OpenTable is among the first public companies with some quantifiable numbers on superstorm Sandy's impact on its business. Also, mobile, now one third of its business, is having significant long ter growth impact.
Online restaurant reservation service OpenTable Inc trimmed the upper end of its full-year revenue forecast, saying superstorm Sandy was likely to reduce fourth-quarter reservation revenue from North America.
Shares of the company fell as much as 5 percent in after-market trading on Thursday. They had closed at $47.36 on the Nasdaq.
The company, which helps users reserve tables at restaurants through its website and mobile apps, narrowed its full-year revenue forecast to between $160.2 million and $161.8 million from the previous range of $160 million to $164 million.
OpenTable’s revenue includes monthly subscription charges from restaurants and a fee for each guest seated through online reservation.
North American reservation revenue in the current quarter would be lower by about $500,000 due to the superstorm that interrupted operations at many of the company’s restaurant clients, it said.
The company however, raised the adjusted per-share earnings estimate for the full year to between $1.64 and $1.68 from $1.54 to $1.66. Third-quarter adjusted net income of 42 cents per share beat analysts’ average estimate of 36 cents per share.
Net income rose to $5.9 million, or 26 cents per share, from $4.1 million, or 17 cents per share, a year earlier.
OpenTable, founded in 1998 as a restaurant reservation service in San Francisco, said revenue rose 16 percent to $39.7 million. Analysts too expected $39.7 million, according to Thomson Reuters I/B/E/S.
Number of seated diners rose 26 percent during the quarter to 27.4 million.
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