News Category: Company

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.

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

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.
2 Stock-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.

Grubhub To Announce Second Quarter 2019 Financial Results On July 30, 2019

CHICAGO, July 16, 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 second quarter financial results on Tuesday, July 30, 2019, at 9:00 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.

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 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.

 

Grubhub Releases “State Of The Plate” Report Detailing Top Dining Trends To Date & Forecasts For The Remainder Of 2019

Continuing a trend from 2018, vegan orders are on the rise; diners look to some surprising options as summer approaches

CHICAGO, June 26, 2019 /PRNewswire/ — The recent solstice marks the start of the summer season, which means we’ve hit the halfway mark of the year! Grubhub, the nation’s leading online and mobile food-ordering and delivery marketplace, today launched its latest report, “State of the Plate.” Using data from more than half a million orders placed on an average day through its platform, Grubhub’s mid-year report checks in on the popular food trends so far, predicts what we can expect to see more of in the second half of the year, and provides an update on where some of the “trendier” foods actually stand. One fact that’s clear: vegan & vegetarian options are here to stay.

 

Key takeaways include:

VEGAN OPTIONS ARE HERE TO STAY:

As we highlighted in our 2018 “Year in Food” report, we know plant-based options are on the rise across America, and we’re seeing this trend in delivery as well. Orders of vegan-friendly foods on the Grubhub platform increased by 25% so far in 2019 (as compared to Jan-May 2018), with orders for the Impossible Burger specifically rising overall by 82%.

Vegan Meccas: Grubhub also looked at the areas ordering the most vegan foods & found these made the list:

  1. Los Angeles, CA
  2. Brooklyn, NY
  3. Portland, OR
  4. Las Vegas, NV
  5. Rochester, NY
  6. Philadelphia, PA
  7. Detroit, MI
  8. San Diego, CA

Methodology: To determine the top places for vegans, Grubhub evaluated a variety of factors using data available through its platform, including the number of vegan restaurants, ratings, order volume, and overall number of vegan items available on Grubhub in each respective city as compared to the rest of the country.

SEASONAL FAVORITES & FORECASTS:

Whether it’s heartier foods to keep you warm in winter or lighter bites for spring as you enter the warmer months, each season has food they’re known for among diners. But what’s to come for summer and fall? What we found below may surprise you!

Top Trends: Winter

  • chicken shish kabob: 240% more popular
  • chicken tinga: 131% more popular
  • spicy potato taco: 111% more popular
  • mushroom stroganoff: 90% more popular
  • cuban picadillo empanadas: 85% more popular

Top Trends: Spring

  • cauliflower bites: 536% more popular
  • ahi tuna salad: 467% more popular
  • mixed berry acai bowls: 411% more popular
  • chicken poblano : 336% more popular
  • quinoa taco: 285% more popular

Forecasts: Summer (in ranking order)

  1. barbecue pork buns
  2. truffle parm frie
  3. quinoa & arugula salad

Forecasts: Fall (in ranking order)

  1. pesto pasta
  2. fried okra
  3. lemongrass soup

Methodology: For “Top Trends,” Grubhub took a look at the top foods on the Grubhub platform from winter (Dec 21, 2018 – March 20, 2019) and spring (March 20 – June 8, 2019) as compared to the same timeframe in 2018 to find the top items rising in popularity. For “Forecasted” items, Grubhub looked at the top foods on the Grubhub platform over the past two years, recently trending items, and other seasonal favorites to forecast what America will indulge in this summer & fall.

BREAKING IT DOWN BY REGIONS: FAVORITES TO DATE

We know everywhere in the U.S. has their own taste, so Grubhub took a look at its most popular foods so far in 2019 across the four regions. To break it down: the Midwest kept it vegan- and vegetarian-friendly, the Northeast mixed it up with a classic making an appearance, the South stayed with seafood, and the West had a mix of “meat” options.

Midwest:

  • Impossible Burger: 326% more popular
  • cheese quesadilla: 144% more popular
  • waffle fries: 135% more popular

Northeast:

  • harvest bowl : 340% more popular
  • guay tiew pad see eiw: 319% more popular
  • bagel and egg sandwich : 204% more popular

South:

  • shrimp linguini alfredo: 273% more popular
  • baked potato soup : 236% more popular
  • new england clam chowder: 185% more popular

West:

  • glazed baby back rib: 412% more popular
  • pork burrito: 208% more popular
  • Impossible Burger: 194% more popular

Methodology: Grubhub took a look at the top foods on its platform from the specified regions from Jan 1-May 31, 2019 as compared to the same timeframe in 2018 to find the top items rising in popularity.

CHECKING IN ON OUR FAVORITE MEALS

Since we took a look at some of the top meals in our 2018 “Year in Food” report, we’ve seen some changes so far in 2019! Breakfast is leaning a bit more indulgent, dessert is a little chillier, and our late-night favorites lead a vegan option!

Breakfast: it’s all about the salty & sweet combo.

  • chicken & waffles: 219% more popular
  • sausage egg & cheese biscuit: 179% more popular
  • pancakes & bacon: 145% more popular

Dessert: who says ice cream won’t deliver well?!

  • brownie sundae: 273% more popular
  • cake batter frozen yogurt : 232% more popular
  • donut ice cream sandwich : 217% more popular

Late-night: it’s 2019 when a vegan burger leads the late-night trend!

  • Impossible Burger: 529% more popular
  • steak quesadilla: 447% more popular
  • mashed potatoes & gravy: 325% more popular

Methodology: Grubhub took a look at the top foods on its platform for the specified mealtimes/food types below from January-May 2019 as compared to the same timeframe in 2018 to find the top items rising in popularity.

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 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.

 

Grubhub Announces Pricing of $500 Million Senior Notes Offering

CHICAGO, June 6, 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”), has priced an offering of $500 million aggregate principal amount of new 5.500% senior notes due 2027 (the “notes”) in a private offering. The sale of the notes is expected to be completed on or about June 10, 2019, subject to customary closing conditions. 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 are being 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 closing of 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 closing of the notes offering 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 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.

GrubHub Logo

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.

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 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.