News Type: Newsroom Archive

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.

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:

  1. bean burrito (276% more popular)
  2. poke (205% more popular)
  3. chicken slider (189% more popular)
  4. baby back pork rib (165% more popular)
  5. chicken burrito (164% more popular)
  6. chicken sandwich (160% more popular)
  7. cauliflower rice bowl (155% more popular)
  8. chicken and waffle slider (145% more popular)
  9. parmesan chicken (139% more popular)
  10. 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.

  1. peanut butter acai bowl (350% more popular)
  2. detox juice (193% more popular)
  3. bacon, egg and cheese sandwich (190% more popular)
  4. breakfast burrito (141% more popular)
  5. 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.

  1. stuffed jalapeno (169% more popular)
  2. spicy miso ramen (167% more popular)
  3. slider (148% more popular)
  4. french toast (119% more popular)
  5. 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.

  1. brownie (413% more popular)
  2. Oreo cookie cupcake (316% more popular)
  3. baklava (261% more popular)
  4. salted caramel cookie (243% more popular)
  5. 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:

  1. Didn’t feel like cooking (43%)
  2. Satisfy a craving (30%)
  3. Saving time from cooking/cleaning (28%)
  4. At home game night/movie night (25%)
  5. 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.

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, 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.

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

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.

Grubhub Launches “Donate the Change” Feature, Creating New Opportunity For Diners to Support Those in Need

No Kid Hungry comes on board as inaugural partner to help end childhood hunger

CHICAGO, Oct. 1, 2018 /PRNewswire/ — Grubhub, the nation’s leading online and mobile food-ordering and delivery marketplace, today announced the launch of Donate the Change, a new feature that allows diners to support organizations that help those in need across the nation. To kick off the launch, Grubhub is partnering with No Kid Hungry, a national campaign to end childhood hunger in America.

“Grubhub’s mission is to connect hungry diners with great local restaurants, but we realize not everyone has that luxury, so we looked for ways we can use our platform to help those in need,” said Matt Maloney, chief executive officer of Grubhub. “The introduction of Donate the Change and this partnership with No Kid Hungry allows us to empower our more than 15 million active diners to make a small contribution every time they order to make a huge impact on the life of a hungry child.”

Starting today, diners ordering online or through the Grubhub and Seamless apps will now be able to round up their order total to the nearest dollar, showing how one person’s spare change, when combined with others, can make a big impact. A staggering 12.5 million kids live with hunger in America. All donations made will allow No Kid Hungry to connect kids in need to effective food programs such as school breakfast and afterschool meals. Studies show that when kids get the food they need, they perform better in school, have fewer health problems, and are more likely to graduate from high school.

“One in six children lives with the threat of hunger, which can lead to many long-term problems in a child’s life. We’re grateful to be partnering with Grubhub and its diners to help tackle one of the biggest issues impacting children today,” said Tom Nelson, President and CEO of Share Our Strength, the organization behind the No Kid Hungry campaign. “Every dollar donated helps us provide up to 10 meals to children in need. By simply rounding up and donating their change, Grubhub’s diners will ensure thousands and thousands of children get the healthy meals they need to succeed.”

As part of this effort, Donate the Change will partner with a variety of organizations throughout 2019, aligning with causes that support the communities and groups Grubhub serves. For more information and to join thousands of diners in our Donate the Change initiative, please visit https://www.grubhub.com/eat/donate or opt-in online or through the Grubhub and Seamless apps as prompted at checkout.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering 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.

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

https://www.youtube.com/watch?v=4T-YePObxiw

Grubhub Announces Acquisition of Tapingo

Tapingo will provide increased exposure to college student market and strategic brand partnerships

CHICAGO and TEL AVIV, Israel, Sept. 25, 2018 /PRNewswire/ — Grubhub (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced it has entered into an agreement to acquire Tapingo, a leading platform for campus food ordering.

