Earnings

OpenTable, Inc. Announces Fourth Quarter and Full Year 2010 Financial Results

February 14, 2011   ·   0 Comments

SAN FRANCISCO, Feb. 8, 2011 (Hospitality Business News) — OpenTable, Inc. (Nasdaq:OPEN), a 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, 2010.

OpenTable reported consolidated net revenues for Q4 2010 of $30.8 million, a 61% increase over Q4 2009. Consolidated net income for Q4 2010 was $5.1 million, or $0.21 per diluted share. Non-GAAP consolidated net income for Q4 2010, which excludes tax-affected stock-based compensation expense, tax-affected acquisition-related expense and tax-affected amortization of acquired intangibles, was $8.0 million, or $0.33 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 for the first time the operating results of toptable.com, a recent acquisition which closed on October 1, 2010.

North America Results

• Installed restaurant base as of December 31, 2010, totaled 13,795, a 27% increase over December 31, 2009.


• Seated diners totaled 17.8 million, a 51% increase over Q4 2009.


• Revenues totaled $25.9 million, a 44% increase over Q4 2009. 


• Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, and acquisition-related expense) totaled $12.1 million, or 47% of North America revenues, a 68% increase over Q4 2009.

International Results

• Installed restaurant base as of December 31, 2010, totaled 6,254, a 317% increase over December 31, 2009.


• Seated diners totaled 1.5 million, a 352% increase over Q4 2009. 


• Revenues totaled $4.9 million, a 308% increase over Q4 2009. 


• Non-GAAP adjusted EBITDA totaled a loss of $0.7 million compared to a loss of $1.2 million in Q4 2009. 


• In Q4 2010, toptable.com contributed 3,680 installed restaurant additions, approximately 774,000 seated diners, $3.0 million of revenue, and $0.5 million of Non-GAAP adjusted EBITDA to the Company’s results.


• International results for Q4 2010 include approximately $0.6 million of acquisition-related expense.

“We’re pleased with the continued momentum in the OpenTable business,” said Jeff Jordan, CEO of OpenTable. “The growth of online reservations helps our partner restaurants grow their revenue and optimize their operations.”

Q4 2010 Consolidated Financial and Operating Summary

• Installed restaurant base as of December 31, 2010, totaled 20,049, a 62% increase over December 31, 2009.


• Seated diners totaled 19.4 million, a 59% increase over Q4 2009.


• Total revenues were $30.8 million in Q4 2010, up 61% over Q4 2009 revenues of $19.2 million.
  
  
  
  • Subscription revenues were $11.6 million in Q4 2010, up 21% over Q4 2009 revenues of $9.6 million. Subscription revenues increased as a result of the increase in installed restaurants using our Electronic Reservation Book solution. 
  
  
  • Reservation revenues were $15.4 million in Q4 2010, up 80% over Q4 2009 revenues of $8.5 million. Reservation revenues primarily increased as a result of the increase in seated diners. In Q4 2010, toptable.com contributed $2.3 million to reservation revenues.
  
  
  • Installation and other revenues were $3.8 million in Q4 2010, up 274% over Q4 2009 revenues of $1.0 million. Installation and other revenues increased primarily as a result of an increase in revenue from other product offerings, including advertising sales, web service licensing, featured private dining listings and third-party restaurant coupon sales. In Q4 2010, toptable.com contributed $0.7 million to installation and other revenues.

• Total operating expenses were $25.4 million in Q4 2010, up 68% over Q4 2009 operating expenses of $15.1 million. The increase was primarily driven by a 55% increase in headcount including 66 headcount from toptable.com, an increase in amortization of acquired intangibles, and an increase in stock-based compensation.

• Total operating income was $5.4 million in Q4 2010 compared to $4.1 million in Q4 2009. Non-GAAP consolidated operating income, excluding stock-based compensation expense, acquisition-related expense, and amortization of acquired intangibles, was $9.7 million in Q4 2010 compared to $4.7 million in Q4 2009. 

• The Q4 2010 GAAP income tax expense was $0.3 million or a 6% tax rate. In Q4 2010, the Company completed income tax projects related to a California Enterprise Zone Credit and a Domestic Manufacturing Deduction. These projects resulted in a $1.2 million, or $0.05 per diluted share, reduction in Q4 income tax expense.

• Consolidated net income was $5.1 million, or $0.21 per diluted share, in Q4 2010 compared to $3.1 million, or $0.13 per diluted share, in Q4 2009. Non-GAAP consolidated net income, which excludes tax-affected stock-based compensation expense, tax-affected acquisition-related expense, and tax-affected amortization of acquired intangibles was $8.0 million, or $0.33 per diluted share, in Q4 2010 compared to $3.3 million, or $0.14 per diluted share, in Q4 2009.  

• As of December 31, 2010, OpenTable had cash and cash equivalents and short-term investments of $42.5 million. 

2010 Consolidated Financial and Operating Summary

• Total revenues were $99.0 million in 2010, up 44% over 2009 revenues of $68.6 million.
   


• Operating income was $17.9 million in 2010 compared to $8.7 million in 2009. Non-GAAP consolidated operating income, excluding stock-based compensation expense, acquisition-related expense, and amortization of acquired intangibles, was $28.5 million in 2010 compared to $11.7 million in 2009, a 143% increase over 2009.
   


• Non-GAAP adjusted EBITDA totaled $34.8 million in 2010, or 35% of consolidated revenues, a 106% increase over 2009.

“The fourth quarter highlights continued growth in our key operating and financial metrics,” said Matt Roberts, CFO of OpenTable. “With strong revenues and EBITDA margins, the business continues to demonstrate solid results.”

By erichertha

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