OpenTable 2Q profit rises but forecast is cautious
OpenTable beats 2Q profit expectations, but 2013 forecast falls short of mark, stock falls
SAN FRANCISCO (AP) -- OpenTable Inc., operator of its namesake online restaurant reservations site, said Thursday that its second-quarter profit rose 46 percent, topping expectations, but it gave a disappointing forecast for the rest of 2013.
The shares fell more than 7 percent in aftermarket trading.
OpenTable said third-quarter profit excluding items will range between 38 cents to 42 cents per share, well below the 48 cents that analysts were expecting, according to FactSet. For the full year, adjusted profit is expected between $1.80 and $1.92 per share, below analysts' $1.93 forecast.
OpenTable is trying to increase its presence on mobile devices — nearly 40 percent of its reservations are booked on smartphones and tablets. It will also expand business directly with restaurants by buying the reservation-management system of Urbanspoon, which is owned by IAC/InterActiveCorp. That deal was announced Wednesday.
Second-quarter net income totaled $8.3 million, or 35 cents per share, compared with $5.7 million, or 25 cents per share, a year earlier. The company said that excluding items such as acquisition and stock-based compensation expenses, it would have earned 50 cents per share in the latest period.
Revenue rose 15 percent to $45.6 million, as the company said it handled more diners in both North America and its much smaller international segment. The number of seated diners, an industry metric, rose 26 percent. The company also credited a shift in the pricing of its promotional products to a pay-for-performance model from a flat rate.
Analysts expected 47 cents per share on revenue of $46 million, according to FactSet.
For the third quarter, the company expects revenue of $45 million to $46.3 million, compared with analysts' $46.5 million estimate. For the full year, OpenTable expects sales of $186.2 million to $190.1 million, in line with analysts' $188 million view.
The shares jumped $5.72, or 9 percent, after the acquisition announcement to close regular trading at $69.40. After the company released financial results and forecasts, the shares were down $5, or 7.2 percent, to $64.40 in late trading.
