I believe, that the 9-fold market-cap of Open Table like Local.com is nonsense:
The revenues of Open Table in 2009 was a only 10 million higher than the revenues of Local.com. And the growth-rate of the reveneus was lower than the growth-rate Local.com. But the market-cap of Opentable, who are doing near the same like Local.com was with 856 million the 9-fold.
On Wednesday February 10, 2010, 3:50 pm EST SAN FRANCISCO (AP) -- Shares of OpenTable Inc., which provides online restaurant reservations and guest management services for restaurants, rose sharply Wednesday after the company reported surprisingly good fourth-quarter results.
Citi Investment Research analyst Mark S. Mahaney said that while industry wide reservations are essentially flat year-over-year, OpenTable's reservations grew 40 percent.
"We continue to believe network effects and industry stabilization should drive continued growth acceleration in seatings and reservation revenues near term," he said.
He said OpenTable has a "significant" growth opportunity, since the company, which went public in May, only serves a single-digit percentage of U.S. restaurant reservations.
He reiterated his "Buy" rating on the stock and raised his price target to $38 from $35.
Shares rose $5.67, or 23 percent, to $30.66 during afternoon trading. The stock has traded between $24.04 and $35.50 since going public in May.
Quarterly profit totaled $3.1 million, or 13 cents per share, compared with a loss of $875,000, or 9 cents per share a year ago.
Revenue rose 32 percent to $19.2 million from $14.5 million last year.
During the quarter, subscription revenue rose 18 percent to $9.6 million, while reservation revenue rose 47 percent to $8.5 million.
For the year, profit totaled $5.1 million, or 22 cents per share, compared with a loss of $1 million, or 10 cents per share last year.
Revenue rose 23 percent to $68.6 million from $55.8 million last year.
And now look at Local.com:
Full Year 2009 Results Highlights: • Revenue – Revenue was $56.3 million for the year ended December 31, 2009, which represents a 47% increase over $38.3 million in 2008. • Adjusted Net Income (Loss) –Adjusted Net Income was $3.0 million or $0.21 per diluted share for the year ended December 31, 2009. This compares to an Adjusted Net Loss of $4.7 million or ($0.33) per share for the year ended December 31, 2008.
you seem really hell bent on bashing a winner while complaining.
I like (and own some) LOCM but think they are not the niche player and proven winner that OPEN is.
you also fail to mention that wall street has used adjusted earnings that show a continiung LOSS for LOCM when the same metrics applied to OPEN show a profit.
that being said, i think that will change ( the metrics used) for LOCM and it also will rise in share price, but it still makes no sense to bash OPEN and try to compare them.
all the shorts have been hammered on this one. it has big money behind it, well financed, great and growing margins all in a depressed environmnet
look at y/y restaurant reservations are FLAT and open grows 40%??? that tells you they are gaining market share or creating market share ( even better) and really no competition. what happens when reservations rise 10-15%? what happens as the overseas minute curretn market grows??
OPEN is priced for perfection as I have said many times and I have taken some profits on this great run up and so far it has beaten the perfection. will it drop some day, maybe and then it consolidates and if good management stays in place its a long term winner
its OK to have good companies perform better than your pet projects. there is room for multiple winners in this world and hopefully both open and locm prove that out.