OpenTable Shares Down 9% On Weak Outlook, But Q4 Results Top View

(RTTNews) - Shares of OpenTable, Inc. (OPEN) plunged nine percent in extended trading on Thursday after the restaurant reservation solutions provider released earning guidance for the first quarter and full-year 2014, both well below Street view.

However, the company reported a profit for the fourth quarter that grew from last year, reflecting double-digit revenue growth amid improvement in seated diners. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

Separately, the company said it acquired Ness Computing, Inc., a provider of mobile personalized restaurant recommendations, for about $17.2 million in cash, or $11.3 million net of estimated Ness cash. The acquisition will be recorded in the first quarter 2014.

"With Q4 2013 North America seated diner growth rates accelerating for the fourth sequential quarter, it's gratifying to see early returns on the investments we made in 2013," CFO Duncan Robertson said in a statement.

The San Francisco, California-based online restaurant reservations provider reported net income of $10.31 million or $0.43 per share for the fourth quarter, higher than $7.46 million or $0.32 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $14.26 million or $0.59 per share, compared to $10.68 million or $0.46 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 22 percent to $52.29 million from $42.97 million in the same quarter last year, and topped sixteen Wall Street analysts consensus estimate if $51.52 million by a whisker.

Total North America revenues for the quarter grew 22 percent to $44.68 million, and total international revenues also increased 21 percent to $7.61 million from the year-ago quarter.

Reservation revenues grew 33 percent to $32.5 million, and subscription revenues increased 12 percent to $16.3 million, while other revenues declined 12 percent to $3.5 million from the prior-year quarter.

Installed restaurant base at the end of the fourth quarter totaled 31,553, up from 27,517 at the end of the year-ago quarter. Seated diners for the quarter grew 34 percent to 44.01 million from 32.83 million last year.

For fiscal 2013, the company reported net income of $33.39 million or $1.39 per share, higher than $23.97 million or $1.03 per share in the prior year. Excluding items, adjusted net income for the year was $48.95 million or $2.04 per share, compared to $39.25 million or $1.69 per share in the year ago. Revenues for the full year increased 18 percent to $190.05 million from the previous year.

Analysts were looking for full-year 2013 earnings of $1.97 per share on revenues of $189.26 million.

Looking ahead to the first quarter, the company expects adjusted earnings in a range of $0.39 to $0.43 per share, on projected revenues between $53.3 million and $54.9 million. Analysts currently expect the company to report first-quarter earnings of $0.54 per share on quarterly revenues of $54.32 million.

For the fiscal 2014, the company now anticipates adjusted earnings in the range of $1.71 to $1.92 per share, on projected revenues between $221.0 million and $229.0 million. Street is currently looking for full-year 2014 earnings of $2.21 per share on annual revenues of $222.98 million.

"As we look to the year ahead, we believe the convenience and benefits that our diners and restaurant customers enjoy today are just the beginning of the value we can deliver as a company focused more broadly on the experience of dining out," CEO Matt Roberts stated.

OPEN closed Thursday's regular trading session at $75.41, up $2.20 or 3.01% on a volume of 1.68 million shares. However, the stock plunged $6.41 or 8.50% in after-hours trading.