Company Archives - Page 11 of 24

Grubhub Launches Industry Leading Membership Program With Unrivaled Rewards & Exclusive Benefits

– Grubhub+ offers unlimited free delivery, 10% Cashback, Elite Care and donation matching
– Company doubles down on diner rewards after doubling restaurant network

CHICAGO, Feb. 26, 2020 /PRNewswire/ — Grubhub, the nation’s leading pickup and delivery marketplace with the largest restaurant network, today launched Grubhub+, a new membership program loaded with rewards (Seamless+ also available). Grubhub+ goes above and beyond other subscription programs with member benefits like 10% Cashback and donation matching to high impact organizations like No Kid Hungry.

Grubhub+ membership features industry leading benefits at launch, including:

Unlimited free delivery: from Grubhub+ restaurants, including many popular brands
Unlimited 10% Cashback: on dollars spent on Grubhub+ restaurants – Grubhub+ literally pays for itself if you order more than $100 in food per month
Double donations: donation matching on Donate the Change for Grubhub+ orders, to drive twice the impact for worthy charities
VIP access: access to Elite Care teams for priority assistance
First dibs: exclusive access to new Perks, local events, and experiences

Currently anyone can sign up for a free 14-day trial and experience how easy and valuable the program is, and for a limited time, diners participating in any other food delivery subscription program can receive an extended 30-day free trial to compare for themselves. Additionally, all students enrolled in any of the 150+ campuses that work with Grubhub will receive Grubhub+ for free!

“Whether they’re trying us out for the first time or order many times a week, diners already love our exclusive Perks,” said Sam Hall, Grubhub’s Chief Product Officer. “Now with Grubhub+, we’re excited to dramatically expand rewards while doubling our charitable impact and assisting with our elite support teams. We’ve pulled out all the stops for this program.”

“Generous diner rewards are at the core of Grubhub’s competitive strategy. As the only profitable company in our space, we are leveraging our profits to stay laser-focused on having the most restaurants in the network and giving away as much free food as possible,” said Matt Maloney, Grubhub founder and CEO. “With the most restaurants and the best loyalty programs, we believe that we have the right formula and are ideally positioned for success.”

After more than $200 million dollars in rewards were redeemed by diners across Grubhub platforms in 2019, Grubhub+ is a continuation of Grubhub’s strategy to offer the most rewards in the industry. Last year Grubhub launched Perks, a treasure-trove of exclusive deals and savings along with new ways to earn and redeem restaurant loyalty rewards. Grubhub+ is a natural extension of Perks with free delivery and 10% Cashback.

Grubhub+ includes additional benefits like access to Elite Care, special menus, and events. The program also helps diners to do more for their communities because Grubhub will match member donations made with orders placed at Grubhub+ restaurants through our industry leading Donate the Change feature. Over the past year Grubhub diners have donated more than $10 million to No Kid Hungry by simply rounding up and donating their change, and now Grubhub will match subscribers’ donations, giving members the opportunity to double their impact.

“Grubhub diners have shown significant interest in supporting their local communities. With their help, we made dramatic progress toward ending childhood hunger in the United States – but we still have a long way to go,” said Billy Shore, Founder and Executive Chair of Share Our Strength. “By matching subscribers’ donations, Grubhub is doubling down on their commitment to help us provide children with more meals. Grubhub+ members are doing twice as much good simply by joining the program and opting to donate their change.”

For more information on all benefits or to sign up for Grubhub+, go to www.grubhub.com/plus.

About Grubhub
Grubhub (NYSE: GRUB) is a leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as more than 22 million active diners. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub elevates food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub features over 300,000 restaurants and is proud to partner with more than 155,000 of these restaurants in over 3,200 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, AllMenus and MenuPages.

Grubhub Reports Fourth Quarter And Full Year 2019 Results

Grubhub generates 19% revenue growth in the fourth quarter

CHICAGO, Feb. 5, 2020 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), a leading online and mobile food-ordering and delivery marketplace, today announced financial results for the fourth quarter and full year ended December 31, 2019 and also posted a letter to shareholders on its investor relations website. For the fourth quarter, the Company reported revenues of $341 million, which is a 19% year-over-year increase from $288 million in the same period last year. Gross Food Sales grew 13% year-over-year to $1.6 billion, up from $1.4 billion in the fourth quarter of 2018.

“We strengthened both sides of our marketplace during the fourth quarter, adding 1.4 million active diners and more than doubling our restaurant selection from just a quarter ago,” said Matt Maloney, Grubhub founder and CEO. “We are making good progress on the key initiatives we outlined last quarter. We added more than 15,000 partnered and over 150,000 non-partnered restaurant options for our diners and we also launched a number of new loyalty programs for our restaurant partners.”

Fourth Quarter and Full Year 2019 Highlights
The following results reflect the financial performance and key operating metrics of our business for the three and twelve months ended December 31, 2019, as compared to the same periods in 2018.

Fourth Quarter Financial Highlights

Revenues: $341.3 million, a 19% year-over-year increase from $287.7 million in the fourth quarter of 2018.
Net Income (Loss): $(27.7) million, or $(0.30) per diluted share, a decrease from $(5.2) million, or $(0.06) per diluted share, in the fourth quarter of 2018.
Non-GAAP Adjusted EBITDA: $26.7 million, a 37% year-over-year decrease from $42.1 million in the fourth quarter of 2018.
Non-GAAP Net Income (Loss): $(4.2) million, or $(0.05) per diluted share, a decrease from $17.6 million, or $0.19 per diluted share, in the fourth quarter of 2018.

Fourth Quarter Key Business Metrics Highlights¹

Active Diners: 22.6 million, a 28% year-over-year increase from 17.7 million Active Diners in the fourth quarter of 2018.
Daily Average Grubs (DAGs): 502,600, a 8% year-over-year increase from 467,500 DAGs in the fourth quarter of 2018.
Gross Food Sales: $1.6 billion, a 13% year-over-year increase from $1.4 billion in the fourth quarter of 2018.

1 Key Business Metrics are defined on page 29 of our Annual Report on Form 10-K filed on February 28, 2019.

Full Year Financial Highlights

Revenues: $1.3 billion, a 30% year-over-year increase from $1.0 billion in 2018.
Net Income (Loss): $(18.6) million, or $(0.20) per diluted share, a decrease from $78.5 million, or $0.85 per diluted share, in 2018.
Non-GAAP Adjusted EBITDA: $186.2 million, a 20% year-over-year decrease from $233.7 million in 2018.
Non-GAAP Net Income: $73.2 million, or $0.79 per diluted share, a 52% decrease from $153.3 million, or $1.66 per diluted share, in 2018.

Full Year Key Business Metrics Highlights¹

Active Diners: 22.6 million, a 28% year-over-year increase from 17.7 million Active Diners in 2018.
Daily Average Grubs (DAGs): 492,300, a 13% year-over-year increase from 435,900 DAGs in 2018.
Gross Food Sales: $5.9 billion, a 17% year-over-year increase from $5.1 billion in 2018.

