CHICAGO, May 3, 2016 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the leading takeout marketplace, today announced financial results for the quarter ended March 31, 2016.
“We had a strong start to 2016, generating a record $713 million in gross food sales during the quarter, even with significant headwinds from weather,” said Matt Maloney, CEO. “Revenue grew 27%, driven by the continued expansion of quality restaurants through Grubhub delivery, improvements in our technology platform and the rollout of our updated Grubhub branding.”
First Quarter 2016 Highlights
The following results reflect the financial performance and key operating metrics of our business for the three months ended March 31, 2016 as compared to the same period in 2015.
First Quarter Financial Highlights
- Revenues: $112.2 million, a 27% year-over-year increase from $88.2 million in the first quarter of 2015.
- Non-GAAP Adjusted EBITDA: $32.4 million, a 15% year-over-year increase from $28.3 million in the first quarter of 2015.
- Net Income: $9.9 million, or $0.12 per diluted share, a 6% year-over-year decrease from $10.6 million, or $0.12 per diluted share, in the first quarter of 2015.
- Non-GAAP Net Income: $17.2 million, or $0.20 per diluted share, a 15% year-over-year increase from $14.9 million, or $0.18 per diluted share.
First Quarter Key Business Metrics Highlights
- Active Diners were 6.97 million, a 24% year-over-year increase from 5.60 million Active Diners in the first quarter of 2015.
- Daily Average Grubs were 267,800, a 14% year-over-year increase from 234,700 Daily Average Grubs in the first quarter of 2015.
- Gross Food Sales were $713 million, a 21% year-over-year increase from $590 million in the first quarter of 2015.
Delivery
The Company has entered into an agreement to acquire LAbite, one of the largest restaurant delivery services in the U.S. In 2015, LAbite diners ordered almost $80 million in gross food sales, with most of the volume coming from the greater Los Angeles area.
“We are excited by the acquisition of LAbite as it adds to the tremendous strides we’ve made in expanding the breadth and depth of our delivery network and boosts our presence in an important market,” noted Maloney. “With more than 5,000 restaurants now using Grubhub delivery and our total network comprised of more than 44,000 restaurants, we are making great progress towards fulfilling our goal of being the most comprehensive marketplace for takeout diners and restaurants.”
Excluding the pending acquisition of LAbite, Grubhub is now delivering annual gross food sales volume of approximately $250 million. This compares to almost no delivery volume at the beginning of 2015.
Credit Facility
On April 29, 2016, the Company entered into a revolving credit facility. The credit facility will be available to the Company until April 28, 2021 and provides for a commitment of $185 million and the ability to increase the line under certain conditions up to $215 million.
Second Quarter and Full Year 2016 Guidance*
Based on information available as of May 3rd, 2016, the company is providing the following financial guidance for the second quarter and full year of 2016:
|
Second Quarter 2016
|
|
Full Year 2016
|
|
(in millions)
|
|
Expected revenue range
|
$109 – $111
|
|
$450 – $465
|
|
Expected Adjusted EBITDA range
|
$29 – $31
|
|
$122 – $130
|
*The above guidance excludes any impact from Grubhub’s pending acquisition of LAbite. The Company will update guidance to include LAbite when the acquisition closes.
First Quarter 2016 Financial Results Conference Call: Grubhub will webcast a conference call today at 9 a.m. CT to discuss the first quarter 2016 financial results. The webcast can be accessed on the Grubhub Investor Relations website at http://investors.grubhub.com, along with the company’s earnings press release and financial tables. A replay of the webcast will be available at the same website until May 17, 2016.
About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering company. Dedicated to moving eating forward and connecting diners with the food they love from their favorite local restaurants, the company’s platforms and services strive to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 44,000 restaurant partners in over 1,000 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, Restaurants on the Run, DiningIn and Delivered Dish.
Use of Forward Looking Statements:
This press release contains forward-looking statements regarding our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected financial performance of Grubhub following its recent acquisitions and investment in delivery. Such statements constitute “forward-looking” statements, which are subject to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K filed on February 26, 2016, which are on file with the SEC and are available on the Investor Relations section of our website at http://investors.grubhub.com/. Additional information will be set forth in our Quarterly Report on Form 10-Q that will be filed for the quarter ended March 31, 2016, which should be read in conjunction with these financial results. Please also note that forward-looking statements represent our management’s beliefs and assumptions only as of the date of this press release. Except as required by law, we assume no obligation to publicly update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information, becomes available in the future.
Use of Non-GAAP Financial Measures
Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders are financial measures that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP.
