News Type: Press Releases

Grubhub Reports Record Fourth Quarter And Full Year 2016 Results

Grubhub generates 38% revenue growth in the fourth quarter

CHICAGO, Feb. 8, 2017 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading takeout marketplace, today announced financial results for the quarter and year ended Dec. 31, 2016. Orders grew 21% year-over-year, and the Company posted quarterly revenues of $137.5 million, which is a 38% year-over-year increase from $100.0 million in the fourth quarter of 2015.

“Grubhub had a transformative year in 2016. We dramatically improved our product and reaccelerated order growth. Fueled by data-driven product enhancements, substantial strides in delivery, and a refreshed marketing approach, we exited the year growing DAGs faster than we did a year ago,” said Matt Maloney, Grubhub CEO. “With Grubhub delivery now in roughly 70 markets across the country and a significantly improved restaurant network, we enter 2017 well positioned to press our market leading advantage and give Grubhub growth momentum for years to come.”

Fourth Quarter and Full Year 2016 Highlights

The following results reflect the financial performance and key operating metrics of our business for the three months and year ended Dec. 31, 2016, as compared to the same periods in 2015.

Fourth Quarter Financial Highlights

  • Revenues: $137.5 million, a 38% year-over-year increase from $100.0 million in the fourth quarter of 2015.
  • Net Income: $13.6 million, or $0.16 per diluted share, a 21% year-over-year increase from $11.3 million, or $0.13 per diluted share, in the fourth quarter of 2015.
  • Non-GAAP Adjusted EBITDA: $39.2 million, a 46% year-over-year increase from $26.8 million in the fourth quarter of 2015.
  • Non-GAAP Net Income: $19.8 million, or $0.23 per diluted share, a 19% year-over-year increase from $16.7 million, or $0.19 per diluted share, in the fourth quarter of 2015.

Fourth Quarter Key Business Metrics Highlights

  • Active Diners were 8.17 million, a 21% year-over-year increase from 6.75 million Active Diners in the fourth quarter of 2015.
  • Daily Average Grubs were 292,500, a 21% year-over-year increase from 241,800 Daily Average Grubs in the fourth quarter of 2015.
  • Gross Food Sales were $818 million, a 27% year-over-year increase from $643 million in the fourth quarter of 2015.

Full Year Financial Highlights

  • Revenues: $493.3 million, a 36% year-over-year increase from $361.8 million in 2015.
  • Net Income: $49.6 million, or $0.58 per diluted share, a 30% year-over-year increase from $38.1 million, or $0.44 per diluted share, in 2015.
  • Non-GAAP Adjusted EBITDA: $144.6 million, a 38% year-over-year increase from $105.0 million in 2015.
  • Non-GAAP Net Income: $76.6 million, or $0.89 per diluted share, a 32% year-over-year increase from $58.1 million, or $0.68 per diluted share.

Full Year Key Business Metrics Highlights

  • Active Diners were 8.17 million, a 21% year-over-year increase from 6.75 million Active Diners in 2015.
  • Daily Average Grubs were 274,800, a 21% year-over-year increase  from 227,100 Daily Average Grubs in 2015.
  • Gross Food Sales were $3.0 billion, a 27% year-over-year increase from $2.4 billion in 2015.

“Our rapid scaling in delivery combined with our substantial incremental margins helped Grubhub post record profits in 2016. Adjusted EBITDA grew 38% for the year, with Adjusted EBITDA per order growing 14% to $1.44 per order in 2016 from $1.27 the prior year,” said Adam DeWitt, Grubhub CFO. “Throughout 2016 and into this year, we’ve been adding the highest quality restaurants in all of our markets to our vastly improved diner platform. We believe this formula will support us in driving growth across our network, while our scale will help us generate more cash flow per order over time.”

First Quarter and Full Year 2017 Guidance

Based on information available as of Feb. 8, 2017, the Company is providing the following financial guidance for the first quarter and full year of 2017:

First Quarter 2017

Full Year 2017

(in millions)

Expected Revenue range

$148 – $156

$620 – $660

Expected Adjusted EBITDA range

$37 – $42

$165 – $190

 

Fourth Quarter 2017 Financial Results Conference Call
Grubhub will webcast a conference call today at 9 a.m. CT to discuss the fourth 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 Feb. 22, 2017.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering marketplace with the most comprehensive network of restaurant partners and largest active diner base. 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 50,000 restaurant partners in over 1,100 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, Restaurants on the Run, DiningIn and Delivered Dish.

