News Type: Press Releases

GrubHub To Announce Fourth Quarter 2014 Financial Results On February 5, 2015

CHICAGO, Jan. 29, 2015 /PRNewswire/ — GrubHub Inc. (NYSE: GRUB), the leading online and mobile food-ordering company, today announced that it will host a conference call to discuss its fourth quarter financial results on Thursday, February 5th, 2015, 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 Inc. (NYSE: GRUB) is the nation’s leading online and mobile food ordering company dedicated to connecting hungry diners with local takeout restaurants. The company’s online and mobile ordering platforms allow diners to order directly from approximately 30,000 takeout restaurants in more than 800 U.S. cities and London. Every order is supported by the company’s 24/7 customer service teams.

Contacts:

Anan Kashyap
Corporate Finance & Investor Relations
ir@grubhub.com

Abby Hunt
Press
press@grubhub.com

GrubHub Reports Third Quarter Results

Record revenues of $61.9 million, year-over-year growth of 51%Chicago, IL – October 23, 2014 – GrubHub Inc. (NYSE: GRUB), the leading online and mobile food-ordering company, today announced financial results for the quarter ended September 30, 2014.

“GrubHub delivered strong third quarter results featuring record revenues and adjusted EBITDA driven by growth in all of our key business metrics,” said Matt Maloney, CEO. “Due to the strength of our brand and effectiveness of our new brand campaign, growth in active diners remained strong even as we reduced overall advertising spend sequentially in the seasonally slow third quarter.”

Third Quarter 2014 Results

The following results reflect the financial performance and key operating metrics of our business for the three months ended September 30, 2014, compared to the non-GAAP pro forma combined results of Seamless Holdings and GrubHub Holdings for the three months ended September 30, 2013, giving effect to the August 2013 merger of the two companies.

Financial Highlights

  • Revenues: $61.9 million, a 51% year-over-year increase from $41.0 million in the third quarter of 2013.
  • Non-GAAP Adjusted EBITDA: $20.4 million, a 99% year-over-year increase from $10.3 million in the third quarter of 2013.
  • Net Income: $6.5 million, a 442% year-over-year increase from $1.2 million in the third quarter of 2013.
  • Our September 3rd 2014, Follow-On Offering included the sale of 1.25 million shares of our common stock at $40.25 per share, which generated $48.0 million in cash for the company (after fees and expenses).

Key Business Metrics Highlights

  • Active Diners were 4.57 million, a 50% increase from 3.05 million Active Diners in the third quarter of 2013.
  • Daily Average Grubs were 172,700, a 33% year-over-year increase from 129,800 Daily Average Grubs in the third quarter of 2013.
  • Gross Food Sales were $424 million, a 37% year-over-year increase from $309 million processed in the third quarter of 2013.

“Continued momentum from the roll-out of restaurant-driven pricing on the Seamless platform helped drive the sequential increase in both revenue and adjusted EBITDA despite the expected slowdown in activity in the third quarter,” noted Maloney. “We look forward to what should be a seasonally strong fourth quarter with increased activity and the ability to spend more on advertising efficiently.”

Third Quarter 2014 Guidance

Based on information available as of October 23, 2014, the company is providing the following financial guidance for the fourth quarter:

  • Revenue is expected to be in the range of $68.5 million to $70.5 million.
  • Adjusted EBITDA is expected to be in the range of $20 million to $22 million.

Third Quarter 2014 Financial Results Conference Call: GrubHub will webcast a conference call today at 9 a.m. CT to discuss the third quarter 2014 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 November 7, 2014.

About GrubHub

GrubHub Inc. (NYSE: GRUB) is the nation’s leading online and mobile food ordering company dedicated to connecting hungry diners with local takeout restaurants. The company’s online and mobile ordering platforms allow diners to order directly from approximately 30,000 takeout restaurants in more than 800 U.S. cities and London. Every order is supported by the company’s 24/7 customer service teams.

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. 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 Prospectus filed on September 5, 2014 and our most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, 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 September 30, 2014, 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 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 merger and restructuring costs, income taxes, depreciation and amortization and stock-based compensation expense. We use Adjusted EBITDA as a key performance measure because we believe it facilitates 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.

See “Schedule of Non-GAAP Adjusted EBITDA Reconciliation – Pro Forma” below for a reconciliation of net income to Adjusted EBITDA.

Anan Kashyap
Corporate Finance & Investor Relations
ir@grubhub.com

Abby Hunt
Press
press@grubhub.com

NON-GAAP PRO FORMA FINANCIAL INFORMATION

On August 8, 2013, GrubHub Inc. acquired all of the equity interests of each of Seamless North America, LLC, Seamless Holdings and GrubHub Holdings (the “Merger”). The following Unaudited Pro Forma Condensed Statement of Operations was derived from the unaudited historical statement of operations of Seamless Holdings (Acquirer) for the three months ended September 30, 2013 and the unaudited historical statement of operations of GrubHub Holdings (Acquiree) for the three months ended September 30, 2013, adjusted for income taxes at the Company’s historical effective tax rate.

