Company Archives - Page 12 of 24

Grubhub Announces $400 Million Senior Notes Offering

CHICAGO, June 3, 2019 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB) (“Grubhub”), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced that its wholly-owned subsidiary, Grubhub Holdings Inc. (“Grubhub Holdings”), intends to offer $400 million aggregate principal amount of new senior notes due 2027 (the “notes”) in a private offering.

The notes will be senior unsecured obligations of Grubhub Holdings and will be guaranteed by Grubhub and each of its domestic subsidiaries that serve as guarantors under Grubhub’s credit facility. Grubhub intends to use the net proceeds from the offering primarily to repay the approximately $340 million of outstanding borrowings under its existing secured credit facility.

The notes and related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes and related guarantees. Any offers of the notes and related guarantees will be made only by means of a private offering memorandum. The notes and related guarantees have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

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 115,000 restaurant partners in over 2,200 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

Forward-Looking Statements
This press release contains “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, such as those regarding the notes offering, involve substantial known and unknown risks, uncertainties and assumptions that could cause actual results to differ materially from any future results expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the notes offering being subject to market conditions as well as the other risks and uncertainties 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. 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 Reports First Quarter 2019 Results

Grubhub generates 39% revenue growth in the first quarter

CHICAGO, April 25, 2019 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced financial results for the first quarter ended March 31, 2019. The Company posted revenues of $324 million, which is a 39% year-over-year increase from $233 million in the first quarter of 2018. Gross Food Sales grew 21% year-over-year to $1.5 billion, up from $1.2 billion in the same period last year.

“We are extremely proud of our entire team for another fantastic quarter of execution – record new diner growth, thousands of new quality restaurants added to our platform and a sixth consecutive quarter of organic order acceleration. Even with our recent ramp in growth investments, adjusted EBITDA per order improved during the quarter, underscoring our ability to grow in a long-term sustainable manner,” said Grubhub Founder and CEO Matt Maloney. “Our partnership model allows restaurant brands, large and small, to own their online business. The success of the Taco Bell launch, which drove meaningful incremental business to both Taco Bell and Grubhub, exemplifies how powerful these partnerships can be.”

First Quarter 2019 Highlights

The following results reflect the financial performance and key operating metrics of our business for the three months ended March 31, 2019, as compared to the same period in 2018.

First Quarter Financial Highlights

Revenues: $323.8 million, a 39% year-over-year increase from $232.6 million in the first quarter of 2018.
Net Income: $6.9 million, or $0.07 per diluted share, a 78% year-over-year decrease from $30.8 million, or $0.34 per diluted share, in the first quarter of 2018.
Non-GAAP Adjusted EBITDA: $50.9 million, a 21% year-over-year decrease from $64.1 million in the first quarter of 2018.
Non-GAAP Net Income: $27.9 million, or $0.30 per diluted share, a 41% year-over-year decrease from $47.2 million, or $0.52 per diluted share, in the first quarter of 2018.

First Quarter Key Business Metrics Highlights¹

Active Diners were 19.3 million, a 28% year-over-year increase from 15.1 million Active Diners in the first quarter of 2018.
Daily Average Grubs (DAGs) were 521,000, a 19% year-over-year increase from 436,900 DAGs in the first quarter of 2018.
Gross Food Sales were $1.5 billion, a 21% year-over-year increase from $1.2 billion in the first quarter of 2018.

“The strong momentum in our business throughout 2018 continued in the first quarter of 2019, including continued accelerating growth and a 21% sequential increase in adjusted EBITDA. The dramatic increase in the scale and diversity of our diner base combined with the consistent diner value outlined in the supplemental disclosure sets us up for a great future,” added Grubhub President and CFO, Adam DeWitt. “We anticipate our typical seasonality in the second and third quarters and remain on track for both our topline and bottom-line objectives for the full year 2019.”

Second Quarter and Full Year 2019 Guidance

Based on information available as of April 25, 2019, the Company is providing the following financial guidance for the second quarter and full year of 2019.

	Second Quarter 2019	Full Year 2019
	(in millions)
Expected Revenue range	$305 – $325	$1,315 – $1,415
Expected Adjusted EBITDA range	$49 – $59	$235 – $265

First Quarter 2019 Financial Results Conference Call and Supplemental Information

Grubhub will webcast a conference call today at 3:30 p.m. CT to discuss the first quarter 2019 financial results. The webcast can be accessed on the Grubhub Investor Relations website at https://investors.grubhub.com. A replay of the webcast will be available at the same website.

This quarter the Company will post supplemental information about the business and financial results, which will be available on the Grubhub Investor Relations website, along with the Company’s earnings press release and financial tables.

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 115,000 restaurant partners in over 2,200 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 March 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.



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 March 31,
	2019		2018
Revenues	$	323,770	$	232,570
Costs and expenses:
Operations and support		161,350		96,283
Sales and marketing		78,454		48,756
Technology (exclusive of amortization)		27,250		17,331
General and administrative		22,787		17,697
Depreciation and amortization		25,089		20,951
Total costs and expenses		314,930		201,018
Income from operations		8,840		31,552
Interest expense – net		2,812		1,022
Income before provision for income taxes		6,028		30,530
Income tax benefit		(862)		(236)
Net income attributable to common stockholders	$	6,890	$	30,766
Net income attributable to common stockholders
Basic	$	0.08	$	0.35
Diluted	$	0.07	$	0.34
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		90,951		87,085
Diluted		92,918		90,091

KEY BUSINESS METRICS

	Three Months Ended March 31,
	2019		2018
Active Diners (000s)		19,286		15,078
Daily Average Grubs		521,000		436,900
Gross Food Sales (millions)	$	1,502.3	$	1,245.0

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



	March 31, 2019		December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	189,694	$	211,245
Short-term investments		14,704		14,084
Accounts receivable, less allowances for doubtful accounts		141,047		110,855
Income tax receivable		10,865		9,949
Prepaid expenses and other current assets		19,936		17,642
Total current assets		376,246		363,775
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization		136,347		119,495
OTHER ASSETS:
Other assets		22,427		14,186
Operating lease right-of-use asset		78,674		—
Goodwill		1,005,381		1,019,239
Acquired intangible assets, net of amortization		534,989		549,013
Total other assets		1,641,471		1,582,438
TOTAL ASSETS	$	2,154,064	$	2,065,708
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability	$	140,469	$	127,344
Accounts payable		15,677		26,656
Accrued payroll		18,586		18,173
Taxes payable		1,179		422
Current portion of long-term debt		10,156		6,250
Current operating lease liability		13,436		—
Other accruals		50,164		44,323
Total current liabilities		249,667		223,168
LONG-TERM LIABILITIES:
Deferred taxes, non-current		31,411		46,383
Noncurrent operating lease liability		82,405		—
Long-term debt		328,193		335,548
Other accruals		751		18,270
Total long-term liabilities		442,760		400,201
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value		9		9
Accumulated other comprehensive loss		(1,664)		(1,891)
Additional paid-in capital		1,107,047		1,094,866
Retained earnings		356,245		349,355
Total stockholders’ equity	$	1,461,637	$	1,442,339
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,154,064	$	2,065,708