Use of Forward Looking Statements
This press release contains forward-looking statements regarding 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 Feb. 26, 2016 and our most recent Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 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 Annual Report on Form 10-K that will be filed for the year ended Dec. 31, 2016, 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 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

December 31,

Year Ended

December 31,

2016

2015

2016

2015

Revenues

$

137,457

$

99,959

$

493,331

$

361,825

Costs and expenses:

Sales and marketing

29,636

24,921

110,323

91,150

Operations and support

51,727

32,483

171,756

107,424

Technology (exclusive of amortization)

10,689

8,802

42,454

32,782

General and administrative

12,252

11,457

49,753

40,506

Depreciation and amortization

9,911

6,657

35,193

28,034

Total costs and expenses

114,215

84,320

409,479

299,896

Income before provision for income taxes

23,242

15,639

83,852

61,929

Provision for income taxes

9,605

4,351

34,295

23,852

Net income attributable to common stockholders

$

13,637

$

11,288

$

49,557

$

38,077

Net income per share attributable to common stockholders:

Basic

$

0.16

$

0.13

$

0.58

$

0.45

Diluted

$

0.16

$

0.13

$

0.58

$

0.44

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

Basic

85,608

84,823

85,069

84,076

Diluted

86,666

86,028

86,135

85,706

 

KEY OPERATING METRICS

Three Months Ended

 December 31,

Year Ended

December 31,

2016

2015

2016

2015

Active Diners (000s)

8,174

6,746

8,174

6,746

Daily Average Grubs

292,500

241,800

274,800

227,100

Gross Food Sales (millions)

$

817.7

$

642.5

$

2,998.1

$

2,353.6

 

 

GRUBHUB INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

December 31,

2016

December 31, 

2015

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

239,528

$

169,293

Short term investments

84,091

141,448

Accounts receivable, less allowances for doubtful accounts

60,550

42,051

Prepaid expenses

12,168

3,482

Total current assets

396,337

356,274

PROPERTY AND EQUIPMENT:

Property and equipment, net of depreciation and amortization

46,555

19,082

OTHER ASSETS:

Other assets

4,530

3,105

Goodwill

436,455

396,220

Acquired intangible assets, net of amortization

313,630

285,567

Total other assets

754,615

684,892

TOTAL ASSETS

$

1,197,507

$

1,060,248

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Restaurant food liability

$

83,349

$

64,326

Accounts payable

7,590

8,189

Accrued payroll

7,338

4,841

Taxes payable

865

426

Other accruals

11,348

11,830

Total current liabilities

110,490

89,612

LONG TERM LIABILITIES:

Deferred taxes, non-current

108,022

87,584

Other accruals

6,876

5,456

Total long term liabilities

114,898

93,040

STOCKHOLDERS’ EQUITY:

Common stock, $0.0001 par value

9

8

Accumulated other comprehensive loss

(2,078)

(604)

Additional paid-in capital

805,731

759,292

Retained earnings

168,457

118,900

Total Stockholders’ Equity

$

972,119

$

877,596

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,197,507

$

1,060,248

 

GRUBHUB INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Year Ended December 31,

2016

2015

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

49,557

$

38,077

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

Depreciation

8,921

5,085

Provision for doubtful accounts

1,102

850

Deferred taxes

1,027

(3,835)

Amortization of intangible assets

26,272

22,949

Stock-based compensation

23,559

13,450

Deferred rent

1,286

32

Other

(406)

529

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

Accounts receivable

(17,488)

(4,343)

Prepaid expenses and other assets

(8,765)

242

Restaurant food liability

16,451

(29,409)

Accounts payable

(3,204)

3,312

Accrued payroll

1,819

(2,104)

Other accruals

(2,453)

(80)

Net cash provided by operating activities

97,678

44,755

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of investments

(226,694)

(220,667)

Proceeds from maturity of investments

284,662

189,872

Capitalized website and development costs

(12,809)

(7,137)

Purchases of property and equipment

(24,087)

(4,150)

Acquisitions of businesses, net of cash acquired

(65,849)

(73,907)

Acquisition of other intangible assets

(250)

—

Other cash flows from investing activities

(492)

(408)

Net cash used in investing activities

(45,519)

(116,397)

CASH FLOWS FROM FINANCING ACTIVITIES

Repurchases of common stock

(14,774)

—

Proceeds from exercise of stock options

13,468

11,919

Excess tax benefits related to stock-based compensation

24,906

27,830

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

(2,779)