Three Months Ended September 30,
  ProForma Combined
2014 2013
(in thousands)
Revenues $ 61,941 $ 41,035
Costs and expenses:
Sales and marketing 14,883 10,427
Operations and support 14,902 11,234
Technology (exclusive of amortization) 6,560 5,089
General and administrative 8,143 7,616
Depreciation and amortization 5,748 4,055
Total costs and expenses 50,236 38,421
Income before provision for income taxes 11,705 2,614
Provision for income taxes 5,252 1,423
Net income $ 6,453 $ 1,191
Net income (loss) per share attributable to common stockholders:
Basic $ 0.08 $ 0.01
Diluted $ 0.08 $ 0.01
Weighted average shares used to compute net income (loss) per share attributable to common stockholders:
Basic 79,426 54,809
Diluted 82,771 56,949

KEY PRO FORMA OPERATING METRICS

Three Months Ended
September 30,		 Nine Months Ended September 30,
2014   2013

Pro Forma

 2014   2013

Pro Forma
Active Diners (000s) 4,570 3,050 4,570 3,050
Daily Average Grubs 172,700 129,800 176,100 129,700
Gross Food Sales (millions) $ 423.8 $ 309.2 $ 1,279.4 $ 915.8

 

 

GRUBHUB INC.
CONDENSED CONSOLIDATED BALANCE SHEETS – UNAUDITED
(in thousands, except share data)
September 30, 2014 (Unaudited) December 31, 2013
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 212,020 $ 86,542
Short term investments 65,736 —
Accounts receivable, less allowances for doubtful accounts 42,690 29,304
Deferred taxes, current 3,844 3,688
Prepaid expenses 3,116 2,625
Total current assets 327,406 122,159
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization 16,449 17,096
OTHER ASSETS:
Other assets 3,610 2,328
Goodwill 352,788 352,788
Acquired intangible assets, net of amortization 257,864 268,441
Total other assets 614,262 623,557
TOTAL ASSETS $ 958,117 $ 762,812
LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability $ 91,719 $ 78,245
Accounts payable 2,005 3,353
Accrued payroll 4,283 1,720
Taxes payable 249 1,768
Restructuring accrual 674 176
Other accruals 8,799 7,329
Total current liabilities 107,729 92,591
LONG TERM LIABILITIES:
Deferred taxes, non-current 98,862 90,495
Other accruals 5,636 3,936
Total long term liabilities 104,498 94,431
Commitments and Contingencies
Redeemable common stock, $0.0001 par value, no shares and 1,344,236 shares outstanding as of September 30, 2014 and December 31, 2013, respectively — 18,415
STOCKHOLDERS’ EQUITY:
Series A Convertible Preferred Stock, $0.0001 par value — 2
Common stock, $0.0001 par value. 8 5
Accumulated other comprehensive income 18 132
Additional paid-in capital 675,806 500,356
Retained earnings 70,058 56,880
Total Stockholders’ Equity $ 745,890 $ 557,375
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ EQUITY $ 958,117 $ 762,812

 

 

GRUBHUB INC.
CONDENSED STATEMENTS OF OPERATIONS – UNAUDITED
(in thousands, except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
2014   2013 2014   2013
Revenues $ 61,941 $ 35,461 $ 180,560 $ 88,119
Costs and expenses:
Sales and marketing 14,883 8,829 47,168 24,993
Operations and support 14,902 9,303 44,743 21,278
Technology (exclusive of amortization) 6,560 4,459 17,973 9,803
General and administrative 8,143 5,884 25,087 14,596
Depreciation and amortization 5,748 3,821 16,878 7,494
Total costs and expenses 50,236 32,296 151,849 78,164
Income before provision for income taxes 11,705 3,165 28,711 9,955
Provision for income taxes 5,252 1,111 15,213 4,822
Net income $ 6,453 $ 2,054 $ 13,498 $ 5,133
Net income per share attributable to common stockholders:
Basic $ 0.08 $ 0.04 $ 0.19 $ 0.11
Diluted $ 0.08 $ 0.03 $ 0.17 $ 0.10
Weighted average shares used to compute net income per share attributable to common stockholders:
Basic 79,426 45,072 70,893 35,936
Diluted 82,771 63,114 80,826 49,942

 

 

