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Grubhub and Major Cities Across the U.S. Launch Economic Relief Effort up to $100 Million for Independent Restaurants and Delivery Partners Impacted by COVID-19

Mayors of Chicago, New York City, San Francisco, Boston and Portland Team with Grubhub to Suspend Fees from Independent Restaurants
Grubhub Sets up Charitable Fund for Impacted Drivers and Restaurants

CHICAGO, March 13, 2020 /PRNewswire/ — In collaboration with the mayors of large cities across the United States who are on the front lines of the COVID-19 response efforts, Grubhub today announced it is temporarily suspending collection of up to $100 million in commission payments from impacted independent restaurants nationwide.

Grubhub’s initiative will provide immediate and substantial cash flowrelief to qualified independent restaurants — restaurants that make up the majority of Grubhub’s 350,000+ restaurant community and drive more than 80 percent of the company’s orders.

Matt Maloney, Grubhub Founder and CEO said: “Independent restaurants are the lifeblood of our cities and feed our communities. They have been amazing long-term partners for us, and we wanted to help them in their time of need. Our business is their business — so this was an easy decision for us to make.”

Grubhub has also created a fund that will enable proceeds from its Donate the Change program to go toward charitable organizations that support restaurants and drivers impacted by the COVID-19 health crisis. The program will allow diners to round up the change from every order and donate it to the Grubhub Community Relief Fund — with donations from Grubhub+ (and Seamless+) members matched by the company. Grubhub has been raising more than $1 million dollars per month through Donate the Change.

Grubhub will work with local city officials to identify the organizations that can utilize the funds and to consider other support programs during the pandemic.

“The City of Chicago is deeply concerned about the risk COVID-19 is placing on the health of our residents and communities, as well as the impact it’s having on our working families and neighborhood economies and restaurants,” said Chicago Mayor Lori E. Lightfoot. “That is why we applaud corporate leaders like Grubhub who are stepping up with practical measures to support small businesses and their employees. Now more than ever, we must work together to ensure hardworking Chicagoans receive the support they need to thrive while also staying safe, secure, and healthy.”

In Chicago, where Grubhub was founded in 2004 and is headquartered today, there are more than 10,000 restaurants on the platform, and thousands of drivers bringing delicious food from these restaurants to hungry diners. This relief fund will provide support for food industry workers, which are anticipated to become among some of the most impacted by the economic losses due to coronavirus and social distancing practices. This includes residents at small, neighborhood-based businesses like Chicago’s Home of Chicken & Waffles, based in Bronzeville.

As dine-in traffic is expected to slow up to 75 percent over the next few weeks, restaurants will rely on pickup and delivery orders to stay in business. “We have seen revenue decrease in the past week as a direct result of our customers staying home,” said Darnell Johnson, owner of Chicago’s Home of Chicken & Waffles. “Grubhub has helped us generate more delivery and takeout orders as our customers’ dining habits have changed. This has helped us continue serving our loyal customers and our employees can continue living a sustainable lifestyle.”

“Banding together during hard times, putting people over profit, and supporting our local businesses is a model we should all follow, and I thank Grubhub for leading the way,” said New York City Mayor Bill de Blasio.

“Restaurants are a pillar of the San Francisco small business economy and so important to the culture of this city,” said Joaquin Torres, Director of San Francisco’s Office of Economic and Workforce Development. “We are committed to doing everything in our power to support them in this time of crisis, but if we want to come through this public health emergency intact, we’ll need more private sector partners to follow Grubhub’s lead, do the right thing and invest locally to mitigate this crisis.”

These initiatives follow a series of measures taken by Grubhub to keep restaurants, diners, and drivers safe during the outbreak – including contact-free delivery and health and safety guidance to drivers, restaurants and diners. Additionally, Grubhub offers pickup from the largest restaurant network in the country, which helps individuals who might feel safer acquiring food on their own.

About Grubhub
Grubhub (NYSE: GRUB) is a leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as more than 22 million active diners. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub elevates food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub features over 350,000 restaurants and is proud to partner with more than 165,000 of these restaurants in over 3,200 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, AllMenus and MenuPages.

Grubhub Reports Fourth Quarter And Full Year 2019 Results

Grubhub generates 19% revenue growth in the fourth quarter

CHICAGO, Feb. 5, 2020 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), a leading online and mobile food-ordering and delivery marketplace, today announced financial results for the fourth quarter and full year ended December 31, 2019 and also posted a letter to shareholders on its investor relations website. For the fourth quarter, the Company reported revenues of $341 million, which is a 19% year-over-year increase from $288 million in the same period last year. Gross Food Sales grew 13% year-over-year to $1.6 billion, up from $1.4 billion in the fourth quarter of 2018.

“We strengthened both sides of our marketplace during the fourth quarter, adding 1.4 million active diners and more than doubling our restaurant selection from just a quarter ago,” said Matt Maloney, Grubhub founder and CEO. “We are making good progress on the key initiatives we outlined last quarter. We added more than 15,000 partnered and over 150,000 non-partnered restaurant options for our diners and we also launched a number of new loyalty programs for our restaurant partners.”

Fourth Quarter and Full Year 2019 Highlights
The following results reflect the financial performance and key operating metrics of our business for the three and twelve months ended December 31, 2019, as compared to the same periods in 2018.

Fourth Quarter Financial Highlights

Revenues: $341.3 million, a 19% year-over-year increase from $287.7 million in the fourth quarter of 2018.
Net Income (Loss): $(27.7) million, or $(0.30) per diluted share, a decrease from $(5.2) million, or $(0.06) per diluted share, in the fourth quarter of 2018.
Non-GAAP Adjusted EBITDA: $26.7 million, a 37% year-over-year decrease from $42.1 million in the fourth quarter of 2018.
Non-GAAP Net Income (Loss): $(4.2) million, or $(0.05) per diluted share, a decrease from $17.6 million, or $0.19 per diluted share, in the fourth quarter of 2018.

Fourth Quarter Key Business Metrics Highlights¹

Active Diners: 22.6 million, a 28% year-over-year increase from 17.7 million Active Diners in the fourth quarter of 2018.
Daily Average Grubs (DAGs): 502,600, a 8% year-over-year increase from 467,500 DAGs in the fourth quarter of 2018.
Gross Food Sales: $1.6 billion, a 13% year-over-year increase from $1.4 billion in the fourth quarter of 2018.