“We continue to innovate the online takeout industry with our recent launch of Grubhub Ultimate, a revolutionary, first-of-its-kind proprietary hardware and software solution that integrates all restaurant ordering channels into one system. Grubhub Ultimate is an important step in helping unlock the pickup market, which accounts for the majority of the more than $250 billion takeout industry,” said Adam DeWitt, Grubhub president and CFO. “We remain confident our overall strategy will deliver sustainable value for all of our stakeholders and the team is determined to continue to execute and build on the early wins.”

First Quarter and Full Year 2020 Guidance
Based on information available as of February 5, 2020, the Company is providing the following financial guidance for the first quarter and full year of 2020.

	First Quarter 2020	Full Year 2020
	(in millions)
Expected Revenue	$350 – $370	$1,400 – $1,500
Expected Adjusted EBITDA	$15 – $25	at least $100

Fourth Quarter 2019 Financial Results Conference Call
Grubhub will webcast a conference call tomorrow at 8:00 a.m. CT to discuss the fourth quarter 2019 financial results. The webcast can be accessed on the Grubhub Investor Relations website at https://investors.grubhub.com, along with the Company’s letter to shareholders, earnings press release and financial tables. A replay of the webcast will be available at the same website.

Use of Forward Looking Statements
This press release contains forward-looking statements regarding Grubhub, “the Company’s” or our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected benefits to, and financial performance of, Grubhub including its acquisitions. 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 substantial known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements including, but not limited to, achievement of the benefits of our planned additional investments, 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 February 28, 2019 and our most recent Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, which are on file with the SEC and are available on the Investor Relations section of our website at https://investors.grubhub.com. Additional information will be set forth in our Annual Report on Form 10-K that will be filed for the year ended December 31, 2019, 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 disclaim any intention to, and undertake 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, restructuring and certain legal costs, income taxes, net interest expense, 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, restructuring and certain legal 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, restructuring and certain legal costs, 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 “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 December 31,				Year Ended December 31,
	2019		2018		2019		2018
Revenues	$	341,270	$	287,721	$	1,312,151	$	1,007,257
Costs and expenses:
Operations and support		190,328		144,082		675,471		454,321
Sales and marketing		86,100		69,877		310,299		214,290
Technology (exclusive of amortization)		29,164		24,972		115,297		82,278
General and administrative		28,018		27,393		101,918		85,465
Depreciation and amortization		32,488		24,153		115,449		85,940
Total costs and expenses		366,098		290,477		1,318,434		922,294
Income (loss) from operations		(24,828)		(2,756)		(6,283)		84,963
Interest expense – net		6,189		2,163		20,493		3,530
Income (loss) before provision for income taxes		(31,017)		(4,919)		(26,776)		81,433
Income tax (benefit) expense		(3,299)		231		(8,210)		2,952
Net income (loss) attributable to common stockholders	$	(27,718)	$	(5,150)	$	(18,566)	$	78,481
Net income (loss) per share attributable to common stockholders:
Basic	$	(0.30)	$	(0.06)	$	(0.20)	$	0.88
Diluted	$	(0.30)	$	(0.06)	$	(0.20)	$	0.85
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic		91,509		90,705		91,247		89,447
Diluted		91,509		90,705		91,247		92,354


KEY BUSINESS METRICS

	Three Months Ended December 31,				Year Ended December 31,
	2019		2018		2019		2018
Active Diners (000s)		22,621		17,688		22,621		17,688
Daily Average Grubs		502,600		467,500		492,300		435,900
Gross Food Sales (millions)	$	1,552	$	1,377	$	5,914	$	5,057

GRUBHUB INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)



	December 31, 2019		December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	375,909	$	211,245
Short-term investments		49,275		14,084
Accounts receivable, less allowances for doubtful accounts		119,658		110,855
Income tax receivable		3,960		9,949
Prepaid expenses and other current assets		17,515		17,642
Total current assets		566,317		363,775
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization		172,744		119,495
OTHER ASSETS:
Other assets		26,836		14,186
Operating lease right-of-use asset		100,632		—
Goodwill		1,007,968		1,019,239
Acquired intangible assets, net of amortization		500,481		549,013
Total other assets		1,635,917		1,582,438
TOTAL ASSETS	$	2,374,978	$	2,065,708
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability	$	131,753	$	127,344
Accounts payable		26,748		26,656
Accrued payroll		19,982		18,173
Current portion of long-term debt		—		6,250
Current operating lease liability		9,376		—
Other accruals		61,504		44,745
Total current liabilities		249,363		223,168
LONG-TERM LIABILITIES:
Deferred taxes, non-current		27,163		46,383
Noncurrent operating lease liability		111,056		—
Long-term debt		493,009		335,548
Other accruals		817		18,270
Total long-term liabilities		632,045		400,201
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value		9		9
Accumulated other comprehensive loss		(1,628)		(1,891)
Additional paid-in capital		1,164,400		1,094,866
Retained earnings		330,789		349,355
Total Stockholders’ Equity	$	1,493,570	$	1,442,339
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,374,978	$	2,065,708

GRUBHUB INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Year Ended December 31,
	2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(18,566)	$	78,481
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation		30,237		21,647
Amortization of intangible assets and developed software		85,212		64,293
Stock-based compensation		72,879		55,261
Deferred taxes		(7,726)		1,724
Other		8,531		5,552
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable		(11,591)		(6,092)
Income taxes receivable		5,989		(1,356)
Prepaid expenses and other assets		(13,854)		(16,270)
Restaurant food liability		4,380		2,921
Accounts payable		1,978		11,160
Accrued payroll		1,804		3,621
Other accruals		23,349		4,585
Net cash provided by operating activities		182,622		225,527
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments		(85,989)		(57,197)
Proceeds from maturity of investments		51,366		67,166
Capitalized website and development costs		(48,524)		(31,180)
Purchases of property and equipment		(55,167)		(43,033)
Acquisition of other intangible assets		(9,980)		(11,851)
Acquisitions of businesses, net of cash acquired		127		(517,909)
Other cash flows from investing activities		(250)		—
Net cash used in investing activities		(148,417)		(594,004)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt		500,000		222,000
Repayments of borrowings under the credit facility		(342,313)		(53,906)
Proceeds from the issuance of common stock		—		200,000
Taxes paid related to net settlement of stock-based compensation awards		(23,753)		(35,599)
Proceeds from exercise of stock options		4,469		14,190
Payments for debt issuance costs		(9,136)		—
Net cash provided by financing activities		129,267		346,685
Net change in cash, cash equivalents, and restricted cash		163,472		(21,792)
Effect of exchange rates on cash, cash equivalents and restricted cash		320		(645)
Cash, cash equivalents, and restricted cash at beginning of year		215,802		238,239
Cash, cash equivalents, and restricted cash at end of the period	$	379,594	$	215,802
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Cash paid for income taxes	$	1,163	$	7,895

GRUBHUB INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(in thousands, except per share and per order data)