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

	Three Months Ended March 31,
	2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	6,890	$	30,766
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		6,193		5,050
Deferred taxes		(986)		(2,976)
Amortization of intangible assets and developed software		18,896		15,901
Stock-based compensation		16,478		10,231
Other		735		2,048
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable		(30,391)		(172)
Income taxes receivable		(916)		4,090
Prepaid expenses and other assets		(10,666)		(3,516)
Restaurant food liability		13,099		6,885
Accounts payable		(18,644)		601
Accrued payroll		411		(3,295)
Other accruals		12,845		5,887
Net cash provided by operating activities		13,944		71,500
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments		(12,160)		(10,537)
Proceeds from maturity of investments		11,636		18,166
Capitalized website and development costs		(10,692)		(6,262)
Purchases of property and equipment		(8,018)		(5,462)
Acquisition of other intangible assets		(5,379)		—
Acquisitions of businesses, net of cash acquired		127		737
Other cash flows from investing activities		—		16
Net cash used in investing activities		(24,486)		(3,342)
CASH FLOWS FROM FINANCING ACTIVITIES
Taxes paid related to net settlement of stock-based compensation awards		(9,966)		(11,485)
Proceeds from exercise of stock options		2,424		6,948
Repayments of borrowings under the credit facility		(2,031)		(25,781)
Payments for debt issuance costs		(1,647)		—
Net cash used in financing activities		(11,220)		(30,318)
Net change in cash, cash equivalents, and restricted cash		(21,762)		37,840
Effect of exchange rates on cash, cash equivalents and restricted cash		232		356
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	$	194,272	$	276,435
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Cash paid for income taxes	$	351	$	227

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

	Three Months Ended March 31,
	2019		2018
Net income	$	6,890	$	30,766
Income taxes		(862)		(236)
Interest expense – net		2,812		1,022
Depreciation and amortization		25,089		20,951
EBITDA		33,929		52,503
Acquisition, restructuring and legal costs		486		1,329
Stock-based compensation		16,478		10,231
Adjusted EBITDA	$	50,893	$	64,063

	Three Months Ended March 31,
	2019		2018
Net income	$	6,890	$	30,766
Stock-based compensation		16,478		10,231
Amortization of acquired intangible assets		11,942		11,543
Acquisition, restructuring and legal costs		486		1,329
Income tax adjustments		(7,862)		(6,677)
Non-GAAP net income	$	27,934	$	47,192
Weighted-average diluted shares used to compute net income per share attributable to common stockholders		92,918		90,091
Non-GAAP net income per diluted share attributable to common stockholders	$	0.30	$	0.52

	Guidance
	Three Months Ended June 30, 2019				Year Ended December 31, 2019
	Low		High		Low		High
	(in millions)
Net income	$	0.6	$	7.5	$	29.7	$	50.4
Income taxes		0.3		3.4		13.4		22.7
Interest expense ̶ net		2.8		2.8		11.4		11.4
Depreciation and amortization		27.0		27.0		106.0		106.0
EBITDA		30.7		40.7		160.5		190.5
Acquisition and restructuring costs		—		—		0.5		0.5
Stock-based compensation		18.3		18.3		74.0		74.0
Adjusted EBITDA	$	49.0	$	59.0	$	235.0	$	265.0

Grubhub To Announce First Quarter 2019 Financial Results On April 25, 2019

CHICAGO, April 11, 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 first quarter financial results on Thursday, April 25, 2019, at 3:30 p.m. CT, following the release of the Company’s financial results. Founder & CEO Matt Maloney and President & CFO Adam DeWitt will host the webcast.

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 105,000 restaurant partners in over 2,000 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, Eat24, AllMenus and MenuPages.

View original content to download multimedia:http://www.prnewswire.com/news-releases/grubhub-to-announce-first-quarter-2019-financial-results-on-april-25-2019-300830740.html

Grubhub Reports Record Fourth Quarter And Full Year 2018 Results

Grubhub generates 40% revenue growth in the fourth quarter

CHICAGO, Feb. 7, 2019 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced financial results for the fourth quarter ended Dec. 31, 2018. The Company posted revenues of $288 million, which is a 40% year-over-year increase from $205 million in the fourth quarter of 2017. Gross Food Sales grew 21% year-over-year to $1.4 billion, up from $1.1 billion in the same period last year.

“2018 was a transformational year for Grubhub. We made great progress connecting hungry takeout diners with the restaurants they want, further positioning ourselves to continue to capture a significant share of the more than $200 billion takeout industry in the U.S.,” said Matt Maloney, Grubhub’s founder and chief executive officer. “We deepened relationships with our restaurant partners through acquisitions of LevelUp and Tapingo, increased the number of restaurants that partner with us to more than 105,000, grew active diners on our platform by 3.2 million, and – most emblematic of the year – accelerated organic DAG growth on our marketplace every single quarter. We couldn’t be more excited about building on this momentum in 2019.”

Fourth Quarter and Full Year 2018 Highlights
The following results reflect the financial performance and key operating metrics of our business for the three and twelve months ended Dec. 31, 2018, as compared to the same periods in 2017.

Fourth Quarter Financial Highlights

Revenues: $287.7 million, a 40% year-over-year increase from $205.1 million in the fourth quarter of 2017.
Net Income (Loss): $(5.2) million, or $(0.06) per diluted share, an 110% year-over-year decrease from $53.5 million, or $0.60 per diluted share, in the fourth quarter of 2017.
Non-GAAP Adjusted EBITDA: $42.1 million, a 26% year-over-year decrease from $57.0 million in the fourth quarter of 2017.
Non-GAAP Net Income: $17.6 million, or $0.19 per diluted share, a 47% year-over-year decrease from $33.3 million, or $0.37 per diluted share, in the fourth quarter of 2017.

Fourth Quarter Key Business Metrics Highlights¹

Active Diners were 17.7 million, a 22% year-over-year increase from 14.5 million Active Diners in the fourth quarter of 2017.
Daily Average Grubs (DAGs) were 467,500, a 19% year-over-year increase from 392,500 DAGs in the fourth quarter of 2017.
Gross Food Sales were $1.4 billion, a 21% year-over-year increase from $1.1 billion in the fourth quarter of 2017.

