OpenTable, Inc. Announces Fourth Quarter and Full Year 2011
OpenTable, Inc. Announces Fourth Quarter and Full Year 2011 Financial Results
—Increases Revenue by 21% over Q4 2010 to $37.2 Million—
—Grows Installed Restaurants by 25% and Seated Diners by 39% over Q4 2010—
—Achieves EPS of $0.29 and Non-GAAP EPS of $0.37—
SAN FRANCISCO, Feb. 7, 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 fourth quarter and fiscal year ended December 31, 2011.
(Logo: http://photos.prnewswire.com/prnh/20110606/MM07085LOGO )
OpenTable reported consolidated net revenues for Q4 2011 of $37.2 million, a 21% increase over Q4 2010. Consolidated net income for Q4 2011 was $7.0 million, or $0.29 per diluted share. Non-GAAP consolidated net income for Q4 2011, which excludes tax-affected stock-based compensation expense and tax-affected amortization of acquired intangibles, was $8.9 million, or $0.37 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 December 31, 2011, totaled 17,150, a 24%
increase over December 31, 2010.
— Seated diners totaled 24.6 million, a 38% increase over Q4 2010.
— Revenues totaled $31.6 million, a 22% increase over Q4 2010.
— Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization and stock-based compensation) totaled $16.4 million, or 52%
of North America revenues, a 36% increase over Q4 2010.
International Results
— Installed restaurant base as of December 31, 2011, totaled 7,969, a 27%
increase over December 31, 2010.
— Seated diners totaled 2.2 million, a 45% increase over Q4 2010.
— Revenues totaled $5.6 million, a 15% increase over Q4 2010.
— Non-GAAP adjusted EBITDA totaled a loss of $0.5 million compared to a
loss of $0.7 million in Q4 2010.
“Our business continued to demonstrate strong momentum in 2011,” said Matt Roberts, President and CEO of OpenTable. “We’re pleased with the growth of our market penetration in both restaurants and seated diners in North America and the progress we made in our International segment.”
Q4 2011 Consolidated Financial and Operating Summary
— Installed restaurant base as of December 31, 2011, totaled 25,119, a 25%
increase over December 31, 2010.
— Seated diners totaled 26.9 million, a 39% increase over Q4 2010.
— Total revenues were $37.2 million in Q4 2011, up 21% over Q4 2010
revenues of $30.8 million.
— Reservation revenues were $20.3 million in Q4 2011, up 32% over Q4
2010 revenues of $15.4 million. Reservation revenues primarily
increased as a result of the increase in seated diners.
— Subscription revenues were $13.3 million in Q4 2011, up 14% over Q4
2010 revenues of $11.6 million. Subscription revenues increased as
a result of the increase in installed restaurants using our
Electronic Reservation Book solution.
— Other revenues were $3.6 million in Q4 2011, down 5% over Q4 2010
revenues of $3.8 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.
— Total operating expenses were $26.4 million in Q4 2011, up 4% over Q4
2010 operating expenses of $25.4 million. The increase was primarily
driven by a 13% increase in headcount and an increase in depreciation
and amortization.
— Total operating income was $10.8 million in Q4 2011 compared to $5.4
million in Q4 2010. Non-GAAP consolidated operating income, excluding
stock-based compensation expense, amortization of acquired intangibles
and acquisition-related expenses was $13.7 million in Q4 2011 compared
to $9.7 million in Q4 2010.
— The Q4 2011 GAAP income tax expense was $3.8 million, or a 35% tax rate.
— Consolidated net income was $7.0 million, or $0.29 per diluted share, in
Q4 2011 compared to $5.1 million, or $0.21 per diluted share, in Q4
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 $8.9
million, or $0.37 per diluted share, in Q4 2011 compared to $8.0
million, or $0.33 per diluted share, in Q4 2010.
— During Q4 2011 the Company repurchased 1,089,300 shares of common stock
at an average price of $37.91 per share.
— As of December 31, 2011, OpenTable had cash and cash equivalents and
short-term investments of $49.9 million.
2011 Consolidated Financial and Operating Summary
— Total revenues were $139.5 million in 2011, up 41% over 2010 revenues of
$99.0 million.
— Operating income totaled $32.6 million in 2011, or 23% of consolidated
revenues, an 82% increase over 2010. Non-GAAP consolidated operating
income, excluding stock-based compensation expense, acquisition-related
expense and amortization of acquired intangibles, was $47.3 million in
2011, or 34% of consolidated revenues, a 66% increase over 2010.