	Three Months Ended December 31,				Year Ended December 31,
	2019		2018		2019		2018
Net income (loss)	$	(27,718)	$	(5,150)	$	(18,566)	$	78,481
Income taxes		(3,299)		231		(8,210)		2,952
Interest expense – net		6,189		2,163		20,493		3,530
Depreciation and amortization		32,488		24,153		115,449		85,940
EBITDA		7,660		21,397		109,166		170,903
Acquisition, restructuring and legal costs		966		1,913		4,105		7,578
Stock-based compensation²		18,073		18,816		72,879		55,261
Adjusted EBITDA	$	26,699	$	42,126	$	186,150	$	233,742

Net income (loss) per order	$	(0.60)	$	(0.12)	$	(0.10)	$	0.49
Adjusted EBITDA per order	$	0.58	$	0.98	$	1.04	$	1.47


	Three Months Ended December 31,				Year Ended December 31,
	2019		2018		2019		2018
Net income (loss)	$	(27,718)	$	(5,150)	$	(18,566)	$	78,481
Stock-based compensation²		18,073		18,816		72,879		55,261
Amortization of acquired intangible assets		13,367		11,377		50,712		42,484
Acquisition, restructuring and legal costs		966		1,913		4,105		7,578
Income tax adjustments		(8,916)		(9,384)		(35,883)		(30,544)
Non-GAAP net income (loss)	$	(4,228)	$	17,572	$	73,247	$	153,260
Weighted-average diluted shares used to compute net income (loss) per share attributable to common stockholders		91,509		93,144		92,759		92,354
Non-GAAP net income (loss) per diluted share attributable to common stockholders	$	(0.05)	$	0.19	$	0.79	$	1.66

² Stock-based compensation expense for the three months ended December 31, 2018 and the twelve months ended December 31, 2019 and 2018 included $4.8 million, $1.6 million and $4.8 million, respectively, of expense related to the accelerated vesting of equity awards to certain terminated acquired employees.

	Guidance
	Three Months Ended March 31, 2020
	Low		High
	(in millions)
Net loss	$	(36.0)	$	(28.5)
Income taxes		(12.1)		(9.6)
Interest expense – net		6.1		6.1
Depreciation and amortization		34.0		34.0
EBITDA		(8.0)		2.0
Acquisition, restructuring and legal costs		—		—
Stock-based compensation		23.0		23.0
Adjusted EBITDA	$	15.0	$	25.0

Note: For the full year 2020, we currently expect Adjusted EBITDA of at least $100 million, net interest expense of $25 million, depreciation and amortization expense of $145 million and stock-based compensation expense of $100 million.

Grubhub Launches Ultimate Technology For Restaurants To Address $250+ Billion U.S. Takeout Market

– Diners to enjoy order transparency and time savings –
– Restaurants to see increased order volume, revenue and staff efficiency –

CHICAGO, Jan. 23, 2020 /PRNewswire/ — Grubhub, the nation’s leading online and mobile food-ordering and delivery marketplace, today launched its Ultimate technology, a revolutionary, first-of-its-kind proprietary hardware and software solution that integrates all restaurant ordering channels into one system. Replacing error-prone handwritten scribbles and shouts, Ultimate is a digital workflow solution, connecting the front- and back-of-the house directly with diners and creating a transparent view into their order status – whether diners order for pickup or delivery on Grubhub, at an in-store kiosk, or directly with a cashier.

There are four components that make up the Ultimate technology:

Lightweight point of sale (POS) with direct integration to the Grubhub web and mobile app
Heads-up customer displays to show real-time order estimates across all channels
In-store self-ordering kiosks to complement the Grubhub app
Kitchen display system (KDS)

“Diners have come to expect ordering ahead for pickup to breeze through busy rush hour crowds and grab their morning coffee or lunch, but currently they can only enjoy this convenience at large QSRs. Ultimate now gives restaurants of any size this ability to please diners with an easy, digital pickup experience,” said Matt Maloney, Grubhub founder & CEO. “With Ultimate, we went even further by building integrated kiosks and a digital queue – in person and online – so diners can see the exact status of their order at any time. Most people do not want to order in person or by calling if they have an alternative, and by integrating pickup with delivery orders our restaurant partners have a complete picture to more efficiently manage their operations.”

Pickup, which composes more than half of the over $250 billion U.S. takeout market, is a massive and growing opportunity that has not yet been transformed by digital ordering. The Ultimate technology accelerates adoption of digital pickup and improves capacity management for restaurants of all sizes, giving unique line of sight into all ETAs regardless of the ordering channel. Whether ordering on-the-go or in-person from the cashier or a kiosk, diners get complete visibility in the app and on the displays at the storefront through the Ultimate technology.

“Ultimate is exactly what I was looking for but didn’t know it,” said David Morton, co-owner of Chicago-based DMK restaurant group. “We have designed our new restaurants around this technology because it allows us to provide better service to our customers with less effort and cost. This is a game changer in quick-serve and fast casual restaurants.”

With more than five years of research and development, Ultimate began as an in-app queue where college students could order ahead while sitting in class and have a real-time view of exactly how many orders were ahead of them. They could continue to monitor their order status and would be notified when their order was ready. This transparency allowed students to manage their schedules and avoid skipping meals or eating at other restaurants because of unexpected long lines at their favorites – and still get to their next class on time.

“Students enjoy the convenience of self-ordering opportunities, and we’ve seen demand for our food service operations increase since installation across our campus. It increased the efficiency of our operation while providing a service that is highly desired by our students,” said Zia Ahmed, Senior Director, Dining Services at The Ohio State University.

In addition to ordering ahead via Grubhub, in-store ordering kiosks allow restaurants to migrate employees away from the cash register and back to food prep lines and fulfilment areas, expediting and ensuring accuracy of orders and increasing throughput. Real-time ETAs appear once an order is placed, allowing customers and delivery drivers to precisely time their arrival, avoiding unnecessary and frustrating waiting. Driving further efficiency, the queue seen by customers is identical to that seen by all employees throughout the restaurant, sharing automatic updates at each stage of the order process.

The Ultimate technology also unlocks the potential for stadiums and food halls to join the next generation of restaurants, opening up a new experience for today’s digitally-savvy diner. Instead of standing in never-ending lines, sports fans and concert-goers can order ahead directly from their seat via Grubhub, watching their place from the in-app queue for the exact moment the order is ready. Food halls are able to provide diners a real-time view into wait times for a variety of restaurants, giving the diner control of balancing the choice between restaurant selection and time to food pickup.

Restaurant owners and staff now have access to a custom-built solution, smoothing out process and demand during daily rushes. Currently in over 100 locations, the Ultimate pilot rollout has focused on New York City and Chicago where restaurants have seen pickup demand impact their bottom line. “Since installing Ultimate, I’ve seen sales increase by 10% and employee costs decrease by 15%. I have staff preparing food instead of taking orders and my customers love the kiosks and transparency. This is a millennials’ dream come true,” said Joe Germonatta of Art Bird & Whiskey Bar in Grand Central Station.

For more information, visit ultimate.grubhub.com.