Full Year Financial Highlights

Revenues: $1.0 billion, a 47% year-over-year increase from $683.1 million in 2017.
Net Income: $78.5 million, or $0.85 per diluted share, a 21% year-over-year decrease from $99.0 million, or $1.12 per diluted share, in 2017.
Non-GAAP Adjusted EBITDA: $233.7 million, a 27% year-over-year increase from $184.0 million in 2017.
Non-GAAP Net Income: $153.3 million, or $1.66 per diluted share, a 44% year-over-year increase from $106.1 million, or $1.20 per diluted share, in 2017.

Full Year Key Business Metrics Highlights¹

Active Diners were 17.7 million, a 22% year-over-year increase from 14.5 million Active Diners in 2017.
Daily Average Grubs (DAGs) were 435,900, a 31% year-over-year increase from 334,000 DAGs in 2017.
Gross Food Sales were $5.1 billion, a 34% year-over-year increase from $3.8 billion in 2017.

________________________
¹ Key Business Metrics are defined in the table below.

“In the fourth quarter, we announced meaningful incremental investments in marketing and the launch of new Grubhub Delivery markets. Both investments yielded great results, contributing to record active diners during the quarter and accelerated DAG growth, with exceptionally strong growth in our newer markets,” said Adam DeWitt, Grubhub’s president and chief financial officer. “These strategic investments have laid the ideal foundation for long-term profitable growth. We also expect them to help us generate meaningful operating leverage throughout 2019, with per order economics likely similar to the third quarter of 2018 as we exit this year.”

First Quarter and Full Year 2019 Guidance
Based on information available as of Feb. 7, 2019, the Company is providing the following financial guidance for the first quarter and full year of 2019.

	First Quarter 2019	Full Year 2019
	(in millions)
Expected Revenue range	$310 – $330	$1,315 – $1,415
Expected Adjusted EBITDA range	$40 – $50	$235 – $265

Fourth Quarter and Full Year 2018 Financial Results Conference Call
Grubhub will webcast a conference call today at 9 a.m. CT to discuss the fourth quarter 2018 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 105,000 restaurant partners in over 2,000 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, Eat24, 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, 2018 and our most recent Quarterly Report on Form 10-Q for the quarter ended Sep. 30, 2018, 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, 2018, 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, the impact of the U.S. Tax Cuts and Jobs Act (“U.S. Tax Act”) 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 “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 December 31,				Year Ended December 31,
	2018		2017		2018		2017
Revenues	$	287,721	$	205,080	$	1,007,257	$	683,067
Costs and expenses:
Operations and support		144,082		81,658		454,321		269,453
Sales and marketing		69,877		45,384		214,290		150,730
Technology (exclusive of amortization)		24,972		14,703		82,278		56,263
General and administrative		27,393		18,396		85,465		65,023
Depreciation and amortization		24,153		18,781		85,940		51,848
Total costs and expenses		290,477		178,922		922,294		593,317
Income (loss) from operations		(2,756)		26,158		84,963		89,750
Interest expense – net		2,163		1,010		3,530		102
Income (loss) before provision for income taxes		(4,919)		25,148		81,433		89,648
Income tax (benefit) expense		231		(28,378)		2,952		(9,335)
Net income (loss) attributable to common stockholders	$	(5,150)	$	53,526	$	78,481	$	98,983
Net income (loss) per share attributable to common stockholders:
Basic	$	(0.06)	$	0.62	$	0.88	$	1.15
Diluted	$	(0.06)	$	0.60	$	0.85	$	1.12
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic		90,705		86,702		89,447		86,297
Diluted		93,144		89,366		92,354		88,182

KEY BUSINESS METRICS

	Three Months Ended December 31,				Year Ended December 31,
	2018		2017		2018		2017
Active Diners (000s)		17,688		14,462		17,688		14,462
Daily Average Grubs		467,500		392,500		435,900		334,000
Gross Food Sales (millions)	$	1,376.9	$	1,138.6	$	5,056.8	$	3,783.7

Key business metrics include transactions placed on the Grubhub takeout marketplace or a related platform where the Company provides marketing services to generate orders (collectively, the “Platform”). The Platform excludes transactions where the Company exclusively provides technology or fulfillment services.

Active Diners. The number of unique diner accounts from which an order has been placed in the past twelve months through the Company’s Platform.

Daily Average Grubs. The number of orders placed on the Platform divided by the number of days for a given period.

Gross Food Sales. The total value of food, beverages, taxes, prepaid gratuities, and any delivery fees processed through the Company’s Platform. The Company includes all revenue generating orders placed on its Platform in this metric; however, revenues are recognized on a net basis for the Company’s commissions from the transaction, which are a percentage of the total Gross Food Sales for such transaction.

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

	December 31, 2018		December 31, 2017
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	211,245	$	234,090
Short-term investments		14,084		23,605
Accounts receivable, less allowances for doubtful accounts		110,855		87,377
Income tax receivable		9,949		8,593
Prepaid expenses and other current assets		17,642		6,818
Total current assets		363,775		360,483
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization		119,495		71,384
OTHER ASSETS:
Other assets		14,186		6,487
Goodwill		1,019,239		589,862
Acquired intangible assets, net of amortization		549,013		515,553
Total other assets		1,582,438		1,111,902
TOTAL ASSETS	$	2,065,708	$	1,543,769
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability	$	127,344	$	119,922
Accounts payable		26,656		7,607
Accrued payroll		18,173		13,186
Taxes payable		422		3,109
Short-term debt		6,250		3,906
Other accruals		44,323		26,818
Total current liabilities		223,168		174,548
LONG-TERM LIABILITIES:
Deferred taxes, non-current		46,383		74,292
Other accruals		18,270		7,468
Long-term debt		335,548		169,645
Total long-term liabilities		400,201		251,405
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value		9		9
Accumulated other comprehensive loss		(1,891)		(1,228)
Additional paid-in capital		1,094,866		849,043
Retained earnings		349,355		269,992
Total Stockholders’ Equity	$	1,442,339	$	1,117,816
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,065,708	$	1,543,769

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

	Year Ended December 31,
	2018		2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	78,481	$	98,983
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		21,647		11,775
Provision for doubtful accounts		941		1,424
Deferred taxes		1,724		(31,179)
Amortization of intangible assets		64,293		40,073
Stock-based compensation		55,261		32,748
Deferred rent		4,974		849
Tenant allowance amortization		(837)		(135)
Amortization of deferred loan costs		715		487
Other		(241)		(168)
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable		(6,092)		(26,236)
Income taxes receivable		(1,356)		(1,597)
Prepaid expenses and other assets		(16,270)		5,516
Restaurant food liability		2,921		8,576
Accounts payable		11,160		(4,244)
Accrued payroll		3,621		5,537
Other accruals		4,585		11,735
Net cash provided by operating activities		225,527		154,144
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired		(517,909)		(333,301)
Purchases of investments		(57,197)		(154,758)
Proceeds from maturity of investments		67,166		215,983
Capitalized website and development costs		(31,180)		(21,325)
Purchases of property and equipment		(43,033)		(18,971)
Acquisition of other intangible assets		(11,851)		(25,147)
Other cash flows from investing activities		—		557
Net cash used in investing activities		(594,004)		(336,962)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of common stock		200,000		—
Proceeds from borrowings under the Credit Agreement		222,000		200,000
Repayments of borrowings under the Credit Agreement		(53,906)		(25,781)
Proceeds from exercise of stock options		14,190		16,375
Taxes paid related to net settlement of stock-based compensation awards		(35,599)		(10,556)
Payment for debt issuance costs		—		(1,979)
Net cash provided by financing activities		346,685		178,059
Net change in cash, cash equivalents, and restricted cash		(21,792)		(4,759)
Effect of exchange rates on cash, cash equivalents and restricted cash		(645)		784
Cash, cash equivalents, and restricted cash at beginning of year		238,239		242,214
Cash, cash equivalents, and restricted cash at end of the period	$	215,802	$	238,239
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Cash paid for income taxes	$	7,895	$	19,148

