OpenTable (OPEN) IPO Surges Higher

May 21, 2009 11:18 AM EDT

The 3 million share IPO for OpenTable (Nasdaq: OPEN) is open for trading. Shares are trading at $26.50 after pricing at $20 per share, well ahead of the expected $16-$18 range, which was recently raised from $12-$14.

Merrill Lynch, Allen & Company, Stifel Nicolaus and ThinkEquity LLC are underwriting the new offering.

There are expected to be 21,604,587 shares after the offering, suggesting a market capitalization of about $390 million if priced at the top end of the range ($18).

OpenTable provides solutions that form an online network connecting reservation-taking restaurants and people who dine at those restaurants. Solutions for restaurants include the company's Electronic Reservation Book, or ERB, which combines proprietary software and computer hardware that computerizes restaurant host-stand operations and replaces traditional pen-and-paper reservation books.

As of March 31, 2009, the OpenTable network included approximately 10,000 OpenTable restaurant customers spanning all 50 states as well as select markets outside of the United States.

For the twelve months ended December 31, 2007 and 2008, OpenTable's revenues were $41.1 million and $55.8 million, respectively. For the twelve months ended December 31, 2007 and 2008, subscription revenues accounted for 55% and 54% of total revenues, respectively, and reservation revenues accounted for 41% and 41% of total revenues, respectively. For the three months ended March 31, 2008 and 2009, subscription revenues accounted for 52% and 52% of total revenues, respectively, and reservation revenues accounted for 44% and 43% of total revenues, respectively.

The company showed EPS of $0.02 for the quarter ended March 31, 2009.

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Related Entities

• Stifel Nicolaus
• UBS
• Merrill Lynch
• ThinkEquity

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