1 Key Business Metrics are defined on page 29 of our Annual Report on Form 10-K filed on February 28, 2019.

Full Year Financial Highlights

Revenues: $1.3 billion, a 30% year-over-year increase from $1.0 billion in 2018.
Net Income (Loss): $(18.6) million, or $(0.20) per diluted share, a decrease from $78.5 million, or $0.85 per diluted share, in 2018.
Non-GAAP Adjusted EBITDA: $186.2 million, a 20% year-over-year decrease from $233.7 million in 2018.
Non-GAAP Net Income: $73.2 million, or $0.79 per diluted share, a 52% decrease from $153.3 million, or $1.66 per diluted share, in 2018.

Full Year Key Business Metrics Highlights¹

Active Diners: 22.6 million, a 28% year-over-year increase from 17.7 million Active Diners in 2018.
Daily Average Grubs (DAGs): 492,300, a 13% year-over-year increase from 435,900 DAGs in 2018.
Gross Food Sales: $5.9 billion, a 17% year-over-year increase from $5.1 billion in 2018.

“We continue to innovate the online takeout industry with our recent launch of Grubhub Ultimate, a revolutionary, first-of-its-kind proprietary hardware and software solution that integrates all restaurant ordering channels into one system. Grubhub Ultimate is an important step in helping unlock the pickup market, which accounts for the majority of the more than $250 billion takeout industry,” said Adam DeWitt, Grubhub president and CFO. “We remain confident our overall strategy will deliver sustainable value for all of our stakeholders and the team is determined to continue to execute and build on the early wins.”

First Quarter and Full Year 2020 Guidance
Based on information available as of February 5, 2020, the Company is providing the following financial guidance for the first quarter and full year of 2020.

	First Quarter 2020	Full Year 2020
	(in millions)
Expected Revenue	$350 – $370	$1,400 – $1,500
Expected Adjusted EBITDA	$15 – $25	at least $100

Fourth Quarter 2019 Financial Results Conference Call
Grubhub will webcast a conference call tomorrow at 8:00 a.m. CT to discuss the fourth quarter 2019 financial results. The webcast can be accessed on the Grubhub Investor Relations website at https://investors.grubhub.com, along with the Company’s letter to shareholders, earnings press release and financial tables. A replay of the webcast will be available at the same website.

About Grubhub
Grubhub (NYSE: GRUB) is a leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as more than 22 million active diners. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub elevates food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub features over 300,000 restaurants and is proud to partner with more than 155,000 of these restaurants in over 3,200 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, AllMenus and MenuPages.

Use of Forward Looking Statements
This press release contains forward-looking statements regarding Grubhub, “the Company’s” or our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected benefits to, and financial performance of, Grubhub including its acquisitions. Such statements constitute “forward-looking statements”, which are subject to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve substantial known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements including, but not limited to, achievement of the benefits of our planned additional investments, to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K filed on February 28, 2019 and our most recent Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, which are on file with the SEC and are available on the Investor Relations section of our website at https://investors.grubhub.com. Additional information will be set forth in our Annual Report on Form 10-K that will be filed for the year ended December 31, 2019, which should be read in conjunction with these financial results. Please also note that forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release. Except as required by law, we disclaim any intention to, and undertake no obligation to, publicly update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

Use of Non-GAAP Financial Measures
Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders are financial measures that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP.

We define Adjusted EBITDA as net income adjusted to exclude acquisition, restructuring and certain legal costs, income taxes, net interest expense, depreciation and amortization and stock-based compensation expense. Non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders exclude acquisition, restructuring and certain legal costs, amortization of acquired intangible assets, stock-based compensation expense and other nonrecurring items as well as the income tax effects of these non-GAAP adjustments. We use these non-GAAP financial measures as key performance measures because we believe they facilitate operating performance comparisons from period to period by excluding potential differences primarily caused by variations in capital structures, tax positions, the impact of acquisitions, restructuring and certain legal costs, the impact of depreciation and amortization expense on our fixed assets and the impact of stock-based compensation expense. Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders are not measurements of our financial performance under GAAP and should not be considered as an alternative to performance measures derived in accordance with GAAP.

See “Non-GAAP Financial Measures Reconciliation” below for a reconciliation of net income to Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders.

GRUBHUB INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)

	Three Months Ended December 31,				Year Ended December 31,
	2019		2018		2019		2018
Revenues	$	341,270	$	287,721	$	1,312,151	$	1,007,257
Costs and expenses:
Operations and support		190,328		144,082		675,471		454,321
Sales and marketing		86,100		69,877		310,299		214,290
Technology (exclusive of amortization)		29,164		24,972		115,297		82,278
General and administrative		28,018		27,393		101,918		85,465
Depreciation and amortization		32,488		24,153		115,449		85,940
Total costs and expenses		366,098		290,477		1,318,434		922,294
Income (loss) from operations		(24,828)		(2,756)		(6,283)		84,963
Interest expense – net		6,189		2,163		20,493		3,530
Income (loss) before provision for income taxes		(31,017)		(4,919)		(26,776)		81,433
Income tax (benefit) expense		(3,299)		231		(8,210)		2,952
Net income (loss) attributable to common stockholders	$	(27,718)	$	(5,150)	$	(18,566)	$	78,481
Net income (loss) per share attributable to common stockholders:
Basic	$	(0.30)	$	(0.06)	$	(0.20)	$	0.88
Diluted	$	(0.30)	$	(0.06)	$	(0.20)	$	0.85
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic		91,509		90,705		91,247		89,447
Diluted		91,509		90,705		91,247		92,354


KEY BUSINESS METRICS

	Three Months Ended December 31,				Year Ended December 31,
	2019		2018		2019		2018
Active Diners (000s)		22,621		17,688		22,621		17,688
Daily Average Grubs		502,600		467,500		492,300		435,900
Gross Food Sales (millions)	$	1,552	$	1,377	$	5,914	$	5,057

GRUBHUB INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)



	December 31, 2019		December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	375,909	$	211,245
Short-term investments		49,275		14,084
Accounts receivable, less allowances for doubtful accounts		119,658		110,855
Income tax receivable		3,960		9,949
Prepaid expenses and other current assets		17,515		17,642
Total current assets		566,317		363,775
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization		172,744		119,495
OTHER ASSETS:
Other assets		26,836		14,186
Operating lease right-of-use asset		100,632		—
Goodwill		1,007,968		1,019,239
Acquired intangible assets, net of amortization		500,481		549,013
Total other assets		1,635,917		1,582,438
TOTAL ASSETS	$	2,374,978	$	2,065,708
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability	$	131,753	$	127,344
Accounts payable		26,748		26,656
Accrued payroll		19,982		18,173
Current portion of long-term debt		—		6,250
Current operating lease liability		9,376		—
Other accruals		61,504		44,745
Total current liabilities		249,363		223,168
LONG-TERM LIABILITIES:
Deferred taxes, non-current		27,163		46,383
Noncurrent operating lease liability		111,056		—
Long-term debt		493,009		335,548
Other accruals		817		18,270
Total long-term liabilities		632,045		400,201
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value		9		9
Accumulated other comprehensive loss		(1,628)		(1,891)
Additional paid-in capital		1,164,400		1,094,866
Retained earnings		330,789		349,355
Total Stockholders’ Equity	$	1,493,570	$	1,442,339
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,374,978	$	2,065,708