GRUBHUB INC.
CONDENSED STATEMENTS OF CASH FLOWS – UNAUDITED
(in thousands)
Nine Months Ended September 30,
2014   2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 13,498 $ 5,133
Adjustments to reconcile net income to net cash from operating activities:
Depreciation 3,708 2,123
Provision for doubtful accounts 232 178
Loss on disposal of fixed assets 11 —
Deferred taxes 8,211 (1,971 )
Intangible asset amortization 13,170 5,371
Tenant allowance amortization (119 ) (119 )
Stock based compensation 6,981 3,024
Deferred rent 16 (87 )
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable (13,618 ) (8,035 )
Prepaid expenses and other assets (1,773 ) (1,827 )
Accounts payable (1,348 ) 1,262
Restaurant food liability 13,474 19,184
Accrued payroll 2,563 1,148
Other accruals 2,252 (2,784 )
Net cash provided by operating activities 47,258 22,600
CASH FLOWS FROM INVESTING ACTIVITIES
Cash acquired in merger of GrubHub Holdings Inc. — 13,266
Capitalized website and development costs (2,396 ) (1,939 )
Purchases of property and equipment (3,189 ) (3,828 )
Purchases of investments (65,736 ) —
Net cash used in investing activities (71,321 ) 7,499
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from the issuance of common stock 142,936 —
Proceeds from exercise of stock options 4,656 565
Excess tax benefit related to stock-based compensation 4,569 —
Taxes paid related to net settlements of stock-based compensation awards (2,061 ) —
Repurchases of common stock (116 ) (1,259 )
Preferred stock tax distributions (320 ) (1,893 )
Net cash provided by (used in) financing activities 149,655 (2,690 )
Net change in cash and cash equivalents 125,592 27,409
Effect of exchange rates on cash (114 ) 47
Cash and cash equivalents at beginning of year 86,542 41,161
Cash and cash equivalents at end of the period $ 212,020 $ 68,617
SUPPLEMENTAL DISCLOSURE OF NON CASH ITEMS
Fair value of common and preferred stock issued in
acquisition of GrubHub Holdings Inc		  $ —  $  421,485
Cash paid for income taxes 1,324 2,584


NON-GAAP ADJUSTED EBITDA RECONCILATION – PRO FORMA

 

Three Months Ended September 30, Nine Months Ended September 30,
2014 2013

Pro Forma

 2014   2013

Pro Forma
(in thousands)
Net income $ 6,453 $ 1,191 $ 13,498 $ 2,111
Income taxes 5,252 1,423 15,213 2,548
Depreciation and amortization 5,748 4,055 16,878 9,030
EBITDA 17,453 6,669 45,589 13,689
Merger and restructuring costs 670 1,701 1,162 9,131
Stock-based compensation 2,294 1,905 6,981 3,915
Adjusted EBITDA $ 20,417 $ 10,275 $ 53,732 $ 26,735

 

GrubHub To Announce Third Quarter 2014 Financial Results On October 23, 2014

CHICAGO, Oct. 16, 2014 /PRNewswire/ — GrubHub Inc. (NYSE: GRUB), the leading online and mobile food-ordering company, today announced that it will host a conference call to discuss its third quarter financial results on Thursday, October 23rd, 2014, 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 Inc. (NYSE: GRUB) is the nation’s leading online and mobile food ordering company dedicated to connecting hungry diners with local takeout restaurants. The company’s online and mobile ordering platforms allow diners to order directly from approximately 30,000 takeout restaurants in more than 800 U.S. cities and London. Every order is supported by the company’s 24/7 customer service teams.

Contacts:
Anan Kashyap
Corporate Finance & Investor Relations
ir@grubhub.com

Abby Hunt
Press
press@grubhub.com

GrubHub Announces Pricing of Follow-on Offering of Common Stock

CHICAGO, Sept. 3, 2014 /PRNewswire/ — GrubHub Inc. (the “Company”) (NYSE: GRUB) announced today the pricing of its follow-on public offering of 10,468,198 shares of its common stock offered by the Company and certain of the Company’s stockholders (the “Selling Stockholders”) at a price to the public of $40.25 per share. In addition, the Selling Stockholders have granted the underwriters a 30-day option to purchase up to an additional 1,570,229 shares of common stock. GrubHub Inc. is the nation’s leading online and mobile food-ordering company dedicated to connecting hungry diners with local takeout restaurants. The GrubHub Inc. portfolio of brands includes GrubHub, Seamless, MenuPages and Allmenus.

Citigroup, Morgan Stanley and BofA Merrill Lynch are acting as book-running managers for the offering.  Allen & Company LLC, BMO Capital Markets Corp., Canaccord Genuity Inc., JMP Securities LLC, Raymond James & Associates, Inc. and William Blair & Company, L.L.C. are acting as co-managers for the offering.

The offering is being made only by means of a prospectus. A copy of the final prospectus relating to these securities may be obtained, when available, from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by telephone at 1-800-831-9146; Morgan Stanley at Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014 or by telephone at 1-866-718-1649 and BofA Merrill Lynch at Attention: Prospectus Department, 222 Broadway, New York, NY 10038 or by e-mailing: dg.prospectus_requests@baml.com.

A registration statement relating to these securities has been filed with, and on September 3, 2014 was declared effective by, the U.S. Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of such state or jurisdiction.