About Grubhub

Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives 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 140,000 restaurant partners in over 2,700 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

Grubhub To Announce Fourth Quarter And Full Year 2019 Financial Results

CHICAGO, Jan. 23, 2020 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced it will release fourth quarter and full year 2019 earnings results after the market close on Wednesday, Feb. 5, 2020, followed by a conference call to discuss its results on Thursday, Feb. 6, 2020, at 8:00 a.m. CT. Founder & CEO Matt Maloney and President & CFO Adam DeWitt will host the conference call.

The live webcast of the conference call will be available on the investor relations section of the Grubhub website at http://investors.grubhub.com/. Following completion of the call, a recording of the webcast will be available on the website.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives 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 140,000 restaurant partners in over 2,700 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

GrubHub Logo

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Grubhub Launches Annual “Year In Food” Report Highlighting The Top Trends In 2019

Vegan & vegetarian options continue to grow in popularity as meat alternatives rise

CHICAGO, Dec. 4, 2019 /PRNewswire/ — Grubhub, the nation’s leading online and mobile food-ordering and delivery marketplace, today released findings from its annual “Year in Food” report. To find out what food trends shaped the year (or didn’t), Grubhub analyzed tens of millions of orders placed by more than 21 million diners on its platform to uncover the flavors and tastes rising up the ranks among today’s diners. Additionally, diners will receive their personalized “Taste of 2019” to get a glimpse of their favorite cuisines, menu items, and ordering habits throughout the year.

Key takeaways from the 2019 “Year in Food” report includes:

TOP ORDERS OF THE YEAR

One thing is clear: plant-based foods are here to stay, with a majority of 2019’s top foods comprising of vegetarian- or vegan-friendly options. Cauliflower pizza claimed the top spot, rising 650% in popularity throughout the year.

Cauliflower pizza: 650%
Spicy brussel sprouts: 622%
Portobello empanada: 601%
Black bean & sweet potato taco: 513%
Miso pork ramen: 413%
Chicken burger: 318%
Bone broth: 298%
Brown sugar milk [bubble] tea: 281%
Vegan pad thai: 280%
Impossible burger: 203%

Fun Facts:

While cauliflower dishes took home the #7 and #10 spots in 2018, this year cauliflower leads the charge.
Vegetarian- and vegan-friendly dishes took over 7 of our top 10 as opposed to only 3 of the top spots in 2018.

Breakfast: bacon, egg & cheese is a staple combo across breakfast that’s risen to the #1 spot from last year.

BEC (bacon, egg & cheese) biscuit: 442% more popular
Mixed berry acai bowl: 209% more popular
Chicken & waffles: 167% more popular
Strawberry banana french toast: 155% more popular
Dutch pancake: 149% more popular

Desserts: a balanced mix of fan favorites, a few classics with a trendy spin, and a vegan dessert in our top five.

Butter cake: 641% more popular
Chocolate shake: 530% more popular
fruit crepe : 223% more popular
Caramel churro : 206% more popular
vegan carrot cake : 144% more popular

Late-night: carbs come in handy for those snacking on late-night treats with yet another appearance from the vegan family.

Buffalo chicken empanada : 277% more popular
Brisket quesadilla: 200% more popular
Truffle parmesan fries: 157% more popular
Garlic & parmesan bread sticks: 132% more popular
Vegan burger: 128% more popular

THE RISE OF PLANT-BASED OPTIONS

Vegan & vegetarian trends are still growing, with vegan orders rising 27% in popularity overall in 2019 as compared to 2018. Specifically, the Impossible Burger saw a more than 200% rise in popularity this year!

The top meat-alternative options of 2019 (in ranking order):

Impossible Burger
Black bean burger
Tofu
Mushroom burger
Jackfruit

Top Spots for Vegans: If among the growing number of fans surrounding the vegan diet, Grubhub shed some light on the best (and not-so-great) states for people.

Most Vegan-Friendly States (in ranking order):

New York
California
Nevada
Oregon
Pennsylvania

Least Vegan-Friendly States (in ranking order):

Indiana
Iowa
North Carolina
Missouri
Idaho

FOODIE SUPERLATIVES

The state you should visit if you relate to the following:

The Night Owl (rise of late night orders): Washington DC
The Health Nut (rise of healthy foods): California
The Most Energized (rise of caffeinated drinks): Oregon
The Sweetest State (rise of desserts): Texas

Placed on GH in 2019:

Biggest single-item splurge: osetra black caviar for $285 (30g)
Largest order (non-catering): more than 300 tacos for a Halloween party
Smallest order: a single hot sauce packet (must’ve been a real emergency!)

THE TRENDS OF YEARS PAST

Burgers, pizza, and tacos will always be a delivery go-to; however, if there’s one thing we know it’s that trends come and go. Whether it’s cauliflower-everything or 2017’s top food of poke bowls, with more than 450,000 orders per day on average, it’s safe to say Grubhub has its finger on the pulse of what’s hot (and what’s not).

Trends on the Rise: it’s all about detox and milk alternatives this year

Celery juice
Oat milk
Street corn

Middle of the road: not rising the ranks in popularity, but these remain a trusty go-to dish among diners

Poke
Avocado toast
Kale

Trends on the Decline: forget fermentation and hydration, these two are on the out

Kombucha
Coconut water

Fun fact: celery juice and oat milk saw a claim to fame in 2019, seeing a 302% and 285% rise in popularity (respectively).

“BEST OF GRUBHUB”

While 2019 was a year for new trends, Grubhub also took a look at some of the top delivery go-to dishes and the restaurants that took home the title – “Best of Grubhub” – for each dish.

Burgers: Calibur in San Francisco is a local favorite known for their classic burger and homemade Calibur sauce (and don’t miss the Tallow Fries).
Pizza: a New York City staple, Joe’s Pizza (Greenwich Village Institution) takes it home for this delivery favorite.
Chicken wings: KyoChon in Los Angeles has been said to “more than compensate in addictive flavor” with a top dish being the restaurant’s honey wings.
Tacos: E Bar Tex Mex in Dallas is known for their tacos, especially “Jorge’s Tacos” featuring a set of four (diner’s choice!)
Poke: a dish known for its customization, SeaSweets Poke in Portland (Oregon) is the top spot for poke with the Ahi Shoyu Poke Bowl being a favorite.
Pad Thai: Circles Thai in Philadelphia comes in as the number one spot for this delivery essential.
Meatballs: diners love the Homemade Meatballs from DiPasquale’s Italian Marketplace in Baltimore, with the restaurant’s menu warning diners to “be prepared” for how large the meatball sub is!

A YEAR OF GIVING BACK

Since launching its “Donate the Change” feature in October, Grubhub diners have given back to those in need. In 2019 alone, diners rounded up and donated a whopping more than $10 million to support organizations (Jan-Oct) including Grubhub’s core partner, No Kid Hungry. Other organizations supported throughout the year include the James Beard Foundation’s Women’s Leadership Programs as part of the company’s RestaurantHER program and NYC Kids RISE, giving back to local public school students’ college and career futures to celebrate the 20th anniversary of Seamless, Grubhub’s New York-specific brand.

