OPENTABLE INC 
By SAN FRANCISCO, Feb. 6, 2014 /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, 2013.
(Logo: http://photos.prnewswire.com/prnh/20110606/MM07085LOGO )
OpenTable reported consolidated net revenues for Q4 2013 of $52.3 million, a 22% increase over Q4 2012. Consolidated net income for Q4 2013 was $10.3 million, or $0.43 per diluted share. Non-GAAP consolidated net income for Q4 2013, which excludes tax-affected stock-based compensation expense, tax-affected acquisition-related expenses and tax-affected amortization of acquired intangibles, was $14.3 million, or $0.59 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.
Q4 2013 North America Results
-- Installed restaurant base as of December 31, 2013, totaled 23,824, a 20%
increase over December 31, 2012.
-- Seated diners totaled 39.8 million, a 33% increase over Q4 2012.
-- Revenues totaled $44.7 million, a 22% increase over Q4 2012.
-- Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization, stock-based compensation and acquisition-related expenses)
totaled $22.6 million, or 51% of North America revenues, a 19% increase
over Q4 2012.
Q4 2013 International Results
-- Installed restaurant base as of December 31, 2013, totaled 7,729,
compared to 7,716 as of December 31, 2012.
-- Seated diners totaled 4.2 million, a 43% increase over Q4 2012.
-- Revenues totaled $7.6 million, a 21% increase over Q4 2012.
-- Non-GAAP adjusted EBITDA totaled a loss of $0.1 million compared to a
loss of $0.1 million in Q4 2012.
"We're pleased with the accelerated diner growth we delivered in North America and with the strong momentum we saw in our International business in 2013," said Matt Roberts, Chief Executive Officer of OpenTable. "As we look to the year ahead, we believe the convenience and benefits that our diners and restaurant customers enjoy today are just the beginning of the value we can deliver as a company focused more broadly on the experience of dining out."
Q4 2013 Consolidated Financial and Operating Summary
-- Installed restaurant base as of December 31, 2013, totaled 31,553.
-- Seated diners totaled 44.0 million, a 34% increase over Q4 2012.
-- Total revenues were $52.3 million in Q4 2013, a 22% increase over Q4
2012 revenues of $43.0 million.
-- Reservation revenues were $32.5 million in Q4 2013, up 33% over Q4
2012 revenues of $24.5 million. Reservation revenues primarily
increased as a result of the increase in seated diners.
-- Subscription revenues were $16.3 million in Q4 2013, up 12% over Q4
2012 revenues of $14.5 million. Subscription revenues primarily
increased as a result of the increase in installed restaurants using
our Electronic Reservation Book solution.
-- Other revenues were $3.5 million in Q4 2013, down 12% over Q4 2012
revenues of $4.0 million. The decrease is primarily due to the
change in the pricing of our promotional products from a flat rate
to a pay-for-performance model, which is now classified as
reservation revenues.
-- Total costs and expenses were $39.1 million in Q4 2013, up 23% over Q4
2012 costs and expenses of $31.9 million. The increase was primarily
driven by an increase in online marketing expenses and amortization of
intangibles from various acquisitions, combined with an 8% increase in
headcount.
-- Total operating income was $13.2 million in Q4 2013 compared to $11.1
million in Q4 2012. Non-GAAP consolidated operating income, excluding
stock-based compensation expense, acquisition-related expenses and
amortization of acquired intangibles was $19.0 million in Q4 2013
compared to $16.4 million in Q4 2012.
-- The Q4 2013 GAAP income tax expense was $2.9 million, or a 22% tax rate.
In Q4 2013, the Company benefitted from certain non-recurring changes in
estimates in its tax provision which resulted in a $1.7 million, or
$0.07 per diluted share, reduction in Q4 2013 income tax expense.
-- Consolidated net income was $10.3 million, or $0.43 per diluted share,
in Q4 2013 compared to $7.5 million, or $0.32 per diluted share, in Q4
2012. 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
$14.3 million, or $0.59 per diluted share, in Q4 2013 compared to $10.7
million, or $0.46 per diluted share, in Q4 2012.
-- As of December 31, 2013, OpenTable had cash and cash equivalents and
short-term investments of $114.5 million.
2013 Consolidated Financial and Operating Summary
-- Total revenues were $190.1 million in 2013, up 18% over 2012 revenues of
$161.6 million.
