In less than six months, online restaurant reservation site OpenTable has seated an additional one million diners via its mobile apps. In late October, OpenTable had reached the milestone of seating one million diners via its mobile offerings, a year after its iPhone app launched. It took only four and a half months to seat another million diners. Additionally, the site says that based on an estimation of a $50 average check per diner, OpenTable claims that diners using its mobile applications have generated more than $100 million in revenue for its restaurant partners.
OpenTable allows diners to find and book reservations at more than 11,000 different restaurants in multiple countries via mobile applications for the iPhone, Palm, Blackberry and Android. Other smartphone users can book reservations through OpenTable’s mobile-optimized Web site.
The company also reported strong earnings this afternoon, with Q4 2009 revenue coming in at $19.2 million, representing a a 32% increase over Q4 2008 revenue, which was $14.5 million. OpenTable’s total revenues for 2009 were $68.6 million, up 23% over 2008 revenues of $55.8 million. In 2009, OpenTable increased its number of participating restaurants in North America by 17%, with a total of 10,850 partners by the end of 2009. The number of international partners also increased, rising by 44% to 1501 participating establishments. Total number of diners in North American were 11.8 million, a 39% increase from Q4 2008.
Last year, OpenTable filed for a healthy IPO, despite recessionary conditions in the markets. OpenTable is a solid internet company that has a viable business model. On the restaurant side, OpenTable delivers reservation management software to establishments through a Web browser and collects monthly subscription revenues, similar in theory to the offerings that software companies like Salesforce sell to clients.
OpenTable provides a restaurant management system for restaurateurs called the ERB (Electronic Reservation Book). In addition, the company operates OpenTable.com, a website for making restaurant reservations online. The website initially launched in the San Francisco area in March of 1999. Since then OpenTable has grown to have a customer base of over 25,000 restaurants in the U.S., Canada, Germany, Japan, Mexico and the UK. More than 325 million diners have been seated via OpenTable.
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