Grubhub’s “Year in Food” report is based on trends gathered from tens of millions of orders on the Grubhub platform. Order trends detail the rise in popularity of food items placed by Grubhub diners from January-November 2019, as compared to the same timeframe in 2018.

Grubhub Reports Third Quarter 2019 Results

Grubhub generates 30% revenue growth in the third quarter

CHICAGO, Oct. 28, 2019 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced financial results for the third quarter ended September 30, 2019 and also posted a letter to shareholders on its investor relations website. The Company reported revenues of $322 million, which is a 30% year-over-year increase from $247 million in the third quarter of 2018. Gross Food Sales grew 15% year-over-year to $1.4 billion, up from $1.2 billion in the same period last year.

“Our teams had another strong quarter of execution, adding nearly one million active diners and 15,000 restaurants to our platform,” said Matt Maloney, Grubhub founder and CEO. “As we detail in our shareholder letter, we are entering the next phase of growth in the U.S. online food ordering industry where it is increasingly important to create a differentiated experience for diners and long-term value for restaurants. We are excited to leverage the robust profitability of our core business and best-in-class restaurant-facing products to grow our two-sided marketplace in a sustainable manner.”

Third Quarter 2019 Highlights
The following results reflect the financial performance and key operating metrics of our business for the three months ended September 30, 2019, as compared to the same period in 2018.

Third Quarter Financial Highlights

Revenues: $322.1 million, a 30% year-over-year increase from $247.2 million in the third quarter of 2018.
Net Income: $1.0 million, or $0.01 per diluted share, a decrease from $22.7 million, or $0.24 per diluted share, in the third quarter of 2018.
Non-GAAP Adjusted EBITDA: $53.8 million, a 10% year-over-year decrease from $60.1 million in the third quarter of 2018.
Non-GAAP Net Income: $24.7 million, or $0.27 per diluted share, a decrease from $42.2 million, or $0.45 per diluted share, in the third quarter of 2018.

Third Quarter Key Business Metrics Highlights¹

Active Diners: 21.2 million, a 29% year-over-year increase from 16.4 million Active Diners in the third quarter of 2018.
Daily Average Grubs (DAGs): 457,300, a 10% year-over-year increase from 416,000 DAGs in the third quarter of 2018.
Gross Food Sales: $1.4 billion, a 15% year-over-year increase from $1.2 billion in the third quarter of 2018.

_____________________

¹ Key Business Metrics are defined on page 29 of our Annual Report on Form 10-K filed on February 28, 2019.

“Last year, in the fourth quarter, we made opportunistic investments to expand delivery market coverage, increase new diner advertising and accelerate our enterprise brand sales efforts. Through the third quarter of 2019, we believe all three of these initiatives had a positive impact on our business and long-term shareholder value,” said Adam DeWitt, Grubhub President and CFO. “Importantly, we demonstrated the ability to generate operating leverage consistently throughout 2019 with EBITDA per order increasing 31% from $0.98 in the fourth quarter of 2018 to $1.28 in the third quarter of 2019. We are excited to embark on the initiatives detailed in the shareholder letter to further differentiate our marketplace for both restaurants and diners and position us for maintaining, and eventually improving, profitability.”

Fourth Quarter 2019 Guidance
Based on information available as of October 28, 2019, the Company is providing the following financial guidance for the fourth quarter of 2019.

		Fourth Quarter 2019
		(in millions)
Expected Revenue range		$315 – $335
Expected Adjusted EBITDA range		$15 – $25

Third Quarter 2019 Financial Results Conference Call
Grubhub will webcast a conference call tomorrow at 8:00 a.m. CT to discuss the third quarter 2019 financial results. The webcast can be accessed on the Grubhub Investor Relations website at https://investors.grubhub.com, along with the Company’s letter to shareholders, earnings press release and financial tables. A replay of the webcast will be available at the same website.

Use of Forward Looking Statements
This press release contains forward-looking statements regarding Grubhub, “the Company’s” or our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected benefits to, and financial performance of, Grubhub including its acquisitions. 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 substantial known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements including, but not limited to, achievement of the benefits of our planned additional investments, 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 February 28, 2019, which is on file with the SEC and is available on the Investor Relations section of our website at https://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 September 30, 2019, 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 disclaim any intention to, and undertake 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.

GRUBHUB INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues	$	322,053	$	247,225	$	970,881	$	719,536
Costs and expenses:
Operations and support		161,387		111,511		485,143		310,239
Sales and marketing		71,617		49,426		224,199		144,413
Technology (exclusive of amortization)		29,483		21,258		86,133		57,306
General and administrative		25,329		22,195		73,900		58,072
Depreciation and amortization		30,649		20,987		82,961		61,787
Total costs and expenses		318,465		225,377		952,336		631,817
Income from operations		3,588		21,848		18,545		87,719
Interest expense – net		6,025		337		14,304		1,367
Income (loss) before provision for income taxes		(2,437)		21,511		4,241		86,352
Income tax (benefit) expense		(3,447)		(1,234)		(4,911)		2,721
Net income attributable to common stockholders	$	1,010	$	22,745	$	9,152	$	83,631
Net income per share attributable to common stockholders:
Basic	$	0.01	$	0.25	$	0.10	$	0.94
Diluted	$	0.01	$	0.24	$	0.10	$	0.91
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		91,349		90,494		91,159		89,027
Diluted		92,847		93,678		92,850		92,091

KEY BUSINESS METRICS

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Active Diners (000s)		21,197		16,379		21,197		16,379
Daily Average Grubs		457,300		416,000		488,800		425,300
Gross Food Sales (millions)	$	1,400	$	1,215	$	4,362	$	3,680

GRUBHUB INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)


	September 30, 2019		December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	394,000	$	211,245
Short-term investments		32,214		14,084
Accounts receivable, less allowances for doubtful accounts		123,309		110,855
Income tax receivable		2,227		9,949
Prepaid expenses and other current assets		18,632		17,642
Total current assets		570,382		363,775
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization		160,368		119,495
OTHER ASSETS:
Other assets		25,452		14,186
Operating lease right-of-use asset		100,736		—
Goodwill		1,007,968		1,019,239
Acquired intangible assets, net of amortization		513,848		549,013
Total other assets		1,648,004		1,582,438
TOTAL ASSETS	$	2,378,754	$	2,065,708
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability	$	130,544	$	127,344
Accounts payable		23,392		26,656
Accrued payroll		22,537		18,173
Current portion of long-term debt		—		6,250
Current operating lease liability		8,056		—
Other accruals		59,686		44,745
Total current liabilities		244,215		223,168
LONG-TERM LIABILITIES:
Deferred taxes, non-current		28,681		46,383
Noncurrent operating lease liability		111,554		—
Long-term debt		492,776		335,548
Other accruals		817		18,270
Total long-term liabilities		633,828		400,201
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value		9		9
Accumulated other comprehensive loss		(2,346)		(1,891)
Additional paid-in capital		1,144,541		1,094,866
Retained earnings		358,507		349,355
Total Stockholders’ Equity	$	1,500,711	$	1,442,339
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,378,754	$	2,065,708

