After digesting its 2013 gains over the last two months, OpenTable (OPEN +11.9%) is breaking out to new highs in response to its Q3 beat and a major pickup in restaurant adds.
After growing its installed base by just 317 restaurants in Q2 and 440 in Q1, OpenTable managed to add 2,690 restaurants in Q3 thanks to more aggressive marketing (Piper called it last month), raising the size of its total base to 30,964 (+17% Y/Y).
That contributed to a 30% Y/Y increase in seated diners (up from 26% in Q2) to 38.5M, a 27% increase in reservation revenue (+24% in Q2) to $27.8M, and an 11% increase in subscription revenue (+8% in Q2) to $15.8M.
In spite of lower penetration, OpenTable's international ops continue to underperform. North American revenue +18% Y/Y to $40.6M, international revenue +16% to $6.1M. North American installed restaurants +23% to 23.3K, international installed restaurants +4% to 7.7K.
Due in part to marketing spend, costs/expenses rose 19% Y/Y, up from 6% growth in Q2 and slightly outpacing rev. growth of 18%. 41% of seated diners booked via mobile devices, up from 38% in Q2.
Q4 guidance is for revenue of $50.7M-$52.1M and EPS of $0.49-$0.53, in-line with a consensus of $50.9M and $0.52. Craig-Hallum has upgraded shares to Hold.