the range of $2 million to $3 million.
— On a consolidated basis the Company estimates revenue to be in the range
of $158 million to $164 million, non-GAAP adjusted EBITDA to be in the
range of $65 million to $70.5 million and non-GAAP EPS to be in the
range of $1.49 to $1.64.
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 May 31, 2012, 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 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 and stock-based compensation. 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 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 monthly subscription fees, a fee for each restaurant guest seated through online reservations, and other revenue, including installation fees for the Electronic Reservation Book (including training).
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 Q2 2012 and the full year 2012 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 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, 2011 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 25,000 restaurant customers, and, since its inception in 1998, has seated more than 325 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
March 31, December 31,
— ——-
2012 2011
—— ——
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $44,564,000 $36,519,000
Short-term investments 13,165,000 13,411,000
Accounts receivable, net 18,821,000 18,795,000
Prepaid expenses and other
current assets 2,736,000 2,708,000
Deferred tax asset 11,121,000 11,238,000
—- —-
Total current assets 90,407,000 82,671,000
Property, equipment and
software, net 17,488,000 16,150,000
Goodwill 43,616,000 42,312,000
Intangibles, net 15,962,000 16,403,000
Deferred tax asset 6,909,000 5,466,000
Other assets 788,000 813,000
TOTAL ASSETS $175,170,000 $163,815,000
============ ============
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued
expenses $7,405,000 $7,004,000
Accrued compensation 4,757,000 4,518,000
Deferred revenue 1,908,000 1,752,000
Dining rewards payable 22,647,000 20,827,000
—- —-
Total current liabilities 36,717,000 34,101,000
Deferred revenue - non-
current 2,114,000 2,249,000
Deferred tax liability 3,867,000 3,915,000
Income tax liability 13,810,000 13,215,000
Other long-term liabilities 68,000 108,000
———
Total liabilities 56,576,000 53,588,000
—- —-
STOCKHOLDERS’ EQUITY:
Common stock 2,000 2,000
Additional paid-in capital 181,803,000 171,465,000
Treasury stock (50,673,000) (41,963,000)
Accumulated other comprehensive
loss 289,000 (1,634,000)
Accumulated deficit (12,827,000) (17,643,000)
—— ——
Total stockholders’ equity 118,594,000 110,227,000
—— ——
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY $175,170,000 $163,815,000
============ ============
OPENTABLE, INC.
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
Three Months Ended
March 31,
—
2012 2011
—— ——
(In thousands, except
per share amounts)
REVENUES $39,369 $33,707
COSTS AND
EXPENSES:
Operations and
support (1) 10,519 9,472
Sales and
marketing (1) 8,860 7,812
Technology (1) 3,248 4,047
General and
administrative
(1) 9,351 5,862
——- ——-
Total costs and
expenses 31,978 27,193
——— ———
Income from
operations 7,391 6,514
Other income, net 17 21
—- —-
Income before
taxes 7,408 6,535
Income tax
expense 2,592 2,350
——- ——-
NET INCOME $4,816 $4,185
====== ======
Net income per
share:
Basic $0..21 $0.18
===== =====
Diluted $0..21 $0.17
===== =====
Weighted average
shares
outstanding:
Basic 22,536 23,332
Diluted 23,174 24,530
(1) Stock-based
compensation
included in
above line
items:
Operations and
support $301 $412
Sales and
marketing 1,381 510
Technology 522 451
General and
administrative 3,720 1,631
——- ——-
$5,924 $3,004
Other Operational
Data:
Installed
restaurants (at
period end):
North America 17,753 14,522
International 8,091 6,692
——- ——-
Total 25,844 21,214
Seated diners (in
thousands):
North America 27,716 20,870
International 2,254 1,553
——- ——-
Total 29,970 22,423
Headcount (at
period end):
North America 392 358
International 164 156
—- —-
Total 556 514
Additional
Financial Data:
Revenues:
North America
Reservation $19,215 $14,976
Subscription 11,900 10,621
Other 2,608 3,177
——- ——-
Total North
America Revenues $33,723 $28,774
International
Reservation $3,113 $2,631
Subscription 1,639 1,397
Other 894 905
Total
International
Revenues 5,646 4,933
——- ——-
Total Revenues $39,369 $33,707
Income (loss)
from operations:
North America $9,981 $10,085
International (2,590) (3,571)
——— ———
Total $7,391 $6,514
Depreciation and
amortization:
North America $1,690 $1,695
International 1,487 1,136
——- ——-
Total $3,177 $2,831
Stock-based
compensation:
North America $5,435 $2,019
International 489 985
—- —-
Total $5,924 $3,004
OPENTABLE, INC.
RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS
Three Months Ended
March 31,
—
2012 2011
—— ——
(In thousands, except
per share amounts)
Non-GAAP
consolidated net
income per share:
GAAP net income “as
reported” $4,816 $4,185
Add back: stock-
based compensation
expense 5,924 3,004
Income tax effect of
stock-based
compensation (2,280) (1,126)
Add back:
amortization of
acquired
intangibles 971 988
Income tax effect of
amortization of
intangibles (257) (285)
—— ——
NON-GAAP
CONSOLIDATED NET
INCOME $9,174 $6,766
====== ======
Non-GAAP diluted
net income per
share $0.40 $0.28
===== =====
Weighted average
diluted shares
outstanding 23,174 24,530
Non-GAAP
consolidated
operating income:
GAAP income from
operations “as
reported” $7,391 $6,514
Add back: stock-
based compensation
expense 5,924 3,004
Add back:
amortization of
acquired
intangibles 971 988
—- —-
NON-GAAP OPERATING
INCOME $14,286 $10,506
======= =======
North America
Adjusted EBITDA:
GAAP operating
income “as
reported” $9,981 $10,085
Adjustments:
Stock-based
compensation
expense 5,435 2,019
Amortization of
acquired
intangibles 88 88
Depreciation and
other amortization
expense 1,602 1,607
——- ——-
North America
Adjusted EBITDA $17,106 $13,799
International
Adjusted EBITDA:
GAAP operating loss
“as reported” $(2,590) $(3,571)
Adjustments:
Stock-based
compensation
expense 489 985
Amortization of
acquired
intangibles 883 900
Depreciation and
other amortization
expense 604 236
—- —-
International
Adjusted EBITDA $(614) $(1,450)
OPENTABLE, INC.
RECONCILIATION OF GAAP TO NON-GAAP FORWARD-LOOKING GUIDANCE
Forward-Looking Guidance
—-
Three Months Ending Twelve Months Ending
June 30, 2012 December 31, 2012
——— —-
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 $4,446 $5,252 $20,400 $23,810
Add back: stock-based
compensation expense 5,137 5,137 19,599 19,599
Income tax effect of stock-
based compensation (1,963) (1,963) (7,448) (7,448)
Add back: amortization of
acquired intangibles 996 996 3,392 3,392
Income tax effect of
amortization of
intangibles (264) (264) (899) (899)
—— —— —— ——
NON-GAAP CONSOLIDATED NET
INCOME $8,352 $9,158 $35,044 $38,454
====== ====== ======= =======
Non-GAAP diluted net
income per share $0.36 $0.39 $1.49 $1.64
===== ===== ===== =====
Weighted average diluted
shares outstanding 23,500 23,500 23,500 23,500
North America Adjusted
EBITDA:
GAAP operating income $10,150 $11,150 $42,060 $46,560
Adjustments:
Stock-based compensation
expense 4,667 4,667 17,997 17,997
Amortization of acquired
intangibles 88 88 320 320
Depreciation and other
amortization expense 1,895 1,895 7,623 7,623
——- ——- ——- ——-
North America Adjusted
EBITDA $16,800 $17,800 $68,000 $72,500
International Adjusted
EBITDA:
GAAP operating loss $(3,004) $(2,704) $(9,281) $(8,281)
Adjustments:
Stock-based compensation
expense 470 470 1,602 1,602
Amortization of acquired
intangibles 908 908 3,072 3,072
Depreciation and other
amortization expense 326 326 1,607 1,607
—- —- ——- ——-
International Adjusted
EBITDA $(1,300) $(1,000) $(3,000) $(2,000)
Consolidated Adjusted
EBITDA:
GAAP operating income $7,146 $8,446 $32,779 $38,279
Adjustments:
Stock-based compensation
expense 5,137 5,137 19,599 19,599
Amortization of acquired
intangibles 996 996 3,392 3,392
Depreciation and other
amortization expense 2,221 2,221 9,230 9,230
——- ——- ——- ——-
Consolidated Adjusted
EBITDA $15,500 $16,800 $65,000 $70,500
SOURCE OpenTable, Inc.
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OpenTable, Inc.
CONTACT: Investor Relations: +1-415-344-6520, .(JavaScript must be enabled to view this email address); Media Relations: +1-415-344-4275, .(JavaScript must be enabled to view this email address)
Web Site: http://www.OpenTable.com