With over 150 college campus partners, Tapingo enables tens of thousands of order-ahead transactions per day for more than half a million active diners at on-campus cafes, restaurants, and cashier-less stores. The combination of Tapingo’s network with Grubhub’s restaurant marketplace and delivery capabilities will bring greater convenience to students and help campus restaurants capitalize on pickup and delivery orders.

Tapingo’s U.S.- and Israel-based teams have built a technology platform custom designed for campus use, with direct integration into college meal plans and point-of-sale (POS) systems, ensuring seamless order-taking and accurate, up-to-the-minute transparency on wait times for diners. The Tapingo platform also streamlines operations and increases in-store efficiency for campus restaurant partners—including Taco Bell, Chipotle, Chick-fil-A, Panda Express and Jamba Juice—and powers partnerships with Aramark and Sodexo, the leading providers of food services and facilities management nationwide.

“We are excited to add Tapingo, a company that shares our vision of bringing greater convenience to diners and improving the restaurant ordering and pickup experience through technology,” said Matt Maloney, Grubhub’s founder and chief executive officer. “We value the college student population, many of whom we hope become life-long Grubhub diners with their first order. Tapingo makes students’ lives easier, allows merchants to efficiently capitalize on online ordering, and enables colleges and universities to give students the technology they’ve come to expect.”

“Joining Grubhub is an important step forward for Tapingo. Grubhub is the industry leader in food delivery, allowing us to provide even greater value to our campus partners and student diners with access to Grubhub’s technology and delivery expertise,” said Daniel Almog, Tapingo’s co-founder and chief executive officer. “By joining forces with Grubhub’s network of over 85,000 restaurant partners that offer online delivery and pickup, we’ll continue to serve our loyal diners long after they graduate from college, which has always been our aspiration.”

Grubhub has entered into a definitive agreement to acquire Tapingo for approximately $150 million, subject to standard closing conditions. The transaction is expected to close in the fourth quarter of 2018. Grubhub will discuss the financial impact of the expected acquisition on its third quarter earnings call. Kirkland & Ellis LLP and Fischer Behar Chen Well Orion & Co served as legal counsel to Grubhub in connection with the acquisition. Herzog, Fox & Neeman and Silicon Legal Strategy served as legal counsel and JMP Securities LLC served as a financial advisor to Tapingo.

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.

About Tapingo
Tapingo provides world-class mobile solutions designed to improve the retail process for consumers and merchants. Blending its proprietary ordering technology with operational expertise, Tapingo allows operators to benefit from increased volume and efficiency while better serving customers. As the leading commerce app on campus, Tapingo serves students in more than 150 colleges, universities and professional campuses across the U.S., processing tens of thousands of transactions daily on its platform.

Grubhub Completes Acquisition of LevelUp

Acquires additional OrderUp food delivery markets

CHICAGO, Sept. 13, 2018 /PRNewswire/ — Grubhub (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today closed its previously announced acquisition of LevelUp, the leader in mobile diner engagement and payment solutions for national and regional restaurant brands. Under terms of the agreement, Grubhub paid $390 million in cash for LevelUp, funded through cash on hand and Grubhub’s existing credit facility.

With LevelUp, Grubhub provides restaurants with the industry’s most comprehensive solution for driving online delivery and pickup orders, powering the full ordering experience from demand generation to fulfillment. Additionally, LevelUp accelerates Grubhub’s existing point-of-sale integration capabilities and provides restaurant partners with powerful CRM and analytical tools to drive increased sales.

Grubhub expects the LevelUp transaction to contribute revenue of approximately $2 million to third quarter results and negatively impact EBITDA by less than $1 million. The company will update full year guidance on its third quarter earnings call.

OrderUp
Separately, Grubhub announced it has entered into an agreement to acquire certain assets of 11 franchisee-owned OrderUp food delivery markets across California, Colorado, Indiana, Missouri, Oregon, Oklahoma, and Virginia. Grubhub previously acquired certain assets of 27 other OrderUp markets in 2017. The acquisition is expected to be completed in the fourth quarter of 2018, subject to standard closing conditions.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering 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.

