OpenTable, Inc. Announces Fourth Quarter and Full Year 2012 Financial Results

OpenTable, Inc. Announces Fourth Quarter and Full Year 2012 Financial Results  -- Increases Revenue by 16% over Q4'11 to $43.0 Million --  -- Grows Seated Diners by 22% over Q4 2011 --  -- Achieves EPS of $0.32 and Non-GAAP EPS of $0.46 --  PR Newswire  SAN FRANCISCO, Feb. 7, 2013  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    oInstalled restaurant base as of December 31, 2012, totaled 19,801, a 15%     increase over December 31, 2011.   oSeated diners totaled 29.9 million, a 21% increase over Q4 2011.   oRevenues totaled $36.7 million, a 16% increase over Q4 2011.   oNon-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    oInstalled 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.    oSeated diners totaled 3.0 million, a 35% increase over Q4 2011.   oRevenues totaled $6.3 million, a 13% increase over Q4 2011.   oNon-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    oInstalled restaurant base as of December 31, 2012, totaled 27,517.   oSeated diners totaled 32.8 million, a 22% increase over Q4 2011.   oTotal revenues were $43.0 million in Q4 2012, up 16% over Q4 2011 revenues     of $37.2 million.         oReservation 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.        oSubscription 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.        oOther 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.    oTotalcosts and expenses were $31.9 million in Q4 2012, up 21% over Q4     2011costs 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.   oTotal 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.   oThe Q4 2012 GAAP income tax expense was $3.7 million, or a 33% tax rate.   oConsolidated 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.   oAs of December 31, 2012, OpenTable had cash and cash equivalents and     short-term investments of $103.5 million.  2012 Consolidated Financial and Operating Summary    oTotal revenues were $161.6 million in 2012, up 16% over 2011 revenues of     $139.5 million.   oOperating income totaled $36.5 million in 2012, or 23% of consolidated     revenues, a12% 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.   oNon-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:    oIn 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.    oIn 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.   oOn 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:    oIn 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.   oIn 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.   oOn 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       2,924                  2,708 current assets  Deferred tax asset               14,353                 11,238  Total current assets    142,797                82,671 Property, equipment and software,  21,271                 16,150 net 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     $       13,847  $        expenses                                                  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           48,295                 34,101 liabilities  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  861                    (1,634) income (loss)  Retained earnings (accumulated   6,329                  (17,643) deficit)  Total stockholders'     167,915                110,227 equity TOTAL LIABILITIES AND              $      237,247   $      163,815 STOCKHOLDERS' EQUITY    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    10,506       10,276       41,908       39,350 (1)  Sales and marketing (1)   8,972        7,005        34,531       28,697  Technology (1)            3,965        3,365        14,564       14,691  General and               8,407        5,740        34,080       24,157 administrative (1)  Total costs      31,850       26,386       125,083      106,895 and expenses 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                        1,297     1,665                             331         376  Sales and marketing       1,128        480          5,174        2,054  Technology                1,101        384          3,285        1,703  General and               1,999        680          10,890       5,307 administrative                             $       $       $       $                                     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         6,316        5,608        22,294       20,864 Revenues  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       4,559        1,920        20,646       10,729 compensation expense Income tax effect of        (1,729)      (675)        (8,027)      (3,996) stock-based compensation Add back: acquisition-related         95           -            199          - expenses Income tax effect of acquisition-related         (35)         -            (75)         - expenses Add back: amortization of   600          972          3,638        3,958 acquired intangibles Income tax effect of amortization of             (273)        (268)        (1,099)      (1,089) intangibles 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    23,459       24,094       23,249       24,436 shares outstanding Non-GAAP consolidated operating income: GAAP income from            $         $         $         $    operations "as reported"    11,117      10,779      36,549      32,623 Add back: stock-based       4,559        1,920        20,646       10,729 compensation expense Add back: acquisition-related         95           -            199          - expenses Add back: amortization of   600          972          3,638        3,958 acquired intangibles 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  4,046        1,537        18,493       7,713 expense  Acquisition-related       95           -            199          - expense  Amortization of acquired  228          88           605          351 intangibles  Depreciation and other    1,844        1,602        6,927        6,501 amortization expense  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  513          383          2,153        3,016 expense  Amortization of acquired  372          884          3,033        3,607 intangibles  Depreciation and other    631          603          2,183        1,546 amortization expense  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       4,743        4,743        17,414       17,414 compensation expense Income tax effect of        (1,660)      (1,660)      (6,443)      (6,443) stock-based compensation Add back: amortization of   600          600          2,027        2,027 acquired intangibles Income tax effect of amortization of             (210)        (210)        (750)        (750) intangibles 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    23,700       23,700       23,900       23,900 shares outstanding North America Adjusted EBITDA: GAAP operating income       $         $         $         $                                12,532      13,632      55,225      59,825 Adjustments:  Stock-based compensation  4,275        4,275        15,814       15,814 expense  Amortization of acquired  227          227          909          909 intangibles  Depreciation and other    2,266        2,266        10,652       10,652 amortization expense  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  468          468          1,600        1,600 expense  Amortization of acquired  373          373          1,118        1,118 intangibles  Depreciation and other    351          351          1,453        1,453 amortization expense  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  4,743        4,743        17,414       17,414 expense  Amortization of acquired  600          600          2,027        2,027 intangibles  Depreciation and other    2,617        2,617        12,105       12,105 amortization expense  Consolidated     $         $         $         $    Adjusted EBITDA             16,900      18,600      79,700      86,500    SOURCE OpenTable, Inc.  Website: http://www.opentable.com Contact: Investor Relations:, +1-415-344-6520, investors@opentable.com, or Media Relations Contact, +1-415-344-4275, pr@opentable.com  
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