(345)

Payments for debt issuance costs

(1,477)

—

Net cash provided by financing activities

19,344

39,404

Net change in cash and cash equivalents

71,503

(32,238)

Effect of exchange rates on cash

(1,268)

(265)

Cash and cash equivalents at beginning of year

169,293

201,796

Cash and cash equivalents at end of the period

$

239,528

$

169,293

SUPPLEMENTAL DISCLOSURE OF NON CASH ITEMS

Fair value of common stock issued for acquisitions

$

—

$

15,980

Cash paid for income taxes

8,722

—

 

GRUBHUB INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(in thousands, except per share data)

Three Months Ended
December 31,

Year Ended
December 31,

2016

2015

2016

2015

Net income

$

13,637

$

11,288

$

49,557

$

38,077

Income taxes

9,605

4,351

34,295

23,852

Depreciation and amortization

9,911

6,657

35,193

28,034

EBITDA

33,153

22,296

119,045

89,963

Acquisition and restructuring costs

253

468

2,042

1,554

Stock-based compensation

5,804

4,072

23,559

13,450

Adjusted EBITDA

$

39,210

$

26,836

$

144,646

$

104,967

Three Months Ended
December 31,

Year Ended
December 31,

2016

2015

2016

2015

Net income

$

13,637

$

11,288

$

49,557

$

38,077

Stock-based compensation

5,804

4,072

23,559

13,450

Amortization of acquired intangible assets

4,801

4,774

20,871

18,236

Accelerated write-down of Seamless technology platform

—

—

—

1,897

Acquisition and restructuring costs

253

468

2,042

1,554

Income tax adjustments

(4,692)

(3,928)

(19,472)

(15,109)

Non-GAAP net income

$

19,803

$

16,674

$

76,557

$

58,105

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

86,666

86,028

86,135

85,706

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

$

0.23

$

0.19

$

0.89

$

0.68

 

Guidance

Three Months Ended

 March 31, 2017

Year Ended

December 31, 2017

Low

High

Low

High

(in millions)

Net income

$

12.5

$

15.5

$

58.6

$

73.5

Income taxes

8.5

10.5

39.9

50.0

Depreciation and amortization

9.5

9.5

39.0

39.0

EBITDA

30.5

35.5

137.5

162.5

Acquisition and restructuring costs

—

—

—

—

Stock-based compensation

6.5

6.5

27.5

27.5

Adjusted EBITDA

$

37.0

$

42.0

$

165.0

$

190.0

Grubhub To Announce Fourth Quarter 2016 Financial Results On Feb. 8, 2017

CHICAGO, Jan. 19, 2017 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced that it will host a conference call to discuss its fourth quarter financial results on Wednesday, Feb. 8, 2017, at 9 a.m. Central Standard Time, following the release of the Company’s financial results. CEO Matt Maloney and 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 takeout food-ordering marketplace with the most comprehensive network of restaurant partners and largest active diner base. 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 45,000 restaurant partners in over 1,100 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, Restaurants on the Run, DiningIn and Delivered Dish.

GrubHub Logo

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/grubhub-to-announce-fourth-quarter-2016-financial-results-on-feb-8-2017-300393261.html

Dave Zaragoza, Corporate Finance & Investor Relations, ir@grubhub.com; Katie Norris, Press, press@grubhub.com

Grubhub Reports Record Third Quarter Results

Grubhub generates 44% revenue growth in the third quarter

CHICAGO, Oct. 26, 2016 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading takeout marketplace, today announced financial results for the quarter ended Sept. 30, 2016. Order growth accelerated to 26% year-over-year, and the Company posted quarterly revenues of $123.5 million, which is a 44% year-over-year increase from $85.7 million in the third quarter of 2015.”We are pleased with Grubhub’s third quarter growth, as we continue building the most comprehensive marketplace for restaurants and takeout diners. Our product improvements and investment in delivery continue to generate high levels of sustainable growth,” said Matt Maloney, Grubhub CEO. “Grubhub is now delivering for restaurant partners in over 60 markets nationwide, and our growth rate is generally highest in markets where a substantial percentage of orders are being delivered by our drivers.”

Third Quarter 2016 Highlights

The following results reflect the financial performance and key operating metrics of our business for the three months ended Sept. 30, 2016, as compared to the same period in 2015.

