OpenTable 2Q profit falls but still tops forecasts

Restaurant-reservation firm OpenTable's 2Q profit dips 9 percent but beats expectations

Associated Press

SAN FRANCISCO (AP) -- OpenTable Inc., which provides online restaurant reservations, said Thursday that its second-quarter profit fell 9 percent but still topped expectations on an increase in revenue and dining options.

The company forecast full-year profit and revenue roughly in line with analysts' forecasts. Its shares jumped 13 percent in extended trading.

The San Francisco company said that in the quarter it handled reservations for more than 30 million diners, mostly in North America, a 27 percent increase over the same period last year. It is in about 25,000 restaurants worldwide, up 11 percent.

The shares fell $1.78, or 5 percent, to $34.15 in regular trading. After the results, they were up $4.34 to $38.49 in after-hours trading.

OpenTable operates websites that are free to diners. It makes its revenue by charging restaurants a fee to install its software and electronic reservation book plus monthly subscriptions and a fee for every diner seated after making an online reservation.

Net income fell to $5.7 million, or 25 cents per share, compared with a year-ago gain of $6.3 million, or 26 cents per share.

The company said that excluding special items such as stock-based compensation costs, it would have earned 42 cents per share.

Revenue rose 15 percent to $39.6 million.

Analysts expected adjusted earnings of 37 cents per share on revenue of $39.4 million, according to FactSet

For 2012, the company forecast earnings after items of $1.54 to $1.66 per share on revenue of $160 million to $164 million.

View Comments (0)