OpenTable (NASDAQ:OPEN) sells reservation-taking restaurants a service called Electronic Reservation Book (ERB) that allows customers to make online and mobile reservations. It charges these restaurants a one-time installation fee, a monthly subscription fee and a fee for each guest seated through online reservation. The company's initial public offering (IPO) of stock on 18 May 2009 is the first venture-backed IPO of the year.[1] It plans to sell 3.0 million shares at $12 to $14 each to raise between $36 and $42 million in capital.[2] Existing investors in the company include Benchmark Capital Partners (26.4%), Impact Venture Partners (16.2%), IAC/InterActiveCorp (10.9%) and Integral Capital Partners (7.5%).[3]
OpenTable Electronic Reservation Book (ERB) system connects reservation-taking restaurants and the people who dine at these restaurants.
There are approximately 30,000 reservation-taking
restaurants in North America that seat 600 million diners through reservations annually. According to OpenTable, its ERB service is used by 33.3% or 10,000 of these
restaurants spanning all 50 states,
Canada and
Mexico. The company also operates in Europe (
Germany,
England) and Asia (
Japan). In the first quarter of 2009, the company had 10,645 restaurants that used ERB, up 26.7% from 8,404 in the first quarter of 2008.
[4] It also seated 9.9 million diners in this quarter, up 17.9% from 7.8 million in the same quarter of the previous year. Since OpenTable was founded in 1998, it has seated approximately 100 million diners.
[4]
In 2008, OpenTable had revenues of $55.8 million, but made a net loss of $1.0 million.[5] Of these revenues, 54.2% came from subscription fees, 41.4% came from reservation fees and 4.4% came from one-time installation fees.[5] Similarly, 90.0% of its revenues came from North America, while 10.0% came from its international operations.[5] Although revenue increases were driven primarily by increases in installed restaurants and seated diners, the company attributed its net loss to increases in technology expenses (61%), operations and support expenses (41%), sales and marketing expenses (31%) and a decrease in other income (-51%). As of 31 March 2009, cash and cash equivalents at OpenTable amounted to $12.0 million or 22.0% of total assets.[5]
References
- ↑ OpenTable Defies Technology Turmoil in Plan for IPO, Bloomberg
- ↑ OpenTable sets terms for U.S. IPO, Reuters
- ↑ Principal and Selling Stockholders, 2009 OPEN S-1/A, Page 97
- ↑ 4.0 4.1 Additional Financial Data, 2009 OPEN S-1/A, Page 33
- ↑ 5.0 5.1 5.2 5.3 Consolidated Statement of Operations, 2009 OPEN S-1/A, Page 32