Third Quarter Financial Highlights

  • Revenues: $123.5 million, a 44% year-over-year increase from $85.7 million in the third quarter of 2015.
  • Net Income: $13.2 million, or $0.15 per diluted share, a 92% year-over-year increase from $6.9 million, or $0.08 per diluted share, in the third quarter of 2015.
  • Non-GAAP Adjusted EBITDA: $35.5 million, a 65% year-over-year increase from $21.5 million in the third quarter of 2015.
  • Non-GAAP Net Income: $19.9 million, or $0.23 per diluted share, a 73% year-over-year increase from $11.5 million, or $0.13 per diluted share.

Third Quarter Key Business Metrics Highlights

  • Active Diners were 7.69 million, a 19% year-over-year increase from 6.43 million Active Diners in the third quarter of 2015.
  • Daily Average Grubs were 267,500, a 26% year-over-year increase from 211,500 Daily Average Grubs in the third quarter of 2015.
  • Gross Food Sales were $735 million, a 33% year-over-year increase from $554 million in the third quarter of 2015.

“Grubhub had strong topline and bottom line results in the third quarter, generating record net revenues and significant operating leverage,” said Adam DeWitt, Grubhub CFO. “This strong growth, combined with the high incremental margins of our business model, drove adjusted EBITDA per order to $1.44, a 31% increase compared to the third quarter of 2015.”

Fourth Quarter Guidance

Based on information available as of Oct. 26, 2016, the Company is providing the following financial guidance for the fourth quarter of 2016:

Fourth Quarter 2016

(in millions)

Expected Revenue range

$136 – $138

Expected Adjusted EBITDA range

$38 – $40

 

Third Quarter 2016 Financial Results Conference Call: Grubhub will webcast a conference call today at 9 a.m. CDT to discuss the third 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 Nov. 9, 2016.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering marketplace with the most comprehensive network of restaurant partners and largest active diner base. 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 45,000 restaurant partners in over 1,100 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, 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 Feb. 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 Sept. 30, 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

September 30,

Nine Months Ended
September 30,

2016

2015

2016

2015

Revenues

$

123,461

$

85,662

$

355,874

$

261,866

Costs and expenses:

Sales and marketing

26,499

21,443

80,687

66,229

Operations and support

44,346

27,637

120,029

74,941

Technology (exclusive of amortization)

11,006

8,412

31,765

23,980

General and administrative

11,754

10,203

37,501

29,049

Depreciation and amortization

9,089

6,299

25,282

21,377

Total costs and expenses

102,694

73,994

295,264

215,576

Income before provision for income taxes

20,767

11,668

60,610

46,290

Provision for income taxes

7,585

4,801

24,690

19,501

Net income attributable to common stockholders

$

13,182

$

6,867

$

35,920

$

26,789

Net income per share attributable to common stockholders:

Basic

$

0.15

$

0.08

$

0.42

$

0.32

Diluted

$

0.15

$

0.08

$

0.42

$

0.31

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

Basic

85,217

84,583

84,889

83,827

Diluted

86,424

85,867

85,957

85,599

 

KEY OPERATING METRICS

Three Months Ended
September 30,

Nine Months Ended
September 30,

2016

2015

2016

2015

Active Diners (000s)

7,685

6,431

7,685

6,431

Daily Average Grubs

267,500

211,500

268,800

222,000

Gross Food Sales (millions)

$

735.0

$

553.6

$

2,180.4

$

1,711.1

 

GRUBHUB INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

September 30,
2016

December 31,

 2015

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

177,838

$

169,293

Short term investments

118,743

141,448

Accounts receivable, less allowances for doubtful accounts

65,729

42,051

Prepaid expenses

6,264

3,482

Total current assets

368,574

356,274

PROPERTY AND EQUIPMENT:

Property and equipment, net of depreciation and amortization

43,398

19,082

OTHER ASSETS:

Other assets

4,873

3,105

Goodwill

437,009

396,220

Acquired intangible assets, net of amortization

318,431

285,567

Total other assets

760,313

684,892

TOTAL ASSETS

$

1,172,285

$

1,060,248

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Restaurant food liability

$

78,321

$

64,326

Accounts payable

9,532

8,189

Accrued payroll

6,103

4,841

Taxes payable

785

426

Other accruals

16,054

11,830

Total current liabilities

110,795

89,612

LONG TERM LIABILITIES:

Deferred taxes, non-current

105,642

87,584

Other accruals

6,245

5,456

Total long term liabilities

111,887

93,040

STOCKHOLDERS’ EQUITY:

Common stock, $0.0001 par value

9

8

Accumulated other comprehensive loss

(1,641)

