The 10-second takeaway
For the quarter ended March 31 (Q1), OpenTable met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Margins grew across the board.
OpenTable logged revenue of $45.5 million. The 14 analysts polled by S&P Capital IQ expected revenue of $45.6 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $39.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.45. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. Non-GAAP EPS of $0.45 for Q1 were 13% higher than the prior-year quarter's $0.40 per share. GAAP EPS of $0.30 for Q1 were 43% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.0%, 170 basis points better than the prior-year quarter. Operating margin was 21.8%, 300 basis points better than the prior-year quarter. Net margin was 15.7%, 350 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $46.2 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $188.4 million. The average EPS estimate is $1.94.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 226 members out of 439 rating the stock outperform, and 213 members rating it underperform. Among 124 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give OpenTable a green thumbs-up, and 64 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OpenTable is hold, with an average price target of $50.46.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends OpenTable. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.