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

	Three Months Ended December 31,					Year Ended December 31,
	2018			2017		2018				2017
Net income (loss)	$	(5,150)		$	53,526	$	78,481		$	98,983
Income taxes		231			(28,378)		2,952			(9,335)
Interest expense – net		2,163			1,010		3,530			102
Depreciation and amortization		24,153			18,781		85,940			51,848
EBITDA		21,397			44,939		170,903			141,598
Acquisition, restructuring and legal costs		1,913			3,199		7,578			9,642
Stock-based compensation		18,816	²		8,835		55,261	²		32,748
Adjusted EBITDA	$	42,126		$	56,973	$	233,742		$	183,988

	Three Months Ended December 31,					Year Ended December 31,
	2018			2017		2018			2017
Net income (loss)	$	(5,150)		$	53,526	$	78,481		$	98,983
Stock-based compensation		18,816	²		8,835		55,261	²		32,748
Amortization of acquired intangible assets		11,377			11,238		42,484			28,066
Acquisition, restructuring and legal costs		1,913			3,199		7,578			9,642
Income tax benefit of the U.S. Tax Act		—			(34,054)		—			(34,054)
Income tax adjustments		(9,384)			(9,469)		(30,544)			(29,239)
Non-GAAP net income	$	17,572		$	33,275	$	153,260		$	106,146
Weighted-average diluted shares used to compute net income per share attributable to common stockholders		93,144			89,366		92,354			88,182
Non-GAAP net income per diluted share attributable to common stockholders	$	0.19		$	0.37	$	1.66		$	1.20

	Guidance
	Three Months Ended March 31, 2019					Year Ended December 31, 2019
	Low			High		Low			High
	(in millions)
Net income (loss)	$	(3.4)		$	3.7	$	31.0		$	52.3
Income taxes		(1.4)			1.5		12.6			21.3
Interest expense – net		2.8			2.8		11.4			11.4
Depreciation and amortization		25.0			25.0		106.0			106.0
EBITDA		23.0			33.0		161.0			191.0
Acquisition and restructuring costs		—			—		—			—
Stock-based compensation		17.0			17.0		74.0			74.0
Adjusted EBITDA	$	40.0		$	50.0	$	235.0		$	265.0

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

Seamless Celebrates 20th Anniversary As The Iconic New York Takeout Brand

To kick off this year-long celebration, New Yorkers will have a chance to win 20 years of free Seamless!

NEW YORK, Jan. 30, 2019 /PRNewswire/ — Y2K. Cronuts. Bomb Cyclones. Subway shutdowns (real or possibly canceled). Seamless, New York’s largest and favorite takeout app, has delivered through it all for 20 years…and counting! To mark its 20th anniversary, Seamless today announced a series of giveaways, special offers, and activities to celebrate the milestone throughout the year, culminating with the ultimate dream for any New York foodie: a chance to win 20 years of free Seamless. (We’ll wait while that sinks in…)

Like the New York Marathon, Rockefeller Center tree lighting, or hearing “New York, New York” play after each Yankees win, ordering Seamless is a quintessential part of life in New York City. Each year, millions of New Yorkers use Seamless to order from their favorite restaurants and discover new ones. Whether it’s sushi for a night in, appetizers for girls’ night, or a game day spread, it all starts with Seamless.

“Hitting 20 years is an amazing milestone, and it’s been incredible to watch just how much Seamless has positively impacted not only diners’ lives, but the restaurants and delivery partners we’ve worked with through the years as well,” said Matt Maloney, founder and chief executive officer, Grubhub, which merged with Seamless in 2013. “Seamless pioneered online ordering and delivery and we’ve been through it all – the good, the bad, the snowstorms, the heatwaves. We’re excited to spend this special year giving back to the people of New York.”

To celebrate, Seamless is launching a variety of promotions and activities across New York City…

Free Seamless, anyone? Music to any New Yorker’s ears, starting February 20th NYC diners can enter to win 20 years of free Seamless.* That’s… a lot of free Seamless. And if you’re not selected as the lucky winner, don’t fret – 20 diners will also win one year of free Seamless as a “consolation.” To enter, use the code 20YEARS at checkout when you order from a NYC restaurant using your Seamless account, either online or in app, February 20th – 27th. Winners will be announced March 4, 2019. The more you order, the more you’re entered to win!

Seamless <3 NYC. Launched in October 2018, the Seamless “Donate the Change” feature, which allows diners to round their purchases up to the nearest dollar to support a charitable cause or public interest organization, will support NYC Kids RISE. A non-profit organization, NYC Kids RISE aims to make attending and graduating from college and career training more achievable for all NYC public school students—regardless of where they come from or how much their families have in the bank. Starting today through February 28th, Seamless diners can donate to NYC Kids RISE through Donate the Change to fund college scholarships for NYC public school students. Additionally, as a “Made in New York” company as designated by NYC Digital, Seamless will be building a catering search page that highlights locally-owned restaurants available for craft services for all NYC productions.

Surrounded by Seamless. If you’ve taken a taxi, ridden the subway, or walked the streets of New York, you’ve probably seen one of our advertisements and expect to see more! In classic Seamless style, there will be new ads popping up around the city and TV and digital campaigns reflecting how the company has delivered through it all. Done through animation, this new campaign will showcase how Seamless has “fueled the city” over the years with easter eggs bringing to life some of New Yorker’s favorite moments.

Mark the calendar for more. Seamless will launch various ways throughout the year to celebrate the diners, drivers, and restaurants that made 20 years of thriving in NYC possible! Whether it’s a special promo for the month or a surprise perfect for any New Yorker, Seamless will pop up when you least expect it with even more!