(604)

Additional paid-in capital

796,414

759,292

Retained earnings

154,821

118,900

Total Stockholders’ Equity

$

949,603

$

877,596

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,172,285

$

1,060,248

 

GRUBHUB INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Nine Months Ended
September 30,

2016

2015

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

35,920

$

26,789

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

Depreciation

5,567

3,846

Provision for doubtful accounts

719

565

Deferred taxes

(1,908)

(2,793)

Amortization of intangible assets

19,715

17,531

Stock-based compensation

17,755

9,378

Deferred rent

980

(73)

Other

(292)

553

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

Accounts receivable

(22,299)

(6,912)

Prepaid expenses and other assets

(2,874)

(1,456)

Restaurant food liability

11,361

(31,444)

Accounts payable

(4,592)

(633)

Accrued payroll

582

(2,150)

Other accruals

1,799

389

Net cash provided by operating activities

62,433

13,590

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of investments

(187,456)

(154,268)

Proceeds from maturity of investments

210,567

122,856

Capitalized website and development costs

(8,859)

(4,961)

Purchases of property and equipment

(17,083)

(2,866)

Acquisitions of businesses, net of cash acquired

(65,849)

(55,687)

Acquisition of other intangible assets

(250)

—

Other cash flows from investing activities

(540)

—

Net cash used in investing activities

(69,470)

(94,926)

CASH FLOWS FROM FINANCING ACTIVITIES

Repurchases of common stock

(14,774)

—

Proceeds from exercise of stock options

11,814

10,689

Excess tax benefits related to stock-based compensation

22,114

21,987

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

(1,205)

—

Payments for debt issuance costs

(1,477)

—

Net cash provided by financing activities

16,472

32,676

Net change in cash and cash equivalents

9,435

(48,660)

Effect of exchange rates on cash

(890)

(108)

Cash and cash equivalents at beginning of year

169,293

201,796

Cash and cash equivalents at end of the period

$

177,838

$

153,028

SUPPLEMENTAL DISCLOSURE OF NON CASH ITEMS

Fair value of common stock issued for acquisitions

$

—

$

15,980

Cash paid for income taxes

5,757

—

 

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(in thousands, except per share data)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2016

2015

2016

2015

Net income

$

13,182

$

6,867

$

35,920

$

26,789

Income taxes

7,585

4,801

24,690

19,501

Depreciation and amortization

9,089

6,299

25,282

21,377

EBITDA

29,856

17,967

85,892

67,667

Acquisition and restructuring costs

261

383

1,789

1,086

Stock-based compensation

5,349

3,113

17,755

9,378

Adjusted EBITDA

$

35,466

$

21,463

$

105,436

$

78,131

Three Months Ended
September 30,

Nine Months Ended
September 30,

2016

2015

2016

2015

Net income

$

13,182

$

6,867

$

35,920

$

26,789

Stock-based compensation

5,349

3,113

17,755

9,378

Amortization of acquired intangible assets

5,385

4,674

16,070

13,462

Accelerated write-down of Seamless technology platform

—

—

—

1,897

Acquisition and restructuring costs

261

383

1,789

1,086

Income tax adjustments

(4,243)

(3,538)

(14,780)

(11,181)

Non-GAAP net income

$

19,934

$

11,499

$

56,754

$

41,431

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

86,424

85,867

85,957

85,599

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

$

0.23

$

0.13

$

0.66

$

0.48

 

Guidance

Three Months Ended
December 31, 2016

Low

High

(in millions)

Net income

$

14

$

15

Income taxes

9

10

Depreciation and amortization

9

9

EBITDA

32

34

Acquisition and restructuring costs

—

—

Stock-based compensation

6

6

Adjusted EBITDA

$

38

$

40

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Grubhub Adds Linda Johnson Rice and David Habiger to its Board of Directors

CHICAGO, Oct. 18, 2016 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery platform, today announced two additions to its Board of Directors:   Linda Johnson Rice, Chairman of Johnson Publishing Company and Chairman Emeritus of EBONY Media Holdings, and David Habiger, a successful entrepreneur, former public company CEO and experienced corporate Director.

“We are excited to welcome Linda and David to the Board of Directors. Grubhub shareholders will benefit tremendously from their incredible breadth and depth of experience as the company continues to grow at increasingly large scale,” said Matt Maloney, CEO of Grubhub. “The unique skill set of each brings a unique and much-valued combination of public company operating knowledge and aggressive entrepreneurial spirit to the team.”

