UPDATE 2-OpenTable's results beat estimates; bets on smartphones

Thu Feb 7, 2013 7:01pm EST

* Fourth-quarter adjusted EPS $0.46 vs est $0.43

* Revenue up 16 pct at $43 mln vs est $42.5 mln

* Shares up 1 pct in after-market trading

By Chandni Doulatramani

Feb 7 (Reuters) - U.S. online restaurant reservation service provider OpenTable Inc reported quarterly results that beat analysts' estimates, helped by an increase in the number of seated diners, and the company expects mobile devices to drive more revenue.

OpenTable, which now gets a third of its seated diners from mobile bookings, expects more references from smartphones.

"There's a major, major shift to mobile taking place, and we would expect that to continue," a company executive said on a conference call with analysts.

The number of seated diners rose 22 percent to 32.8 million in the fourth quarter from a year earlier.

PAA Research analyst Bradley Safalow said growth in seated diners using mobile is still not enough.

The average revenue per seated diner has been flat year-over-year for a couple of quarters as it was likely that diners were booking seats using websites of restaurants rather than using OpenTable's website or app, he said.

If a diner makes a reservation at a restaurant through the OpenTable website or its app, the restaurant gets charged $1 per diner. If a diner makes a reservation on the restaurant's website and is directed to the OpenTable system, the restaurant is charged only 25 cents per diner.

FOURTH-QUARTER BEATS

Net income rose 7 percent to $7.5 million, or 32 cents per share, in the fourth quarter from a year earlier.

Excluding items, the company earned 46 cents per share, 3 cents above analysts' average estimates.

Revenue at the company, which helps users reserve tables at restaurants through its website and mobile apps, increased 16 percent to $43 million, slightly above the average analyst estimate of $42.5 million.

The revenue includes monthly subscription fees and a fee for each restaurant guest seated through online reservation. The company's revenue has now beaten analysts' estimates for three consecutive quarters.

Reservation revenue increased 21 percent to $24.5 million, while subscription revenue climbed 10 percent to $14.5 million.

The company said in November it plans to increase its focus on mobile devices and expects the integration of its app within Siri -- the voice-control personal assistant in Apple Inc's iPhone -- to help boost mobile reservations.

OpenTable expects first-quarter adjusted earnings in the range of 39 cents to 44 cents per share on revenue of $44.7 million to $46.1 million.

Analysts were expecting adjusted earnings of 46 cents per share on revenue of $45.8 million for the first quarter, according to Thomson Reuters I/B/E/S.

OpenTable's shares, which have risen about 25 percent in the last six months, were up 1 percent at $50.00 in extended trading. They closed at $49.31 on the Nasdaq on Thursday.