OpenTable, Inc. Announces Third Quarter 2009 Financial Results




                   Increases Revenue 20% to $17.0 Million

    Grows Installed Restaurants by 20% and Seated Diners by 23% over Q3
                                    2008

                Achieves EPS of $0.04 and Non-GAAP EPS of $0.07

SAN FRANCISCO, Oct. 29, 2009 (GLOBE NEWSWIRE) -- OpenTable, Inc. (Nasdaq:OPEN) (www.opentable.com), a leading provider of free, real-time online restaurant reservations for diners and reservation and guest management solutions for restaurants, today reported its financial results for the third quarter ended September 30, 2009.

OpenTable reported consolidated net revenues for Q3 2009 of $17.0 million, a 20% increase over Q3 2008. Consolidated net income for Q3 2009 was $0.9 million, or $0.04 per diluted share. Non-GAAP consolidated net income for Q3 2009, which excludes stock-based compensation expense, was $1.5 million, or $0.07 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



 * North America installed restaurant base at September 30, 2009
   totaled 10,338, an 18% increase over September 30, 2008.
 * North America seated diners totaled 10.1 million, a 22% increase
   over Q3 2008.
 * North America revenues totaled $16.1 million, a 19% increase over Q3
   2008.
 * North America non-GAAP adjusted EBITDA (earnings before interest,
   taxes, depreciation, amortization, and stock-based compensation)
   totaled $5.7 million, or 35% of North America revenues, a 37%
   increase over Q3 2008.

International Results



 * International installed restaurant base at September 30, 2009
   totaled 1,337, a 45% increase over September 30, 2008.
 * International seated diners totaled 0.2 million, an 89% increase
   over Q3 2008.
 * International revenues totaled $1 million, a 32% increase over Q3
   2008.
 * International non-GAAP adjusted EBITDA totaled a loss of $1.4
   million compared to adjusted EBITDA loss of $2.1 million in Q3 2008.

"Our strong performance this quarter was driven by substantial increases in both our base of installed restaurants and our total number of seated diners," said Jeff Jordan, CEO of OpenTable. "Despite continued challenges presented by the economy, we are really pleased to see that the business continued to demonstrate good underlying momentum throughout the third quarter -- both in North America and internationally."

Q3 2009 Consolidated Financial and Operating Summary



 * OpenTable's total revenues were $17.0 million in Q3 2009, up 20%
   over Q3 2008 revenues of $14.2 million.
     -- Subscription revenues were $9.1 million in Q3 2009, up 16% over
        Q3 2008 revenues of $7.9 million. Subscription revenues
        increased as a result of the increase in installed
        restaurants.
     -- Reservation revenues were $7.1 million in Q3 2009, up 25% over
        Q3 2008 revenues of $5.7 million. Reservation revenues
        increased as a result of the increase in seated diners.
     -- Installation and other revenues were $0.8 million in Q3 2009,
        up 26% over Q3 2008 revenues of $0.7 million.

 * Total operating expenses were $14.7 million in Q3 2009, up 3% over
   Q3 2008 operating expenses of $14.3 million. The increase was
   primarily driven by a 6% increase in headcount and higher legal
   costs partially offset by a decrease in stock-based compensation.

 * Operating income was $2.4 million in Q3 2009 compared to a loss of
   $0.1 million in Q3 2008. Non-GAAP consolidated operating income,
   excluding stock-based compensation expense, was $3.0 million in Q3
   2009 compared to $0.9 million in Q3 2008.

 * The Company's year to date effective tax rate through Q3 2009 was
   approximately 60%. The effective tax rate is high because
   stock-based compensation is non-deductible for tax purposes.

 * Consolidated net income was $0.9 million, or $0.04 per diluted
   share, in Q3 2009 compared to a loss of $0.3 million, or a loss of
   $0.03 per diluted share, in Q3 2008. Non-GAAP consolidated net
   income, which excludes stock-based compensation expense, was $1.5
   million, or $0.07 per diluted share, in Q3 2009 compared to $0.7
   million, or $0.03 per diluted share, in Q3 2008.

