OpenTable Soars After Boosting Full-Year Profit Outlook
OpenTable Inc. (OPEN), the largest U.S. online restaurant-reservation service, gained the most in more than two years after forecasting full-year profit that topped analysts’ estimates amid an increase in seated diners.
The shares advanced 16 percent to $39.55 at the close in New York, for the biggest gain since February 2010. The stock had declined 13 percent this year through yesterday.
OpenTable, which reported a 27 percent increase in seated diners using its service in the second quarter, said the number of restaurant patrons accessing the San Francisco-based company through mobile devices rose 3 percentage points during the period.
“The shift to mobile is a long-term positive for us,” Chief Executive Officer Matthew Roberts said on a conference call with analysts yesterday. “Our primary and fastest growing source of revenue is reservation transactions, which monetize well on mobile devices.”
Full-year earnings excluding certain items will be $1.54 to $1.66 a share, according to a statement yesterday. That’s up from a prior forecast of $1.49 to $1.64. Analysts had predicted an average of $1.57, according to data compiled by Bloomberg.
Seated diners rose to 30.3 million in the quarter ended June 30, including 28 million in North America.
“If you look at our total seats filled in North America, 28 percent last quarter started where people were on using a smartphone or a tablet,” Roberts said.
That’s up 3 percentage points from the prior quarter, he said.
To contact the reporter on this story: Niamh Ring in New York at nring@bloomberg.net
To contact the editor responsible for this story: Kevin Miller at kmiller@bloomberg.net
OpenTable Soars After Boosting Profit View: San Francisco Mover
David Paul Morris/Bloomberg
OpenTable Inc. reported a 27 percent increase in seated diners using its service in the second quarter.
OpenTable Inc. reported a 27 percent increase in seated diners using its service in the second quarter. Photographer: David Paul Morris/Bloomberg
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