OpenTable Shares Down 7% As Q1 Results Miss View, But Boosts Outlook

(RTTNews) - Shares of OpenTable, Inc. (OPEN) plunged nearly seven percent in extended trading on Thursday after the restaurant reservation solutions results for the first quarter that missed analysts' expectations. The company also reported a loss for the quarter compared to a profit last year, hurt by higher expenses that include an impairment charge. However, the company raised its earnings and revenue guidance for the full-year 2013.

"During the first quarter the business continued to deliver solid operating metrics, adjusted EBITDA margins and cash flows even as we invest for the future," CFO Duncan Robertson said in a statement.

The San Francisco, California-based online restaurant reservations provider reported a net loss of $3.64 million or $0.16 per share for the first quarter, compared to net income of $7.14 million or $0.30 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $11.02 million or $0.45 per share, compared to $10.68 million or $0.45 per share in the year-ago quarter.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 18 percent to $53.78 million from $45.50 million in the same quarter last year, but missed fifteen Wall Street analysts consensus estimate if $54.39 million.

Total North America revenues for the quarter grew 17 percent to $46.0 million, and total international revenues also increased 29 percent to $7.8 million from the year-ago quarter.

Reservation revenues grew 27 percent to $34.3 million, and subscription revenues increased 13 percent to $16.6 million, while other revenues declined 22 percent to $2.9 million from the prior-year quarter.

Installed restaurant base at the end of the first quarter totaled 31,583, up from 27,957 at the end of the year-ago quarter. Seated diners for the quarter grew 25 percent to 46.74 million from 37.36 million last year.

Total costs and expenses for the quarter surged to $56.39 million from $35.58 million from last year, including impairment of acquired intangibles of $12.65 million.

Looking ahead to the second quarter, the company expects adjusted earnings in a range of $0.43 to $0.48 per share, on projected revenues between $54.7 million and $56.3 million. Analysts currently expect the company to report second-quarter earnings of $0.45 per share on quarterly revenues of $55.37 million.

For the fiscal 2014, the company raised its guidance for adjusted earnings to a range of $1.81 to $1.96 per share from the prior forecast range of $1.71 and $1.92 per share, on projected revenues between $221.9 million and $228.1 million, also up from the previous outlook between $221.0 million and $229.0 million.

Street is currently looking for full-year 2014 earnings of $1.84 per share on annual revenues of $225.42 million.

"As part of our evolution to a dining experiences company - and with our rebrand of toptable to OpenTable in the UK - we have a tremendous opportunity to be the global dining passport for consumers around the world," CEO Matt Roberts stated.

OPEN closed Thursday's regular trading session at $68.27, up $1.11 or 1.65% on a volume of 1.85 million shares. However, the stock plunged $4.55 or 6.66% in after-hours trading.