About GrubHub Inc.
GrubHub Inc. is the nation’s leading online and mobile food-ordering company dedicated to connecting hungry diners with local takeout restaurants. The GrubHub Inc. portfolio of brands includes GrubHub, Seamless, MenuPages and Allmenus. The Company’s online and mobile ordering platforms allow diners to order directly from more than 30,000 takeout restaurants in more than 700 U.S. cities and London, and every order is supported by the Company’s 24/7 customer service. GrubHub Inc. has offices in Chicago, New York City and London.

Contacts:
Investor Relations:
Anan Kashyap, GrubHub Inc.
Email: ir@grubhub.com

Media Relations:
Meghan Gage, GrubHub Inc.
Phone: 312-940-6401
Email: press@grubhub.com

GrubHub Announces Launch of Proposed Follow-on Offering of Common Stock

CHICAGO, Sept. 2, 2014 /PRNewswire/ — GrubHub Inc. (the “Company”) (NYSE: GRUB) announced today that it has commenced a follow-on public offering of its common stock. With this offering, the Company and certain of the Company’s stockholders (the “Selling Stockholders”) intend to offer 10,033,415 shares of common stock, and the Selling Stockholders have agreed to grant the underwriters the right to purchase up to 1,505,012 additional shares of common stock. GrubHub Inc. is the nation’s leading online and mobile food-ordering company dedicated to connecting hungry diners with local takeout restaurants. The GrubHub Inc. portfolio of brands includes GrubHub, Seamless, MenuPages and Allmenus.

Citigroup, Morgan Stanley and BofA Merrill Lynch will act as book-running managers for the proposed offering. Allen & Company LLC, BMO Capital Markets Corp., Canaccord Genuity Inc., JMP Securities LLC, Raymond James & Associates, Inc. and William Blair & Company, L.L.C. will act as co-managers for the proposed offering.

The proposed offering will be made only by means of a prospectus. A copy of the preliminary prospectus relating to these securities may be obtained from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by telephone at 1-800-831-9146; Morgan Stanley at Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014 or by telephone at 1-866-718-1649 and BofA Merrill Lynch at Attention: Prospectus Department, 222 Broadway, New York, NY 10038 or by e-mailing: dg.prospectus_requests@baml.com.

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of such state or jurisdiction.

About GrubHub Inc.
GrubHub Inc. is the nation’s leading online and mobile food-ordering company dedicated to connecting hungry diners with local takeout restaurants. The GrubHub Inc. portfolio of brands includes GrubHub, Seamless, MenuPages and Allmenus. The Company’s online and mobile ordering platforms allow diners to order directly from more than 30,000 takeout restaurants in more than 700 U.S. cities and London, and every order is supported by the Company’s 24/7 customer service. GrubHub Inc. has offices in Chicago, New York City and London.

Contacts:
Investor Relations:
Anan Kashyap, GrubHub Inc.
Email: ir@grubhub.com

Media Relations:
Meghan Gage, GrubHub Inc.
Phone: 312-940-6401
Email: press@grubhub.com

GrubHub Files Registration Statement for Proposed Follow-On Offering of Common Stock

CHICAGO, Aug. 25, 2014 /PRNewswire/ — GrubHub Inc. (the “Company”) (NYSE: GRUB) announced today that it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to a proposed follow-on public offering of its common stock.  GrubHub Inc. is the nation’s leading online and mobile food-ordering company dedicated to connecting hungry diners with local takeout restaurants. The GrubHub Inc. portfolio of brands includes GrubHub, Seamless, MenuPages and Allmenus.

Citigroup, Morgan Stanley and BofA Merrill Lynch will act as book-running managers for the proposed offering.  Allen & Company LLC, BMO Capital Markets Corp., Canaccord Genuity Inc., Raymond James & Associates, Inc. and William Blair & Company, L.L.C. will act as co-managers for the proposed offering.

The proposed offering will be made only by means of a prospectus. A copy of the preliminary prospectus relating to these securities may be obtained when available from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by telephone at 1-800-831-9146; Morgan Stanley at Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014 or by telephone at 1-866-718-1649 and BofA Merrill Lynch at Attention: Prospectus Department, 222 Broadway, New York, NY 10038 or by e-mailing: dg.prospectus_requests@baml.com.

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of such state or jurisdiction.

The underwriters for the Company’s April 2014 initial public offering have agreed to waive the lock-up restrictions to permit the Company and the selling stockholders to file this proposed registration on Form S-1 and to permit the Company to offer and sell shares.  The lock-up restrictions will also be waived as to the selling stockholders immediately prior to the execution of the underwriting agreement to enable them to offer and sell shares in this proposed offering.

About GrubHub Inc.
GrubHub Inc. is the nation’s leading online and mobile food-ordering company dedicated to connecting hungry diners with local takeout restaurants. The GrubHub Inc. portfolio of brands includes GrubHub, Seamless, MenuPages and Allmenus. The Company’s online and mobile ordering platforms allow diners to order directly from more than 30,000 takeout restaurants in more than 700 U.S. cities and London, and every order is supported by the Company’s 24/7 customer service. GrubHub Inc. has offices in Chicago, New York City and London.