Street Cred. Next week, CEO Matt Maloney will be joined by New York City officials, NYC Kids RISE, and some of the company’s longest-running customers to unveil Seamless Street at the corner of 41st and 6th Avenue, officially staking claim in the city that never sleeps. In addition to Maloney, those joining the ceremony include: Andrew Brokman, Deputy Director of External Affairs for the Mayor’s Office of Media & Entertainment in New York City; Debra-Ellen Glickstein, Executive Director of NYC Kids RISE; among others.

Here are a few fun facts to point out just how much Seamless has accomplished in 20 years:

Seamless has driven billions in food sales to local restaurants and has provided over a billion dollars in tips to drivers as well.
Seamless delivery partners have driven, biked, and walked enough miles to cover the Macy’s Thanksgiving Day Parade route over 32 million times, run the New York City Marathon over 3 million times, and cover NYC’s subway tracks over 95,000 times.
Seamless has delivered to some of the city’s most iconic buildings, including Carnegie Hall, Rockefeller Center, Yankee Stadium, Empire State Building, New York Stock Exchange, New York City Library, Electric Lady Studio, Radio City Music Hall, and many (many!) others.

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 95,000 restaurant partners in over 1,700 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, Eat24, AllMenus and MenuPages.

* NO PURCHASE NECESSARY. A PURCHASE DOES NOT INCREASE YOUR CHANCES OF WINNING. VOID WHERE PROHIBITED. Sweepstakes starts 2/20/19 and ends 2/27/19. Open to U.S. residents in NYC who are 18 years or older and have an active Seamless account at time of entry (corporate accounts do not qualify). One winner will be randomly selected to receive a weekly $100 Seamless credit for 20 years, and 20 winners will be randomly selected to receive a weekly $100 Seamless credit for one year. Weekly credit will expire each week and will not roll over into subsequent weeks. Odds of winning depend on number of eligible entries received. Restrictions apply. Official rules and alternate method of entry at https://lp.grubhub.com/legal/seamless20officialrules/. Sponsor: Grubhub Holdings Inc.

Grubhub To Announce Fourth Quarter 2018 Financial Results On Feb. 7, 2019

CHICAGO, Jan. 24, 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 fourth quarter financial results on Thursday, Feb. 7, 2019, at 9:00 a.m. CT, following the release of the Company’s financial results. 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 95,000 restaurant partners in over 1,700 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, Eat24, AllMenus and MenuPages.

Grubhub Releases Annual “Year In Food” Report Detailing Most Popular Dining Trends Of 2018

While vegan-friendly bean burritos top the chart, chicken rules the roost when it comes to food preferences

CHICAGO, Dec. 6, 2018 /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 millions of orders placed by more than 16 million diners on its platform and surveyed consumers across the country on their ordering tastes and eating habits.

Key takeaways include:

FOODS OF THE YEAR:

Plant-based foods were on the rise in 2018. According to Grubhub’s ordering data, bean burritos took the top spot as the food surging the most in popularity in 2018, rising 276% as compared to 2017. And if you’ve been hearing more about cauliflower this year, you’re not alone: cauliflower rice bowls (155% increase) and buffalo cauliflower (124%) also made the list. One food we don’t see in our top 10? Red meat. Overall, the top 10 foods in 2018 are:

bean burrito (276% more popular)
poke (205% more popular)
chicken slider (189% more popular)
baby back pork rib (165% more popular)
chicken burrito (164% more popular)
chicken sandwich (160% more popular)
cauliflower rice bowl (155% more popular)
chicken and waffle slider (145% more popular)
parmesan chicken (139% more popular)
buffalo cauliflower (124% more popular)

A few other fun facts to note:

Avocado toast is no longer all the rage – the dish responsible for emptying millennials bank accounts didn’t even make our top foods of 2018.
While poke bowls are still hot, they’ve fallen to the #2 spot of this year, seeing “only” a 205% increase in popularity, compared to a 643% rise in popularity in 2017.
America can’t get enough chicken, with chicken-based dishes making up half of our top 10 list.

Top Breakfast Items: Healthy items took the top two spots, but close behind are the classics we all know and love.

peanut butter acai bowl (350% more popular)
detox juice (193% more popular)
bacon, egg and cheese sandwich (190% more popular)
breakfast burrito (141% more popular)
french toast (106% more popular)

Top Late-Night Items: People like to spice it up late night, with stuffed jalapenos and spicy miso ramen taking the top two spots. And it’s clear french toast is universally loved, making both our “top breakfast” and “top late-night” lists.

stuffed jalapeno (169% more popular)
spicy miso ramen (167% more popular)
slider (148% more popular)
french toast (119% more popular)
lamb shawarma (70% more popular)

Top Dessert Items: Whether you love a classic brownie or prefer a twist on the basics (we see you, salted caramel cookie), it’s apparent America loves a wide variety of desserts.

brownie (413% more popular)
Oreo cookie cupcake (316% more popular)
baklava (261% more popular)
salted caramel cookie (243% more popular)
cobbler (238% more popular)

Bonus: Coming in at the number six spot were vegan brownies (211% more popular), showing America loves brownies in all forms!

In addition to examining ordering trends on its platform, Grubhub also surveyed nearly 2,000 respondents across the United States who have ordered food in the past three months to understand their points-of-view on how food, food delivery and pickup impacted their lives in 2018. Key takeaways from the survey data are:

WHAT MATTERS MOST

While we know America loves to order in, what matters most to people when choosing when, what, and where to order? Let’s dive in.

The What^*: Fast casual reigns supreme with survey respondents — 40% ordered most from these types of restaurants, followed by quick service (32%) and casual dining at (24%.)

The Where: It’s no surprise the majority (80%) of survey respondents order food to their home. Other locations include work (35%), with friends (32%), on vacation (18%), and traveling for work (14%).

The Why: The top five reasons on why survey respondents order in include:

Didn’t feel like cooking (43%)
Satisfy a craving (30%)
Saving time from cooking/cleaning (28%)
At home game night/movie night (25%)
Family night dinner (24%)

Fun fact: Nearly 1 in 5 survey respondents order for pickup or delivery after having a new baby! (Sounds like a Grubhub gift card would make a great “welcome home” gift.)

GENDER DIFFERENCES

Women and men differ in many ways, and their food preferences are no different. Overall, of all people surveyed by Grubhub, more men ordered pickup or delivery in 2018 (59% ordered at least once a week) compared to women (36%).

Different Tastes: Of those surveyed, when looking at the type of restaurant, 41% of men prefer quick service restaurants^* for pickup or delivery (compared to 25% of women) and 44% of women prefer fast casual restaurants (compared to 36% of men). Diving into specific foods – pizza is about the only thing men (39%) and women (38%) agree on as a top choice. Burgers and chinese are also loved, but to different degrees:

Top Foods Among Men: Burgers (31%) / BBQ (24%) / Chinese (23%)
Top Foods Among Women: Women: Chinese (32%) / Mexican (27%) / Burgers (25%)

Different Habits: More than two-thirds of women surveyed (69%) tend to be spontaneous when it comes to ordering, compared to just over half of men (54%). And when they’ve had a long day, 48% of men will splurge on something more expensive compared to 34% of women.