We define Adjusted EBITDA as net income adjusted to exclude acquisition and restructuring costs, income taxes, depreciation and amortization and stock-based compensation expense. Non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders exclude acquisition and restructuring costs, amortization of acquired intangible assets, stock-based compensation expense and other nonrecurring items as well as the income tax effects of these non-GAAP adjustments. We use these non-GAAP financial measures as key performance measures because we believe they facilitate operating performance comparisons from period to period by excluding potential differences primarily caused by variations in capital structures, tax positions, the impact of acquisitions and restructuring, the impact of depreciation and amortization expense on our fixed assets and the impact of stock-based compensation expense. Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders are not measurements of our financial performance under GAAP and should not be considered as an alternative to performance measures derived in accordance with GAAP.
See “Schedule of Non-GAAP Financial Measures Reconciliation” below for a reconciliation of net income to Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders.
|
GRUBHUB INC.
|
|
|
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
Revenues
|
$
|
112,240
|
|
$
|
88,249
|
|
Costs and expenses:
|
|
|
|
|
|
|
Sales and marketing
|
|
28,833
|
|
|
24,107
|
|
Operations and support
|
|
34,987
|
|
|
22,701
|
|
Technology (exclusive of amortization)
|
|
10,192
|
|
|
7,666
|
|
General and administrative
|
|
13,589
|
|
|
9,101
|
|
Depreciation and amortization
|
|
7,308
|
|
|
6,249
|
|
Total costs and expenses
|
|
94,909
|
|
|
69,824
|
|
Income before provision for income taxes
|
|
17,331
|
|
|
18,425
|
|
Provision for income taxes
|
|
7,398
|
|
|
7,855
|
|
Net income attributable to common stockholders
|
$
|
9,933
|
|
$
|
10,570
|
|
Net income per share attributable to common stockholders:
|
|
|
|
|
|
|
Basic
|
$
|
0.12
|
|
$
|
0.13
|
|
Diluted
|
$
|
0.12
|
|
$
|
0.12
|
|
Weighted-average shares used to compute net income per share attributable to common stockholders:
|
|
|
|
|
|
|
Basic
|
|
84,710
|
|
|
82,783
|
|
Diluted
|
|
85,699
|
|
|
85,098
|
|
KEY OPERATING METRICS
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
Active Diners (000s)
|
|
6,970
|
|
|
5,604
|
|
Daily Average Grubs
|
|
267,800
|
|
|
234,700
|
|
Gross Food Sales (millions)
|
$
|
712.8
|
|
$
|
589.9
|
|
GRUBHUB INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
203,312
|
|
$
|
169,293
|
|
Short term investments
|
|
121,129
|
|
|
141,448
|
|
Accounts receivable, less allowances for doubtful accounts
|
|
51,414
|
|
|
42,051
|
|
Prepaid expenses
|
|
3,578
|
|
|
3,482
|
|
Total current assets
|
|
379,433
|
|
|
356,274
|
|
PROPERTY AND EQUIPMENT:
|
|
|
|
|
|
|
Property and equipment, net of depreciation and amortization
|
|
24,226
|
|
|
19,082
|
|
OTHER ASSETS:
|
|
|
|
|
|
|
Other assets
|
|
3,383
|
|
|
3,105
|
|
Goodwill
|
|
396,220
|
|
|
396,220
|
|
Acquired intangible assets, net of amortization
|
|
280,772
|
|
|
285,567
|
|
Total other assets
|
|
680,375
|
|
|
684,892
|
|
TOTAL ASSETS
|
$
|
1,084,034
|
|
$
|
1,060,248
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
Restaurant food liability
|
$
|
74,375
|
|
$
|
64,326
|
|
Accounts payable
|
|
4,176
|
|
|
8,189
|
|
Accrued payroll
|
|
3,805
|
|
|
4,841
|
|
Taxes payable
|
|
423
|
|
|
426
|
|
Other accruals
|
|
15,699
|
|
|
11,830
|
|
Total current liabilities
|
|
98,478
|
|
|
89,612
|
|
LONG TERM LIABILITIES:
|
|
|
|
|
|
|
Deferred taxes, non-current
|
|
84,262
|
|
|
87,584
|
|
Other accruals
|
|
5,523
|
|
|
5,456
|
|
Total long term liabilities
|
|
89,785
|
|
|
93,040
|
|
Commitments and contingencies
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY:
|
|
|
|
|
|
|
Common stock, $0.0001 par value
|
|
8
|
|
|
8
|
|