Grubhub Reports Record Second Quarter Results

Announces acquisition of LevelUp to accelerate technology integrations and provide the most comprehensive ordering and fulfillment solution

CHICAGO, July 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 second quarter ended June 30, 2018. For the second quarter, the Company posted revenues of $240 million, which is a 51% year-over-year increase from $159 million in the second quarter of 2017. Gross Food Sales grew 39% year-over-year to $1.2 billion, up from $880 million in the year ago period. Grubhub today also announced it entered into an agreement to acquire Boston-based LevelUp, the leader in mobile diner engagement and payment solutions for national and regional restaurant brands.

“We had a standout quarter, highlighted by a record number of new diners trying Grubhub for the first time. We generated robust order growth, while continuing our rapid delivery expansion and adding thousands of high quality new restaurant partners,” said Matt Maloney, Grubhub’s founder and chief executive officer. “We’re also thrilled to announce the LevelUp acquisition. LevelUp’s leading restaurant-facing technology and the team they have built in Boston will help Grubhub provide the most comprehensive solution for restaurants, powering everything from online demand generation to fulfillment for restaurants.”

Second Quarter 2018 Highlights

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

Second Quarter Financial Highlights

  • Revenues: $239.7 million, a 51% year-over-year increase from $158.8 million in the second quarter of 2017.
  • Net Income: $30.1 million, or $0.33 per diluted share, a 104% year-over-year increase from $14.8 million, or $0.17 per diluted share, in the second quarter of 2017.
  • Non-GAAP Adjusted EBITDA: $67.4 million, a 61% year-over-year increase from $41.9 million in the second quarter of 2017.
  • Non-GAAP Net Income: $46.3 million, or $0.50 per diluted share, a 99% year-over-year increase from $23.2 million, or $0.26 per diluted share, in the second quarter of 2017.

Second Quarter Key Business Metrics Highlights

  • Active Diners were 15.6 million, a 70% year-over-year increase from 9.2 million Active Diners in the second quarter of 2017.
  • Daily Average Grubs (DAGs) were 423,200, a 35% year-over-year increase from 313,900 DAGs in the second quarter of 2017.
  • Gross Food Sales were $1.2 billion, a 39% year-over-year increase from $880 million in the second quarter of 2017.

LevelUp Acquisition

LevelUp’s world-class technology and team will simplify Grubhub’s integrations with the nation’s top restaurant brands, provide more channels to attract and engage diners, and position us to dramatically accelerate product development for valuable restaurant-facing tools.

With the addition of LevelUp, Grubhub will offer national and independent restaurants the industry’s most comprehensive solution to drive online delivery and pickup orders, from demand generation through fulfillment. In addition to making it easier for restaurants like KFC, Taco Bell, Bareburger, and Roti to integrate with the Grubhub marketplace, LevelUp accelerates Grubhub’s existing point-of-sale (POS) integration capabilities and provides restaurants with powerful CRM and analytical tools to help them drive more diners to their platform and increase volume from existing diners.

“For the last seven years, the LevelUp team has worked to provide our restaurant partners with a complete solution to engage customers in this rapidly evolving digital landscape,” said Seth Priebatsch, LevelUp’s founder and chief executive officer. “By becoming a part of Grubhub, we take our biggest and most exciting step in achieving that mission. Together, we will provide restaurants with everything they need to grow profitably as more and more diners opt for the convenience, transparency and control of ordering online.”

Grubhub has entered into a definitive agreement to acquire LevelUp for $390 million in cash, subject to standard closing conditions, including the expiration of U.S. antitrust waiting periods. The transaction is expected to be funded through cash on hand and Grubhub’s existing credit facility.

Foley Hoag is serving as legal counsel to LevelUp in connection with the acquisition and Kirkland & Ellis LLP is serving as legal counsel to Grubhub.

