OpenTable, Inc. (OPEN) Q1 2014 Earnings Call Corrected Transcript: 01-May-2014
Matthew Roberts - President, Chief Executive Officer & Director, OpenTable, Inc.
I. Duncan Robertson - Chief Financial Officer, OpenTable, Inc.
Dean J. Prissman - Analyst, Credit Suisse Securities (USA) LLC (Broker)
Chris Merwin - Analyst, Barclays Capital, Inc.
Blake T. Harper - Analyst, Wunderlich Securities, Inc.
Jason S. Helfstein - Analyst, Oppenheimer & Co., Inc. (Broker)
Kaizad K. Gotla - Analyst, JPMorgan Securities LLC
Andrew D. Connor - Analyst, Piper Jaffray, Inc.
James M. Cakmak - Analyst, Telsey Advisory Group LLC
Paul Judd Bieber - Analyst, Bank of America / Merrill Lynch
MANAGEMENT DISCUSSION SECTION
Operator: Good afternoon, everyone, and welcome to the OpenTable First Quarter Earnings Results Conference Call. This call is being recorded.
With us today from the company is President and Chief Executive Officer, Matt Roberts; Chief Financial Officer, Duncan Robertson; and the Senior Director of Financial Planning and Analysis, [ph] Dan Gibbons (00:20).
At this time, I would like to turn the call over to [ph] Dan (00:24). Please go ahead, sir.
Good afternoon. Thank you and welcome to the OpenTable earnings conference call. Joining me today to talk about our first quarter results are Matt Roberts, our President and CEO; and Duncan Robertson, our CFO.
Before we begin, I would like to take this opportunity to remind you that during the course of this conference call, management may make forward-looking statements, including guidance regarding our expectations of future financial performance, which are subject to various risks and uncertainties that could cause actual results to differ materially from our current expectation. A discussion of such risks and uncertainties is contained in our filings with the Securities and Exchange Commission, and we refer you to these filings.
Also, I would like to remind you that during the course of this conference call, we may discuss some non-GAAP measures in talking about the company's performance. Reconciliations to the most directly comparable GAAP financial measures are provided in the tables in the press release. This conference call is also being broadcast on the Internet and is available through the Investor Relations section of the OpenTable website.
And now, I'll turn it over to Matt.
Matthew Roberts, President, Chief Executive Officer & Director
Great. Thank you, [ph] Dan (1:36), and welcome to our conference call. This afternoon, I'll provide you with a high level overview of Q1 performance and then I'll turn it over to Duncan to walk you through the detailed financials.
OpenTable had a strong first quarter. Revenue for the quarter totaled $53.8 million, an 18% increase over last year, and our adjusted EBITDA profit margin was 37% on a consolidated basis and 45% in our North America business.
Now let's take a look at our key metrics by geography. In North America, which includes the U.S., Canada, and Mexico, seated diners grew to $42.5 million in the first quarter, a 24% increase over last year. Also worth noting, approximately 42% of our North America seated diners originated on a mobile device which is a new all time high for us.
Let me add some additional context to our North America seated diner growth. Like many other businesses across the Midwest and East Coast, our restaurant customers were hit by winter weather conditions. As a result, overall North America industry diner accounts were down 2% year-over-year.
Turning to our installed base of restaurants in North America, we exited the quarter with 23,862 restaurants, representing a 19% year-over-year increase. This total includes 19,386 restaurants using our ERB or Guest Center solutions. 2509 restaurants using our Connect product, which is designed primarily for walk-in restaurants that accept reservations and 1,967 restaurants using Rezbook technology.
In our International segment, which includes the UK, Germany and Japan, seated diners grew to 4.3 million in the first quarter, a 38% increase over last year. Looking at our installed base of International restaurants, we exited the first quarter with 7,721 installed restaurants . This total includes 3,996 restaurants using our ERB or Guest Center solutions and 3,725 restaurants using our Connect product.