GRUBHUB INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Year Ended December 31,
	2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(18,566)	$	78,481
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation		30,237		21,647
Amortization of intangible assets and developed software		85,212		64,293
Stock-based compensation		72,879		55,261
Deferred taxes		(7,726)		1,724
Other		8,531		5,552
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable		(11,591)		(6,092)
Income taxes receivable		5,989		(1,356)
Prepaid expenses and other assets		(13,854)		(16,270)
Restaurant food liability		4,380		2,921
Accounts payable		1,978		11,160
Accrued payroll		1,804		3,621
Other accruals		23,349		4,585
Net cash provided by operating activities		182,622		225,527
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments		(85,989)		(57,197)
Proceeds from maturity of investments		51,366		67,166
Capitalized website and development costs		(48,524)		(31,180)
Purchases of property and equipment		(55,167)		(43,033)
Acquisition of other intangible assets		(9,980)		(11,851)
Acquisitions of businesses, net of cash acquired		127		(517,909)
Other cash flows from investing activities		(250)		—
Net cash used in investing activities		(148,417)		(594,004)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt		500,000		222,000
Repayments of borrowings under the credit facility		(342,313)		(53,906)
Proceeds from the issuance of common stock		—		200,000
Taxes paid related to net settlement of stock-based compensation awards		(23,753)		(35,599)
Proceeds from exercise of stock options		4,469		14,190
Payments for debt issuance costs		(9,136)		—
Net cash provided by financing activities		129,267		346,685
Net change in cash, cash equivalents, and restricted cash		163,472		(21,792)
Effect of exchange rates on cash, cash equivalents and restricted cash		320		(645)
Cash, cash equivalents, and restricted cash at beginning of year		215,802		238,239
Cash, cash equivalents, and restricted cash at end of the period	$	379,594	$	215,802
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Cash paid for income taxes	$	1,163	$	7,895

GRUBHUB INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(in thousands, except per share and per order data)

	Three Months Ended December 31,				Year Ended December 31,
	2019		2018		2019		2018
Net income (loss)	$	(27,718)	$	(5,150)	$	(18,566)	$	78,481
Income taxes		(3,299)		231		(8,210)		2,952
Interest expense – net		6,189		2,163		20,493		3,530
Depreciation and amortization		32,488		24,153		115,449		85,940
EBITDA		7,660		21,397		109,166		170,903
Acquisition, restructuring and legal costs		966		1,913		4,105		7,578
Stock-based compensation²		18,073		18,816		72,879		55,261
Adjusted EBITDA	$	26,699	$	42,126	$	186,150	$	233,742

Net income (loss) per order	$	(0.60)	$	(0.12)	$	(0.10)	$	0.49
Adjusted EBITDA per order	$	0.58	$	0.98	$	1.04	$	1.47


	Three Months Ended December 31,				Year Ended December 31,
	2019		2018		2019		2018
Net income (loss)	$	(27,718)	$	(5,150)	$	(18,566)	$	78,481
Stock-based compensation²		18,073		18,816		72,879		55,261
Amortization of acquired intangible assets		13,367		11,377		50,712		42,484
Acquisition, restructuring and legal costs		966		1,913		4,105		7,578
Income tax adjustments		(8,916)		(9,384)		(35,883)		(30,544)
Non-GAAP net income (loss)	$	(4,228)	$	17,572	$	73,247	$	153,260
Weighted-average diluted shares used to compute net income (loss) per share attributable to common stockholders		91,509		93,144		92,759		92,354
Non-GAAP net income (loss) per diluted share attributable to common stockholders	$	(0.05)	$	0.19	$	0.79	$	1.66

² Stock-based compensation expense for the three months ended December 31, 2018 and the twelve months ended December 31, 2019 and 2018 included $4.8 million, $1.6 million and $4.8 million, respectively, of expense related to the accelerated vesting of equity awards to certain terminated acquired employees.

	Guidance
	Three Months Ended March 31, 2020
	Low		High
	(in millions)
Net loss	$	(36.0)	$	(28.5)
Income taxes		(12.1)		(9.6)
Interest expense – net		6.1		6.1
Depreciation and amortization		34.0		34.0
EBITDA		(8.0)		2.0
Acquisition, restructuring and legal costs		—		—
Stock-based compensation		23.0		23.0
Adjusted EBITDA	$	15.0	$	25.0

Note: For the full year 2020, we currently expect Adjusted EBITDA of at least $100 million, net interest expense of $25 million, depreciation and amortization expense of $145 million and stock-based compensation expense of $100 million.

Grubhub To Announce Fourth Quarter And Full Year 2019 Financial Results

CHICAGO, Jan. 23, 2020 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced it will release fourth quarter and full year 2019 earnings results after the market close on Wednesday, Feb. 5, 2020, followed by a conference call to discuss its results on Thursday, Feb. 6, 2020, at 8:00 a.m. CT. Founder & CEO Matt Maloney and President & CFO Adam DeWitt will host the conference call.

The live webcast of the conference call will be available on the investor relations section of the Grubhub website at http://investors.grubhub.com/. Following completion of the call, a recording of the webcast will be available on the website.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 140,000 restaurant partners in over 2,700 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

GrubHub Logo

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Grubhub Reports Third Quarter 2019 Results

Grubhub generates 30% revenue growth in the third quarter

CHICAGO, Oct. 28, 2019 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced financial results for the third quarter ended September 30, 2019 and also posted a letter to shareholders on its investor relations website. The Company reported revenues of $322 million, which is a 30% year-over-year increase from $247 million in the third quarter of 2018. Gross Food Sales grew 15% year-over-year to $1.4 billion, up from $1.2 billion in the same period last year.

