Increases Revenue 18% to $16.4 Million
Grows Installed Restaurants by 22% and Seated Diners by 20% over Q2 2008
Achieves EPS of $0.03 and Non-GAAP EPS of $0.06
SAN FRANCISCO, Calif., Aug. 4, 2009 (GLOBE NEWSWIRE) -- OpenTable, Inc. (Nasdaq:OPEN) (www.opentable.com), 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 second quarter ended June 30, 2009.
OpenTable reported consolidated net revenues for Q2 2009 of $16.4 million, an 18% increase over Q2 2008. Consolidated net income for Q2 2009 was $0.7 million, or $0.03 per diluted share. OpenTable's non-GAAP consolidated net income, which excludes stock-based compensation expense, was $1.4 million, or $0.06 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
* North America installed restaurant base at June 30, 2009 totaled 9,971, a 19% increase over June 30, 2008. * North America seated diners totaled 10.1 million, a 19% increase over Q2 2008. * North America revenues totaled $15.5 million, an 18% increase over Q2 2008. * North America non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and stock-based compensation) totaled $4.8 million, or 31% of North America revenues, a 15% increase over Q2 2008.
International Results
* International installed restaurant base at June 30, 2009 totaled 1,193, a 56% increase over June 30, 2008. * International seated diners totaled 0.2 million, a 58% increase over Q2 2008. * International revenues totaled $0.9 million, a 22% increase over Q2 2008. * International non-GAAP adjusted EBITDA totaled a loss of $1.4 million compared to adjusted EBITDA loss of $2.0 million in Q2 2008.
"We are pleased by our overall performance in the quarter, particularly the steady growth in our number of installed restaurants and seated diners," said Jeff Jordan, President and CEO of OpenTable. "These results demonstrate that the momentum in our business remains strong despite some of the challenges presented by the global economy."
Q2 2009 Consolidated Financial and Operating Summary
* OpenTable's total revenues were $16.4 million in Q2 2009, up 18%
over Q2 2008 revenues of $13.9 million.
* Subscription revenues were $8.7 million in Q2 2009, up 17%
over Q2 2008 revenues of $7.4 million. Subscription revenues
increased as a result of the increase in installed
restaurants.
* Reservation revenues were $6.9 million in Q2 2009, up 19%
over Q2 2008 revenues of $5.8 million. Reservation revenues
increased as a result of the increase in seated diners.
* Installation and other revenues were $0.8 million in Q2
2009, up 26% over Q2 2008 revenues of $0.6 million.
* Total operating expenses were $15.0 million in Q2 2009, up 8%
over Q2 2008 operating expenses of $13.9 million. The increase
was primarily driven by a 17% increase in headcount, higher
depreciation and higher bad debt expense partially offset by a
decrease in stock-based compensation.
* Operating income was $1.4 million in Q2 2009 compared to $(0) in
Q2 2008. Non-GAAP consolidated operating income, excluding
stock-based compensation expense, was $2.1 million in Q2 2009
compared to $1.1 million in Q2 2008.
* The Company's effective tax rate was 53% in Q2 2009. The
effective tax rate is high because stock-based compensation is
non-deductible for tax purposes.
* Consolidated net income was $0.7 million, or $0.03 per diluted
share, in Q2 2009 compared to $0.2 million, or $0.01 per diluted
share, in Q2 2008. Non-GAAP consolidated net income, which
excludes stock-based compensation expense, was $1.4 million, or
$0.06 per diluted share, in Q2 2009 compared to $1.4 million, or
$0.07 per diluted share, in Q2 2008.
* As of June 30, 2009, OpenTable had cash and cash equivalents and
short-term investments of $63.3 million. The Company received
$35.0 million in proceeds, net of issuance costs, in connection
with its initial public offering which was completed on May 27,
2009.
"Our performance this quarter underscores the resilience and predictability of our unique business model," said Matt Roberts, CFO of OpenTable. "We are very satisfied that our North American business delivered such solid operating and financial metrics this quarter, and we feel encouraged by the progress made on the international front this quarter."