GRUBHUB INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Nine Months Ended September 30,
	2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	9,152	$	83,631
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		21,665		16,189
Amortization of intangible assets and developed software		61,296		45,598
Stock-based compensation		54,806		36,445
Deferred taxes		(6,208)		2,048
Other		5,210		4,572
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable		(13,335)		(17,969)
Income taxes receivable		7,722		(5,533)
Prepaid expenses and other assets		(11,955)		(15,455)
Restaurant food liability		3,247		1,608
Accounts payable		(50)		5,265
Accrued payroll		4,366		5,311
Other accruals		20,088		3,752
Net cash provided by operating activities		156,004		165,462
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments		(49,506)		(47,642)
Proceeds from maturity of investments		31,736		54,916
Capitalized website and development costs		(35,068)		(21,471)
Purchases of property and equipment		(42,702)		(31,984)
Acquisition of other intangible assets		(8,889)		—
Acquisitions of businesses, net of cash acquired		127		(366,856)
Other cash flows from investing activities		(250)		38
Net cash used in investing activities		(104,552)		(412,999)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt		500,000		175,000
Repayments of borrowings under the credit facility		(342,313)		(52,344)
Proceeds from the issuance of common stock		—		200,000
Taxes paid related to net settlement of stock-based compensation awards		(20,503)		(28,238)
Proceeds from exercise of stock options		4,040		13,010
Payments for debt issuance costs		(9,136)		—
Net cash provided by financing activities		132,088		307,428
Net change in cash, cash equivalents, and restricted cash		183,540		59,891
Effect of exchange rates on cash, cash equivalents and restricted cash		(293)		(406)
Cash, cash equivalents, and restricted cash at beginning of year		215,802		238,239
Cash, cash equivalents, and restricted cash at end of the period	$	399,049	$	297,724
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Cash paid for income taxes	$	567	$	7,508

GRUBHUB INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(in thousands, except per share and per order data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net income	$	1,010	$	22,745	$	9,152	$	83,631
Income taxes		(3,447)		(1,234)		(4,911)		2,721
Interest expense – net		6,025		337		14,304		1,367
Depreciation and amortization		30,649		20,987		82,961		61,787
EBITDA		34,237		42,835		101,506		149,506
Acquisition, restructuring and legal costs		1,312		3,024		3,139		5,665
Stock-based compensation		18,279		14,275		54,806		36,445
Adjusted EBITDA	$	53,828	$	60,134	$	159,451	$	191,616

Net income per order	$	0.02	$	0.59	$	0.07	$	0.72
Adjusted EBITDA per order	$	1.28	$	1.57	$	1.19	$	1.65


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net income	$	1,010	$	22,745	$	9,152	$	83,631
Stock-based compensation		18,279		14,275		54,806		36,445
Amortization of acquired intangible assets		13,575		10,037		37,345		31,107
Acquisition, restructuring and legal costs		1,312		3,024		3,139		5,665
Income tax adjustments		(9,510)		(7,854)		(26,967)		(21,160)
Non-GAAP net income	$	24,666	$	42,227	$	77,475	$	135,688
Weighted-average diluted shares used to compute net income per share attributable to common stockholders		92,847		93,678		92,850		92,091
Non-GAAP net income per diluted share attributable to common stockholders	$	0.27	$	0.45	$	0.83	$	1.47

	Guidance
	Three Months Ended December 31, 2019
	Low		High
	(in millions)
Net loss	$	(44.8)	$	(33.9)
Income taxes		3.8		2.9
Interest expense – net		6.0		6.0
Depreciation and amortization		31.0		31.0
EBITDA		(4.0)		6.0
Acquisition, restructuring and legal costs		—		—
Stock-based compensation		19.0		19.0
Adjusted EBITDA	$	15.0	$	25.0

Grubhub To Announce Third Quarter 2019 Financial Results On Oct. 29, 2019

CHICAGO, Oct. 15, 2019 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced it will host a conference call to discuss its third quarter financial results on Tuesday, Oct. 29, 2019, at 8:00 a.m. CT, following the release of the Company’s financial results. Founder & CEO Matt Maloney and President & CFO Adam DeWitt will host the webcast.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives 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 125,000 restaurant partners in over 2,400 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

GrubHub Logo

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Grubhub Features Hundreds Of Millions Of Dollars In Free Food With The Launch Of “Perks”

Starting today, diners across the country can tap into exclusive offers, personalized incentives, and loyalty rewards on Grubhub

CHICAGO, Sept. 4, 2019 /PRNewswire/ — Grubhub (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced the launch of “Perks,” the company’s newest in-app feature, which is a treasure trove of offers only available on Grubhub along with new ways to earn and redeem restaurant loyalty rewards.

Whether it’s a special deal at a local spot or hundreds of dollars in free food from restaurants around the neighborhood, “Perks” offers Grubhub diners one place to find exclusive offers from nearby restaurants. “Restaurants have always used free food as a perk for their VIP diners – to keep them happy and coming back. We have now extended this practice to Grubhub diners by building loyalty tools so our restaurant partners can promote their restaurants more aggressively on our marketplace and reward their best digital diners as well,” said Matt Maloney, Grubhub founder and CEO.

Perks will highlight many giveaways and incentives only available on Grubhub and will offer a seamless integration of restaurant loyalty programs so diners can earn and burn points digitally as well as on the restaurants’ white label app or physically in-store. “Perks” will now be the go-to spot for diners to track all reward spending and find ongoing deals from nearby restaurants.

Starting today, eligible diners will be able to choose from a range of offers only available on Grubhub from participating restaurant locations, including:

Free Cheesy Gordita Crunch from Taco Bell
Free Original or Cinnamon Sugar Pretzel from Auntie Anne’s
Free 1 Dozen Cheddar Bay Biscuits® fromRed Lobster
Free 20 oz smoothie from Smoothie King

More “Perks” from the brands diners love – including Shake Shack, Just Salad, honeygrow, Pokeworks, and Argo Tea, among others – will also be available starting today and throughout the year.

“Perks,” accessed with a tab at the bottom of the screen in the Grubhub and Seamless mobile apps, is comprised of two pieces:

Redeem lists all rewards earned or offered for immediate use, which can total more than $400 in free food at any given time — from local restaurants to regional and national brands.
Earn houses all restaurant loyalty programs where diners can easily enroll and track their progress toward reward goals.

Starting today, diners can find deals nearby by accessing the “Perks” tab in the most up-to-date version of the Grubhub and Seamless apps. To stay up-to-date on trends and restaurants nearby, check out the Grubhub Blog or follow along on Facebook and Instagram.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives 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 125,000 restaurant partners in over 2,400 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

Grubhub Joins Forces With No Kid Hungry As Leading Partner To End Childhood Hunger In America

With more than $6 million raised to date through its Donate the Change feature, Grubhub becomes one of No Kid Hungry’s most significant partners, raising enough funds that can help provide up to 60 million meals and counting to kids in need

CHICAGO and WASHINGTON, Aug. 29, 2019 /PRNewswire/ — Grubhub (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, and No Kid Hungry, the campaign from Share Our Strength working to end childhood hunger in America, today announced their expanded partnership designating Grubhub as a Leading Partner. As one of No Kid Hungry’s two Leading Partners, Grubhub joins the highest rank of donors on behalf of its diners, leading the charge to help end childhood hunger in America.