“Our teams had another strong quarter of execution, adding nearly one million active diners and 15,000 restaurants to our platform,” said Matt Maloney, Grubhub founder and CEO. “As we detail in our shareholder letter, we are entering the next phase of growth in the U.S. online food ordering industry where it is increasingly important to create a differentiated experience for diners and long-term value for restaurants. We are excited to leverage the robust profitability of our core business and best-in-class restaurant-facing products to grow our two-sided marketplace in a sustainable manner.”

Third Quarter 2019 Highlights
The following results reflect the financial performance and key operating metrics of our business for the three months ended September 30, 2019, as compared to the same period in 2018.

Third Quarter Financial Highlights

Revenues: $322.1 million, a 30% year-over-year increase from $247.2 million in the third quarter of 2018.
Net Income: $1.0 million, or $0.01 per diluted share, a decrease from $22.7 million, or $0.24 per diluted share, in the third quarter of 2018.
Non-GAAP Adjusted EBITDA: $53.8 million, a 10% year-over-year decrease from $60.1 million in the third quarter of 2018.
Non-GAAP Net Income: $24.7 million, or $0.27 per diluted share, a decrease from $42.2 million, or $0.45 per diluted share, in the third quarter of 2018.

Third Quarter Key Business Metrics Highlights¹

Active Diners: 21.2 million, a 29% year-over-year increase from 16.4 million Active Diners in the third quarter of 2018.
Daily Average Grubs (DAGs): 457,300, a 10% year-over-year increase from 416,000 DAGs in the third quarter of 2018.
Gross Food Sales: $1.4 billion, a 15% year-over-year increase from $1.2 billion in the third quarter of 2018.

_____________________

¹ Key Business Metrics are defined on page 29 of our Annual Report on Form 10-K filed on February 28, 2019.

“Last year, in the fourth quarter, we made opportunistic investments to expand delivery market coverage, increase new diner advertising and accelerate our enterprise brand sales efforts. Through the third quarter of 2019, we believe all three of these initiatives had a positive impact on our business and long-term shareholder value,” said Adam DeWitt, Grubhub President and CFO. “Importantly, we demonstrated the ability to generate operating leverage consistently throughout 2019 with EBITDA per order increasing 31% from $0.98 in the fourth quarter of 2018 to $1.28 in the third quarter of 2019. We are excited to embark on the initiatives detailed in the shareholder letter to further differentiate our marketplace for both restaurants and diners and position us for maintaining, and eventually improving, profitability.”

Fourth Quarter 2019 Guidance
Based on information available as of October 28, 2019, the Company is providing the following financial guidance for the fourth quarter of 2019.

		Fourth Quarter 2019
		(in millions)
Expected Revenue range		$315 – $335
Expected Adjusted EBITDA range		$15 – $25

Third Quarter 2019 Financial Results Conference Call
Grubhub will webcast a conference call tomorrow at 8:00 a.m. CT to discuss the third quarter 2019 financial results. The webcast can be accessed on the Grubhub Investor Relations website at https://investors.grubhub.com, along with the Company’s letter to shareholders, earnings press release and financial tables. A replay of the webcast will be available at the same website.

Use of Forward Looking Statements
This press release contains forward-looking statements regarding Grubhub, “the Company’s” or our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected benefits to, and financial performance of, Grubhub including its acquisitions. Such statements constitute “forward-looking statements”, which are subject to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve substantial known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements including, but not limited to, achievement of the benefits of our planned additional investments, to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K filed on February 28, 2019, which is on file with the SEC and is available on the Investor Relations section of our website at https://investors.grubhub.com. Additional information will be set forth in our Quarterly Report on Form 10-Q that will be filed for the quarter ended September 30, 2019, which should be read in conjunction with these financial results. Please also note that forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release. Except as required by law, we disclaim any intention to, and undertake no obligation to, publicly update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

GRUBHUB INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues	$	322,053	$	247,225	$	970,881	$	719,536
Costs and expenses:
Operations and support		161,387		111,511		485,143		310,239
Sales and marketing		71,617		49,426		224,199		144,413
Technology (exclusive of amortization)		29,483		21,258		86,133		57,306
General and administrative		25,329		22,195		73,900		58,072
Depreciation and amortization		30,649		20,987		82,961		61,787
Total costs and expenses		318,465		225,377		952,336		631,817
Income from operations		3,588		21,848		18,545		87,719
Interest expense – net		6,025		337		14,304		1,367
Income (loss) before provision for income taxes		(2,437)		21,511		4,241		86,352
Income tax (benefit) expense		(3,447)		(1,234)		(4,911)		2,721
Net income attributable to common stockholders	$	1,010	$	22,745	$	9,152	$	83,631
Net income per share attributable to common stockholders:
Basic	$	0.01	$	0.25	$	0.10	$	0.94
Diluted	$	0.01	$	0.24	$	0.10	$	0.91
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		91,349		90,494		91,159		89,027
Diluted		92,847		93,678		92,850		92,091

KEY BUSINESS METRICS

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Active Diners (000s)		21,197		16,379		21,197		16,379
Daily Average Grubs		457,300		416,000		488,800		425,300
Gross Food Sales (millions)	$	1,400	$	1,215	$	4,362	$	3,680

GRUBHUB INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)


	September 30, 2019		December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	394,000	$	211,245
Short-term investments		32,214		14,084
Accounts receivable, less allowances for doubtful accounts		123,309		110,855
Income tax receivable		2,227		9,949
Prepaid expenses and other current assets		18,632		17,642
Total current assets		570,382		363,775
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization		160,368		119,495
OTHER ASSETS:
Other assets		25,452		14,186
Operating lease right-of-use asset		100,736		—
Goodwill		1,007,968		1,019,239
Acquired intangible assets, net of amortization		513,848		549,013
Total other assets		1,648,004		1,582,438
TOTAL ASSETS	$	2,378,754	$	2,065,708
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability	$	130,544	$	127,344
Accounts payable		23,392		26,656
Accrued payroll		22,537		18,173
Current portion of long-term debt		—		6,250
Current operating lease liability		8,056		—
Other accruals		59,686		44,745
Total current liabilities		244,215		223,168
LONG-TERM LIABILITIES:
Deferred taxes, non-current		28,681		46,383
Noncurrent operating lease liability		111,554		—
Long-term debt		492,776		335,548
Other accruals		817		18,270
Total long-term liabilities		633,828		400,201
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value		9		9
Accumulated other comprehensive loss		(2,346)		(1,891)
Additional paid-in capital		1,144,541		1,094,866
Retained earnings		358,507		349,355
Total Stockholders’ Equity	$	1,500,711	$	1,442,339
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,378,754	$	2,065,708

