CHICAGO, April 27, 2017 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading takeout marketplace, today announced financial results for the first quarter ended March 31, 2017. DAGs grew 21% year-over-year, and the Company posted quarterly revenues of $156.1 million, which is a 39% year-over-year increase from $112.2 million in the first quarter of 2016.
“More new diners tried Grubhub than ever before in the first quarter. We are seeing clear signs of success from a more diverse restaurant base, broader marketing reach, and continuous improvement of our product,” said Matt Maloney, Grubhub CEO. “We already had the most comprehensive takeout marketplace in the U.S., and delivery has enabled our restaurant network to grow significantly in both breadth and depth, making Grubhub the place to go for online takeout.”
First Quarter 2017 Highlights
The following results reflect the financial performance and key operating metrics of our business for the three months ended March 31, 2017, as compared to the same period in 2016.
First Quarter Financial Highlights
- Revenues: $156.1 million, a 39% year-over-year increase from $112.2 million in the first quarter of 2016.
- Net Income: $17.7 million, or $0.20 per diluted share, a 78% year-over-year increase from $9.9 million, or $0.12 per diluted share, in the first quarter of 2016.
- Non-GAAP Adjusted EBITDA: $42.7 million, a 32% year-over-year increase from $32.4 million in the first quarter of 2016.
- Non-GAAP Net Income: $25.1 million, or $0.29 per diluted share, a 46% year-over-year increase from $17.2 million, or $0.20 per diluted share, in the first quarter of 2016.
First Quarter Key Business Metrics Highlights
- Active Diners were 8.75 million, a 26% year-over-year increase from 6.97 million Active Diners in the first quarter of 2016.
- Daily Average Grubs (DAGs) were 324,600, a 21% year-over-year increase from 267,800 Daily Average Grubs in the first quarter of 2016.
- Gross Food Sales were $898 million, a 26% year-over-year increase from $713 million in the first quarter of 2016.
“Grubhub’s growth on both sides of our network helped drive DAGs growth of 21% and EBITDA growth of 32% compared to the prior year,” said Adam DeWitt, Grubhub CFO. “We generated significant operating leverage, in part due to our continued improvement in delivery efficiency. As a result, EBITDA per order was up 10% year over year to $1.46, even while we invested aggressively in product and marketing to drive future growth.”
Second Quarter and Full Year 2017 Guidance
Based on information available as of April 27, 2017, the Company is providing the following financial guidance for the second quarter and full year of 2017:
|
Second Quarter 2017
|
|
Full Year 2017
|
|
(in millions)
|
|
Expected Revenue range
|
$153 – $161
|
|
$632 – $662
|
|
Expected Adjusted EBITDA range
|
$38 – $44
|
|
$170 – $190
|
First Quarter 2017 Financial Results Conference Call
Grubhub will webcast a conference call today at 9 a.m. CT to discuss the first quarter 2017 financial results. The webcast can be accessed on the Grubhub Investor Relations website at http://investors.grubhub.com, along with the Company’s earnings press release and financial tables. A replay of the webcast will be available at the same website until May 11, 2017.
About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering marketplace with the most comprehensive network of restaurant partners and largest active diner base. Dedicated to moving eating forward and connecting diners with the food they love from their favorite local restaurants, the Company’s platforms and services strive to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 50,000 restaurant partners in over 1,100 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, Restaurants on the Run, DiningIn and Delivered Dish.
Use of Forward Looking Statements
This press release contains forward-looking statements regarding management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected financial performance of Grubhub following its recent acquisitions and investment in delivery. Such statements constitute “forward-looking” statements, which are subject to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K filed on Feb. 28, 2017, which is on file with the SEC and are available on the Investor Relations section of our website at http://investors.grubhub.com/. Additional information will be set forth in our Quarterly Report on Form 10-Q that will be filed for the quarter ended Mar. 31, 2017, which should be read in conjunction with these financial results. Please also note that forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release. Except as required by law, we assume no obligation to publicly update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.
Use of Non-GAAP Financial Measures
Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders are financial measures that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP.
We define Adjusted EBITDA as net income adjusted to exclude acquisition and restructuring costs, income taxes, depreciation and amortization and stock-based compensation expense. Non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders exclude acquisition and restructuring costs, amortization of acquired intangible assets, stock-based compensation expense and other nonrecurring items as well as the income tax effects of these non-GAAP adjustments. We use these non-GAAP financial measures as key performance measures because we believe they facilitate operating performance comparisons from period to period by excluding potential differences primarily caused by variations in capital structures, tax positions, the impact of acquisitions and restructuring, the impact of depreciation and amortization expense on our fixed assets and the impact of stock-based compensation expense. Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders are not measurements of our financial performance under GAAP and should not be considered as an alternative to performance measures derived in accordance with GAAP.