Linda Johnson Rice is Chairman of Johnson Publishing Company (JPC) and Chairman Emeritus of EBONY Media Holdings, and serves on the Board of Directors of Omnicom Group. At JPC, Rice demonstrated her innovative thinking and ability to drive growth by increasing circulation through new types of outreach, extending the cosmetics business internationally and moving into the development of TV specials and documentaries. Rice is also a not-for-profit organization leader, and has served on the corporate boards of a number of major companies.

David Habiger was the interim CEO of Textura Corporation and a member of the company’s Board of Directors, prior to its recent sale to Oracle, and is a venture partner with Pritzker Group. Prior to these roles, Habiger held the CEO position at NDS Group Ltd. — prior to its sale to Cisco Systems — and at Sonic Solutions. He demonstrated his skill in leading companies through all stages of development by guiding Sonic through an IPO and to its leadership position as a leading cloud-based provider of premium movies and TV shows. He also serves on the boards of a number of technology companies.

Rice and Habiger are joining Grubhub’s Board of Directors concurrent with the departure of Justin Sadrian, Managing Director at Warburg Pincus, who served on the board of Grubhub and its predecessor, Seamless, for more than five years, since Aramark spun Seamless out as a separate entity.

“We would like to thank Justin for his many years of service to Grubhub as a director and for his wisdom and guidance, which was invaluable as we navigated our merger, IPO and our first two and a half years as a public company.  During his tenure, we’ve transformed the takeout industry, growing from less than $10 million to more than $450 million in annual revenues,” said Maloney.

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 45,000 restaurant partners in over 1,100 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, Restaurants on the Run, DiningIn and Delivered Dish.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/grubhub-adds-linda-johnson-rice-and-david-habiger-to-its-board-of-directors-300347003.html

Grubhub To Announce Third Quarter 2016 Financial Results On Oct. 26, 2016

CHICAGO, Oct. 10, 2016 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery platform, today announced that it will host a conference call to discuss its third quarter financial results on Wednesday, Oct. 26, 2016, at 9 a.m. Central Daylight Time, following the release of the Company’s financial results. CEO Matt Maloney and 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 recorded replay of the webcast will be available on the website.

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 45,000 restaurant partners in over 1,100 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, Restaurants on the Run, DiningIn and Delivered Dish.

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Grubhub Reports Record Second Quarter Results

Grubhub generates 37% revenue growth in the second quarter

CHICAGO, July 28, 2016 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the leading takeout marketplace, today announced financial results for the quarter ended June 30, 2016.

“In our strong second quarter, Grubhub continued to build the most comprehensive marketplace connecting restaurants and takeout diners. We posted record net revenues and our best order growth in a year,” said Matt Maloney, CEO.  “Grubhub also generated a record number of orders in Q2 despite typical seasonal headwinds, as total order growth accelerated to 23% year-over-year.”

Second Quarter 2016 Highlights

The following results reflect the financial performance and key operating metrics of our business for the three months ended June 30, 2016 as compared to the same period in 2015.

Second Quarter Financial Highlights

  • Revenues: $120.2 million, a 37% year-over-year increase from $88.0 million in the second quarter of 2015.
  • Non-GAAP Adjusted EBITDA: $37.6 million, a 32% year-over-year increase from $28.4 million in the second quarter of 2015.
  • Net Income: $12.8 million, or $0.15 per diluted share, a 37% year-over-year increase from $9.4 million, or $0.11 per diluted share, in the second quarter of 2015.
  • Non-GAAP Net Income: $19.6 million, or $0.23 per diluted share, a 31% year-over-year increase from $15.0 million, or $0.17 per diluted share.

Second Quarter Key Business Metrics Highlights

  • Active Diners were 7.35 million, a 24% year-over-year increase from 5.93 million Active Diners in the second quarter of 2015.
  • Daily Average Grubs were 271,100, a 23% year-over-year increase from 220,100 Daily Average Grubs in the second quarter of 2015.
  • Gross Food Sales were $733 million, a 29% year-over-year increase from $568 million in the second quarter of 2015.

“Product improvements, our delivery initiative and an updated brand drove better diner growth and significantly higher engagement in the second quarter,” noted Maloney.  “Demonstrating the powerful economics of scale in our business, we achieved an adjusted EBITDA margin of 31%, just under the levels in the first and second quarters of 2015 before we began investing meaningfully in our own delivery capabilities.”