GRUBHUB INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Nine Months Ended September 30,
	2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	9,152	$	83,631
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		21,665		16,189
Amortization of intangible assets and developed software		61,296		45,598
Stock-based compensation		54,806		36,445
Deferred taxes		(6,208)		2,048
Other		5,210		4,572
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable		(13,335)		(17,969)
Income taxes receivable		7,722		(5,533)
Prepaid expenses and other assets		(11,955)		(15,455)
Restaurant food liability		3,247		1,608
Accounts payable		(50)		5,265
Accrued payroll		4,366		5,311
Other accruals		20,088		3,752
Net cash provided by operating activities		156,004		165,462
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments		(49,506)		(47,642)
Proceeds from maturity of investments		31,736		54,916
Capitalized website and development costs		(35,068)		(21,471)
Purchases of property and equipment		(42,702)		(31,984)
Acquisition of other intangible assets		(8,889)		—
Acquisitions of businesses, net of cash acquired		127		(366,856)
Other cash flows from investing activities		(250)		38
Net cash used in investing activities		(104,552)		(412,999)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt		500,000		175,000
Repayments of borrowings under the credit facility		(342,313)		(52,344)
Proceeds from the issuance of common stock		—		200,000
Taxes paid related to net settlement of stock-based compensation awards		(20,503)		(28,238)
Proceeds from exercise of stock options		4,040		13,010
Payments for debt issuance costs		(9,136)		—
Net cash provided by financing activities		132,088		307,428
Net change in cash, cash equivalents, and restricted cash		183,540		59,891
Effect of exchange rates on cash, cash equivalents and restricted cash		(293)		(406)
Cash, cash equivalents, and restricted cash at beginning of year		215,802		238,239
Cash, cash equivalents, and restricted cash at end of the period	$	399,049	$	297,724
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Cash paid for income taxes	$	567	$	7,508

GRUBHUB INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATION
(in thousands, except per share and per order data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net income	$	1,010	$	22,745	$	9,152	$	83,631
Income taxes		(3,447)		(1,234)		(4,911)		2,721
Interest expense – net		6,025		337		14,304		1,367
Depreciation and amortization		30,649		20,987		82,961		61,787
EBITDA		34,237		42,835		101,506		149,506
Acquisition, restructuring and legal costs		1,312		3,024		3,139		5,665
Stock-based compensation		18,279		14,275		54,806		36,445
Adjusted EBITDA	$	53,828	$	60,134	$	159,451	$	191,616

Net income per order	$	0.02	$	0.59	$	0.07	$	0.72
Adjusted EBITDA per order	$	1.28	$	1.57	$	1.19	$	1.65


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net income	$	1,010	$	22,745	$	9,152	$	83,631
Stock-based compensation		18,279		14,275		54,806		36,445
Amortization of acquired intangible assets		13,575		10,037		37,345		31,107
Acquisition, restructuring and legal costs		1,312		3,024		3,139		5,665
Income tax adjustments		(9,510)		(7,854)		(26,967)		(21,160)
Non-GAAP net income	$	24,666	$	42,227	$	77,475	$	135,688
Weighted-average diluted shares used to compute net income per share attributable to common stockholders		92,847		93,678		92,850		92,091
Non-GAAP net income per diluted share attributable to common stockholders	$	0.27	$	0.45	$	0.83	$	1.47

	Guidance
	Three Months Ended December 31, 2019
	Low		High
	(in millions)
Net loss	$	(44.8)	$	(33.9)
Income taxes		3.8		2.9
Interest expense – net		6.0		6.0
Depreciation and amortization		31.0		31.0
EBITDA		(4.0)		6.0
Acquisition, restructuring and legal costs		—		—
Stock-based compensation		19.0		19.0
Adjusted EBITDA	$	15.0	$	25.0

Grubhub To Announce Third Quarter 2019 Financial Results On Oct. 29, 2019

CHICAGO, Oct. 15, 2019 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced it will host a conference call to discuss its third quarter financial results on Tuesday, Oct. 29, 2019, at 8:00 a.m. CT, following the release of the Company’s financial results. Founder & CEO Matt Maloney and President & CFO Adam DeWitt will host the webcast.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 125,000 restaurant partners in over 2,400 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

GrubHub Logo

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McDonald’s Adds Grubhub as McDelivery Partner in NYC and Tri-State Area

McDelivery to be Available via Grubhub and Seamless in Area Restaurants Later This Month

NEW YORK, Sept. 5, 2019 /PRNewswire/ — Today, McDonald’s USA and Grubhub announced a new partnership to begin expanding McDelivery to approximately 500 restaurants in the NYC and Tri-State Area. McDelivery will be available on the Grubhub marketplace and the company’s New York brand, Seamless.

“At McDonald’s, we’re constantly innovating to find new ways to best serve our customers whenever and wherever they want, whether it’s dining in our newly modernized restaurants, on-the-go through mobile order and pay or our drive-thru, or McDelivery. The convenience of McDelivery has been available to our customers in the NYC and Tri-State area for the past two years,” said Marcos Quesada, Vice President of McDonald’s Stamford Field Office. “We are excited to add Seamless and Grubhub, leading delivery platforms in NYC, to our McDelivery service and to create more options for our customers to enjoy their favorite McDonald’s menu items via McDelivery.”

The Grubhub and McDonald’s partnership will include a direct point-of-sale (POS) integration to ensure a smooth experience for customers and franchise operations partners. As part of this integration, Grubhub’s innovative “Just in Time” technology will allow restaurant operators to match order fulfillment with driver pickup. This feature not only streamlines in-store operations but also provides the best experience for diners by delivering their food as hot and fresh as possible.

“Expanding McDonald’s McDelivery service in the New York City area is exciting, and we’re thrilled the team selected Grubhub as its partner of choice,” said Seth Priebatsch, head of enterprise at Grubhub. “We’ve been a part of New Yorkers’ lives for over 20 years, and we know a beloved brand like McDonald’s will be a welcome addition to our diners’ daily options.”

McDelivery launched in the U.S. in 2017, with partners including Uber Eats, and is expected to be a $4 billion business for both McDonald’s and its franchise restaurants globally in 2019.

About McDonald’s USA
McDonald’s serves a variety of menu options made with quality ingredients to more than 25 million customers every day. Approximately 95% of McDonald’s nearly 14,000 U.S. restaurants are independently owned and operated by businessmen and women. For more information, visit www.mcdonalds.com, or follow us on Twitter @McDonalds and Facebook at www.facebook.com/mcdonalds.