-- Operating income totaled $46.4 million in 2013, or 24% of consolidated
revenues, a 27% increase over 2012. Non-GAAP consolidated operating
income, excluding stock-based compensation expense, acquisition-related
expenses and amortization of acquired intangibles, was $69.1 million in
2013, or 36% of consolidated revenues, a 13% increase over 2012.
-- Non-GAAP adjusted EBITDA totaled $81.5 million in 2013, or 43% of
consolidated revenues, a 16% increase over 2012.
"With Q4 2013 North America seated diner growth rates accelerating for the fourth sequential quarter, it's gratifying to see early returns on the investments we made in 2013," said Duncan Robertson, Chief Financial Officer of OpenTable. "We believe our continued investments position the Company well for growth in 2014 and beyond."
Business Outlook
As of today, OpenTable is providing guidance for Q1 2014 and the full year 2014 on revenue, non-GAAP adjusted EBITDA and other consolidated metrics.
Q1 2014 Guidance:
-- In the North America segment the Company estimates revenue to be in the
range of $45.8 million to $47.0 million and non-GAAP adjusted EBITDA to
be in the range of $20.5 million to $21.7 million.
-- In the International segment the Company estimates revenue to be in the
range of $7.5 million to $7.9 million and non-GAAP adjusted EBITDA loss
to be in the range of $1.5 million to $1.8 million.
-- On a consolidated basis the Company estimates revenue to be in the range
of $53.3 million to $54.9 million, non-GAAP adjusted EBITDA to be in the
range of $18.7 million to $20.2 million, GAAP EPS to be in the range of
$0.24 to $0.28 and non-GAAP EPS to be in the range of $0.39 to $0.43.
Full Year 2014 Guidance:
-- In the North America segment the Company estimates revenue to be in the
range of $189.0 million to $195.0 million and non-GAAP adjusted EBITDA
to be in the range of $88.0 million to $93.8 million.
-- In the International segment the Company estimates revenue to be in the
range of $32.0 million to $34.0 million and non-GAAP adjusted EBITDA
loss to be in the range of $3.4 million to $5.3 million.
-- On a consolidated basis the Company estimates revenue to be in the range
of $221.0 million to $229.0 million, non-GAAP adjusted EBITDA to be in
the range of $82.7 million to $90.4 million, GAAP EPS to be in the range
of $1.09 and $1.29 and non-GAAP EPS to be in the range of $1.71 to
$1.92.
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, 2014, 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.
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.
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 2014 and the full year 2014 and quotations from management in this press release. 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 accurately forecast revenues and expenses; worldwide economic conditions; 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 effects of increased competition; the Company's ability to successfully enter new markets and manage its international expansion; the impact of the fluctuations in currency exchange rates; 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 over 14 million diners per month via online bookings across more than 31,000 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 575 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. More information is available on http://www.opentable.com.
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,
------------ ------------
2013 2012
---- ----
(In thousands)
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents $100,283 $102,772
Short-term
investments 14,263 733
Accounts
receivable, net 25,359 22,015
Prepaid expenses
and other current
assets 4,659 2,924
Deferred tax asset 17,861 14,353
------ ------
Total current
assets 162,425 142,797
Property, equipment
and software, net 30,972 21,271
Goodwill 79,271 46,304
Intangibles, net 23,376 15,226
Deferred tax asset 14,092 10,628
Other assets 835 1,021
--- -----
TOTAL ASSETS $310,971 $237,247
======== ========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
CURRENT
LIABILITIES:
Accounts payable
and accrued
expenses $13,832 $13,847
Accrued
compensation 4,692 5,167
Deferred revenue 1,556 1,563
Deferred tax
liability - 107
Dining rewards
payable 37,509 27,611
------ ------
Total current
liabilities 57,589 48,295
Deferred revenue -
non-current 1,894 2,054
Deferred tax
liability 2,508 3,268
Income tax
liability 15,597 15,639
Other long-term
liabilities 3,121 76
----- ---
Total liabilities 80,709 69,332
------ ------
STOCKHOLDERS'
EQUITY:
Common stock 3 2
Additional paid-in
capital 263,697 211,408
Treasury stock (74,247) (50,685)
Accumulated other
comprehensive
income 1,095 861
Retained earnings 39,714 6,329
------ -----
Total stockholders'
equity 230,262 167,915
------- -------
TOTAL LIABILITIES
AND STOCKHOLDERS'
EQUITY $310,971 $237,247
======== ========
OPENTABLE, INC.
