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OpenTable, Inc. Announces Fourth Quarter and Full Year 2012 Financial Results
Submitted by admin on 2/7/2013 @ 1:31 PM
Companies mentioned in this article:
OpenTable, Inc.
SAN FRANCISCO, Feb. 7, 2013 /PRNewswire/ -- OpenTable, Inc. (NASDAQ: OPEN), the world's leading provider of online restaurant reservations, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2012.
(Logo: http://photos.prnewswire.com/prnh/20110606/MM07085LOGO)
OpenTable reported consolidated net revenues for Q4 2012 of $43.0 million, a 16% increase over Q4 2011. Consolidated net income for Q4 2012 was $7.5 million, or $0.32 per diluted share. Non-GAAP consolidated net income for Q4 2012, which excludes tax-affected stock-based compensation expense, tax-affected acquisition-related expenses and tax-affected amortization of acquired intangibles, was $10.7 million, or $0.46 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, 2012, totaled 19,801, a 15%
increase over December 31, 2011.
-- Seated diners totaled 29.9 million, a 21% increase over Q4 2011.
-- Revenues totaled $36.7 million, a 16% increase over Q4 2011.
-- Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization, stock-based compensation and acquisition-related expenses)
totaled $19.0 million, or 52% of North America revenues, a 16% increase
over Q4 2011.
International Results
-- Installed restaurant base as of December 31, 2012, totaled 7,716. As
previously reported, with the relaunch of the toptable site in Q2 2012,
in an anticipated one-time event, we removed restaurants that did not
migrate to OpenTable technology from our installed restaurant base.
After adjusting for this one-time event, our installed restaurant base
as of December 31, 2012, represented a 62% increase over our installed
base of OpenTable technology-enabled restaurants as of December 31,
2011.
-- Seated diners totaled 3.0 million, a 35% increase over Q4 2011.
-- Revenues totaled $6.3 million, a 13% increase over Q4 2011.
-- Non-GAAP adjusted EBITDA totaled a loss of $0.1 million compared to a
loss of $0.5 million in Q4 2011.
"Our business continued to demonstrate strong momentum in 2012," said Matt Roberts, President and CEO of OpenTable. "The shift to mobile coupled with richer customer experiences represent long-term opportunities for the business, and we're pleased with the recent progress in our international segment."
Q4 2012 Consolidated Financial and Operating Summary
-- Installed restaurant base as of December 31, 2012, totaled 27,517.
-- Seated diners totaled 32.8 million, a 22% increase over Q4 2011.
-- Total revenues were $43.0 million in Q4 2012, up 16% over Q4 2011
revenues of $37.2 million.
-- Reservation revenues were $24.5 million in Q4 2012, up 21% over Q4
2011 revenues of $20.3 million. Reservation revenues primarily
increased as a result of the increase in seated diners.
-- Subscription revenues were $14.5 million in Q4 2012, up 10% over Q4
2011 revenues of $13.3 million. Subscription revenues primarily
increased as a result of the increase in installed restaurants using
our Electronic Reservation Book solution.
-- Other revenues were $4.0 million in Q4 2012, up 9% over Q4 2011
revenues of $3.6 million. The increase is primarily the result of
an increase in revenue from gift card sales.
-- Total costs and expenses were $31.9 million in Q4 2012, up 21% over Q4
2011 costs and expenses of $26.4 million. The increase was primarily
driven by an increase in stock-based compensation expense and a 4%
increase in headcount.
-- Total operating income was $11.1 million in Q4 2012 compared to $10.8
million in Q4 2011. Non-GAAP consolidated operating income, excluding
stock-based compensation expense, acquisition-related expenses and
amortization of acquired intangibles was $16.4 million in Q4 2012
compared to $13.7 million in Q4 2011.
-- The Q4 2012 GAAP income tax expense was $3.7 million, or a 33% tax rate.
-- Consolidated net income was $7.5 million, or $0.32 per diluted share, in
Q4 2012 compared to $7.0 million, or $0.29 per diluted share, in Q4
2011. Non-GAAP consolidated net income, which excludes tax-affected
stock-based compensation expense, tax-affected acquisition-related
expenses, and tax-affected amortization of acquired intangibles was
$10.7 million, or $0.46 per diluted share, in Q4 2012 compared to $8.9
million, or $0.37 per diluted share, in Q4 2011.
-- As of December 31, 2012, OpenTable had cash and cash equivalents and
short-term investments of $103.5 million.