About Grubhub
Grubhub (NYSE:GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 125,000 restaurant partners in over 2,400 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

Dine Brands Partners With Grubhub To Offer Delivery Across Thousands Of Applebee’s & IHOP Locations

POS integration, marketplace expansion, and combined marketing efforts will drive incremental restaurant growth and operational efficiency

NEW YORK and GLENDALE, Calif., Aug. 27, 2019 /PRNewswire/ — Grubhub (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced its expanded partnership with Dine Brands (NYSE: DIN), the parent company of Applebee’s Neighborhood Grill + Bar® and IHOP® restaurants. Nearly triple the number of Applebee’s and IHOP locations will be available on the Grubhub marketplace, and the collaboration will also build a deep integration to maximize incremental growth.

Grubhub’s marketplace will extend coverage to more than 3,000 locations between Applebee’s and IHOP brands, giving diners even more opportunity to get their favorite dishes delivered. Grubhub and Dine Brands will be working towards a direct-to-POS integration for menu syncing and order submission across Applebee’s and IHOP. Restaurants will receive orders directly to their existing in-house POS, creating a more efficient process in receiving and fulfilling orders. Additionally, Grubhub worked closely with Dine Brands to address the needs and requirements of its franchisees in the U.S. to give guests the best possible experience.

“Delivery is an important part of our strategy to provide Applebee’s and IHOP guests with even more convenience to enjoy our great food wherever they are. We’re thrilled to both expand our presence on Grubhub’s growing marketplace, and also streamline operations with our direct-to-POS integration,” stated Steve Joyce, CEO at Dine Brands. “This approach and our valued relationship with Grubhub allowed us to build a win-win partnership that benefits our brands, guests, and franchisees.”

Through the Dine Brands partnership, franchisees who work with Grubhub as their preferred delivery marketplace will have access to additional marketing benefits, as well as advanced analytics capabilities made possible given the close nature of the partnership.

“We’re excited about our expansion with Dine Brands, building out our relationship with two brands diners across the country know and love: Applebee’s and IHOP,” stated Seth Priebatsch, head of enterprise at Grubhub. “We worked closely to help Dine Brands build their online business while allowing them and their franchisees to ‘own’ their online diners. Now with our deeply-integrated partnership, even more guests have access to their favorites, whether that’s pancakes for dinner or a classic cheeseburger for lunch.”

Ordering through Grubhub for pickup and delivery will be available across more than 1,700 Applebee’s and 1,300 IHOP locations across the U.S. Diners will also be able to access special deals. To stay up-to-date on Grubhub, visit www.grubhub.com, the Grubhub Blog, or follow along on Facebook and Instagram.

About Grubhub
Grubhub (NYSE:GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 125,000 restaurant partners in over 2,400 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

About Dine Brands Global, Inc.
Based in Glendale, California, Dine Brands Global, Inc. (NYSE: DIN), through its subsidiaries, franchises restaurants under both the Applebee’s Neighborhood Grill + Bar and IHOP brands. With approximately 3,650 restaurants combined in 18 countries and approximately 370 franchisees, Dine Brands is one of the largest full-service restaurant companies in the world. For more information on Dine Brands, visit the Company’s website located at www.dinebrands.com.

Dine Brands: Applebee’s Neighborhood Grill + Bar® and IHOP®

Shake Shack Announces Integrated Partnership With Grubhub for Nationwide Delivery

POS integration, CRM capabilities and co-marketing initiatives among the solutions built into the partnership to drive guest experience, operational efficiency and growth

NEW YORK & CHICAGO–(BUSINESS WIRE)–Shake Shack (NYSE:SHAK), the modern day “roadside” burger stand, today announced they have entered into an integrated partnership with Grubhub (NYSE:GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace. The partnership reflects Shake Shack’s long-term digital growth and innovation strategy to make its iconic food more accessible to consumers through an increasing number of channels.

Grubhub – and its Seamless brand in Shake Shack’s hometown of New York City – will be Shake Shack’s national delivery partner with direct-to-POS integration for menu syncing and order submission. With Grubhub’s “Just in Time” technology, pickups by drivers will be timed to the moment an order is ready, resulting in faster delivery, fresher food and a better guest experience. Shake Shack will have access to enhanced tools to analyze performance and ordering trends to be able to connect with guests in new and more personalized ways. Shake Shack will benefit from Grubhub’s enterprise support team, with dedicated resources for both customer and operations support. Shake Shack and Grubhub will also engage in joint marketing initiatives that will generate connections with new guests and drive order frequency for existing fans.

“Shake Shack is experiencing incredible growth. Now more than ever, we’re doubling down on our commitment to be an accessible, omnichannel business,” said Randy Garutti, Shake Shack CEO. “Over the last fifteen years, we’ve built our brand around creating community gathering places and becoming the next generation’s burger joint. Our partnership with Grubhub is a reflection of our commitment to expanding that connected community through our increasing number of digital products, and our relentless focus on providing both convenience and excellence in experience through those digital offerings. The Shake Shack-Grubhub partnership demonstrates our strategic commitment to digital innovation and guest experience, and represents an important component in our overall digital ecosystem, including web-ordering, mobile app, kiosk and delivery.”

“Shake Shack is one of the country’s most iconic brands, and we’re thrilled they chose Grubhub as their exclusive integration and marketing partner to make Shake Shack accessible to more people, not only in their flagship market of New York City, but across the country through our leading network of more than 20 million diners,” said Matt Maloney, Grubhub founder and CEO. “Being a true partner to restaurants isn’t just about delivering food to customers quickly and efficiently. It’s about using technology to maximize a brand’s online presence and improve restaurant operations, which is exemplified by this deeply-integrated partnership with Shake Shack.”

Shake Shack delivery through Grubhub and Seamless is currently in test and available to guests at a small number of Shacks. A nationwide rollout will continue gradually over the next 2-3 quarters, bringing Shake Shack’s innovative menu offerings like the ShackBurger, Chick’n Shack, frozen custard shakes and crinkle cut fries to more Shack fans whenever and however they want it.

Shake Shack plans to host their scheduled second quarter 2019 earnings call today, Monday, August 5th at 5:00 p.m. Eastern Time / 4:00 p.m. Central Time. A live webcast of the conference call will be available at investor.shakeshack.com.