 * As of September 30, 2009, OpenTable had cash and cash equivalents
   and short-term investments of $67.4 million.

"This quarter, our North America business again demonstrated the substantial operating leverage in our unique and predictable business model," said Matt Roberts, CFO of OpenTable. "Compared to last year, we delivered solid revenue growth this quarter without adding significant operating expenses."

Quarterly Conference Call

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET and will be available through the fourth quarter at http://investors.opentable.com/events.cfm. This call may contain forward-looking statements and other material information regarding the Company's financial and operating results.

About Non-GAAP Financial Information

The accompanying press release dated October 29, 2009, contains certain non-GAAP financial measures. Tables are provided in the press release that reconcile the non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP consolidated net income and the related per diluted share amounts, non-GAAP consolidated operating income, and non-GAAP adjusted EBITDA. When used in connection with historical results, the non-GAAP financial measure adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and stock-based compensation.

To supplement the Company's consolidated financial statements presented on a GAAP basis, management believes that these non-GAAP measures provide useful information about the Company's core operating results and thus are appropriate to enhance the overall understanding of the Company's past financial performance and its prospects for the future. Management believes it is useful to exclude stock-based compensation and non-cash charges because such items do not reflect the underlying performance of the Company's business operations. These adjustments to the Company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company's underlying operational results and trends and performance. Management uses these non-GAAP measures to evaluate the Company's financial results. The presentation of additional information is not meant to be considered in isolation or as a substitute for or superior to financial results determined in accordance with GAAP.

Background Information

The Company reports consolidated operations in U.S. dollars and operates in two geographic segments: North America and International. The North America segment is comprised of all operations in the United States, Canada and Mexico, and the International segment is comprised of all non-North America operations, which includes operations in Europe and Asia. The Company substantially generates all of its revenues from its restaurant customers; it does not charge any fees to diners. The Company's revenues include installation fees for the Electronic Reservation Book (including training), monthly subscription fees and a fee for each restaurant guest seated through online reservations.

Forward-Looking Statements

This press release and its attachments contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding the Company's strategic and operational plans. The Company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may contribute to such differences include, among others, the impact of the current economic climate on the Company's business; the Company's ability to maintain an adequate rate of growth; the Company's ability to effectively manage its growth; the Company's ability to attract new restaurant customers; the Company's ability to increase the number of visitors to its website and convert those visitors into diners; the Company's ability to retain existing restaurant customers and diners or encourage repeat reservations; the Company's ability to successfully enter new markets and manage its international expansion; the Company's ability to successfully manage any acquisitions of businesses, solutions or technologies, including the GuestBridge acquisition and any future acquisitions; interruptions in service and any related impact on the Company's reputation; and costs associated with defending intellectual property infringement and other claims. More information about potential factors that could affect the Company's business and financial results is contained in the Prospectus related to the secondary offering of the Company's common stock filed pursuant to Rule 424(b) under the Securities Act with the SEC on September 23, 2009. The Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

About OpenTable, Inc.

OpenTable is a leading provider of free, real-time online restaurant reservations for diners and reservation and guest management solutions for restaurants. The OpenTable network delivers the convenience of online restaurant reservations to diners and the operational benefits of a computerized reservation book to restaurants. OpenTable has more than 11,000 restaurant customers, and since its inception in 1998, has seated more than 120 million diners around the world. The Company is headquartered in San Francisco, California, and the OpenTable service is available throughout the United States, as well as in Canada, Germany, Japan, Mexico, and the United Kingdom.

The OpenTable, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6474

OpenTable, OpenTable.com, OpenTable logos and other service names are the trademarks of OpenTable, Inc.



