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