OpenTable Has An Impressive History, But Is Overpriced
OpenTable Has An Impressive History, But Is Overpriced
Jun. 23, 2014, 1:16 PM
- Sources tell dealReporter OpenTable (OPEN +0.1%) talked with bidders other than Priceline (PCLN -0.1%) before accepting the online travel giant's $2.6B bid.
- Though a higher offer is seen as unlikely, one source thinks Yahoo (set to receive an Alibaba IPO windfall) could make a bid. OpenTable is currently 1.9% above Priceline's $103/share offer price.
- Yelp (YELP +3.6%), which blasted off after Priceline/OpenTable was announced, is rallying again. Volatile restaurant deals microcap LiveDeal (LIVE +9.3%) is also up strongly.
- Previous: Street commentary on Priceline/OpenTable
Jun. 13, 2014, 12:46 PM
Jun. 13, 2014, 9:18 AM
- YELP +9.4% premarket, Groupon (GRPN) +7.1%, Pandora (P) +3.5%, Angie's List (ANGI) +4.7%, TripAdvisor (TRIP) +3%, and Zynga (ZNGA) +2.3% after Priceline announces it's buying OpenTable for $2.6B (a 46% premium to yesterday's close).
- OpenTable (OPEN), meanwhile, is up to $104.18 - $1.18 above Priceline's acquisition price - as investors bet a higher offer (perhaps from Google, eBay, or Amazon?) will arrive.
- The deal is the largest acquisition of a public U.S. Internet company in recent history.
Jun. 13, 2014, 9:11 AM
Jun. 13, 2014, 8:07 AM
- The all-cash deal valuing OPEN at $2.6B is expected to close in Q3. The price is a 46% premium to last night's close.
- “The kind of work that we do day-to-day is very similar,” says Priceline (PCLN) CEO Darren Huston. “It’s just a different marketplace.”
- A conference call to discuss is set for 8:30 ET.
Apr. 3, 2014, 9:36 AM
- OpenTable (OPEN +3.2%) has been upgraded to Buy by Citi.
- Level 3 (LVLT -1.3%) has been cut to Hold by Gabelli.
- Altera (ALTR +1.2%) and Xilinx (XLNX +0.8%) have been started at Outperform by FBR. Separately, Piper has assumed coverage of Altera at Overweight, and Xilinx at Neutral.
- Telus (TU -1.2%) has been cut to Neutral by Macquarie. The carrier recently announced a CEO change.
Feb. 12, 2014, 4:05 PM
- Yahoo (YHOO -1%) has followed up on its Yelp search content deal by more deeply integrating OpenTable's (OPEN +1.9%) content and reservation options into its search results.
- Sources tell Kara Swisher the move is part of a local content redesign (has strong mobile tie-ins) for Yahoo search, as well as the company's broader efforts (previous) to invest in search tech and thereby reverse long-term share losses to Google.
- Bing, whose search engine powers Yahoo's results (Yahoo maintains flexibility in how results are displayed/augmented), has already struck content integration deals with a list of partners that includes Yelp, OpenTable, Facebook, and Twitter. On a global level, the efforts have only had a modest impact on Bing's search share.
Feb. 6, 2014, 6:12 PM
- In tandem with its Q4 report, OpenTable (OPEN) has announced it's acquiring Ness Computing, developer of an iOS app that offers personalized restaurant recommendations, for $17.2M ($11.3M net of estimated cash on hand).
- OpenTable suggests it will use Ness' team and technology to improve the restaurant discovery/recommendation features of its own apps; Ness' app will be discontinued. The deal comes a year after OpenTable acquired Foodspotting, maker of a well-used app for finding and sharing restaurant dishes.
- Shares have added to their AH losses, as OpenTable's soft EPS guidance (the result of aggressive 2014 investment plans) overshadows a Q4 beat. The company's seated diners rose 34% Y/Y in Q4 to 44M, and its installed restaurant base 15% to 31.5K.