                            OPENTABLE, INC.
                       UNAUDITED BALANCE SHEETS


                                            September 30, December 31,
                                            ------------  ------------
                                                2009          2008
                                            ------------  ------------
 ASSETS

 CURRENT ASSETS:
   Cash and cash equivalents                $ 18,117,000  $  5,528,000
   Short-term investments                     49,330,000    17,259,000
   Accounts receivable, net                    6,689,000     6,331,000
   Prepaid expenses and other
    current assets                             2,089,000       942,000
   Deferred tax asset                          4,828,000     4,828,000
   Restricted cash                               172,000       156,000
                                            ------------  ------------

            Total current assets              81,225,000    35,044,000

 Property and equipment, net                  11,264,000    11,125,000
 Deferred tax asset                            1,375,000     3,343,000
 Other assets                                    188,000     1,371,000
                                            ------------  ------------

 TOTAL ASSETS                               $ 94,052,000  $ 50,883,000
                                            ============  ============


 LIABILITIES AND STOCKHOLDERS' EQUITY

 CURRENT LIABILITIES:
   Accounts payable and accrued expenses    $  7,611,000  $  7,855,000
   Accrued compensation                        3,094,000     2,772,000
   Deferred revenue                            1,474,000     1,210,000
   Dining rewards payable                     10,754,000     8,462,000
                                            ------------  ------------
            Total current liabilities         22,933,000    20,299,000

 DEFERRED REVENUE - Less current portion       3,638,000     3,900,000
                                            ------------  ------------

            Total liabilities                 26,571,000    24,199,000
                                            ------------  ------------


 STOCKHOLDERS' EQUITY:
   Preferred Stock                                    --    21,909,000
   Common Stock                                    2,000         1,000
   Additional paid-in capital                124,549,000    64,060,000
   Treasury stock                               (647,000)     (647,000)
   Accumulated other comprehensive loss          (34,000)     (296,000)
   Accumulated deficit                       (56,389,000)  (58,343,000)
                                            ------------  ------------

            Total stockholders' equity        67,481,000    26,684,000
                                            ------------  ------------

 TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY                      $ 94,052,000  $ 50,883,000
                                            ============  ============


                           OPENTABLE, INC.
                  UNAUDITED STATEMENTS OF OPERATIONS

                                      Three Months      Nine Months
                                         Ended             Ended
                                     September 30,      September 30,
                                    ----------------  ----------------
                                      2009     2008    2009      2008 
                                    -------  -------  -------  -------
                                             (In thousands,
                                         except per share amounts)

 REVENUES                           $17,042  $14,181  $49,427  $41,302

 COSTS AND EXPENSES:
  Operations and support (1)          5,077    4,580   15,195   12,925
  Sales and marketing (1)             3,845    3,755   11,652   11,065
  Technology (1)                      2,378    2,467    7,689    7,046
  General and administrative (1)      3,379    3,449   10,321   10,005
                                    -------  -------  -------  -------

     Total costs and expenses        14,679   14,251   44,857   41,041
                                    -------  -------  -------  -------

 Income (loss) from operations        2,363      (70)   4,570      261
 Other income, net                      111      117      256      440
                                    -------  -------  -------  -------

 Income before taxes                  2,474       47    4,826      701
 Income tax expense                   1,578      337    2,872      850
                                    -------  -------  -------  -------

 NET INCOME (LOSS)                  $   896  $  (290) $ 1,954  $  (149)
                                    =======  =======  =======  =======

  Net income (loss) per share:
   Basic                            $  0.04  $ (0.03) $  0.12  $ (0.01)
                                    =======  =======  =======  =======
   Diluted                          $  0.04  $ (0.03) $  0.09  $ (0.01)
                                    =======  =======  =======  =======

  Weighted average
   shares outstanding:
   Basic                             21,640   10,071   15,791    9,962
   Diluted                           23,713   10,071   22,360    9,962

 -----------------------------------
 (1) Stock-based compensation
     included in above line items:
   Operations and support           $    79  $    89  $   232  $   262
   Sales and marketing                  180      215      588      681
   Technology                            91      188      382      549
   General and administrative           297      492    1,128    1,623
                                    -------  -------  -------  -------
                                    $   647  $   984  $ 2,330  $ 3,115

 Other Operational Data:
  Installed restaurants
   (at period end):
    North America                    10,338    8,788   10,338    8,788
    International                     1,337      921    1,337      921
                                    -------  -------  -------  -------
    Total                            11,675    9,709   11,675    9,709