— Non-GAAP adjusted EBITDA totaled $55.4 million in 2011, or 40% of
consolidated revenues, a 59% increase over 2010.
“The fourth 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 which enabled us to complete the $50 million share repurchase in early January 2012.”
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 February 28, 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
The accompanying press release dated February 7, 2012, 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 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 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 25,000 restaurant customers, and, since its inception in 1998, has seated more than 280 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
December 31, December 31,
——- ——-
2011 2010
—— ——
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $36,519,000 $33,444,000
Short-term investments 13,411,000 9,080,000
Accounts receivable, net 18,795,000 13,292,000
Prepaid expenses and other current
assets 2,708,000 2,919,000
Deferred tax asset 11,238,000 7,882,000
Restricted cash - 167,000
Total current assets 82,671,000 66,784,000
Property, equipment and software, net 16,150,000 14,612,000
Goodwill 42,312,000 42,347,000
Intangibles, net 16,403,000 20,248,000
Deferred tax asset 5,466,000 5,539,000
Other assets 813,000 366,000
TOTAL ASSETS $163,815,000 $149,896,000
============ ============
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $7,004,000 $7,666,000
Accrued compensation 4,518,000 4,189,000
Deferred revenue 1,752,000 1,852,000
Dining rewards payable 20,827,000 15,398,000
—- —-
Total current liabilities 34,101,000 29,105,000
Deferred revenue - non-current 2,249,000 2,802,000
Deferred tax liability 3,915,000 5,644,000
Income tax liability 13,215,000 8,577,000
Other long-term liabilities 108,000 1,623,000
—
Total liabilities 53,588,000 47,751,000
—- —-
STOCKHOLDERS’ EQUITY:
Common stock 2,000 2,000
Additional paid-in capital 171,465,000 143,292,000
Treasury stock (41,963,000) (647,000)
Accumulated other comprehensive loss (1,634,000) (1,305,000)
Accumulated deficit (17,643,000) (39,197,000)
—— ——
Total stockholders’ equity 110,227,000 102,145,000
—— ——
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY $163,815,000 $149,896,000
——- ——-
OPENTABLE, INC.
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
Three Months Ended Twelve Months Ended
December 31, December 31,
——- ——-
2011 2010 2011 2010
—— —— —— ——
(In thousands, except per share amounts)
REVENUES $37,165 $30,767 $139,518 $98,991
COSTS
AND
EXPENSES:
Operations
and
support
(1) 10,276 8,708 39,350 27,803
Sales
and
marketing
(1) 7,005 6,702 28,697 21,673
Technology
(1) 3,365 3,638 14,691 12,345
General
and
administrative
(1) 5,740 6,305 24,157 19,252
——- ——- ——— ———
Total
costs
and
expenses 26,386 25,353 106,895 81,073
——— ——— ———
Income
from
operations 10,779 5,414 32,623 17,918
Other
income,
net 30 32 98 241
—- —- —- —-
Income
before
taxes 10,809 5,446 32,721 18,159
Income
tax
expense 3,821 310 11,167 4,080
——- —- ——— ——-
NET
INCOME $6,988 $5,136 $21,554 $14,079
====== ====== ======= =======
Net
income
per
share:
Basic $0.30 $0.22 $0.92 $0.62
===== ===== ===== =====
Diluted $0.29 $0.21 $0.88 $0.58
===== ===== ===== =====
Weighted
average
shares
outstanding:
Basic 23,509 22,991 23,525 22,602
Diluted 24,094 24,286 24,436 23,979
(1)
Stock-
based
compensation
included
in
above
line
items:
Operations
and
support $376 $295 $1,665 $943
Sales
and
marketing 480 513 2,054 1,872
Technology 384 488 1,703 1,547
General
and
administrative 680 1,394 5,307 3,689
—- ——- ——- ——-
$1,920 $2,690 $10,729 $8,051
Other
Operational
Data:
Installed
restaurants
(at
period
end):
North
America 17,150 13,795 17,150 13,795