Since the start of the partnership in late 2018, Grubhub’s more than 20 million diners have donated over $6 million to eradicate child hunger in America through its Donate the Change program, showing the power of its platform to make a difference. Since $1 can provide up to 10 meals to children in need, this partnership has raised enough funds to help provide up to 60 million meals—and counting. Grubhub and No Kid Hungry will continue to innovate and create new ways to raise awareness, collaborating on and developing programs that support their combined dedication to ending childhood hunger.

“We are proud to recognize Grubhub as a No Kid Hungry Leading Partner in the fight to end childhood hunger in this country,” said Billy Shore, founder and executive chair of Share Our Strength, the organization behind the No Kid Hungry campaign. “Childhood hunger is a problem we know how to solve, but we can’t do it alone. Grubhub’s diners have already helped us raise more than $6 million, allowing us to expand our work so that more children in America get the nutrition they need to grow up healthy and strong. We are excited to see what the future holds for our partnership.”

To kick off the expanded efforts, and leading into Hunger Awareness Month this September, Grubhub will also be a National Sponsor of Dine for No Kid Hungry, which unites America’s restaurant industry and its guests in raising funds to help end childhood hunger. Digital ordering and delivery have exploded, resulting in an exciting opportunity for No Kid Hungry to broaden its original “Dine Out” campaign to simply “Dine” for No Kid Hungry, giving people the ability to contribute to No Kid Hungry by ordering through Grubhub in addition to eating out at one of the organization’s partner restaurants.

Additionally, as part of the partnership, Grubhub Founder and CEO Matt Maloney has joined the organization’s Dine for No Kid Hungry Advisory Board, sitting alongside some of the nation’s most respected restaurant industry executives who are committed to ending childhood hunger.

“Since we launched our Donate the Change feature, we’ve seen the power of our platform and enthusiasm around No Kid Hungry’s mission. By allowing them to make small contributions, we’ve empowered our diners to make a huge impact on the life of a hungry child,” stated Matt Maloney, Grubhub founder and CEO. “I’m excited to be part of this incredible organization and to further contribute to the powerful mission of No Kid Hungry.”

In order to participate in Donate the Change, diners can opt-in at checkout through Grubhub and Seamless. To stay up-to-date on trends and restaurants nearby, check out the Grubhub Blog or follow along on Facebook and Instagram.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives 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 125,000 restaurant partners in over 2,400 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

About No Kid Hungry
No child should go hungry in America. But 1 in 6 kids lives with hunger. No Kid Hungry is ending childhood hunger through effective programs that help provide kids with the food they need. This is a problem we know how to solve. No Kid Hungry is a campaign of Share Our Strength, an organization working to end hunger and poverty. Join us at NoKidHungry.org

Grubhub Reports Second Quarter 2019 Results

Grubhub generates 36% revenue growth in the second quarter

CHICAGO, July 30, 2019 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced financial results for the second quarter ended June 30, 2019. The Company posted revenues of $325 million, which is a 36% year-over-year increase from $240 million in the second quarter of 2018. Gross Food Sales grew 20% year-over-year to $1.5 billion, up from $1.2 billion in the same period last year.

“The team continued executing in the second quarter, adding thousands of new, high-quality independent and enterprise restaurants and growing our active diner base to more than 20 million,” said Matt Maloney, Grubhub founder and CEO. “We are excited about the trajectory of our two-sided marketplace – both in terms of geographic diversity and depth in individual markets. Restaurants are increasingly valuing the incremental sales and products we provide, while diners highly regard our robust restaurant selection and consistently low transaction fees.”

Second Quarter 2019 Highlights

The following results reflect the financial performance and key operating metrics of our business for the three months ended June 30, 2019, as compared to the same period in 2018.

Second Quarter Financial Highlights

Revenues: $325.1 million, a 36% year-over-year increase from $239.7 million in the second quarter of 2018.
Net Income: $1.3 million, or $0.01 per diluted share, a 96% year-over-year decrease from $30.1 million, or $0.33 per diluted share, in the second quarter of 2018.
Non-GAAP Adjusted EBITDA: $54.7 million, a 19% year-over-year decrease from $67.4 million in the second quarter of 2018.
Non-GAAP Net Income: $24.9 million, or $0.27 per diluted share, a 46% year-over-year decrease from $46.3 million, or $0.50 per diluted share, in the second quarter of 2018.

Second Quarter Key Business Metrics Highlights¹

Active Diners: 20.3 million, a 30% year-over-year increase from 15.6 million Active Diners in the second quarter of 2018.
Daily Average Grubs (DAGs): 488,900, a 16% year-over-year increase from 423,200 DAGs in the second quarter of 2018.
Gross Food Sales: $1.5 billion, a 20% year-over-year increase from $1.2 billion in the second quarter of 2018.

“Our Adjusted EBITDA per order increased by $0.14 from the first quarter to $1.23 despite the headwind of the seasonally slower second quarter. This sequential improvement was primarily driven by increasing delivery efficiency, especially in our quickly ramping recently launched markets,” said Adam DeWitt, Grubhub president and CFO. “We have achieved this profitability improvement while extending our delivery business into smaller and less dense markets, setting us up for continued unit economic improvement as we head into our seasonally stronger months at the end of the year.”

Third Quarter and Full Year 2019 Guidance

Based on information available as of July 30, 2019, the Company is providing the following financial guidance for the third quarter and full year of 2019.

	Third Quarter 2019	Full Year 2019
	(in millions)
Expected Revenue range	$320 – $340	$1,340 – $1,390
Expected Adjusted EBITDA range	$53 – $60	$235 – $250

Second Quarter 2019 Financial Results Conference Call

Grubhub will webcast a conference call today at 9:00 a.m. CT to discuss the second quarter 2019 financial results. The webcast can be accessed on the Grubhub Investor Relations website at https://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.

About Grubhub

Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives 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 125,000 restaurant partners in over 2,400 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

Use of Forward Looking Statements

This press release contains forward-looking statements regarding Grubhub, “the Company’s” or our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected benefits to, and financial performance of, Grubhub including its acquisitions. 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 substantial 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 February 28, 2019, which is on file with the SEC and is available on the Investor Relations section of our website at https://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 June 30, 2019, 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 disclaim any intention to, and undertake 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.

^{_____________________________

1} Key Business Metrics are defined on page 29 of our Annual Report on Form 10-K filed on February 28, 2019.

