ValuentumAd

Official PayPal Seal

Open Table Reveals Strong Growth in its Second Quarter, Shares Slightly Expensive

publication date: Aug 3, 2011
 | 
author/source: Valuentum Analysts

Open Table (OPEN), which provides online restaurant reservation services, reported solid second-quarter results Tuesday that showed a 50%-plus increase in revenue, installed restaurants and seated diners from the same period a year ago. North American results were solid, with adjusted EBITDA jumping nearly 70% from last year’s quarter. The firm’s international results also revealed improvement. Open Table’s installed restaurant and seated diners base outside of North America more than tripled, and the company reduced its EBITDA loss for this segment to $0.5 million from $1.2 million in the same period a year ago. Subscription, reservation, and installation (other) revenues jumped 20%, 70%, and 172% in the quarter. Consensus had been looking for better performance from subscription and international expansion, but we can’t be too pessimistic on 50%-plus firm-wide top-line growth. The firm also announced that it has filled a gaping hole in its executive suite, picking up Duncan Robertson as CFO (effective August 23). In all, we were impressed with Open Table’s performance in its second quarter, but we still think the firm is a bit expensive based on our DCF process, and we remain on the sidelines at this time.


--------------------------------------------------
The High Yield Dividend Newsletter, Best Ideas Newsletter, Dividend Growth Newsletter, Nelson Exclusive publication, and any reports and content found on this website are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum is not responsible for any errors or omissions or for results obtained from the use of its newsletters, reports, commentary, or publications and accepts no liability for how readers may choose to utilize the content. Valuentum is not a money manager, is not a registered investment advisor, and does not offer brokerage or investment banking services. The sources of the data used on this website and reports are believed by Valuentum to be reliable, but the data’s accuracy, completeness or interpretation cannot be guaranteed. Valuentum, its employees, independent contractors and affiliates may have long, short or derivative positions in the securities mentioned on this website. The High Yield Dividend Newsletter portfolio, Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio are not real money portfolios. Performance, including that in the Nelson Exclusive publication, is hypothetical and does not represent actual trading. Actual results may differ from simulated information, results, or performance being presented. For more information about Valuentum and the products and services it offers, please contact us at info@valuentum.com.