Feb. 6, 2014, 5:12 PM
- OpenTable (OPEN) expects Q1 revenue of $53.3M-$54.9M and EPS of $0.39-$0.43 vs. a consensus of $54.3M and $0.54. Full-year guidance is for revenue of $221M-$229M and EPS of $1.71-$1.92 vs. a consensus of $223M and $2.21. Shares -1.9% AH. (Q4 results, PR)
- NCR expects 12%-14% 2014 revenue growth and EPS of $3-$3.10. The consensus, which might not fully take into account the recent Digital Insight and Alaric Systems acquisitions, is for 7.5% revenue growth and EPS of $3.10. Shares -6% AH. (Q4 results, PR)
- ON Semi (ONNN) expects Q1 revenue of $695M-$725M, above a $675.5M consensus. Shares +4% AH. (Q4 results, PR)
- Audience (ADNC) expects Q1 revenue of $33M-$36M and EPS of -$0.17 to -$0.21 vs. a consensus of $33.5M and -$0.09. Shares unchanged for now. (Q4 results, PR)
Feb. 4, 2014, 11:29 AM
- Citi's Mark May has upgraded OpenTable (OPEN +2.9%) to Neutral ahead of the restaurant reservation platform's Thursday Q4 report, and raised hit PT to $74 from $68.
- May thinks OpenTable's results will be at least in-line, is upbeat about the company's (mobile-focused) product cycle, and thinks there's less near-term risk of multiple compression.
- Shares have gradually trended lower since soaring to new highs in November, following OpenTable's market-pleasing Q3 report.
Dec. 13, 2013, 11:41 AM
- Apple (AAPL) has filed a patent application for an advanced restaurant reservation/ordering system. The systems would be aware of how much time a customer has spent at a table, would alert waiting customers when a table is ready, and would provide menu recommendations based on customer preferences.
- OpenTable (OPEN -4.1%) investors appear nervous about the patent application. However, taking share from OpenTable in the face of the restaurant reservation leader's huge network effect would be an uphill battle, especially if (as one would expect) Apple's offering is only available on mobile devices to iOS users.
- OpenTable's services have been integrated with Siri for more than a year.
Dec. 2, 2013, 9:49 AM
- Groupon (GRPN -5.4%), OpenTable (OPEN -5%), and Trulia (TRLA -5.4%) have been cut to Neutral by Goldman.
- Sprint (S -2.3%) has been cut to Neutral by Macquarie.
- Rackspace (RAX +3.4%) has been upgraded to Outperform by Raymond James.
- Avago (AVGO +2.7%) has been upgraded to Buy by DA Davidson.
- Marketo (MKTO +7.3%) has been added to Goldman's Conviction Buy list.
- Ruckus (RKUS +3.1%) has been upgraded to Buy by Goldman.
- Palo Alto Networks (PANW -3.2%) has been cut to Outperform from Strong Buy by Raymond James.
- American Superconductor (AMSC -2.5%) has been cut to Neutral by Ascendiant Capital.
- Fairchild (FCS -4.2%) has been cut to Market Perform by Raymond James.
- Tableau (DATA -1.8%) has been started at Sector Perform by RBC.
Nov. 6, 2013, 10:13 AM
- 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.
- Q3 results, PR, CC transcript
Nov. 6, 2013, 9:15 AM
- Top 10 Gainers: MSPD +69%. MCHX +22%. REGI +14%. BCOR +12%. OXBT +10%. AXAS +10%. MYGN +9%. YRCW +7%. VRNG +7%. ANV +7%. AU +6%. ABIO +6%. Z +6%. OPEN +5%. RMTI +5%. NQ +5%. ECOM +5%.
- Top 10 Losers: STP -41%. CRIS -18%. TSLA -13%. MELI -11%. TNGO -10%. SZYM -10%. NAVB -7%. CYTX -7%. ANF -7%. CTRP -6%.
Nov. 5, 2013, 5:11 PM
- OpenTable (OPEN): Q3 EPS of $0.50 beats by $0.08.
- Revenue of $46.7M (+18% Y/Y) beats by $0.65M. Shares +3.8% AH. (PR)
Oct. 4, 2013, 2:54 PM
- Piper's Michael Olson, who upgraded OpenTable (OPEN +1.2%) to Overweight this morning, thinks the restaurant reservation platform's growth strategy is "shifting toward a renewed focus on consumer marketing and mobile growth," and is a fan of the move.
- Olson sees OpenTable's efforts, which include the hiring of new marketing personnel and are expected to feature a pickup in mobile ad spend, leading to "an acceleration in OpenTable adoption during 2014-15." That, in turn, is expected to yield "an inflection point similar to what occurred for online travel during the early 2000s."
- His PT is now at $80, or a full 35x a 2014 EPS estimate of $2.28 (consensus is at $2.21).
- Shares now +44% YTD.
OpenTable, Inc. provides solutions that form an online network connecting reservation-taking restaurants & people who dine at those restaurants. Its solutions are Electronic Reservation Book for restaurant customers and reservation website for diners.
Industry: Business Services
Country: United States
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