Shares of OpenTable, Inc. (OPEN) plunged 15 percent in after-hours trading on Tuesday after the provider of restaurant reservation solutions provided revenue guidance for the second quarter and full-year 2012 below Street view.
The company also reported a profit for the first quarter that increased from last year, reflecting double-digit revenue growth, partially offset by higher costs and expenses. Adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates.
"During the first quarter the business continued to deliver solid operating metrics, adjusted EBITDA margins and cash flows even as we invest for the future," CFO Duncan Robertson said in a statement.
The San Francisco, California-based online restaurant reservation service company reported net income of $4.82 million or $0.21 per share for the first quarter, higher than $4.19 million or $0.17 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter increased to $9.17 million or $0.40 per share from $6.77 million or $0.28 per share in the year-ago quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the first quarter. Analysts' estimates typically excludes special items.
Net revenues for the quarter grew 17 percent to $39.37 million from $33.71 million in the same quarter last year, but missed twelve Wall Street analysts' consensus estimate of $39.56 million by a whisker.
Subscription revenues increased 13 percent to $13.5 million, and reservation revenues grew 27 percent to $22.3 million, while installation and other revenues were down 14 percent to $3.5 million.
The number of diners seated by the company's system grew 34 percent from the year-ago period to 30.0 million, and the company's installed restaurant base increased 22 percent to 25,844 as of March 31, 2012.
Looking ahead to the second quarter, the company expects adjusted earnings in a range of $0.36 to $0.39 per share on projected revenues between $38.5 million and $39.8 million. Analysts currently expect earnings of $0.37 per share on quarterly revenues of $41.31 million.
For fiscal 2012, the company anticipates adjusted earnings in the range of $1.49 to $1.64 per share on expected revenues between $158 million and $164 million. Street is currently looking for full-year 2012 earnings of $1.53 per share on annual revenues of $168.22 million.
OPEN closed Tuesday's regular trading at $43.68, down $1.04 or 2.33% on a volume of 2.67 million shares. The stock plunged a further $6.68 or 15.29% in after-hours trading.
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