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 the third quarter 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 August 4, 2009, 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 and stock-based compensation.
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 non-cash charges because such items 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 additional information 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 substantially generates 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 Company's ability to maintain an adequate rate of growth; the impact of the current economic climate on the Company's business; 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 ability to retain existing restaurant customers and diners or encourage repeat reservations; the ability to successfully enter new markets and manage its international expansion; the Company's ability to successfully manage any future 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 its final Prospectus related to its initial public offering filed pursuant to Rule 424(b) under the Securities Act with the SEC on May 21, 2009. 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 11,000 restaurant customers, and since its inception in 1998, has seated more than 100 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, OpenTable.com, OpenTable logos and other service names are the trademarks of OpenTable, Inc.
OPENTABLE, INC.
UNAUDITED BALANCE SHEETS
June 30, Dec. 31,
------------- -------------
2009 2008
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 20,650,000 $ 5,528,000
Short-term investments 42,693,000 17,259,000
Accounts receivable, net 6,452,000 6,331,000
Prepaid expenses and other
current assets 1,529,000 942,000
Deferred tax asset 4,828,000 4,828,000
Restricted cash 178,000 156,000
------------- -------------
Total current assets 76,330,000 35,044,000
Property and equipment, net 11,119,000 11,125,000
Deferred tax asset 2,478,000 3,343,000
Other assets 194,000 1,371,000
------------- -------------
TOTAL ASSETS $ 90,121,000 $ 50,883,000
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 6,917,000 $ 7,855,000
Accrued compensation 3,045,000 2,772,000
Deferred revenue 1,431,000 1,210,000
Dining rewards payable 9,993,000 8,462,000
------------- -------------
Total current liabilities 21,386,000 20,299,000
DEFERRED REVENUE - Less current portion 3,713,000 3,900,000
------------- -------------
Total liabilities 25,099,000 24,199,000
------------- -------------
STOCKHOLDERS' EQUITY:
Preferred Stock -- 21,909,000
Common Stock 2,000 1,000
Additional paid-in capital 122,989,000 64,060,000
Treasury stock (647,000) (647,000)
Accumulated other comprehensive loss (37,000) (296,000)
Accumulated deficit (57,285,000) (58,343,000)
------------- -------------
Total stockholders' equity 65,022,000 26,684,000
------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 90,121,000 $ 50,883,000
============= =============
OPENTABLE, INC.
UNAUDITED STATEMENTS OF OPERATIONS
Three Months Six Months
Ended Ended
June 30, June 30,
---------------- ----------------
2009 2008 2009 2008
------- ------- ------- -------
(In thousands, except
per share amounts)
REVENUES $16,390 $13,858 $32,385 $27,121
COSTS AND EXPENSES:
Operations and support(1) 5,012 4,333 10,118 8,345
Sales and marketing(1) 4,010 3,719 7,808 7,310
Technology(1) 2,599 2,404 5,311 4,579
General and administrative(1) 3,395 3,412 6,942 6,556
------- ------- ------- -------
Total costs and expenses 15,016 13,868 30,179 26,790
------- ------- ------- -------
Income (loss) from operations 1,374 (10) 2,206 331
Other income, net 91 143 146 323
------- ------- ------- -------
Income before taxes 1,465 133 2,352 654
Income tax expense (benefit) 773 (95) 1,294 513
------- ------- ------- -------
NET INCOME $ 692 $ 228 $ 1,058 $ 141
