AP News

OpenTable profit grows 28 pct as reservations rise

NEWS: OpenTable said Tuesday that its third-quarter profit rose 28 percent as people used its online service more to make restaurant reservations.

DETAILS: The number of restaurants using OpenTable's software rose 17 percent to nearly 31,000, while the number of people who ate at booked tables rose 30 percent to 38.5 million. OpenTable makes money from fees paid by restaurants that use its software and as people use its service to make reservations.

The company is trying to increase its mobile business. It said 41 percent of people who showed up for a reservation booked tables on their phones or tablets.

NUMBERS: Net income came to $7.6 million, or 32 cents per share, in the July-September quarter, up from $6 million, or 26 cents per share, in the same period last year. Stripping out costs related to acquisitions and paying employees in stock, earnings came to 50 cents per share.

Revenue rose 18 percent to $46.7 million.

Analysts polled by FactSet predicted earnings of 42 cents per share on revenue of $46 million.

FUTURE: For the current quarter, OpenTable expects earnings of 49 to 53 cents per share, excluding one-time items, on revenue of $50.7 million to $52.1 million. The forecast brackets Wall Street's average estimates.

STOCK: Up $2.45, or 3.5 percent, to $73.55 in after-hours trading. Shares closed at $71.10 Tuesday, up 46 percent in 2013.

Steve Ballmer, Power Forward
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