2012 Consolidated Financial and Operating Summary
-- Total revenues were $161.6 million in 2012, up 16% over 2011 revenues of
$139.5 million.
-- Operating income totaled $36.5 million in 2012, or 23% of consolidated
revenues, a 12% increase over 2011. Non-GAAP consolidated operating
income, excluding stock-based compensation expense, acquisition-related
expenses and amortization of acquired intangibles, was $61.0 million in
2012, or 38% of consolidated revenues, a 29% increase over 2011.
-- Non-GAAP adjusted EBITDA totaled $70.1 million in 2012, or 43% of
consolidated revenues, a 27% increase over 2011.
"During the fourth 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 Q1 2013 and the full year 2013 on revenue, non-GAAP adjusted EBITDA and other consolidated metrics.
Q1 2013 Guidance:
-- In the North America segment the Company estimates revenue to be in the
range of $38.6 million to $39.6 million and non-GAAP adjusted EBITDA to
be in the range of $19.3 million to $20.4 million.
-- In the International segment the Company estimates revenue to be in the
range of $6.1 million to $6.5 million and non-GAAP adjusted EBITDA loss
to be in the range of $1.8 million to $2.4 million.
-- On a consolidated basis the Company estimates revenue to be in the range
of $44.7 million to $46.1 million, non-GAAP adjusted EBITDA to be in the
range of $16.9 million to $18.6 million, GAAP EPS to be in the range of
$0.25 to $0.29 and non-GAAP EPS to be in the range of $0.39 to $0.44.
Full Year 2013 Guidance:
-- In the North America segment the Company estimates revenue to be in the
range of $158.8 million to $164.2 million and non-GAAP adjusted EBITDA
to be in the range of $82.6 million to $87.2 million.
-- In the International segment the Company estimates revenue to be in the
range of $27.3 million to $28.9 million and non-GAAP adjusted EBITDA
loss to be in the range of $0.7 million to $2.9 million.
-- On a consolidated basis the Company estimates revenue to be in the range
of $186.1 million to $193.1 million, non-GAAP adjusted EBITDA to be in
the range of $79.7 million to $86.5 million, GAAP EPS to be in the range
of $1.27 and $1.45 and non-GAAP EPS to be in the range of $1.79 to
$1.96.
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, 2013, 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, 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 guidance for Q1 2013 and the full year 2013 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 websites and mobile applications 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; costs associated with defending intellectual property infringement and other claims; and the impact of natural catastrophic events. 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, 2012 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 the world's leading provider of online restaurant reservations, seating approximately 10 million diners per month via online bookings across more than 27,000 restaurants. The OpenTable network connects restaurants and diners, helping diners discover and book the perfect table and helping restaurants deliver personalized hospitality to keep guests coming back. The OpenTable service enables diners to see which restaurants have available tables, select a restaurant based on verified diner reviews, menus and other helpful information, and easily book a reservation. In addition to the Company's website and mobile apps, OpenTable powers online reservations for nearly 600 partners, including many of the Internet's most popular global and local brands. For restaurants, the OpenTable hospitality solutions enable them to manage their reservation book, streamline their operations and enhance their service levels. Since its inception in 1998, OpenTable has seated more than 400 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 UK. OpenTable also owns and operates toptable, the leading consumer destination site for restaurant reservations in the UK.
OpenTable, OpenTable.com, OpenTable logos, toptable 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,
------------ ------------
2012 2011
---- ----
(In thousands)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $102,772 $36,519
Short-term investments 733 13,411
Accounts receivable, net 22,015 18,795
Prepaid expenses and other
current assets 2,924 2,708
Deferred tax asset 14,353 11,238
------ ------
Total current assets 142,797 82,671
Property, equipment and
software, net 21,271 16,150
Goodwill 46,304 42,312
Intangibles, net 15,226 16,403
Deferred tax asset 10,628 5,466
Other assets 1,021 813
----- ---
TOTAL ASSETS $237,247 $163,815
======== ========
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued
expenses $13,847 $7,004
Accrued compensation 5,167 4,518
Deferred revenue 1,563 1,752
Deferred tax liability 107 -
Dining rewards payable 27,611 20,827
------ ------
Total current liabilities 48,295 34,101
Deferred revenue - non-
current 2,054 2,249
Deferred tax liability 3,268 3,915
Income tax liability 15,639 13,215
Other long-term liabilities 76 108
--- ---
Total liabilities 69,332 53,588
------ ------
STOCKHOLDERS' EQUITY:
Common stock 2 2
Additional paid-in capital 211,408 171,465
Treasury stock (50,685) (41,963)
Accumulated other
comprehensive income (loss) 861 (1,634)
Retained earnings
(accumulated deficit) 6,329 (17,643)
----- -------
Total stockholders' equity 167,915 110,227
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $237,247 $163,815
======== ========
OPENTABLE, INC.