Different Date Nights: Those surveyed in relationships, slightly more men (38%) than women (31%) feel ordering pickup or delivery is a great way to spend time together. Singles also have different visions for date night when ordering for pickup or delivery, especially when it comes to cuisine:

41% of women prefer pizza on a date, compared to 29% of men
25% of men prefer BBQ, compared to only 11% of women
20% of women prefer sushi, compared to 12% of men

Different Work Preferences: The majority of men and women surveyed order food for pickup or delivery at work (69% and 63%, respectively), though more than half of men (51%) order twice a week or more compared to only 31% of women. Astoundingly, 10% of men surveyed said they order five times or more a week!

FOOD & RELATIONSHIPS

It’s apparent that food matters, whether you’re in a relationship or not.

Food Preferences – It Matters: Almost all surveyed in a relationship (90%) said they prefer if their significant others have the same food preferences as they do, and nearly half (42%) consider it a potential relationship breaker if they don’t. Overall, men care more than women, with 54% saying “of course” food preferences matter, while only 31% of women said the same.

Grounds for Argument: Nearly three quarters of respondents surveyed (71%) said they’ve argued with their significant other about what to order, with 23% saying they “frequently” argued about it in the past year.

Men feel it more, with 35% “frequently” arguing about what to order compared to only 13% of women.
Same could be said for those in urban areas, with 35% also “frequently” arguing about the topic when only 11% of those in the suburbs say the same.
Millennials tend to be a little more lax, with 20% stating they “frequently” argue, compared to 28% of GenXers.

But it’s not all arguing: 95% of those surveyed in relationships know their significant other’s order by heart.

The New Date Night: While we know convenience is key with ordering in and more than one third (34%) of couples surveyed order pickup or delivery for a “date night at home” (and this increases to 38% among men). In addition to date night at home, other reasons to stay in include: not wanting to cook (52%), it’s easier (34%), not enough time (25%) and simple cleanup (23%).

Friend Zone: Of single respondents, more than a quarter (26%) said they judge dates on what they order (this increases to 30% among men, compared to 22% of women).

FOOD & FAMILY

Soccer practice. Karate lessons. Newborn in the family. Play dates. It’s part of life, and an already hectic schedule makes the question of “what’s for dinner?” a tough one.

Family Dinner: It should come as no shock that nearly everyone surveyed with children (91%) have ordered in for their family. The top reason why (46%) is “it was easier” (we get it!). From there, the reasons differed between moms and dads:

Dads do it as a treat for the kids (38%) and because they want to spend more time with family (37%)
Moms say they didn’t have time to cook (44%) or didn’t have anything planned for dinner (44%)

Budget vs. Variety: Moms and dads also have different priorities when ordering. Of those surveyed, dads named “variety of restaurants” (24%) as their top priority, compared to only 19% of moms. Mothers are clearly more budget conscious with 25% choosing “budget-friendly” restaurants, compared to only 19% of men.

Feeling the heat: Again, nearly every parent surveyed orders in for their family but one third of respondents said they feel judged by other parents when they do. This feeling is felt more by dads — 45% say they feel negatively judged when ordering in, compared to 22% of moms.

City vs. Suburban Life: The differences between city living and suburban living extends to food ordering, too:

Parents surveyed in urban areas feel more pressure about ordering in, with nearly half (49%) saying they feel judged by other parents, compared to only (18%) of those in the suburbs.
Moms (49%) and dads (44%) surveyed both agree “it’s just easier” to order in, however, the reasons differed from there. Parents in urban areas order as a “treat for the kids” (37%) and because they “want to spend more time with the family” (36%.) Parent’s in suburban areas, said they “didn’t have time to cook” (46%) and “didn’t have anything planned” (40%).

Late night, order in: Most respondents surveyed (85%) stated they ordered pickup or delivery (versus cooking or going out) after a late night, and this increases for those with kids – 89% of parents stated they’re more likely to order in!

FOOD & WORK

Office Meals: Eating at the office is a common occurrence among employees. Of those surveyed who have ordered at work, 43% do it more than twice a week, and 35% order 2-4 times per week.

It’s Not All About Lunch: According to survey respondents, lunch (81%) is the most popular meal for pickup or delivery, but 44% have also ordered dinner to their place of work. And while 24% ordered breakfast, it seems those in urban areas are more prone to ordering at the office in the morning (32% of urban workers, compared to 13% in suburban areas).

Sad Desk Lunch?: Not for some folks! Of those surveyed, more than half (60%) are getting away from their desk to eat. In fact, over a third (35%) are opting for the office’s common areas and 13% are getting out of the office to enjoy their meal! Men get away more (66%) as opposed to only, 52% of women eating elsewhere.

Office Etiquette 101: Microwaving leftover fish in the communal kitchen? That’s one way to make an impression among your work buddies. Among other workplace annoyances cited by survey respondents:

Eating someone else’s food (47%)
Leaving a messy kitchen (44%)
Dirty microwave (38%)
Microwaving pungent food (34%)
Eating something messy/pungent at desk (30%)
Forgetting about leftover pick-up food in the fridge (29%)

Grubhub’s “Year in Food” report is based on trends gathered from millions of orders on the Grubhub platform and the results of a commissioned survey performed by a third-party. Order trends detail the rise in popularity of food items placed by Grubhub diners from January-November 2018, as compared to the same timeframe in 2017. The third party survey examined the ordering habits of a demographically representative sample of 1,927 U.S. consumers between the ages of 18 and 54 who ordered food for pickup or delivery via web or mobile over the past three months.

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 95,000 restaurant partners in over 1,700 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, Eat24, AllMenus and MenuPages.

* Type of food is categorized by quick service (order at counter, no wait line, low price-point); fast casual (order at counter, no wait line, higher price-point;) casual dining (order at table with wait staff, moderate price point); upper casual restaurants (order at table with wait staff, higher price point;); and fine dining (highest-end price point at $80+ per person)

Grubhub Completes Acquisition of Tapingo

Closes acquisition of additional OrderUp food delivery markets

CHICAGO, Nov. 7, 2018 /PRNewswire/ — Grubhub (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today closed its previously announced acquisition of Tapingo, a leading platform for campus food ordering. Under terms of the agreement, Grubhub paid $150 million in cash for Tapingo, funded through cash on hand and Grubhub’s existing credit facility.

Tapingo’s technology, currently used by more than 150 colleges and universities nationwide, directly integrates mobile ordering into campus meal plans and point-of-sale systems, making it easier than ever for students to eat on campus. Tapingo powers tens of thousands of order-ahead pickup transactions per day and serves more than half a million active diners at on-campus cafes, restaurants, and cashier-less stores.

