OpenTable reported its first quarter earnings today. Here are the brass tacks: revenue for the quarter was $39.4 million, with profits of $4.8 million. The company earned $0.21 per share in the quarter.

However, that $39.4 million in revenue was a slim 17% higher than what the company reported in 2011. 17% is a fine rate of revenue growth for most firms, but for an Internet company, and one that sports a PE ratio of nearly 50, it’s not fantastic.

The company claims that it seated 33% more US diners this quarter, compared to the year ago quarter, and 45% more internationally. The market, however, is brutalizing the company in after hours trading. At the time of writing, the company is off some 18%, and declining. It was down 15% when I began writing this article.

However, it should be noted that its massive decline may not be completely tied to the company’s earnings. As Schaeffers Research notes, there exists a big short position on the stock:

46.5% of OPEN’s float is dedicated to short interest [… A] downbeat report could inspire the shorts to ramp up their bets against the stock. Options players are certainly betting on some volatile post-earnings price action, with implied volatility on OPEN’s near-the-money May 45 call and put lingering at a lofty 75%. For comparison, the equity’s one-month realized volatility is 38%.

So, where the stock ends up is a bit of a guessing game. However, it’s hard to be too down on OpenTable, as the company is profitable, and growing. OpenTable expects revenues of around $140 million in 2012.

What follows is the company’s earnings release:

OpenTable reported consolidated net revenues for Q1 2012 of $39.4 million, a 17% increase over Q1 2011.  Consolidated net income for Q1 2012 was $4.8 million, or $0.21 per diluted share.  Non-GAAP consolidated net income for Q1 2012, which excludes tax-affected stock-based compensation expense and tax-affected amortization of acquired intangibles, was $9.2 million, or $0.40 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

  • Installed restaurant base as of March 31, 2012, totaled 17,753, a 22% increase over March 31, 2011.
  • Seated diners totaled 27.7 million, a 33% increase over Q1 2011.
  • Revenues totaled $33.7 million, a 17% increase over Q1 2011.
  • Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and stock-based compensation) totaled $17.1 million, or 51% of North America revenues, a 24% increase over Q1 2011.

International Results

  • Installed restaurant base as of March 31, 2012, totaled 8,091, a 21% increase over March 31, 2011.
  • Seated diners totaled 2.3 million, a 45% increase over Q1 2011.
  • Revenues totaled $5.6 million, a 14% increase over Q1 2011.
  • Non-GAAP adjusted EBITDA totaled a loss of $0.6 million compared to a loss of $1.5 million in Q1 2011.

“We’re focusing our efforts in areas that we believe position the business to realize the long-term opportunity in both our North America and International segments,” said Matt Roberts, President and CEO of OpenTable.  “In our International segment, we’re pleased that the final phase of integrating OpenTable technology into toptable – our consumer destination site in the UK – is on track for completion by the end of June and that the value of the combined solution is resonating with existing and prospective restaurant customers.”

Q1 2012 Consolidated Financial and Operating Summary

  • Installed restaurant base as of March 31, 2012, totaled 25,844, a 22% increase over March 31, 2011.
  • Seated diners totaled 30.0 million, a 34% increase over Q1 2011.
  • Total revenues were $39.4 million in Q1 2012, up 17% over Q1 2011 revenues of $33.7 million.
    • Reservation revenues were $22.3 million in Q1 2012, up 27% over Q1 2011 revenues of $17.6 million.  Reservation revenues primarily increased as a result of the increase in seated diners.
    • Subscription revenues were $13.5 million in Q1 2012, up 13% over Q1 2011 revenues of $12.0 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 Q1 2012, down 14% over Q1 2011 revenues of $4.1 million.  The decrease is primarily the result of a decrease in revenue from third-party restaurant coupon sales, partially offset by an increase in advertising revenues and featured private dining sales.
  • Total operating expenses were $32.0 million in Q1 2012, up 18% over Q1 2011 operating expenses of $27.2 million.  The increase was primarily driven by an increase in stock based compensation and an 8% increase in headcount.
  • Total operating income was $7.4 million in Q1 2012 compared to $6.5 million in Q1 2011.  Non-GAAP consolidated operating income, excluding stock-based compensation expense and amortization of acquired intangibles was $14.3 million in Q1 2012 compared to $10.5 million in Q1 2011.
  • The Q1 2012 GAAP income tax expense was $2.6 million, or a 35% tax rate.
  • Consolidated net income was $4.8 million, or $0.21 per diluted share, in Q1 2012 compared to $4.2 million, or $0.17 per diluted share, in Q1 2011.  Non-GAAP consolidated net income, which excludes tax-affected stock-based compensation expense and tax-affected amortization of acquired intangibles, was $9.2 million, or $0.40 per diluted share, in Q1 2012 compared to $6.8 million, or $0.28 per diluted share, in Q1 2011.
  • As of March 31, 2012, OpenTable had cash and cash equivalents and short-term investments of $57.7 million.

“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,” said Duncan Robertson, CFO of OpenTable.

Business Outlook

As of today, OpenTable is providing guidance for Q2 2012 and the full year 2012 on revenue, non-GAAP adjusted EBITDA and other consolidated metrics.

Q2 2012 Guidance:

  • In the North America segment the Company estimates revenue to be in the range of $33.6 million to $34.6 million and non-GAAP adjusted EBITDA to be in the range of $16.8 million to $17.8 million.
  • In the International segment the Company estimates revenue to be in the range of $4.9 million to $5.2 million and non-GAAP adjusted EBITDA loss to be in the range of $1.0 million to $1.3 million.
  • On a consolidated basis the Company estimates revenue to be in the range of $38.5 million to $39.8 million, non-GAAP adjusted EBITDA to be in the range of $15.5 million to $16.8 million and non-GAAP EPS to be in the range of $0.36 to $0.39.

Full Year 2012 Guidance:

  • In the North America segment the Company estimates revenue to be in the range of $136 million to $141 million and non-GAAP adjusted EBITDA to be in the range of $68 million to $72.5 million.
  • In the International segment the Company estimates revenue to be in the range of $22 million to $23 million and non-GAAP adjusted EBITDA loss to be in the range of $2 million to $3 million.
  • On a consolidated basis the Company estimates revenue to be in the range of $158 million to $164 million, non-GAAP adjusted EBITDA to be in the range of $65 million to $70.5 million and non-GAAP EPS to be in the range of $1.49 to $1.64.