See “Schedule of Non-GAAP Financial Measures Reconciliation” below for a reconciliation of net income to Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders.
|
GRUBHUB INC.
|
|
STATEMENTS OF OPERATIONS
|
|
(in thousands, except per share data)
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
|
2016
|
|
|
Revenues
|
$
|
156,134
|
|
|
$
|
112,240
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
35,438
|
|
|
|
28,833
|
|
|
Operations and support
|
|
59,519
|
|
|
|
34,987
|
|
|
Technology (exclusive of amortization)
|
|
13,192
|
|
|
|
10,192
|
|
|
General and administrative
|
|
12,960
|
|
|
|
13,589
|
|
|
Depreciation and amortization
|
|
10,040
|
|
|
|
7,308
|
|
|
Total costs and expenses
|
|
131,149
|
|
|
|
94,909
|
|
|
Income before provision for income taxes
|
|
24,985
|
|
|
|
17,331
|
|
|
Provision for income taxes
|
|
7,270
|
|
|
|
7,398
|
|
|
Net income attributable to common stockholders
|
$
|
17,715
|
|
|
$
|
9,933
|
|
|
Net income per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.21
|
|
|
$
|
0.12
|
|
|
Diluted
|
$
|
0.20
|
|
|
$
|
0.12
|
|
|
Weighted-average shares used to compute net income per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
|
85,874
|
|
|
|
84,710
|
|
|
Diluted
|
|
87,120
|
|
|
|
85,699
|
|
|
KEY OPERATING METRICS
|
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
|
2016
|
|
|
Active Diners (000s)
|
|
8,751
|
|
|
|
6,970
|
|
|
Daily Average Grubs
|
|
324,600
|
|
|
|
267,800
|
|
|
Gross Food Sales (millions)
|
$
|
898.1
|
|
|
$
|
712.8
|
|
|
GRUBHUB INC.
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
(in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
December 31, 2016
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
275,037
|
|
|
$
|
239,528
|
|
|
Short term investments
|
|
86,235
|
|
|
|
84,091
|
|
|
Accounts receivable, less allowances for doubtful accounts
|
|
62,400
|
|
|
|
60,550
|
|
|
Prepaid expenses
|
|
9,245
|
|
|
|
12,168
|
|
|
Total current assets
|
|
432,917
|
|
|
|
396,337
|
|
|
PROPERTY AND EQUIPMENT:
|
|
|
|
|
|
|
|
|
Property and equipment, net of depreciation and amortization
|
|
51,579
|
|
|
|
46,555
|
|
|
OTHER ASSETS:
|
|
|
|
|
|
|
|
|
Other assets
|
|
4,316
|
|
|
|
4,530
|
|
|
Goodwill
|
|
436,455
|
|
|
|
436,455
|
|
|
Acquired intangible assets, net of amortization
|
|
313,357
|
|
|
|
313,630
|
|
|
Total other assets
|
|
754,128
|
|
|
|
754,615
|
|
|
TOTAL ASSETS
|
$
|
1,238,624
|
|
|
$
|
1,197,507
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
Restaurant food liability
|
$
|
94,660
|
|
|
$
|
83,349
|
|
|
Accounts payable
|
|
10,030
|
|
|
|
7,590
|
|
|
Accrued payroll
|
|
5,805
|
|
|
|
7,338
|
|
|
Taxes payable
|
|
3,062
|
|
|
|
865
|
|
|
Other accruals
|
|
18,950
|
|
|
|
11,348
|
|
|
Total current liabilities
|
|
132,507
|
|
|
|
110,490
|
|
|
LONG TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
Deferred taxes, non-current
|
|
100,631
|
|
|
|
108,022
|
|
|
Other accruals
|
|
6,898
|
|
|
|
6,876
|
|
|
Total long term liabilities
|
|
107,529
|
|
|
|
114,898
|
|
|
STOCKHOLDERS’ EQUITY:
|
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value
|
|
9
|
|
|
|
9
|
|
|
Accumulated other comprehensive loss
|
|
(1,971)
|
|
|
|
(2,078)
|
|
|
Additional paid-in capital
|
|
811,727
|
|
|
|
805,731
|
|
|
Retained earnings
|
|
188,823
|
|
|
|
168,457
|
|
|
Total Stockholders’ Equity
|
$
|
998,588
|
|
|
$
|
972,119
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
1,238,624
|
|
|
$
|
1,197,507
|
|
|
GRUBHUB INC.