Grubhub’s restaurant marketplace and delivery operations complement the Tapingo platform and will enable campus dining programs to expand delivery capabilities and access more diners both on and off campus, while providing students with greater convenience and more restaurant options.

OrderUp
Additionally, on Oct. 30, Grubhub closed its previously announced acquisition of 11 franchisee-owned OrderUp food delivery markets, which add to the 27 OrderUp markets Grubhub acquired in 2017. Terms of the transaction were not disclosed.

Financial Impact
Grubhub expects the Tapingo and OrderUp transactions combined will contribute revenue of approximately $3 million to fourth quarter results and negatively impact EBITDA by less than $1 million.

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 95,000 restaurant partners in over 1,700 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, Eat24, AllMenus and MenuPages.

Grubhub Reports Record Third Quarter Results

Grubhub generates 52% revenue growth in the third quarter

CHICAGO, Oct. 25, 2018 /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 Sept. 30, 2018. The Company posted revenues of $247 million, which is a 52% year-over-year increase from $163 million in the third quarter of 2017. Gross Food Sales grew 40% year-over-year to $1.2 billion, up from $867 million in the year ago period.

“We added more organic new diners this quarter than ever before, helping drive the highest organic DAG growth we’ve seen in a year and a half. Better restaurant selection, a more intelligent diner platform, and more strategic marketing continue to bring more high quality diners to Grubhub,” said Matt Maloney, Grubhub’s founder and chief executive officer. “With solid traction in new diner acquisition over multiple quarters and increased coverage across the country from our delivery expansion, we are in prime position to invest incrementally in advertising and accelerate online ordering adoption.”

Third Quarter 2018 Highlights
The following results reflect the financial performance and key operating metrics of our business for the three months ended Sept. 30, 2018, as compared to the same period in 2017.

Third Quarter Financial Highlights

Revenues: $247.2 million, a 52% year-over-year increase from $163.1 million in the third quarter of 2017.
Net Income: $22.7 million, or $0.24 per diluted share, a 75% year-over-year increase from $13.0 million, or $0.15 per diluted share, in the third quarter of 2017.
Non-GAAP Adjusted EBITDA: $60.1 million, a 41% year-over-year increase from $42.7 million in the third quarter of 2017.
Non-GAAP Net Income: $42.2 million, or $0.45 per diluted share, a 72% year-over-year increase from $24.5 million, or $0.28 per diluted share, in the third quarter of 2017.

Third Quarter Key Business Metrics Highlights (excludes LevelUp impact in 2018)

Active Diners were 16.4 million, a 67% year-over-year increase from 9.8 million Active Diners in the third quarter of 2017.
Daily Average Grubs (DAGs) were 416,000, a 37% year-over-year increase from 304,500 DAGs in the third quarter of 2017.
Gross Food Sales were $1.2 billion, a 40% year-over-year increase from $867 million in the third quarter of 2017.

“We are excited to invest behind the diner and order momentum of the last several quarters. We have significant opportunity to accelerate diner growth by broadening delivery coverage areas and increasing marketing spend,” said Adam DeWitt, Grubhub’s president and chief financial officer. “As a result, we are opportunistically investing an incremental $20–$30 million in marketing and delivery expansion in the fourth quarter, taking our total 2018 investment in growth to substantially more than $200 million. The 200 total delivery markets we will launch in 2018 plus accelerated diner growth put us in a great position to capture takeout orders as they move online.”

Fourth Quarter 2018 Guidance
Based on information available as of Oct. 25, 2018, the Company is providing the following financial guidance for the fourth quarter of 2018. This guidance excludes any impact from the potential acquisitions of Tapingo and certain assets of OrderUp, which have not yet closed and are subject to standard closing conditions:

	Fourth Quarter 2018
	(in millions)
Expected Revenue range	$283 – $293
Expected Adjusted EBITDA range	$40 – $50

Third Quarter 2018 Financial Results Conference Call
Grubhub will webcast a conference call today at 9 a.m. CT to discuss the third quarter 2018 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.

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 95,000 restaurant partners in over 1,700 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Eat24, 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 following the acquisitions of Eat24 and LevelUp and its commercial agreements with Yelp and Yum! Brands. 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, 2018, which is on file with the SEC and is 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 September 30, 2018, 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.

We define Adjusted EBITDA as net income adjusted to exclude acquisition, restructuring and certain legal costs, income taxes, interest income and 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.

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

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017		2018		2017
Revenues	$	247,225	$	163,059	$	719,536	$	477,987
Costs and expenses:
Operations and support		111,511		65,352		310,239		187,795
Sales and marketing		49,426		35,138		144,413		105,346
Technology (exclusive of amortization)		21,258		14,292		57,306		41,560
General and administrative		22,195		18,617		58,072		46,627
Depreciation and amortization		20,987		12,613		61,787		33,067
Total costs and expenses		225,377		146,012		631,817		414,395
Income from operations		21,848		17,047		87,719		63,592
Interest (income) expense – net		337		(373)		1,367		(908)
Income before provision for income taxes		21,511		17,420		86,352		64,500
Income tax (benefit) expense		(1,234)		4,432		2,721		19,043
Net income attributable to common stockholders	$	22,745	$	12,988	$	83,631	$	45,457
Net income per share attributable to common stockholders:
Basic	$	0.25	$	0.15	$	0.94	$	0.53
Diluted	$	0.24	$	0.15	$	0.91	$	0.52
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		90,494		86,449		89,027		86,162
Diluted		93,678		88,543		92,091		87,788

KEY OPERATING METRICS

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018 _(a)		2017		2018 _(a)		2017
Active Diners (000s)		16,379		9,806		16,379		9,806
Daily Average Grubs		416,000		304,500		425,300		314,200
Gross Food Sales (millions)	$	1,214.5	$	867.3	$	3,679.9	$	2,645.1

(a)	Excludes the impact of the LevelUp acquisition, which closed on September 13, 2018.