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2012 2011 2012 2011
---- ---- ---- ----
(In thousands, except per share amounts)
REVENUES $42,967 $37,165 $161,632 $139,518
COSTS AND EXPENSES:
Operations and support (1) 10,506 10,276 41,908 39,350
Sales and marketing (1) 8,972 7,005 34,531 28,697
Technology (1) 3,965 3,365 14,564 14,691
General and administrative (1) 8,407 5,740 34,080 24,157
----- ----- ------ ------
Total costs and expenses 31,850 26,386 125,083 106,895
------ ------ ------- -------
Income from operations 11,117 10,779 36,549 32,623
Other income, net 33 30 99 98
--- --- --- ---
Income before taxes 11,150 10,809 36,648 32,721
Income tax expense 3,687 3,821 12,676 11,167
----- ----- ------ ------
NET INCOME $7,463 $6,988 $23,972 $21,554
====== ====== ======= =======
Net income per share:
Basic $0.33 $0.30 $1.06 $0.92
===== ===== ===== =====
Diluted $0.32 $0.29 $1.03 $0.88
===== ===== ===== =====
Weighted average shares outstanding:
Basic 22,802 23,509 22,639 23,525
Diluted 23,459 24,094 23,249 24,436
(1) Stock-based compensation included in above line items:
Operations and support $331 $376 $1,297 $1,665
Sales and marketing 1,128 480 5,174 2,054
Technology 1,101 384 3,285 1,703
General and administrative 1,999 680 10,890 5,307
----- --- ------ -----
$4,559 $1,920 $20,646 $10,729
Other Operational Data:
Installed restaurants (at period end):
North America 19,801 17,150 19,801 17,150
International 7,716 7,969 7,716 7,969
----- ----- ----- -----
Total 27,517 25,119 27,517 25,119
Seated diners (in thousands):
North America 29,861 24,649 113,053 89,533
International 2,971 2,202 9,771 7,141
----- ----- ----- -----
Total 32,832 26,851 122,824 96,674
Headcount (at period end):
North America 423 398 423 398
International 157 160 157 160
--- --- --- ---
Total 580 558 580 558
Additional Financial Data:
Revenues:
North America
Reservation $20,801 $17,061 $78,929 $62,751
Subscription 12,696 11,667 49,371 44,784
Other 3,154 2,829 11,038 11,119
----- ----- ------ ------
Total North America Revenues $36,651 $31,557 $139,338 $118,654
International
Reservation $3,678 $3,236 $12,099 $11,464
Subscription 1,834 1,583 6,890 5,983
Other 804 789 3,305 3,417
Total International Revenues 6,316 5,608 22,294 20,864
----- ----- ------ ------
Total Revenues $42,967 $37,165 $161,632 $139,518
Income (loss) from operations:
North America $12,739 $13,150 $45,674 $44,007
International (1,622) (2,371) (9,125) (11,384)
------ ------ ------ -------
Total $11,117 $10,779 $36,549 $32,623
Depreciation and amortization:
North America $2,072 $1,690 $7,532 $6,852
International 1,003 1,487 5,216 5,153
----- ----- ----- -----
Total $3,075 $3,177 $12,748 $12,005
Stock-based compensation:
North America $4,046 $1,537 $18,493 $7,713
International 513 383 2,153 3,016
--- --- ----- -----
Total $4,559 $1,920 $20,646 $10,729
OPENTABLE, INC.
RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2012 2011 2012 2011
---- ---- ---- ----
(In thousands, except per share amounts)
Non-GAAP consolidated net income per share:
GAAP net income "as reported" $7,463 $6,988 $23,972 $21,554
Add back: stock-based compensation expense 4,559 1,920 20,646 10,729
Income tax effect of stock-based compensation (1,729) (675) (8,027) (3,996)
Add back: acquisition-related expenses 95 - 199 -
Income tax effect of acquisition-related expenses (35) - (75) -
Add back: amortization of acquired intangibles 600 972 3,638 3,958
Income tax effect of amortization of intangibles (273) (268) (1,099) (1,089)
---- ---- ------ ------
NON-GAAP CONSOLIDATED NET INCOME $10,680 $8,937 $39,254 $31,156
======= ====== ======= =======
Non-GAAP diluted net income per share $0.46 $0.37 $1.69 $1.28
===== ===== ===== =====
Weighted average diluted shares outstanding 23,459 24,094 23,249 24,436
Non-GAAP consolidated operating income:
GAAP income from operations "as reported" $11,117 $10,779 $36,549 $32,623
Add back: stock-based compensation expense 4,559 1,920 20,646 10,729
Add back: acquisition-related expenses 95 - 199 -
Add back: amortization of acquired intangibles 600 972 3,638 3,958
--- --- ----- -----
NON-GAAP OPERATING INCOME $16,371 $13,671 $61,032 $47,310
======= ======= ======= =======
North America Adjusted EBITDA:
GAAP operating income "as reported" $12,739 $13,150 $45,674 $44,007
Adjustments:
Stock-based compensation expense 4,046 1,537 18,493 7,713
Acquisition-related expense 95 - 199 -
Amortization of acquired intangibles 228 88 605 351
Depreciation and other amortization expense 1,844 1,602 6,927 6,501
----- ----- ----- -----
North America Adjusted EBITDA $18,952 $16,377 $71,898 $58,572
International Adjusted EBITDA:
GAAP operating loss "as reported" $(1,622) $(2,371) $(9,125) $(11,384)
Adjustments:
Stock-based compensation expense 513 383 2,153 3,016
Amortization of acquired intangibles 372 884 3,033 3,607
Depreciation and other amortization expense 631 603 2,183 1,546
--- --- ----- -----
International Adjusted EBITDA $(106) $(501) $(1,756) $(3,215)
OPENTABLE, INC.
RECONCILIATION OF GAAP TO NON-GAAP FORWARD-LOOKING GUIDANCE
Forward-Looking Guidance
------------------------
Three Months Ending Twelve Months Ending
March 31, 2013 December 31, 2013
-------------- -----------------
Range of Estimate Range of Estimate
From To From To
---- --- ---- ---
(In thousands, except per share amounts)
Consolidated net income per share:
GAAP CONSOLIDATED NET INCOME $5,832 $6,937 $30,417 $34,701
Add back: stock-based compensation expense 4,743 4,743 17,414 17,414
Income tax effect of stock-based compensation (1,660) (1,660) (6,443) (6,443)
Add back: amortization of acquired intangibles 600 600 2,027 2,027
Income tax effect of amortization of intangibles (210) (210) (750) (750)
---- ---- ---- ----
NON-GAAP CONSOLIDATED NET INCOME $9,305 $10,410 $42,665 $46,949
====== ======= ======= =======
GAAP diluted net income per share $0.25 $0.29 $1.27 $1.45
===== ===== ===== =====
Non-GAAP diluted net income per share $0.39 $0.44 $1.79 $1.96
===== ===== ===== =====
Weighted average diluted shares outstanding 23,700 23,700 23,900 23,900
North America Adjusted EBITDA:
GAAP operating income $12,532 $13,632 $55,225 $59,825
Adjustments:
Stock-based compensation expense 4,275 4,275 15,814 15,814
Amortization of acquired intangibles 227 227 909 909
Depreciation and other amortization expense 2,266 2,266 10,652 10,652
----- ----- ------ ------
North America Adjusted EBITDA $19,300 $20,400 $82,600 $87,200
International Adjusted EBITDA:
GAAP operating loss $(3,592) $(2,992) $(7,071) $(4,871)
Adjustments:
Stock-based compensation expense 468 468 1,600 1,600
Amortization of acquired intangibles 373 373 1,118 1,118
Depreciation and other amortization expense 351 351 1,453 1,453
--- --- ----- -----
International Adjusted EBITDA $(2,400) $(1,800) $(2,900) $(700)
Consolidated Adjusted EBITDA:
GAAP operating income $8,940 $10,640 $48,154 $54,954
Adjustments:
Stock-based compensation expense 4,743 4,743 17,414 17,414
Amortization of acquired intangibles 600 600 2,027 2,027
Depreciation and other amortization expense 2,617 2,617 12,105 12,105
----- ----- ------ ------
Consolidated Adjusted EBITDA $16,900 $18,600 $79,700 $86,500
SOURCE OpenTable, Inc.