Third Quarter and Full Year 2016 Guidance

Based on information available as of July 28th, 2016, the Company is providing the following financial guidance for the third quarter and full year of 2016:

Third Quarter 2016

Full Year 2016

(in millions)

Expected Revenue range

$116 – $119

$480 – $488

Expected Adjusted EBITDA range

$30 – $32

$136 – $142

Second Quarter 2016 Financial Results Conference Call: Grubhub will webcast a conference call today at 9 a.m. CT to discuss the second 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 August 11, 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 45,000 restaurant partners in over 1,100 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, 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 June 30, 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

June 30,

Six Months Ended
June 30,

2016

2015

2016

2015

Revenues

$

120,173

$

87,955

$

232,413

$

176,204

Costs and expenses:

Sales and marketing

25,355

20,679

54,188

44,786

Operations and support

40,696

24,603

75,683

47,304

Technology (exclusive of amortization)

10,567

7,902

20,759

15,568

General and administrative

12,158

9,745

25,747

18,846

Depreciation and amortization

8,885

8,829

16,193

15,078

Total costs and expenses

97,661

71,758

192,570

141,582

Income before provision for income taxes

22,512

16,197

39,843

34,622

Provision for income taxes

9,707

6,845

17,105

14,700

Net income attributable to common stockholders

$

12,805

$

9,352

$

22,738

$

19,922

Net income per share attributable to common stockholders:

Basic

$

0.15

$

0.11

$

0.27

$

0.24

Diluted

$

0.15

$

0.11

$

0.27

$

0.23

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

Basic

84,741

84,116

84,725

83,449

Diluted

85,749

85,833

85,724

85,465

 

KEY OPERATING METRICS

Three Months Ended
June 30,

Six Months Ended
June 30,

2016

2015

2016

2015

Active Diners (000s)

7,352

5,932

7,352

5,932

Daily Average Grubs

271,100

220,100

269,500

227,300

Gross Food Sales (millions)

$

732.6

$

567.6

$

1,445.4

$

1,157.5

 

GRUBHUB INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

June 30, 2016

December 31, 2015

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

132,924

$

169,293

Short term investments

136,883

141,448

Accounts receivable, less allowances for doubtful accounts

57,087

42,051

Prepaid expenses

6,602

3,482

Total current assets

333,496

356,274

PROPERTY AND EQUIPMENT:

Property and equipment, net of depreciation and amortization

32,320

19,082

OTHER ASSETS:

Other assets

5,218

3,105

Goodwill

437,009

396,220

Acquired intangible assets, net of amortization

323,816

285,567

Total other assets

766,043

684,892

TOTAL ASSETS

$

1,131,859

$

1,060,248

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Restaurant food liability

$

71,276

$

64,326

Accounts payable

11,282

8,189

Accrued payroll

6,118

4,841

Taxes payable

1,020

426

Other accruals

14,267

11,830

Total current liabilities

103,963

89,612

LONG TERM LIABILITIES:

Deferred taxes, non-current

103,376

87,584

Other accruals

5,818

5,456

Total long term liabilities

109,194

93,040

STOCKHOLDERS’ EQUITY:

Common stock, $0.0001 par value

8

8

Accumulated other comprehensive loss

(1,396)

(604)

Additional paid-in capital

778,452

759,292

Retained earnings

141,638

118,900

Total Stockholders’ Equity

$

918,702

$

877,596

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,131,859

$

1,060,248

 

GRUBHUB INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Six Months Ended June 30,

2016

2015

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

22,738

$

19,922

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

Depreciation

3,327

2,721

Provision for doubtful accounts

420

260

Deferred taxes

(4,174)

35

Amortization of intangible assets

12,866

12,357

Stock-based compensation

12,406

6,265

Other

316

417

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

Accounts receivable

(11,722)

(8,460)

Prepaid expenses and other assets

(3,315)

(485)

Restaurant food liability

4,278

3,052

Accounts payable

(858)

(3,957)

Accrued payroll

595

(3,000)

Other accruals

316

1,417

Net cash provided by operating activities

37,193

30,544

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of investments

(123,723)

(65,645)

Proceeds from maturity of investments

128,490

64,618

Capitalized website and development costs

(5,380)

(3,104)

Purchases of property and equipment

(8,362)

(1,201)

Acquisitions of businesses, net of cash acquired

(67,528)

(55,687)

Acquisition of other intangible assets

(250)

—

Other cash flows from investing activities

(576)

—

Net cash used in investing activities

(77,329)

(61,019)

