OpenTable (OPEN) reported last evening, and it appears to be the latest stock (in a now crowded line) to enjoy a "Riverbed day" - it is opening in the +15% range, and appears to be the new Netflix (NFLX). So to answer my question from last month [Sep 16, 2010: Does One Dare Short OpenTable?] - the answer is "at your own peril".
- OpenTable Inc (OPEN) the restaurant reservation platform, reported a higher third-quarter profit that topped Wall Street estimates as more restaurants used its services. The San Francisco-based company reported a net profit of $3.8 million, or 16 cents a share, compared with $896,000, or 4 cents a share, a year ago. Excluding items, the company earned 23 cents a share.
- Revenue rose 44 percent to $24.5 million.
- Analysts had expected a profit of 15 cents a share, excluding exceptionals, on revenue of $23.2 million, according to Thomson Reuters I/B/E/S.
- The company's installed restaurant base as of Sept. 30 was up 31 percent at 15,246, and seated diners jumped 54 percent to 15.9 million.
- The company generates substantially all of its revenue from its restaurant customers. OpenTable's revenue includes monthly subscription fees and a fee for each restaurant guest seated through online reservations.
- OpenTable has more than doubled in value this year.
About the author:
My name is Ben C. and I am 2nd year MBA candidate at the Anderson School of Business at the University of California- Los Angeles. I have a BS in Economics from the Wharton School of Business at the University of Pennsylvania. Before coming to Anderson I worked as a generalist equity research analyst for Right Wall Capital, a long-short equity hedge fund located in New York City. Prior to working at Right Wall I worked as an analyst at Blue Ram Capital, another long-short equity hedge fund located in Rye Brook, NY. This past summer, I worked for West Coast Asset Management as a research analyst. West Coast, which was co-founded by Kinko’s founder Paul Orfalea, is run by well-known value investors Lance Helfert and Atticus Lowe.