Third Quarter and Full Year 2018 Guidance

Based on information available as of July 25, 2018, the Company is providing the following financial guidance for the third quarter and full year of 2018. This guidance excludes any impact from the potential acquisition of LevelUp, which has not yet closed and is subject to standard closing conditions:

Third Quarter 2018

Full Year 2018

(in millions)

Expected Revenue range

$232 – $240

$966 – $983

Expected Adjusted EBITDA range

$58 – $64

$256 – $270

Second Quarter 2018 Financial Results Conference Call
Grubhub will webcast a conference call today at 9 a.m. CT to discuss the second 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 until August 8, 2018.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering 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, 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 acquisition of Eat24 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 June 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.

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, 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.

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
June 30,

Six Months Ended
June 30,

2018

2017

2018

2017

Revenues

$

239,741

$

158,794

$

472,311

$

314,928

Costs and expenses:

Operations and support

102,445

62,924

198,728

122,443

Sales and marketing

46,231

34,770

94,987

70,208

Technology (exclusive of amortization)

18,717

14,076

36,048

27,268

General and administrative

18,180

14,829

35,877

28,010

Depreciation and amortization

19,849

10,414

40,800

20,454

Total costs and expenses

205,422

137,013

406,440

268,383

Income from operations

34,319

21,781

65,871

46,545

Interest (income) expense – net

8

(314)

1,030

(535)

Income before provision for income taxes

34,311

22,095

64,841

47,080

Income tax expense

4,191

7,341

3,955

14,611

Net income attributable to common stockholders

$

30,120

$

14,754

$

60,886

$

32,469

Net income per share attributable to common stockholders:

Basic

$

0.34

$

0.17

$

0.69

$

0.38

Diluted

$

0.33

$

0.17

$

0.67

$

0.37

Weighted-average shares used to compute net income per share attributable to common stockholders:

Basic

89,503

86,162

88,294

86,018

Diluted

92,503

87,700

91,297

87,410

 

KEY OPERATING METRICS

Three Months Ended
June 30,

Six Months Ended
June 30,

2018

2017

2018

2017

Active Diners (000s)

15,581

9,177

15,581

9,177

Daily Average Grubs

423,200

313,900

430,000

319,200

Gross Food Sales (millions)

$

1,220.4

$

879.7

$

2,465.4

$

1,777.8

 

GRUBHUB INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

June 30, 2018

December   31,   2017

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

442,678

$

234,090

Short-term investments

38,969

23,605

Accounts receivable, less allowances for doubtful accounts

98,254

95,970

Prepaid expenses and other current assets

12,120

6,818

Total current assets

592,021

360,483

PROPERTY AND EQUIPMENT:

Property and equipment, net of depreciation and amortization

89,208

71,384

OTHER ASSETS:

Other assets

9,177

6,487

Goodwill

589,862

589,862

Acquired intangible assets, net of amortization

494,484

515,553

Total other assets

1,093,523

1,111,902

TOTAL ASSETS

$

1,774,752

$

1,543,769

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Restaurant food liability

$

110,011

$

119,922

Accounts payable

8,829

7,607

Accrued payroll

11,223

13,186

Taxes payable

1,203

3,109

Short-term debt

5,469

3,906

Other accruals

35,782

26,818

Total current liabilities

172,517

174,548

LONG-TERM LIABILITIES:

Deferred taxes, non-current

70,983

74,292

Other accruals

18,246

7,468

Long-term debt

116,598

169,645

Total long-term liabilities

205,827

251,405

STOCKHOLDERS’ EQUITY:

Common stock, $0.0001 par value

9

9

Accumulated other comprehensive loss

(1,528)

(1,228)

Additional paid-in capital

1,066,167

849,043

Retained earnings

331,760

269,992

Total Stockholders’ Equity

$

1,396,408

$

1,117,816

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,774,752

$

1,543,769

 