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



	September 30, 2018		December 31, 2017
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	294,550	$	234,090
Short-term investments		16,687		23,605
Accounts receivable, less allowances for doubtful accounts		120,306		87,377
Income tax receivable		14,125		8,593
Prepaid expenses and other current assets		17,024		6,818
Total current assets		462,692		360,483
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization		105,434		71,384
OTHER ASSETS:
Other assets		11,666		6,487
Goodwill		885,350		589,862
Acquired intangible assets, net of amortization		520,867		515,553
Total other assets		1,417,883		1,111,902
TOTAL ASSETS	$	1,986,009	$	1,543,769
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability	$	122,900	$	119,922
Accounts payable		17,184		7,607
Accrued payroll		19,036		13,186
Taxes payable		1,566		3,109
Short-term debt		6,250		3,906
Other accruals		33,186		26,818
Total current liabilities		200,122		174,548
LONG-TERM LIABILITIES:
Deferred taxes, non-current		44,073		74,292
Other accruals		19,683		7,468
Long-term debt		290,073		169,645
Total long-term liabilities		353,829		251,405
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value		9		9
Accumulated other comprehensive loss		(1,620)		(1,228)
Additional paid-in capital		1,079,165		849,043
Retained earnings		354,504		269,992
Total Stockholders’ Equity	$	1,432,058	$	1,117,816
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,986,009	$	1,543,769

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

	Nine Months Ended September 30,
	2018		2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	83,631	$	45,457
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		16,189		7,949
Provision for doubtful accounts		741		338
Deferred taxes		2,048		(2,162)
Amortization of intangible assets		45,598		25,118
Stock-based compensation		36,445		23,913
Deferred rent		3,975		130
Amortization of deferred loan costs		588		349
Other		(732)		(823)
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable		(17,969)		(15,903)
Income taxes receivable		(5,533)		3,795
Prepaid expenses and other assets		(15,455)		4,193
Restaurant food liability		1,608		4,591
Accounts payable		5,265		2,965
Accrued payroll		5,311		1,575
Other accruals		3,752		6,351
Net cash provided by operating activities		165,462		107,836
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired		(366,856)		(51,859)
Purchases of investments		(47,642)		(145,667)
Proceeds from maturity of investments		54,916		164,733
Capitalized website and development costs		(21,471)		(15,281)
Purchases of property and equipment		(31,984)		(12,549)
Acquisition of other intangible assets		—		(25,147)
Other cash flows from investing activities		38		589
Net cash used in investing activities		(412,999)		(85,181)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of common stock		200,000		—
Proceeds from borrowings under the Credit Agreement		175,000		—
Repayments of borrowings under the Credit Agreement		(52,344)		—
Proceeds from exercise of stock options		13,010		12,505
Taxes paid related to net settlement of stock-based compensation awards		(28,238)		(7,696)
Payment for debt issuance costs		—		(285)
Net cash provided by financing activities		307,428		4,524
Net change in cash, cash equivalents, and restricted cash		59,891		27,179
Effect of exchange rates on cash, cash equivalents and restricted cash		(406)		709
Cash, cash equivalents, and restricted cash at beginning of year		238,239		242,214
Cash, cash equivalents, and restricted cash at end of the period	$	297,724	$	270,102
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Cash paid for income taxes	$	7,508	$	16,340

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

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017		2018		2017
Net income	$	22,745	$	12,988	$	83,631	$	45,457
Income taxes		(1,234)		4,432		2,721		19,043
Interest (income) expense – net		337		(373)		1,367		(908)
Depreciation and amortization		20,987		12,613		61,787		33,067
EBITDA		42,835		29,660		149,506		96,659
Acquisition, restructuring and legal costs		3,024		4,539		5,665		6,443
Stock-based compensation		14,275		8,475		36,445		23,913
Adjusted EBITDA	$	60,134	$	42,674	$	191,616	$	127,015

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017		2018		2017
Net income	$	22,745	$	12,988	$	83,631	$	45,457
Stock-based compensation		14,275		8,475		36,445		23,913
Amortization of acquired intangible assets		10,037		6,455		31,107		16,828
Acquisition, restructuring and legal costs		3,024		4,539		5,665		6,443
Income tax adjustments		(7,854)		(7,936)		(21,160)		(19,770)
Non-GAAP net income	$	42,227	$	24,521	$	135,688	$	72,871
Weighted-average diluted shares used to compute net income per share attributable to common stockholders		93,678		88,543		92,091		87,788
Non-GAAP net income per diluted share attributable to common stockholders	$	0.45	$	0.28	$	1.47	$	0.83

	Guidance
	Three Months Ended December 31, 2018
	Low		High
	(in millions)
Net income	$	4.3	$	11.4
Income taxes		1.7		4.6
Interest expense ̶ net		(2.0)		(2.0)
Depreciation and amortization		22.0		22.0
EBITDA		26.0		36.0
Acquisition and restructuring costs		—		—
Stock-based compensation		14.0		14.0
Adjusted EBITDA	$	40.0	$	50.0

Grubhub Continues Delivery Expansion into New Markets Nationwide

With the latest expansion, Grubhub now providing delivery capabilities in more than 100 new markets this year

CHICAGO, Oct. 17, 2018 /PRNewswire/ — Grubhub, the nation’s leading online and mobile food-ordering company, today announced it has continued its expansion of delivery capabilities to dozens of new markets across 19 states nationwide. These new markets join the others announced earlier this year, totalling the expansion of delivery capabilities to more than 100 new markets in 2018.

Restaurants in these new markets can now provide delivery using Grubhub’s driver network, opening up new customer and revenue streams. Diners already using the Grubhub platform can now get increased menu choices in their neighborhood – whether it’s a calzone from Mama Roni’s in Fort Collins, CO, the banana pudding from Bonfire BBQ in Asheville, NC, or a classic favorite from a well-known brand.

With this latest expansion, Grubhub’s delivery capabilities are now available in markets including:

Mobile, AL
Montgomery, AL
Salinas, CA
Fort Collins, CO
The Villages, FL
Columbus, GA-AL
Savannah, GA
Davenport-Moline-Rock Island, IA-IL
Anderson, IN
Bedford, IN
Bloomington, IN
Columbus, IN
Frankfort, IN
Greensburg, IN
New Castle, IN
Springfield, IL
Salisbury, MD-DE
Kalamazoo-Portage, MI
Columbia, MO
Asheville, NC
Burlington, NC
Grand Forks, ND-MN
Lincoln, NE
Myrtle Beach-Conway-North Myrtle Beach, SC-NC
Kingsport-Bristol-Bristol, TN-VA
Killeen-Temple, TX
Roanoke, VA
Green Bay, WI

“With each new delivery network market launch, we’re providing our diners with even more choices to get the food they love, when they want it,” said Stan Chia, chief operating officer, Grubhub. “Through this expansion of our driver network, we’re now helping restaurants in more than 100 new markets add a delivery option to connect with even more hungry diners, without any significant capital costs. We look forward to continuing to expand our delivery network nationwide and adding even more cities throughout 2018 and beyond.”

Grubhub has always connected diners with restaurants that supply their own drivers. With Grubhub delivery, restaurants without their own delivery capabilities now have the opportunity to leverage Grubhub’s large and growing network of drivers to expand their customer base and grow order volume. This also provides better restaurant choices and variety for Grubhub diners, as more restaurants can now offer their menus for delivery.

To find takeout restaurants available in your area, check out grubhub.com. If you are interested in becoming a Grubhub driver, please visit driver.grubhub.com. To find out how your restaurant can join Grubhub, check out get.grubhub.com. To learn more about Grubhub and its portfolio of brands, please visit newsroom.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 85,000 restaurant partners in over 1,600 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Eat24, AllMenus and MenuPages.

News Category: Company