Photos available here: https://shakeshack.sharefile.com/share/view/s6b4d3425de843c2b

About Shake Shack
Shake Shack (NYSE:SHAK) is a modern day “roadside” burger stand known for its 100% all-natural Angus beef burgers, chicken sandwiches and flat-top Vienna beef dogs (no hormones or antibiotics – ever), spun-fresh frozen custard, crinkle cut fries, craft beer and wine and more. With its fresh, simple, high-quality food at a great value, Shake Shack is a fun and lively community gathering place with widespread appeal. Shake Shack’s mission is to Stand for Something Good®, from its premium ingredients and caring hiring practices to its inspiring designs and deep community investment. Since the original Shack opened in 2004 in NYC’s Madison Square Park, the company has expanded to more than 240 locations in 28 U.S. States and the District of Columbia, including more than 80 international locations across London, Hong Kong, Shanghai, Singapore, Mexico, Istanbul, Dubai, Tokyo, Moscow, Seoul and more.

Skip the line with the Shack App, a mobile ordering app that lets you save time by ordering ahead! Guests can select their location, pick their food, choose a pickup time and their meal will be cooked-to-order and timed to arrival. Available on iOS and Android. Guests can also order ahead with via web at order.shakeshack.com.

Learn more: shakeshack.com | IG: @shakeshack | t: @shakeshack | f: facebook.com/shakeshack

About Grubhub
Grubhub (NYSE:GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 125,000 restaurant partners in over 2,400 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

Grubhub Reports Second Quarter 2019 Results

Grubhub generates 36% revenue growth in the second quarter

CHICAGO, July 30, 2019 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced financial results for the second quarter ended June 30, 2019. The Company posted revenues of $325 million, which is a 36% year-over-year increase from $240 million in the second quarter of 2018. Gross Food Sales grew 20% year-over-year to $1.5 billion, up from $1.2 billion in the same period last year.

“The team continued executing in the second quarter, adding thousands of new, high-quality independent and enterprise restaurants and growing our active diner base to more than 20 million,” said Matt Maloney, Grubhub founder and CEO. “We are excited about the trajectory of our two-sided marketplace – both in terms of geographic diversity and depth in individual markets. Restaurants are increasingly valuing the incremental sales and products we provide, while diners highly regard our robust restaurant selection and consistently low transaction fees.”

Second Quarter 2019 Highlights

The following results reflect the financial performance and key operating metrics of our business for the three months ended June 30, 2019, as compared to the same period in 2018.

Second Quarter Financial Highlights

Revenues: $325.1 million, a 36% year-over-year increase from $239.7 million in the second quarter of 2018.
Net Income: $1.3 million, or $0.01 per diluted share, a 96% year-over-year decrease from $30.1 million, or $0.33 per diluted share, in the second quarter of 2018.
Non-GAAP Adjusted EBITDA: $54.7 million, a 19% year-over-year decrease from $67.4 million in the second quarter of 2018.
Non-GAAP Net Income: $24.9 million, or $0.27 per diluted share, a 46% year-over-year decrease from $46.3 million, or $0.50 per diluted share, in the second quarter of 2018.

Second Quarter Key Business Metrics Highlights¹

Active Diners: 20.3 million, a 30% year-over-year increase from 15.6 million Active Diners in the second quarter of 2018.
Daily Average Grubs (DAGs): 488,900, a 16% year-over-year increase from 423,200 DAGs in the second quarter of 2018.
Gross Food Sales: $1.5 billion, a 20% year-over-year increase from $1.2 billion in the second quarter of 2018.

“Our Adjusted EBITDA per order increased by $0.14 from the first quarter to $1.23 despite the headwind of the seasonally slower second quarter. This sequential improvement was primarily driven by increasing delivery efficiency, especially in our quickly ramping recently launched markets,” said Adam DeWitt, Grubhub president and CFO. “We have achieved this profitability improvement while extending our delivery business into smaller and less dense markets, setting us up for continued unit economic improvement as we head into our seasonally stronger months at the end of the year.”

Third Quarter and Full Year 2019 Guidance

Based on information available as of July 30, 2019, the Company is providing the following financial guidance for the third quarter and full year of 2019.

	Third Quarter 2019	Full Year 2019
	(in millions)
Expected Revenue range	$320 – $340	$1,340 – $1,390
Expected Adjusted EBITDA range	$53 – $60	$235 – $250

Second Quarter 2019 Financial Results Conference Call

Grubhub will webcast a conference call today at 9:00 a.m. CT to discuss the second quarter 2019 financial results. The webcast can be accessed on the Grubhub Investor Relations website at https://investors.grubhub.com, along with the Company’s earnings press release and financial tables. A replay of the webcast will be available at the same website.

About Grubhub

Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 125,000 restaurant partners in over 2,400 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

Use of Forward Looking Statements

This press release contains forward-looking statements regarding Grubhub, “the Company’s” or our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected benefits to, and financial performance of, Grubhub including its acquisitions. Such statements constitute “forward-looking statements”, which are subject to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve substantial known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K filed on February 28, 2019, which is on file with the SEC and is available on the Investor Relations section of our website at https://investors.grubhub.com. Additional information will be set forth in our Quarterly Report on Form 10-Q that will be filed for the quarter ended June 30, 2019, which should be read in conjunction with these financial results. Please also note that forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release. Except as required by law, we disclaim any intention to, and undertake no obligation to, publicly update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

Use of Non-GAAP Financial Measures

Adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share attributable to common stockholders are financial measures that are not calculated in accordance with accounting principles generally accepted in the United States, or GAAP.

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1} Key Business Metrics are defined on page 29 of our Annual Report on Form 10-K filed on February 28, 2019.

GRUBHUB INC. STATEMENTS OF OPERATIONS (in thousands, except per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Revenues	$	325,058	$	239,741	$	648,828	$	472,311
Costs and expenses:
Operations and support		162,406		102,445		323,756		198,728
Sales and marketing		74,128		46,231		152,582		94,987
Technology (exclusive of amortization)		29,400		18,717		56,650		36,048
General and administrative		25,784		18,180		48,571		35,877
Depreciation and amortization		27,223		19,849		52,312		40,800
Total costs and expenses		318,941		205,422		633,871		406,440
Income from operations		6,117		34,319		14,957		65,871
Interest expense – net		5,467		8		8,279		1,030
Income before provision for income taxes		650		34,311		6,678		64,841
Income tax (benefit) expense		(602)		4,191		(1,464)		3,955
Net income attributable to common stockholders	$	1,252	$	30,120	$	8,142	$	60,886
Net income per share attributable to common stockholders:
Basic	$	0.01	$	0.34	$	0.09	$	0.69
Diluted	$	0.01	$	0.33	$	0.09	$	0.67
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		91,177		89,503		91,064		88,294
Diluted		92,786		92,503		92,852		91,297