International 7,969 6,254 7,969 6,254
——- ——- ——- ——-
Total 25,119 20,049 25,119 20,049
Seated
diners
(in
thousands):
North
America 24,649 17,839 89,533 62,430
International 2,202 1,522 7,141 2,925
——- ——- ——- ——-
Total 26,851 19,361 96,674 65,355
Headcount
(at
period
end):
North
America 398 344 398 344
International 160 149 160 149
—- —- —- —-
Total 558 493 558 493
Additional
Financial
Data:
Revenues:
North
America
Reservation $17,061 $12,595 $62,751 $43,920
Subscription 11,667 10,302 44,784 38,711
Other 2,829 3,003 11,119 7,477
——- ——- ——— ——-
Total
North
America
Revenues $31,557 $25,900 $118,654 $90,108
International
Reservation $3,236 $2,775 $11,464 $3,600
Subscription 1,583 1,296 5,983 4,414
Other 789 796 3,417 869
Total
International
Revenues 5,608 4,867 20,864 8,883
——- ——- ——— ——-
Total
Revenues $37,165 $30,767 $139,518 $98,991
Income
(loss)
from
operations:
North
America $13,150 $8,447 $44,007 $26,039
International (2,371) (3,033) (11,384) (8,121)
——— ——— ———
Total $10,779 $5,414 $32,623 $17,918
Depreciation
and
amortization:
North
America $1,690 $1,592 $6,852 $6,036
International 1,487 1,096 5,153 1,532
——- ——- ——- ——-
Total $3,177 $2,688 $12,005 $7,568
Stock-
based
compensation:
North
America $1,537 $2,016 $7,713 $7,117
International 383 674 3,016 934
—- —- ——- —-
Total $1,920 $2,690 $10,729 $8,051
OPENTABLE, INC.
RECONCILIATION OF GAAP TO NON-GAAP OPERATING
RESULTS
Three Months Twelve Months
Ended Ended
December 31, December 31,
——- ——-
2011 2010 2011 2010
—— —— —— ——
(In thousands, except per share
amounts)
Non-
GAAP
consolidated
net
income
per
share:
GAAP
net
income
“as
reported” $6,988 $5,136 $21,554 $14,079
Add
back:
stock-
based
compensation
expense 1,920 2,690 10,729 8,051
Income
tax
effect
of
stock-
based
compensation (675) (1,072) (3,996) (3,447)
Add
back:
acquisition
related
expenses - 597 - 1,307
Income
tax
effect
of
acquisition
related
expenses - (9) - (45)
Add
back:
amortization
of
acquired
intangibles 972 980 3,958 1,207
Income
tax
effect
of
amortization
of
intangibles (268) (285) (1,089) (376)
—— —— ——— ——
NON-
GAAP
CONSOLIDATED
NET
INCOME $8,937 $8,037 $31,156 $20,776
====== ====== ======= =======
Non-
GAAP
diluted
net
income
per
share $0.37 $0.33 $1.28 $0.87
===== ===== ===== =====
Weighted
average
diluted
shares
outstanding 24,094 24,286 24,436 23,979
Non-
GAAP
consolidated
operating
income:
GAAP
income
from
operations
“as
reported” $10,779 $5,414 $32,623 $17,918
Add
back:
stock-
based
compensation
expense 1,920 2,690 10,729 8,051
Add
back:
acquisition
related
expenses - 597 - 1,307
Add
back:
amortization
of
acquired
intangibles 972 980 3,958 1,207
—- —- ——- ——-
NON-
GAAP
OPERATING
INCOME $13,671 $9,681 $47,310 $28,483
======= ====== ======= =======
North
America
Adjusted
EBITDA:
GAAP
operating
income
“as
reported” $13,150 $8,447 $44,007 $26,039
Adjustments:
Stock-
based
compensation
expense 1,537 2,016 7,713 7,117
Acquisition
related
expenses - 22 - 113
Amortization
of
acquired
intangibles 88 91 351 318
Depreciation
and
other
amortization
expense 1,602 1,501 6,501 5,718
——- ——- ——- ——-
North
America
Adjusted
EBITDA $16,377 $12,077 $58,572 $39,305
International
Adjusted
EBITDA:
GAAP
operating
loss
“as
reported” $(2,371) $(3,033) $(11,384) $(8,121)
Adjustments:
Stock-
based
compensation
expense 383 674 3,016 934
Acquisition
related
expenses - 575 - 1,194
Amortization
of
acquired
intangibles 884 889 3,607 889
Depreciation
and
other
amortization
expense 603 207 1,546 643
—- —- ——- —-
International
Adjusted
EBITDA $(501) $(688) $(3,215) $(4,461)
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), or Media Relations Contact: +1-415-344-4275, .(JavaScript must be enabled to view this email address)
Web Site: http://www.OpenTable.com