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2013 2012 2013 2012
---- ---- ---- ----
(In thousands, except per share amounts)
REVENUES $52,291 $42,967 $190,050 $161,632
COSTS AND EXPENSES:
Operations and support (1) 12,535 10,506 48,185 41,908
Sales and marketing (1) 12,399 8,972 41,926 34,531
Technology (1) 5,784 3,965 20,089 14,564
General and administrative (1) 8,346 8,407 33,421 34,080
----- ----- ------ ------
Total costs and expenses 39,064 31,850 143,621 125,083
------ ------ ------- -------
Income from operations 13,227 11,117 46,429 36,549
Other income, net 9 33 (10) 99
--- --- --- ---
Income before taxes 13,236 11,150 46,419 36,648
Income tax expense 2,922 3,687 13,034 12,676
----- ----- ------ ------
NET INCOME $10,314 $7,463 $33,385 $23,972
======= ====== ======= =======
Net income per share:
Basic $0.44 $0.33 $1.45 $1.06
===== ===== ===== =====
Diluted $0.43 $0.32 $1.39 $1.03
===== ===== ===== =====
Weighted average shares outstanding:
Basic 23,309 22,802 23,042 22,639
Diluted 24,254 23,459 23,974 23,249
(1) Stock-based compensation
included in above line items:
Operations and support $280 $331 $787 $1,297
Sales and marketing 972 1,128 3,675 5,174
Technology 1,323 1,101 5,088 3,285
General and administrative 1,671 1,999 7,237 10,890
----- ----- ----- ------
$4,246 $4,559 $16,787 $20,646
Other Operational Data:
Installed restaurants (at period end):
North America 23,824 19,801 23,824 19,801
International 7,729 7,716 7,729 7,716
----- ----- ----- -----
Total 31,553 27,517 31,553 27,517
Seated diners (in thousands):
North America 39,770 29,861 144,143 113,053
International 4,241 2,971 13,964 9,771
----- ----- ------ -----
Total 44,011 32,832 158,107 122,824
Headcount (at period end):
North America 461 423 461 423
International 164 157 164 157
--- --- --- ---
Total 625 580 625 580
Additional Financial Data:
Revenues:
North America
Reservation $27,076 $20,801 $98,088 $78,929
Subscription 14,279 12,696 54,377 49,371
Other 3,324 3,154 11,996 11,038
----- ----- ------ ------
Total North America Revenues $44,679 $36,651 $164,461 $139,338
International
Reservation $5,417 $3,678 $16,995 $12,099
Subscription 2,021 1,834 7,468 6,890
Other 174 804 1,126 3,305
Total International Revenues 7,612 6,316 25,589 22,294
----- ----- ------ ------
Total Revenues $52,291 $42,967 $190,050 $161,632
Income (loss) from operations:
North America $14,421 $12,739 $54,260 $45,674
International (1,194) (1,622) (7,831) (9,125)
------ ------ ------ ------
Total $13,227 $11,117 $46,429 $36,549
Depreciation and amortization:
North America $4,066 $2,072 $13,485 $7,532
International 713 1,003 3,723 5,216
--- ----- ----- -----
Total $4,779 $3,075 $17,208 $12,748
Stock-based compensation:
North America $3,859 $4,046 $15,266 $18,493
International 387 513 1,521 2,153
--- --- ----- -----
Total $4,246 $4,559 $16,787 $20,646
OPENTABLE, INC.
RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2013 2012 2013 2012
---- ---- ---- ----
(In thousands, except per share amounts)
Non-GAAP consolidated net income per share:
GAAP net income "as reported" $10,314 $7,463 $33,385 $23,972
Add back: stock-based compensation expense 4,246 4,559 16,787 20,646
Income tax effect of stock-based compensation (1,312) (1,729) (5,268) (8,027)
Add back: acquisition-related expenses 286 95 1,037 199
Income tax effect of acquisition-related expenses (109) (35) (391) (75)
Add back: amortization of acquired intangibles 1,243 600 4,847 3,638
Income tax effect of amortization of intangibles (413) (273) (1,444) (1,099)
---- ---- ------ ------
NON-GAAP CONSOLIDATED NET INCOME $14,255 $10,680 $48,953 $39,254
======= ======= ======= =======
Non-GAAP diluted net income per share $0.59 $0.46 $2.04 $1.69
===== ===== ===== =====
Weighted average diluted shares outstanding 24,254 23,459 23,974 23,249
Non-GAAP consolidated operating income:
GAAP income from operations "as reported" $13,227 $11,117 $46,429 $36,549
Add back: stock-based compensation expense 4,246 4,559 16,787 20,646
Add back: acquisition-related expenses 286 95 1,037 199
Add back: amortization of acquired intangibles 1,243 600 4,847 3,638
----- --- ----- -----
NON-GAAP OPERATING INCOME $19,002 $16,371 $69,100 $61,032
======= ======= ======= =======
North America Adjusted EBITDA:
GAAP operating income "as reported" $14,421 $12,739 $54,260 $45,674
Adjustments:
Stock-based compensation expense 3,859 4,046 15,266 18,493
Acquisition-related expense 286 95 1,037 199
Amortization of acquired intangibles 1,243 228 3,772 605
Depreciation and other amortization expense 2,823 1,844 9,713 6,927
----- ----- ----- -----
North America Adjusted EBITDA $22,632 $18,952 $84,048 $71,898
International Adjusted EBITDA:
GAAP operating loss "as reported" $(1,194) $(1,622) $(7,831) $(9,125)
Adjustments:
Stock-based compensation expense 387 513 1,521 2,153
Amortization of acquired intangibles - 372 1,075 3,033
Depreciation and other amortization expense 713 631 2,648 2,183
--- --- ----- -----
International Adjusted EBITDA $(94) $(106) $(2,587) $(1,756)
Consolidated Adjusted EBITDA:
GAAP operating income "as reported" $13,227 $11,117 $46,429 $36,549
Adjustments:
Stock-based compensation expense 4,246 4,559 16,787 20,646
Acquisition-related expense 286 95 1,037 199
Amortization of acquired intangibles 1,243 600 4,847 3,638
Depreciation and other amortization expense 3,536 2,475 12,361 9,110
----- ----- ------ -----
Consolidated Adjusted EBITDA $22,538 $18,846 $81,461 $70,142
OPENTABLE, INC.
RECONCILIATION OF GAAP TO NON-GAAP FORWARD-LOOKING GUIDANCE
Forward-Looking Guidance
------------------------
Three Months Ending Twelve Months Ending
March 31, 2014 December 31, 2014
-------------- -----------------
Range of Estimate Range of Estimate
From To From To
---- --- ---- ---
(In thousands, except per share amounts)
Non-GAAP consolidated net income per share:
GAAP net income $5,940 $6,900 $26,607 $31,535
Add back: stock-based compensation expense 4,280 4,280 18,672 18,672
Income tax effect of stock-based compensation (1,603) (1,603) (6,993) (6,993)
Add back: amortization of acquired intangibles 1,363 1,363 6,071 6,071
Income tax effect of amortization of intangibles (529) (529) (2,356) (2,356)
---- ---- ------ ------
NON-GAAP CONSOLIDATED NET INCOME $9,451 $10,411 $42,001 $46,929
====== ======= ======= =======
GAAP diluted net income per share $0.24 $0.28 $1.09 $1.29
===== ===== ===== =====
Non-GAAP diluted net income per share $0.39 $0.43 $1.71 $1.92
===== ===== ===== =====
Weighted average diluted shares outstanding 24,400 24,400 24,500 24,500
North America Adjusted EBITDA:
GAAP operating income $12,160 $13,360 $50,837 $56,637
Adjustments:
Stock-based compensation expense 3,937 3,937 17,106 17,106
Amortization of acquired intangibles 1,363 1,363 6,071 6,071
Depreciation and other amortization expense 3,040 3,040 13,986 13,986
----- ----- ------ ------
North America Adjusted EBITDA $20,500 $21,700 $88,000 $93,800
International Adjusted EBITDA:
GAAP operating loss $(2,900) $(2,600) $(9,349) $(7,449)
Adjustments:
Stock-based compensation expense 343 343 1,566 1,566
Amortization of acquired intangibles - - - -
Depreciation and other amortization expense 757 757 2,483 2,483
--- --- ----- -----
International Adjusted EBITDA $(1,800) $(1,500) $(5,300) $(3,400)
Consolidated Adjusted EBITDA:
GAAP operating income $9,260 $10,760 $41,488 $49,188
Adjustments:
Stock-based compensation expense 4,280 4,280 18,672 18,672
Amortization of acquired intangibles 1,363 1,363 6,071 6,071
Depreciation and other amortization expense 3,797 3,797 16,469 16,469
----- ----- ------ ------
Consolidated Adjusted EBITDA $18,700 $20,200 $82,700 $90,400
SOURCE OpenTable, Inc.