======= ======= ======= =======
Net income per share:
Basic $ 0.05 $ 0.02 $ 0.08 $ 0.01
======= ======= ======= =======
Diluted $ 0.03 $ 0.01 $ 0.05 $ 0.01
======= ======= ======= =======
Weighted average
shares outstanding:
Basic 15,327 9,963 12,802 9,906
Diluted 22,247 21,000 21,602 20,754
--------------------------------
(1) Stock-based compensation
included in above
line items:
Operations and support $ 68 $ 97 $ 154 $ 174
Sales and marketing 185 237 408 465
Technology 117 228 291 360
General and administrative 355 585 831 1,132
------- ------- ------- -------
$ 725 $ 1,147 $ 1,684 $ 2,131
Other Operational Data:
Installed restaurants
(at period end):
North America 9,971 8,350 9,971 8,350
International 1,193 764 1,193 764
------- ------- ------- -------
Total 11,164 9,114 11,164 9,114
Seated diners (in thousands):
North America 10,071 8,454 19,993 16,849
International 206 130 392 253
------- ------- ------- -------
Total 10,277 8,584 20,385 17,102
Headcount (at period end):
North America 252 219 252 219
International 61 49 61 49
------- ------- ------- -------
Total 313 268 313 268
Additional Financial Data:
Revenues:
North America
Subscription $ 7,992 $ 6,834 $15,726 $13,241
Reservation 6,800 5,741 13,590 11,472
Installation and other 743 580 1,408 1,109
------- ------- ------- -------
Total North America
Revenues $15,535 $13,155 $30,724 $25,822
International
Subscription $ 708 $ 582 $ 1,363 $ 1,062
Reservation 128 96 242 195
Installation and other 19 25 56 42
------- ------- ------- -------
Total International
Revenues 855 703 1,661 1,299
------- ------- ------- -------
Total Revenues $16,390 $13,858 $32,385 $27,121
Income (loss) from operations:
North America $ 2,958 $ 2,171 $ 5,284 $ 4,580
International (1,584) (2,181) (3,078) (4,249)
------- ------- ------- -------
Total $ 1,374 $ (10) $ 2,206 $ 331
Depreciation and amortization:
North America $ 1,163 $ 961 $ 2,322 $ 1,838
International 111 86 215 160
------- ------- ------- -------
Total $ 1,274 $ 1,047 $ 2,537 $ 1,998
Stock-based compensation:
North America $ 656 $ 1,035 $ 1,490 $ 1,907
International 69 112 194 224
------- ------- ------- -------
Total $ 725 $ 1,147 $ 1,684 $ 2,131
OPENTABLE, INC.
RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS
Three Months Six Months
Ended Ended
June 30, June 30,
---------------- ----------------
2009 2008 2009 2008
------- ------- ------- -------
(In thousands, except
per share amounts)
Non-GAAP consolidated net
income per share:
GAAP net income "as reported" $ 692 $ 228 $ 1,058 $ 141
Add back: stock-based
compensation expense 725 1,147 1,684 2,131
------- ------- ------- -------
NON-GAAP CONSOLIDATED
NET INCOME $ 1,417 $ 1,375 $ 2,742 $ 2,272
======= ======= ======= =======
Non-GAAP diluted net
income per share $ 0.06 $ 0.07 $ 0.13 $ 0.11
======= ======= ======= =======
Weighted average diluted
shares outstanding 22,247 21,000 21,602 20,754
Non-GAAP consolidated
operating income:
GAAP income (loss) from
operations "as reported" $ 1,374 $ (10) $ 2,206 $ 331
Add back: stock-based
compensation expense 725 1,147 1,684 2,131
------- ------- ------- -------
NON-GAAP OPERATING INCOME $ 2,099 $ 1,137 $ 3,890 $ 2,462
======= ======= ======= =======
North America Adjusted EBITDA:
GAAP operating income
"as reported" $ 2,958 $ 2,171 $ 5,284 $ 4,580
Adjustments:
Stock-based compensation
expense 656 1,035 1,490 1,907
Depreciation and
amortization expense 1,163 961 2,322 1,838
------- ------- ------- -------
North America
Adjusted EBITDA $ 4,777 $ 4,167 $ 9,096 $ 8,325
International Adjusted EBITDA:
GAAP operating loss
"as reported" $(1,584) $(2,181) $(3,078) $(4,249)
Adjustments:
Stock-based compensation
expense 69 112 194 224
Depreciation and amortization
expense 111 86 215 160
------- ------- ------- -------
International
Adjusted EBITDA $(1,404) $(1,983) $(2,669) $(3,865)