Accumulated other comprehensive loss
|
|
(826)
|
|
|
(604)
|
|
Additional paid-in capital
|
|
767,756
|
|
|
759,292
|
|
Retained earnings
|
|
128,833
|
|
|
118,900
|
|
Total Stockholders’ Equity
|
$
|
895,771
|
|
$
|
877,596
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
1,084,034
|
|
$
|
1,060,248
|
|
GRUBHUB INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in thousands)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
2016
|
|
2015
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
|
$
|
9,933
|
|
$
|
10,570
|
|
Adjustments to reconcile net income to net cash from operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
1,344
|
|
|
1,215
|
|
Provision for doubtful accounts
|
|
443
|
|
|
93
|
|
Deferred taxes
|
|
(3,321)
|
|
|
1,219
|
|
Amortization of intangible assets
|
|
5,964
|
|
|
5,034
|
|
Stock-based compensation
|
|
6,901
|
|
|
3,007
|
|
Other
|
|
26
|
|
|
239
|
|
Change in assets and liabilities, net of the effects of business acquisitions:
|
|
|
|
|
|
|
Accounts receivable
|
|
(9,956)
|
|
|
(11,862)
|
|
Prepaid expenses and other assets
|
|
(136)
|
|
|
255
|
|
Restaurant food liability
|
|
10,081
|
|
|
24,376
|
|
Accounts payable
|
|
(5,434)
|
|
|
(1,826)
|
|
Accrued payroll
|
|
(1,034)
|
|
|
(3,146)
|
|
Other accruals
|
|
3,855
|
|
|
1,248
|
|
Net cash provided by operating activities
|
|
18,666
|
|
|
30,422
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
Purchases of investments
|
|
(56,227)
|
|
|
(37,068)
|
|
Proceeds from maturity of investments
|
|
76,615
|
|
|
38,060
|
|
Capitalized website and development costs
|
|
(2,331)
|
|
|
(1,213)
|
|
Purchases of property and equipment
|
|
(3,259)
|
|
|
(441)
|
|
Acquisitions of businesses, net of cash acquired
|
|
—
|
|
|
(55,506)
|
|
Acquisition of other intangible assets
|
|
(250)
|
|
|
—
|
|
Other cash flows from investing activities
|
|
(173)
|
|
|
—
|
|
Net cash provided by (used in) investing activities
|
|
14,375
|
|
|
(56,168)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
Repurchases of common stock
|
|
(9,771)
|
|
|
—
|
|
Proceeds from exercise of stock options
|
|
1,012
|
|
|
5,823
|
|
Excess tax benefits related to stock-based compensation
|
|
10,610
|
|
|
6,492
|
|
Taxes paid related to net settlement of stock-based compensation awards
|
|
(682)
|
|
|
—
|
|
Net cash provided by financing activities
|
|
1,169
|
|
|
12,315
|
|
Net change in cash and cash equivalents
|
|
34,210
|
|
|
(13,431)
|
|
Effect of exchange rates on cash
|
|
(191)
|
|
|
(210)
|
|
Cash and cash equivalents at beginning of year
|
|
169,293
|
|
|
201,796
|
|
Cash and cash equivalents at end of the period
|
$
|
203,312
|
|
$
|
188,155
|
|
SUPPLEMENTAL DISCLOSURE OF NON CASH ITEMS
|
|
|
|
|
|
|
Fair value of common stock issued for acquisitions
|
$
|
—
|
|
$
|
15,980
|
|
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(in thousands, except per share data)
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
Net income
|
$
|
9,933
|
|
$
|
10,570
|
|
Income taxes
|
|
7,398
|
|
|
7,855
|
|
Depreciation and amortization
|
|
7,308
|
|
|
6,249
|
|
EBITDA
|
|
24,639
|
|
|
24,674
|
|
Acquisition and restructuring costs
|
|
831
|
|
|
569
|
|
Stock-based compensation
|
|
6,901
|
|
|
3,007
|
|
Adjusted EBITDA
|
$
|
32,371
|
|
$
|
28,250
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
Net income
|
$
|
9,933
|
|
$
|
10,570
|
|
Stock-based compensation
|
|
6,901
|
|
|
3,007
|
|
Amortization of acquired intangible assets
|
|
5,045
|
|
|
4,115
|
|
Acquisition and restructuring costs
|
|
831
|
|
|
569
|
|
Income tax adjustments
|
|
(5,469)
|
|
|
(3,330)
|
|
Non-GAAP net income
|
$
|
17,241
|
|
$
|
14,931
|
|
Weighted-average diluted shares used to compute net income per share attributable to common stockholders
|
|
85,699
|
|
|
85,098
|
|
Non-GAAP net income per diluted share attributable to common stockholders
|
$
|
0.20
|
|
$
|
0.18
|
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