GRUBHUB INC. STATEMENTS OF OPERATIONS (in thousands, except per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Revenues	$	325,058	$	239,741	$	648,828	$	472,311
Costs and expenses:
Operations and support		162,406		102,445		323,756		198,728
Sales and marketing		74,128		46,231		152,582		94,987
Technology (exclusive of amortization)		29,400		18,717		56,650		36,048
General and administrative		25,784		18,180		48,571		35,877
Depreciation and amortization		27,223		19,849		52,312		40,800
Total costs and expenses		318,941		205,422		633,871		406,440
Income from operations		6,117		34,319		14,957		65,871
Interest expense – net		5,467		8		8,279		1,030
Income before provision for income taxes		650		34,311		6,678		64,841
Income tax (benefit) expense		(602)		4,191		(1,464)		3,955
Net income attributable to common stockholders	$	1,252	$	30,120	$	8,142	$	60,886
Net income per share attributable to common stockholders:
Basic	$	0.01	$	0.34	$	0.09	$	0.69
Diluted	$	0.01	$	0.33	$	0.09	$	0.67
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		91,177		89,503		91,064		88,294
Diluted		92,786		92,503		92,852		91,297

KEY BUSINESS METRICS

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Active Diners (000s)		20,288		15,581		20,288		15,581
Daily Average Grubs		488,900		423,200		504,900		430,000
Gross Food Sales (millions)	$	1,459	$	1,220	$	2,962	$	2,465

GRUBHUB INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)



	June 30, 2019		December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	358,847	$	211,245
Short-term investments		18,190		14,084
Accounts receivable, less allowances for doubtful accounts		123,801		110,855
Income tax receivable		9,520		9,949
Prepaid expenses and other current assets		23,752		17,642
Total current assets		534,110		363,775
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization		148,995		119,495
OTHER ASSETS:
Other assets		23,166		14,186
Operating lease right-of-use asset		104,078		—
Goodwill		1,005,477		1,019,239
Acquired intangible assets, net of amortization		527,423		549,013
Total other assets		1,660,144		1,582,438
TOTAL ASSETS	$	2,343,249	$	2,065,708
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability	$	124,261	$	127,344
Accounts payable		21,527		26,656
Accrued payroll		21,296		18,173
Current portion of long-term debt		—		6,250
Current operating lease liability		6,875		—
Other accruals		46,697		44,745
Total current liabilities		220,656		223,168
LONG-TERM LIABILITIES:
Deferred taxes, non-current		32,695		46,383
Noncurrent operating lease liability		114,724		—
Long-term debt		492,723		335,548
Other accruals		751		18,270
Total long-term liabilities		640,893		400,201
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value		9		9
Accumulated other comprehensive loss		(1,980)		(1,891)
Additional paid-in capital		1,126,174		1,094,866
Retained earnings		357,497		349,355
Total Stockholders’ Equity	$	1,481,700	$	1,442,339
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,343,249	$	2,065,708

GRUBHUB INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Six Months Ended June 30,
	2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	8,142	$	60,886
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		13,626		10,526
Deferred taxes		298		(3,308)
Amortization of intangible assets and developed software		38,686		30,274
Stock-based compensation		36,527		22,170
Other		3,240		3,042
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable		(13,349)		3,888
Income taxes receivable		429		1,882
Prepaid expenses and other assets		(14,857)		(8,446)
Restaurant food liability		(3,078)		(9,870)
Accounts payable		(10,216)		(107)
Accrued payroll		3,122		(1,961)
Other accruals		7,219		7,041
Net cash provided by operating activities		69,789		116,017
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments		(25,526)		(44,271)
Proceeds from maturity of investments		21,636		29,116
Capitalized website and development costs		(22,188)		(13,145)
Purchases of property and equipment		(23,140)		(19,266)
Acquisition of other intangible assets		(8,889)		—
Acquisitions of businesses, net of cash acquired		127		737
Other cash flows from investing activities		—		24
Net cash used in investing activities		(57,980)		(46,805)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of senior notes		500,000		—
Repayments of borrowings under the credit facility		(342,313)		(51,562)
Proceeds from the issuance of common stock		—		200,000
Taxes paid related to net settlement of stock-based compensation awards		(15,360)		(18,717)
Proceeds from exercise of stock options		2,930		9,958
Payments for debt issuance costs		(8,954)		—
Net cash provided by financing activities		136,303		139,679
Net change in cash, cash equivalents, and restricted cash		148,112		208,891
Effect of exchange rates on cash, cash equivalents and restricted cash		(2)		(318)
Cash, cash equivalents, and restricted cash at beginning of year		215,802		238,239
Cash, cash equivalents, and restricted cash at end of the period	$	363,912	$	446,812
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Cash paid for income taxes	$	567	$	7,426

GRUBHUB INC. NON-GAAP FINANCIAL MEASURES RECONCILIATION (in thousands, except per share data)

	Three Months Ended June 30,					Six Months Ended June 30,
	2019			2018		2019			2018
Net income	$	1,252		$	30,120	$	8,142		$	60,886
Income taxes		(602)			4,191		(1,464)			3,955
Interest expense – net		5,467	¹		8		8,279	¹		1,030
Depreciation and amortization		27,223			19,849		52,312			40,800
EBITDA		33,340			54,168		67,269			106,671
Acquisition, restructuring and legal costs		1,341			1,312		1,827			2,641
Stock-based compensation		20,049	²		11,939		36,527	²		22,170
Adjusted EBITDA	$	54,730		$	67,419	$	105,623		$	131,482

	Three Months Ended June 30,					Six Months Ended June 30,
	2019			2018		2019			2018
Net income	$	1,252		$	30,120	$	8,142		$	60,886
Stock-based compensation		20,049	²		11,939		36,527	²		22,170
Amortization of acquired intangible assets		11,828			9,527		23,770			21,070
Acquisition, restructuring and legal costs		1,341			1,312		1,827			2,641
Income tax adjustments		(9,595)			(6,628)		(17,457)			(13,305)
Non-GAAP net income	$	24,875		$	46,270	$	52,809		$	93,462
Weighted-average diluted shares used to compute net income per share attributable to common stockholders		92,786			92,503		92,852			91,297
Non-GAAP net income per diluted share attributable to common stockholders	$	0.27		$	0.50	$	0.57		$	1.02

	Guidance
	Three Months Ended September 30, 2019				Year Ended December 31, 2019
	Low		High		Low		High
	(in millions)
Net income (loss)	$	(1.6)	$	2.8	$	18.8	$	28.1
Income taxes		(0.9)		1.7		5.1		10.8
Interest expense ̶ net		6.5		6.5		21.3		21.3
Depreciation and amortization		30.0		30.0		114.0		114.0
EBITDA		34.0		41.0		159.2		174.2
Acquisition and restructuring costs		—		—		1.8		1.8
Stock-based compensation		19.0		19.0		74.0		74.0
Adjusted EBITDA	$	53.0	$	60.0	$	235.0	$	250.0

^{_____________________________}¹ Interest expense for the three and six months ended June 30, 2019 included $1.8 million and $1.9 million, respectively, of expense for the write-off of unamortized debt issuance costs in February and June of 2019.
²Stock-based compensation for the three and six months ended June 30, 2019 included $1.6 million of expense related to the accelerated vesting of equity awards to a terminated acquired employee.

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