Contacts:
Investor Relations:
Anan Kashyap, GrubHub Inc.
Email: ir@grubhub.com

Media Relations:
Meghan Gage, GrubHub Inc.
Phone: 312-940-6401
Email: press@grubhub.com

GrubHub and Spoon University Analysis Highlights Differences in College Eating Habits

Student Food Preferences Deviate from the Norm, From Ordering Times to Caffeine Consumption

CHICAGO, Aug. 19, 2014 /PRNewswire/ — With class back in session for students across the country, GrubHub Inc., the nation’s leading online and mobile food-ordering service, teamed up with Spoon University, an online food publication and community for college students, to unwrap collegiate takeout habits. Together, they confirmed that drastic differences in eating habits exist between college students and the general population, especially when it comes to caffeine and ordering hours.

For a comprehensive understanding of student diners, GrubHub analysts examined orders placed by students from hundreds of college campuses during the 2013-2014 school year. While some of the data confirms that traditional takeout foods like pizza, wings and salads are popular across the board, other findings highlight the differences between student diners and average GrubHub diners. The analysis shows that college diners:

  • Caffeinate creatively: Energy drinks are 83 percent more commonly ordered by college diners, while coffee is 15 percent less commonly ordered.
  • Start the day later: Early-morning orders (between 6 a.m. and 9 a.m.) are 66 percent less common for college diners.
  • Keep it cool: Spicy orders are 26 percent less common among college students than non-college diners.
  • Embrace being omnivores: Vegetarian and vegan orders are 25 percent less common among college diners.
  • Ask for the works: Even as restaurants look to add healthier options to their menus, healthy substitutions and special requests are still 23 percent less common for college diners.
  • Skip the sweets: Dessert orders are 18 percent less common among college diners.
  • Burn the midnight oil: Late-night orders (placed between 10 p.m. and 2 a.m.) are 100 percent more common among college diners.

“The habits displayed by college diners, and the takeout restaurants that cater to this population, help illustrate the inherent differences between college culture and the rest of the nation,” said GrubHub Inc. president, Jonathan Zabusky. “It’s great to see that students take advantage of GrubHub’s convenience and flexibility to help fuel college life.”

Takeout Preferences of College Students
In addition to identifying key trends in college takeout, GrubHub’s analysis shows that certain foods are ordered by college students more than the typical GrubHub diner, with traditional takeout favorites like Italian and Chinese ranking highest.

  • Calzone – 150 percent more commonly ordered
  • Chicken with Broccoli – 114 percent more commonly ordered
  • General Tso’s Chicken – 92 percent more commonly ordered
  • Sesame Chicken – 88 percent more commonly ordered
  • Dumplings – 62 percent more commonly ordered
  • Wings – 56 percent more commonly ordered
  • Chicken Parmesan – 36 percent more commonly ordered
  • Sweet and Sour Chicken – 34 percent more commonly ordered
  • Wonton Soup – 19 percent more commonly ordered
  • Fries – 19 percent more commonly ordered

“With school and social calendars booked around-the-clock, college students often find themselves without the time or ingredients (not to mention a kitchen) to prepare food for themselves – so ordering takeout is a huge part of their lifestyles,” said Spoon University co-founder, Mackenzie Barth. “It’s no surprise that students order comfort foods at home and in the dorms, but as they learn more about the options available for takeout, we expect to see them making healthier and more adventurous choices when ordering from GrubHub.”

Leading the Pack in Campus Order Habits
In addition to profiling the college diner, GrubHub and Spoon University have delved into the unique takeout habits of campuses across the country. To see how your favorite college stacks up, check out GrubHub and Spoon University’s college rankings, here.

To find takeout restaurants available in your area, please visit GrubHub.com, and for more information on GrubHub Inc., please visit media.grubhub.com.

About GrubHub Inc.
GrubHub Inc. (NYSE:  GRUB) is the nation’s leading online and mobile food ordering company dedicated to connecting hungry diners with local takeout restaurants. The company’s online and mobile ordering platforms allow diners to order directly from approximately 30,000 takeout restaurants in more than 700 U.S. cities and London. Every order is supported by the company’s 24/7 customer service teams.

About Spoon University
Spoon University is a food media company with a focus on college students, building communities on college campuses nationwide. Spoon has chapters at 40 universities with over 1,000 students contributing to local editorial and marketing teams. Spoon’s mission is to help students eat intelligently while empowering them to build, lead, maintain and market their own online publications.

SOURCE GrubHub Inc.

Allie Mack, 773-250-0618, amack@grubhub.com

GrubHub Reports Second Quarter Results

Record revenues of $60.0 million, growth of 48%

Chicago, IL – July 24, 2014 – GrubHub Inc. (NYSE: GRUB), the leading online and mobile food-ordering company, today announced financial results for the quarter ended June 30, 2014.