CASH FLOWS FROM FINANCING ACTIVITIES

Repurchases of common stock

(14,774)

—

Proceeds from exercise of stock options

2,878

9,777

Excess tax benefits related to stock-based compensation

18,767

14,421

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

(938)

—

Payments for debt issuance costs

(1,477)

—

Net cash provided by financing activities

4,456

24,198

Net change in cash and cash equivalents

(35,680)

(6,277)

Effect of exchange rates on cash

(689)

76

Cash and cash equivalents at beginning of year

169,293

201,796

Cash and cash equivalents at end of the period

$

132,924

$

195,595

SUPPLEMENTAL DISCLOSURE OF NON CASH ITEMS

Fair value of common stock issued for acquisitions

$

—

$

15,980

Cash paid for income taxes

3,250

—

 

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(in thousands, except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2016

2015

2016

2015

Net income

$

12,805

$

9,352

$

22,738

$

19,922

Income taxes

9,707

6,845

17,105

14,700

Depreciation and amortization

8,885

8,829

16,193

15,078

EBITDA

31,397

25,026

56,036

49,700

Acquisition and restructuring costs

697

134

1,528

703

Stock-based compensation

5,505

3,258

12,406

6,265

Adjusted EBITDA

$

37,599

$

28,418

$

69,970

$

56,668

Three Months Ended
June 30,

Six Months Ended
June 30,

2016

2015

2016

2015

Net income

$

12,805

$

9,352

$

22,738

$

19,922

Stock-based compensation

5,505

3,258

12,406

6,265

Amortization of acquired intangible assets

5,640

4,673

10,685

8,788

Accelerated write-down of Seamless technology platform

—

1,897

—

1,897

Acquisition and restructuring costs

697

134

1,528

703

Income tax adjustments

(5,068)

(4,314)

(10,537)

(7,644)

Non-GAAP net income

$

19,579

$

15,000

$

36,820

$

29,931

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

85,749

85,833

85,724

85,465

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

$

0.23

$

0.17

$

0.43

$

0.35

Guidance

Three Months Ended

September 30, 2016

Year Ended

December 31, 2016

Low

High

Low

High

(in millions)

Net income

$

8

$

9

$

42

$

46

Income taxes

6

7

32

34

Depreciation and amortization

10

10

37

37

EBITDA

24

26

111

117

Acquisition and restructuring costs

—

—

—

—

Stock-based compensation

6

6

25

25

Adjusted EBITDA

$

30

$

32

$

136

$

142

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Grubhub To Announce Second Quarter 2016 Financial Results On July 28, 2016

CHICAGO, July 13, 2016 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery platform, today announced that it will host a conference call to discuss its second quarter financial results on Thursday, July 28th, 2016, at 9:00 a.m. Central Time, following the release of the Company’s financial results. Matt Maloney, CEO, and Adam DeWitt, CFO 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 recorded replay of the webcast will be available on the website.

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, Delivered Dish and LAbite.

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Grubhub Completes Acquisition Of LAbite

CHICAGO, May 11, 2016 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the leading takeout marketplace, today announced it has completed the acquisition of LAbite.

Second Quarter and Full Year 2016 Guidance

Grubhub is making the following adjustments to its previous outlook for the second quarter and full year of 2016, based on information available as of May 11, 2016, which includes the impact of the LAbite acquisition:

Second Quarter 2016

Full Year 2016

(in millions)

Expected revenue range

$113 – $115

$465 – $480

Expected Adjusted EBITDA range

$30 – $32

$125 – $133

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, LAbite, 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/. Our financial results should be read in conjunction with our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 that was filed on May 9, 2016. 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 is a financial measure that is 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. 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 is not a measurement of our financial performance under GAAP and should not be considered as an alternative to performance measures derived in accordance with GAAP.

Contacts:

Anan Kashyap

Katie Norris 

Corporate Finance & Investor
Relations

Press
press@grubhub.com 

ir@grubhub.com

 

Grubhub logo.

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Grubhub Reports Record First Quarter Results

Grubhub generates 27% revenue growth in the first quarter

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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Grubhub To Announce First Quarter 2016 Financial Results On May 3, 2016

CHICAGO, April 21, 2016 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery platform, today announced that it will host a conference call to discuss its first quarter financial results on Tuesday, May 3rd, 2016, at 9:00 a.m. Central Time, following the release of the Company’s financial results. Matt Maloney, CEO, and Adam DeWitt, CFO 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 recorded replay of the webcast will be available on the website.

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 40,000 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.

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