  Seated diners (in thousands):
    North America                    10,114    8,272   30,106   25,121
    International                       227      120      620      373
                                    -------  -------  -------  -------
    Total                            10,341    8,392   30,726   25,494

  Headcount (at period end):
    North America                       247      234      247      234
    International                        63       58       63       58
                                    -------  -------  -------  -------
    Total                               310      292      310      292

 Additional Financial Data:
  Revenues:
  North America
    Subscription                    $ 8,321  $ 7,227  $24,048  $20,468
    Reservation                       6,932    5,582   20,522   17,053
    Installation and other              797      622    2,205    1,733
                                    -------  -------  -------  -------
    Total North America Revenues    $16,050  $13,431  $46,775  $39,254
  International
    Subscription                    $   820  $   627  $ 2,182  $ 1,690
    Reservation                         143       87      386      282
    Installation and other               29       36       84       76
                                    -------  -------  -------  -------
    Total International Revenues        992      750    2,652    2,048
                                    -------  -------  -------  -------
  Total Revenues                    $17,042  $14,181  $49,427  $41,302

  Income (loss) from operations:
    North America                   $ 3,972  $ 2,187  $ 9,256  $ 6,767
    International                    (1,609)  (2,257)  (4,686)  (6,506)
                                    -------  -------  -------  -------
    Total                           $ 2,363  $   (70) $ 4,570  $   261

  Depreciation and amortization:
    North America                   $ 1,138  $ 1,060  $ 3,457  $ 2,896
    International                       124       92      339      252
                                    -------  -------  -------  -------
    Total                           $ 1,262  $ 1,152  $ 3,796  $ 3,148

  Stock-based compensation:
    North America                   $   559  $   892  $ 2,049  $ 2,799
    International                        88       92      281      316
                                    -------  -------  -------  -------
    Total                           $   647  $   984  $ 2,330  $ 3,115


                           OPENTABLE, INC.
         RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS


                                      Three Months       Nine Months
                                         Ended             Ended
                                      September 30,     September 30,
                                    ----------------  ----------------
                                      2009     2008    2009      2008
                                    -------  -------  -------  -------
                                            (In thousands,
                                        except per share amounts)

 Non-GAAP consolidated net
  income per share:
   GAAP net income (loss)
    "as reported"                   $   896  $  (290) $ 1,954  $  (149)
   Add back: stock-based
    compensation expense                647      984    2,330    3,115
                                    -------  -------  -------  -------

 NON-GAAP CONSOLIDATED
  NET INCOME                        $ 1,543  $   694  $ 4,284  $ 2,966
                                    =======  =======  =======  =======

 Non-GAAP diluted
  net income per share              $  0.07  $  0.03  $  0.19  $  0.14
                                    =======  =======  =======  =======

 Weighted average diluted
  shares outstanding                 23,713   20,886   22,360   20,791

 Non-GAAP consolidated
  operating income:
   GAAP income (loss) from
    operations "as reported"        $ 2,363  $   (70) $ 4,570  $   261
   Add back: stock-based
    compensation expense                647      984    2,330    3,115
                                    -------  -------  -------  -------

 NON-GAAP OPERATING INCOME          $ 3,010  $   914  $ 6,900  $ 3,376
                                    =======  =======  =======  =======

 North America Adjusted EBITDA:
 GAAP operating income
  "as reported"                     $ 3,972  $ 2,187  $ 9,256  $ 6,767

 Adjustments:
   Stock-based compensation expense     559      892    2,049    2,799
   Depreciation
    and amortization expense          1,138    1,060    3,457      316
                                    -------  -------  -------  -------
     North America Adjusted EBITDA  $ 5,669  $ 4,139  $14,762  $ 9,882

 International Adjusted EBITDA:
 GAAP operating loss "as reported"  $(1,609) $(2,257) $(4,686) $(6,506)

 Adjustments:
   Stock-based compensation expense      88       92      281      316
   Depreciation and
    amortization expense                124       92      339      252
                                    -------  -------  -------  -------

     International Adjusted EBITDA  $(1,397) $(2,073) $(4,066) $(5,938)


            

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