“GrubHub continued to execute against the large opportunity in takeout in the second quarter, driving significant year over year growth in revenues, adjusted EBITDA, and all of our key metrics,” said Matt Maloney, CEO. “We generated record revenues in the second quarter despite both an expected seasonal slowdown and an unusually cold winter that drove record orders in the first quarter.”

Second Quarter 2014 Results

The following results reflect the financial performance and key operating metrics of our business for the three months ended June 30, 2014, compared to the non-GAAP pro forma combined results of Seamless Holdings and GrubHub Holdings for the three months ended June 30, 2013, giving effect to the August 2013 merger of the two companies.

Financial Highlights

  • Revenues: $60.0 million, a 48% year-over-year increase from $40.7 million in the second quarter of 2013.
  • Non-GAAP Adjusted EBITDA: $16.9 million, a 56% year-over-year increase from $10.8 million in the second quarter of 2013.
  • Net Income: $2.7 million, a 930% year-over-year increase from $0.3 million in the second quarter of 2013.

Key Business Metrics Highlights

  • Active Diners grew 51% to 4.19 million, compared to 2.78 million active diners in the second quarter of 2013.
  • GrubHub Inc. processed 174,500 Daily Average Grubs, a 34% year-over-year increase from 130,100 Daily Average Grubs in the second quarter of 2013.
  • GrubHub Inc. processed $423 million in gross food sales, a 38% year-over-year increase from $307 million processed in the second quarter of 2013.

“We’re pleased with the initial roll-out of restaurant-driven pricing to the Seamless brand in April, which had a positive impact on overall commission rates during the quarter,” noted Maloney. “In addition, by maintaining our seasonally higher first quarter advertising spending in the second quarter, we continued to add new diners at a healthy rate, particularly in areas outside of our largest markets.”

Third Quarter 2014 Guidance

Based on information available as of July 24, 2014, the company is providing the following financial guidance for the third quarter:

  • Revenue is expected to be in the range of $55.5 million to $57.5 million.
  • Adjusted EBITDA is expected to be in the range of $13 million to $15 million.

Second Quarter 2014 Financial Results Conference Call: GrubHub will webcast a conference call today at 9 a.m. CT to discuss the second quarter 2014 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 7, 2014.

About GrubHub

GrubHub Inc. (NYSE: GRUB) is the nation’s leading online and mobile food ordering company dedicated to connecting hungry diners with local takeout restaurants. The company’s online and mobile ordering platforms allow diners to order directly from approximately 30,000 takeout restaurants in more than 700 U.S. cities and London. Every order is supported by the company’s 24/7 customer service teams.

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. Such statements constitute “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The outcome of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, our actual results, performance or achievements could be materially different 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 the company’s Prospectus filed on April 7th, 2014 and additional information that will be set forth in our Form 10-Q that will be filed for the quarter ended June 30, 2014, which should be read in conjunction with these financial results. These documents are available on the SEC Filings section of the Investor Relations section of our website at http://investors.grubhub.com/. 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 update these forward-looking statements publicly, 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 merger and restructuring costs, income taxes, depreciation and amortization and stock-based compensation expense. We use Adjusted EBITDA as a key performance measure because we believe it facilitates 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.

See “Schedule of Non-GAAP Adjusted EBITDA Reconciliation – Pro Forma” below for a reconciliation of net income to Adjusted EBITDA.

Anan Kashyap
Corporate Finance & Investor Relations
ir@grubhub.com

Abby Hunt
Press
press@grubhub.com

NON-GAAP PRO FORMA FINANCIAL INFORMATION

On August 8, 2013, GrubHub Inc. acquired all of the equity interests of each of Seamless North America, LLC, Seamless Holdings and GrubHub Holdings (the “Merger”). The following Unaudited Pro Forma Condensed Statement of Operations was derived from the unaudited historical statement of operations of Seamless Holdings (Acquirer) for the three months ended June 30, 2013 and the unaudited historical statement of operations of GrubHub Holdings (Acquiree) for the three months ended June 30, 2013, adjusted for income taxes at the Company’s historical effective tax rate.

Three Months Ended June 30,
  ProForma Combined
2014 2013
(in thousands)
Revenues $ 60,006 $ 40,650
Costs and expenses:
Sales and marketing 16,168 10,568
Operations and support 14,734 10,823
Technology (exclusive of amortization) 6,066 4,201
General and administrative 8,620 11,916
Depreciation and amortization 5,615 2,561
Total costs and expenses 51,203 40,069
Income before provision for income taxes 8,803 581
Provision for income taxes 6,111 320
Net income $ 2,692 $ 261
Net income (loss) per share attributable to common stockholders:
Basic $ 0.03 $ (0.01 )
Diluted $ 0.03 $ 0.00
Weighted average shares used to compute net income (loss) per share attributable to common stockholders:
Basic 78,042 54,692
Diluted 82,074 74,983