GRUBHUB INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Six Months Ended June 30,

2018

2017

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

60,886

$

32,469

Adjustments to reconcile net income to net cash from operating activities:

Depreciation

10,526

5,092

Provision for doubtful accounts

301

148

Deferred taxes

(3,308)

(6,780)

Amortization of intangible assets

30,274

15,362

Stock-based compensation

22,170

15,438

Deferred rent

2,877

43

Amortization of deferred loan costs

460

240

Other

(596)

(554)

Change in assets and liabilities, net of the effects of business acquisitions:

Accounts receivable

5,770

784

Prepaid expenses and other assets

(8,446)

3,323

Restaurant food liability

(9,870)

(1,690)

Accounts payable

(107)

(978)

Accrued payroll

(1,961)

396

Other accruals

7,041

4,365

Net cash provided by operating activities

116,017

67,658

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of investments

(44,271)

(110,108)

Proceeds from maturity of investments

29,116

114,303

Capitalized website and development costs

(13,145)

(9,576)

Purchases of property and equipment

(19,266)

(7,291)

Acquisitions of businesses, net of cash acquired

737

—

Acquisition of other intangible assets

—

(5,000)

Other cash flows from investing activities

24

492

Net cash used in investing activities

(46,805)

(17,180)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from the issuance of common stock

200,000

—

Repayments of borrowings under the credit facility

(51,562)

—

Proceeds from exercise of stock options

9,958

8,308

Taxes paid related to net settlement of stock-based compensation awards

(18,717)

(5,523)

Net cash provided by financing activities

139,679

2,785

Net change in cash, cash equivalents, and restricted cash

208,891

53,263

Effect of exchange rates on cash, cash equivalents and restricted cash

(318)

413

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

$

446,812

$

295,890

SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS

Cash paid for income taxes

$

7,426

$

13,805

 

GRUBHUB INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(in thousands, except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2018

2017

2018

2017

Net income

$

30,120

$

14,754

$

60,886

$

32,469

Income taxes

4,191

7,341

3,955

14,611

Interest (income) expense – net

8

(314)

1,030

(535)

Depreciation and amortization

19,849

10,414

40,800

20,454

EBITDA

54,168

32,195

106,671

66,999

Acquisition, restructuring and legal costs

1,312

1,495

2,641

1,904

Stock-based compensation

11,939

8,195

22,170

15,438

Adjusted EBITDA

$

67,419

$

41,885

$

131,482

$

84,341

Three Months Ended
June 30,

Six Months Ended
June 30,

2018

2017

2018

2017

Net income

$

30,120

$

14,754

$

60,886

$

32,469

Stock-based compensation

11,939

8,195

22,170

15,438

Amortization of acquired intangible assets

9,527

5,100

21,070

10,373

Acquisition, restructuring and legal costs

1,312

1,495

2,641

1,904

Income tax adjustments

(6,628)

(6,315)

(13,305)

(11,834)

Non-GAAP net income

$

46,270

$

23,229

$

93,462

$

48,350

Weighted-average diluted shares used to compute net income per share attributable to common stockholders

92,503

87,700

91,297

87,410

Non-GAAP net income per diluted share attributable to common stockholders

$

0.50

$

0.26

$

1.02

$

0.55

Guidance

Three Months Ended
September 30, 2018

Year Ended
December 31, 2018

Low

High

Low

High

(in millions)

Net income

$

18.5

$

22.8

$

103.3

$

113.4

Income taxes

7.3

9.0

20.6

24.5

Interest expense ̶ net

(0.3)

(0.3)

0.5

0.5

Depreciation and amortization

20.0

20.0

81.0

81.0

EBITDA

45.5

51.5

205.4

219.4

Acquisition and restructuring costs

—

—

2.6

2.6

Stock-based compensation

12.5

12.5

48.0

48.0

Adjusted EBITDA

$

58.0

$

64.0

$

256.0

$

270.0