KEY BUSINESS METRICS

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Active Diners (000s)		20,288		15,581		20,288		15,581
Daily Average Grubs		488,900		423,200		504,900		430,000
Gross Food Sales (millions)	$	1,459	$	1,220	$	2,962	$	2,465

GRUBHUB INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)



	June 30, 2019		December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	358,847	$	211,245
Short-term investments		18,190		14,084
Accounts receivable, less allowances for doubtful accounts		123,801		110,855
Income tax receivable		9,520		9,949
Prepaid expenses and other current assets		23,752		17,642
Total current assets		534,110		363,775
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization		148,995		119,495
OTHER ASSETS:
Other assets		23,166		14,186
Operating lease right-of-use asset		104,078		—
Goodwill		1,005,477		1,019,239
Acquired intangible assets, net of amortization		527,423		549,013
Total other assets		1,660,144		1,582,438
TOTAL ASSETS	$	2,343,249	$	2,065,708
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability	$	124,261	$	127,344
Accounts payable		21,527		26,656
Accrued payroll		21,296		18,173
Current portion of long-term debt		—		6,250
Current operating lease liability		6,875		—
Other accruals		46,697		44,745
Total current liabilities		220,656		223,168
LONG-TERM LIABILITIES:
Deferred taxes, non-current		32,695		46,383
Noncurrent operating lease liability		114,724		—
Long-term debt		492,723		335,548
Other accruals		751		18,270
Total long-term liabilities		640,893		400,201
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value		9		9
Accumulated other comprehensive loss		(1,980)		(1,891)
Additional paid-in capital		1,126,174		1,094,866
Retained earnings		357,497		349,355
Total Stockholders’ Equity	$	1,481,700	$	1,442,339
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,343,249	$	2,065,708

GRUBHUB INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Six Months Ended June 30,
	2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	8,142	$	60,886
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		13,626		10,526
Deferred taxes		298		(3,308)
Amortization of intangible assets and developed software		38,686		30,274
Stock-based compensation		36,527		22,170
Other		3,240		3,042
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable		(13,349)		3,888
Income taxes receivable		429		1,882
Prepaid expenses and other assets		(14,857)		(8,446)
Restaurant food liability		(3,078)		(9,870)
Accounts payable		(10,216)		(107)
Accrued payroll		3,122		(1,961)
Other accruals		7,219		7,041
Net cash provided by operating activities		69,789		116,017
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments		(25,526)		(44,271)
Proceeds from maturity of investments		21,636		29,116
Capitalized website and development costs		(22,188)		(13,145)
Purchases of property and equipment		(23,140)		(19,266)
Acquisition of other intangible assets		(8,889)		—
Acquisitions of businesses, net of cash acquired		127		737
Other cash flows from investing activities		—		24
Net cash used in investing activities		(57,980)		(46,805)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of senior notes		500,000		—
Repayments of borrowings under the credit facility		(342,313)		(51,562)
Proceeds from the issuance of common stock		—		200,000
Taxes paid related to net settlement of stock-based compensation awards		(15,360)		(18,717)
Proceeds from exercise of stock options		2,930		9,958
Payments for debt issuance costs		(8,954)		—
Net cash provided by financing activities		136,303		139,679
Net change in cash, cash equivalents, and restricted cash		148,112		208,891
Effect of exchange rates on cash, cash equivalents and restricted cash		(2)		(318)
Cash, cash equivalents, and restricted cash at beginning of year		215,802		238,239
Cash, cash equivalents, and restricted cash at end of the period	$	363,912	$	446,812
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Cash paid for income taxes	$	567	$	7,426

GRUBHUB INC. NON-GAAP FINANCIAL MEASURES RECONCILIATION (in thousands, except per share data)

	Three Months Ended June 30,					Six Months Ended June 30,
	2019			2018		2019			2018
Net income	$	1,252		$	30,120	$	8,142		$	60,886
Income taxes		(602)			4,191		(1,464)			3,955
Interest expense – net		5,467	¹		8		8,279	¹		1,030
Depreciation and amortization		27,223			19,849		52,312			40,800
EBITDA		33,340			54,168		67,269			106,671
Acquisition, restructuring and legal costs		1,341			1,312		1,827			2,641
Stock-based compensation		20,049	²		11,939		36,527	²		22,170
Adjusted EBITDA	$	54,730		$	67,419	$	105,623		$	131,482

	Three Months Ended June 30,					Six Months Ended June 30,
	2019			2018		2019			2018
Net income	$	1,252		$	30,120	$	8,142		$	60,886
Stock-based compensation		20,049	²		11,939		36,527	²		22,170
Amortization of acquired intangible assets		11,828			9,527		23,770			21,070
Acquisition, restructuring and legal costs		1,341			1,312		1,827			2,641
Income tax adjustments		(9,595)			(6,628)		(17,457)			(13,305)
Non-GAAP net income	$	24,875		$	46,270	$	52,809		$	93,462
Weighted-average diluted shares used to compute net income per share attributable to common stockholders		92,786			92,503		92,852			91,297
Non-GAAP net income per diluted share attributable to common stockholders	$	0.27		$	0.50	$	0.57		$	1.02

	Guidance
	Three Months Ended September 30, 2019				Year Ended December 31, 2019
	Low		High		Low		High
	(in millions)
Net income (loss)	$	(1.6)	$	2.8	$	18.8	$	28.1
Income taxes		(0.9)		1.7		5.1		10.8
Interest expense ̶ net		6.5		6.5		21.3		21.3
Depreciation and amortization		30.0		30.0		114.0		114.0
EBITDA		34.0		41.0		159.2		174.2
Acquisition and restructuring costs		—		—		1.8		1.8
Stock-based compensation		19.0		19.0		74.0		74.0
Adjusted EBITDA	$	53.0	$	60.0	$	235.0	$	250.0

^{_____________________________}¹ Interest expense for the three and six months ended June 30, 2019 included $1.8 million and $1.9 million, respectively, of expense for the write-off of unamortized debt issuance costs in February and June of 2019.
²Stock-based compensation for the three and six months ended June 30, 2019 included $1.6 million of expense related to the accelerated vesting of equity awards to a terminated acquired employee.

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

CHICAGO, July 16, 2019 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced it will host a conference call to discuss its second quarter financial results on Tuesday, July 30, 2019, at 9:00 a.m. CT, following the release of the Company’s financial results. Founder & CEO Matt Maloney and President & CFO Adam DeWitt will host the webcast.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 115,000 restaurant partners in over 2,200 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

News Type: Press Releases