KEY PRO FORMA OPERATING METRICS

Three Months Ended June 30,
2014   2013

Pro Forma
Active Diners (000s) 4,190 2,780
Daily Average Grubs 174,500 130,100
Gross Food Sales (millions) $ 422.6 $ 306.7

 

 

GRUBHUB INC.
CONDENSED CONSOLIDATED BALANCE SHEETS – UNAUDITED
(in thousands, except share data)
June 30, 2014
(Unaudited) December 31, 2013
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 207,096 $ 86,542
Accounts receivable, less allowances for doubtful accounts 37,863 29,304
Deferred taxes, current 3,688 3,688
Prepaid expenses 2,505 2,625
Total current assets 251,152 122,159
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization 16,529 17,096
OTHER ASSETS:
Other assets 4,039 2,328
Goodwill 352,788 352,788
Acquired intangible assets, net of amortization 261,390 268,441
Total other assets 618,217 623,557
TOTAL ASSETS $ 885,898 $ 762,812
LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability $ 84,486 $ 78,245
Accounts payable 2,390 3,353
Accrued payroll 3,441 1,720
Taxes payable 1,377 1,768
Restructuring accrual 478 176
Other accruals 9,850 7,329
Total current liabilities 102,022 92,591
LONG TERM LIABILITIES:
Deferred taxes, non-current 98,633 90,495
Other accruals 3,939 3,936
Total long term liabilities 102,572 94,431
Commitments and Contingencies
Redeemable common stock, $0.0001 par value, no shares and 1,344,236 shares outstanding as of June 30, 2014 and December 31, 2013, respectively — 18,415
STOCKHOLDERS’ EQUITY:
Series A Convertible Preferred Stock, $0.0001 par value — 2
Common stock, $0.0001 par value. 8 5
Accumulated other comprehensive income 316 132
Additional paid-in capital 617,375 500,356
Retained earnings 63,605 56,880
Total Stockholders’ Equity $ 681,304 $ 557,375
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ EQUITY $ 885,898 $ 762,812

 

 

GRUBHUB INC.
CONDENSED STATEMENTS OF OPERATIONS – UNAUDITED
(in thousands, except per share data)
Three Months Ended June 30, Six Months Ended

June 30,
2014   2013 2014   2013
Revenues $ 60,006 $ 26,857 $ 118,619 $ 52,658
Costs and expenses:
Sales and marketing 16,168 6,064 32,285 16,164
Operations and support 14,734 5,998 29,841 11,975
Technology (exclusive of amortization) 6,066 2,697 11,413 5,344
General and administrative 8,620 5,809 16,944 8,712
Depreciation and amortization 5,615 1,877 11,130 3,673
Total costs and expenses 51,203 22,445 101,613 45,868
Income before provision for income taxes 8,803 4,412 17,006 6,790
Provision for income taxes 6,111 2,589 9,961 3,711
Net income $ 2,692 $ 1,823 $ 7,045 $ 3,079
Net income per share attributable to common stockholders:
Basic $ 0.03 $ 0.04 $ 0.10 $ 0.08
Diluted $ 0.03 $ 0.04 $ 0.09 $ 0.07
Weighted average shares used to compute net income per share attributable to common stockholders:
Basic 78,042 31,373 66,626 31,368
Diluted 82,074 43,566 79,854 43,356

 

GRUBHUB INC.
CONDENSED STATEMENTS OF CASH FLOWS – UNAUDITED
(in thousands)
Six Months Ended June 30,
2014   2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 7,045 $ 3,079
Adjustments to reconcile net income to net cash from operating activities:
Depreciation 2,390 1,278
Provision for doubtful accounts 166 86
Deferred taxes 8,138 (151 )
Intangible asset amortization 8,740 2,395
Tenant allowance amortization (79 ) (79 )
Stock based compensation 4,687 1,238
Deferred rent 76 (64 )
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable (8,725 ) (7,081 )
Prepaid expenses and other assets (1,592 ) 452
Accounts payable (962 ) 1,510
Restaurant food liability 6,241 11,184
Accrued payroll 1,721 1,192
Other accruals 2,439 4,376
Net cash provided by operating activities 30,285 19,415
CASH FLOWS FROM INVESTING ACTIVITIES
Capitalized website and development costs (1,112 ) (1,434 )
Purchases of property and equipment (2,378 ) (3,170 )
Net cash used in investing activities (3,490 ) (4,604 )
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from the issuance of common stock 94,927 —
Proceeds from exercise of stock options 1,145 104
Taxes paid related to net settlements of stock-based compensation awards (2,061 ) —
Repurchases of common stock (116 ) (1,259 )
Preferred stock tax distributions (320 ) (651 )
Net cash provided by (used in) financing activities 93,575 (1,806 )
Net change in cash and cash equivalents 120,370 13,005
Effect of exchange rates on cash 184 (225 )
Cash and cash equivalents at beginning of year 86,542 41,161
Cash and cash equivalents at end of the period $ 207,096 $ 53,941
SUPPLEMENTAL DISCLOSURE OF NON CASH ITEMS
Cash paid for income taxes $ 1,321 $ 2,243


