OpenTable, Inc. Announces Second Quarter 2009 Financial Results




                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)


            

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