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
17,715
|
|
|
$
|
9,933
|
|
|
Adjustments to reconcile net income to net cash from operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
2,412
|
|
|
|
1,344
|
|
|
Provision for doubtful accounts
|
|
|
95
|
|
|
|
443
|
|
|
Deferred taxes
|
|
|
(4,741)
|
|
|
|
(3,321)
|
|
|
Amortization of intangible assets
|
|
|
7,628
|
|
|
|
5,964
|
|
|
Stock-based compensation
|
|
|
7,243
|
|
|
|
6,901
|
|
|
Deferred rent
|
|
|
58
|
|
|
|
135
|
|
|
Other
|
|
|
(110)
|
|
|
|
(109)
|
|
|
Change in assets and liabilities, net of the effects of business acquisitions:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(1,721)
|
|
|
|
(9,956)
|
|
|
Prepaid expenses and other assets
|
|
|
2,957
|
|
|
|
(136)
|
|
|
Restaurant food liability
|
|
|
11,297
|
|
|
|
10,081
|
|
|
Accounts payable
|
|
|
483
|
|
|
|
(5,434)
|
|
|
Accrued payroll
|
|
|
(1,534)
|
|
|
|
(1,034)
|
|
|
Other accruals
|
|
|
9,808
|
|
|
|
3,855
|
|
|
Net cash provided by operating activities
|
|
|
51,590
|
|
|
|
18,666
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Purchases of investments
|
|
|
(57,783)
|
|
|
|
(56,227)
|
|
|
Proceeds from maturity of investments
|
|
|
55,833
|
|
|
|
76,615
|
|
|
Capitalized website and development costs
|
|
|
(4,150)
|
|
|
|
(2,331)
|
|
|
Purchases of property and equipment
|
|
|
(3,056)
|
|
|
|
(3,259)
|
|
|
Acquisition of other intangible assets
|
|
|
(5,000)
|
|
|
|
(250)
|
|
|
Other cash flows from investing activities
|
|
|
91
|
|
|
|
(173)
|
|
|
Net cash provided by (used in) investing activities
|
|
|
(14,065)
|
|
|
|
14,375
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Repurchases of common stock
|
|
|
—
|
|
|
|
(9,771)
|
|
|
Proceeds from exercise of stock options
|
|
|
1,584
|
|
|
|
1,012
|
|
|
Excess tax benefits related to stock-based compensation
|
|
|
—
|
|
|
|
10,610
|
|
|
Taxes paid related to net settlement of stock-based compensation awards
|
|
|
(3,688)
|
|
|
|
(682)
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(2,104)
|
|
|
|
1,169
|
|
|
Net change in cash and cash equivalents
|
|
|
35,421
|
|
|
|
34,210
|
|
|
Effect of exchange rates on cash
|
|
|
88
|
|
|
|
(191)
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
239,528
|
|
|
|
169,293
|
|
|
Cash and cash equivalents at end of the period
|
|
$
|
275,037
|
|
|
$
|
203,312
|
|
|
GRUBHUB INC.
|
|
NON-GAAP FINANCIAL MEASURES RECONCILIATION
|
|
(in thousands, except per share data)
|
|
Three Months Ended
March 31,
|
|
2017
|
|
|
2016
|
|
Net income
|
$
|
17,715
|
|
|
$
|
9,933
|
|
Income taxes
|
|
7,270
|
|
|
|
7,398
|
|
Depreciation and amortization
|
|
10,040
|
|
|
|
7,308
|
|
EBITDA
|
|
35,025
|
|
|
|
24,639
|
|
Acquisition and restructuring costs
|
|
409
|
|
|
|
831
|
|
Stock-based compensation
|
|
7,243
|
|
|
|
6,901
|
|
Adjusted EBITDA
|
$
|
42,677
|
|
|
$
|
32,371
|
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
|
2016
|
|
Net income
|
$
|
17,715
|
|
|
$
|
9,933
|
|
Stock-based compensation
|
|
7,243
|
|
|
|
6,901
|
|
Amortization of acquired intangible assets
|
|
5,273
|
|
|
|
5,045
|
|
Acquisition and restructuring costs
|
|
409
|
|
|
|
831
|
|
Income tax adjustments
|
|
(5,519)
|
|
|
|
(5,469)
|
|
Non-GAAP net income
|
$
|
25,121
|
|
|
$
|
17,241
|
|
Weighted-average diluted shares used to compute net income per share attributable to common stockholders
|
|
87,120
|
|
|
|
85,699
|
|
Non-GAAP net income per diluted share attributable to common stockholders
|
$
|
0.29
|
|
|
$
|
0.20
|
|
Guidance
|
|
|
Three Months Ended
June 30, 2017
|
|
|
Year Ended
December 31, 2017
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
|
|
(in millions)
|
|
|
Net income
|
$
|
11.6
|
|
|
$
|
15.2
|
|
|
$
|
57.2
|
|
|
$
|
69.1
|
|
|
Income taxes
|
|
7.9
|
|
|
|
10.3
|
|
|
|
38.9
|
|
|
|
47.0
|
|
|
Depreciation and amortization
|
|
10.5
|
|
|
|
10.5
|
|
|
|
42.5
|
|
|
|
42.5
|
|
|
EBITDA
|
|
30.0
|
|
|
|
36.0
|
|
|
|
138.6
|
|
|
|
158.6
|
|
|
Acquisition and restructuring costs
|
|
—
|
|
|
|
—
|
|
|
|
0.4
|
|
|
|
0.4
|
|
|
Stock-based compensation
|
|
8.0
|
|
|
|
8.0
|
|
|
|
31.0
|
|
|
|
31.0
|
|
|
Adjusted EBITDA
|
$
|
38.0
|
|
|
$
|
44.0
|
|
|
$
|
170.0
|
|
|
$
|
190.0
|
|