NON-GAAP ADJUSTED EBITDA RECONCILATION – PRO FORMA

 

Three Months Ended

June 30,

 Six Months Ended

June 30,
2014 2013

Pro Forma

 2014   2013

Pro Forma
(in thousands)
Net income $ 2,692 $ 261 $ 7,045 $ 920
Income taxes 6,111 320 9,961 1,125
Depreciation and amortization 5,615 2,561 11,130 4,975
EBITDA 14,418 3,142 28,136 7,020
Merger and restructuring costs 207 6,669 492 7,430
Stock-based compensation 2,284 1,022 4,687 2,010
Adjusted EBITDA $ 16,909 $ 10,833 $ 33,315 $ 16,460

Redefining Room Service: GrubHub Analysis Finds Takeout Orders to Hotels Jumped 125% in Popularity in Last Three Years

As some hotels forgo in-room dining offerings, travelers look to other food options

CHICAGO, July 22, 2014 /PRNewswire/ — For many Americans, hotel room service is considered a travel luxury; however, data from PFK Hospitality Research1 suggests that room service revenues fell 9.5 percent from 2007 to 2012, with some hotels shuttering unprofitable operations altogether. As hoteliers start to rethink their room service offerings, data from GrubHub Inc., the nation’s leading online and mobile food-ordering service, shows that takeout orders to hotels are growing increasingly popular.

GrubHub analysts examined a year’s worth of orders delivered to more than 8,000 hotels across the country to uncover takeout’s role in the current travel experience. GrubHub’s data suggest that hotel takeout orders have jumped in popularity 125 percent in the last three years2.

Hotel Takeout Ordering Habits
With a network of approximately 29,000 restaurants in more than 700 U.S. cities, GrubHub analysts were able to gain an accurate snapshot of the takeout habits of traveling Americans, including:

  • On average, hotel diners spend about 11 percent more per order than non-hotel diners.
  • Men are about 54 percent more likely than women to order meals to hotels.
  • Hotel takeout orders peak early in the work week, with fewer orders from Friday through Sunday.
  • Dinner and late night are the most popular meal times for travelers. Nearly three-fourths (72 percent) of hotel orders are placed during dinner and late-night hours.

Travelers to Mid-sized Cities Enjoy Takeout to Hotels
In addition to tracking hotel order trends, GrubHub’s analysis found that mid-sized cities such as Minneapolis, Kansas City, Mo., and Orlando have the highest share of orders delivered to hotels. The 10 leading hotel takeout order destinations, with the highest percentage of total orders coming from hotels, are:

  1. Minneapolis
  2. Kansas City
  3. Orlando, Fla.
  4. Virginia Beach, Va.
  5. Raleigh, N.C.
  6. Cleveland
  7. Portland, Ore.
  8. Jacksonville, Fla.
  9. San Jose, Calif.
  10. Miami

“Whether travelers are looking for more diverse, more affordable, or more accessible food options, it’s clear that takeout is becoming the natural alternative to traditional room service,” said GrubHub President Jonathan Zabusky .

To find takeout restaurants available in your area, please visit GrubHub.com, and for more information on GrubHub Inc., please visit http://media.grubhub.com.

About GrubHub Inc.
GrubHub Inc. (NYSE: GRUB) is the nation’s leading online and mobile food ordering company dedicated to connecting hungry diners with local takeout restaurants. The company’s online and mobile ordering platforms allow diners to order directly from more than 29,000 takeout restaurants in more than 700 U.S. cities and London. Every order is supported by the company’s 24/7 customer service teams.

1 PKF Hospitality Research LLC , Trends® in the Hotel Industry http://www.pkfc.com/store/products.aspx?CategoryID=175
2 Jump in popularity calculated as the change in share of total orders from 1/1/2011 – 7/2/2014.

SOURCE GrubHub Inc.

Allie Mack, 1-773-250-0618, amack@grubhub.com

GrubHub To Announce Second Quarter 2014 Financial Results On July 24, 2014

CHICAGO, July 16, 2014 /PRNewswire/ — GrubHub Inc. (NYSE: GRUB), the leading online and mobile food-ordering company, today announced that it will host a conference call to discuss its second quarter financial results on Thursday, July 24th, 2014, 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 Inc. (NYSE: GRUB) is the nation’s leading online and mobile food ordering company dedicated to connecting hungry diners with local takeout restaurants. The company’s online and mobile ordering platforms allow diners to order directly from approximately 30,000 takeout restaurants in more than 700 U.S. cities and London. Every order is supported by the company’s 24/7 customer service teams.

Contacts:

Anan Kashyap
Corporate Finance & Investor Relations
ir@grubhub.com

Abby Hunt
Press
press@grubhub.com