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Grubhub Completes Acquisition of LevelUp

Acquires additional OrderUp food delivery markets

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

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

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

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

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 85,000 restaurant partners in over 1,600 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Eat24, AllMenus and MenuPages.

Grubhub Reports Record Second Quarter Results

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

CHICAGO, July 25, 2018 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced financial results for the second quarter ended June 30, 2018. For the second quarter, the Company posted revenues of $240 million, which is a 51% year-over-year increase from $159 million in the second quarter of 2017. Gross Food Sales grew 39% year-over-year to $1.2 billion, up from $880 million in the year ago period. Grubhub today also announced it entered into an agreement to acquire Boston-based LevelUp, the leader in mobile diner engagement and payment solutions for national and regional restaurant brands.

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

Second Quarter 2018 Highlights

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

Second Quarter Financial Highlights

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

Second Quarter Key Business Metrics Highlights

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

LevelUp Acquisition

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

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

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

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

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

Third Quarter and Full Year 2018 Guidance

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

	Third Quarter 2018	Full Year 2018
	(in millions)
Expected Revenue range	$232 – $240	$966 – $983
Expected Adjusted EBITDA range	$58 – $64	$256 – $270

Second Quarter 2018 Financial Results Conference Call
Grubhub will webcast a conference call today at 9 a.m. CT to discuss the second quarter 2018 financial results. The webcast can be accessed on the Grubhub Investor Relations website at http://investors.grubhub.com, along with the Company’s earnings press release and financial tables. A replay of the webcast will be available at the same website until August 8, 2018.

Use of Forward Looking Statements
This press release contains forward-looking statements regarding Grubhub, “the Company’s” or our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected benefits to, and financial performance of, Grubhub following the acquisition of Eat24 and its commercial agreements with Yelp and Yum! Brands. Such statements constitute “forward-looking statements”, which are subject to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve substantial known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K filed on February 28, 2018, which is on file with the SEC and is available on the Investor Relations section of our website at http://investors.grubhub.com. Additional information will be set forth in our Quarterly Report on Form 10-Q that will be filed for the quarter ended June 30, 2018, which should be read in conjunction with these financial results. Please also note that forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release. Except as required by law, we disclaim any intention to, and undertake no obligation to, publicly update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

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

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

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Revenues	$	239,741	$	158,794	$	472,311	$	314,928
Costs and expenses:
Operations and support		102,445		62,924		198,728		122,443
Sales and marketing		46,231		34,770		94,987		70,208
Technology (exclusive of amortization)		18,717		14,076		36,048		27,268
General and administrative		18,180		14,829		35,877		28,010
Depreciation and amortization		19,849		10,414		40,800		20,454
Total costs and expenses		205,422		137,013		406,440		268,383
Income from operations		34,319		21,781		65,871		46,545
Interest (income) expense – net		8		(314)		1,030		(535)
Income before provision for income taxes		34,311		22,095		64,841		47,080
Income tax expense		4,191		7,341		3,955		14,611
Net income attributable to common stockholders	$	30,120	$	14,754	$	60,886	$	32,469
Net income per share attributable to common stockholders:
Basic	$	0.34	$	0.17	$	0.69	$	0.38
Diluted	$	0.33	$	0.17	$	0.67	$	0.37
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		89,503		86,162		88,294		86,018
Diluted		92,503		87,700		91,297		87,410

KEY OPERATING METRICS

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Active Diners (000s)		15,581		9,177		15,581		9,177
Daily Average Grubs		423,200		313,900		430,000		319,200
Gross Food Sales (millions)	$	1,220.4	$	879.7	$	2,465.4	$	1,777.8

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



	June 30, 2018		December 31, 2017
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	442,678	$	234,090
Short-term investments		38,969		23,605
Accounts receivable, less allowances for doubtful accounts		98,254		95,970
Prepaid expenses and other current assets		12,120		6,818
Total current assets		592,021		360,483
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization		89,208		71,384
OTHER ASSETS:
Other assets		9,177		6,487
Goodwill		589,862		589,862
Acquired intangible assets, net of amortization		494,484		515,553
Total other assets		1,093,523		1,111,902
TOTAL ASSETS	$	1,774,752	$	1,543,769
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability	$	110,011	$	119,922
Accounts payable		8,829		7,607
Accrued payroll		11,223		13,186
Taxes payable		1,203		3,109
Short-term debt		5,469		3,906
Other accruals		35,782		26,818
Total current liabilities		172,517		174,548
LONG-TERM LIABILITIES:
Deferred taxes, non-current		70,983		74,292
Other accruals		18,246		7,468
Long-term debt		116,598		169,645
Total long-term liabilities		205,827		251,405
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value		9		9
Accumulated other comprehensive loss		(1,528)		(1,228)
Additional paid-in capital		1,066,167		849,043
Retained earnings		331,760		269,992
Total Stockholders’ Equity	$	1,396,408	$	1,117,816
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,774,752	$	1,543,769

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

	Six Months Ended June 30,
	2018		2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	60,886	$	32,469
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		10,526		5,092
Provision for doubtful accounts		301		148
Deferred taxes		(3,308)		(6,780)
Amortization of intangible assets		30,274		15,362
Stock-based compensation		22,170		15,438
Deferred rent		2,877		43
Amortization of deferred loan costs		460		240
Other		(596)		(554)
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable		5,770		784
Prepaid expenses and other assets		(8,446)		3,323
Restaurant food liability		(9,870)		(1,690)
Accounts payable		(107)		(978)
Accrued payroll		(1,961)		396
Other accruals		7,041		4,365
Net cash provided by operating activities		116,017		67,658
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments		(44,271)		(110,108)
Proceeds from maturity of investments		29,116		114,303
Capitalized website and development costs		(13,145)		(9,576)
Purchases of property and equipment		(19,266)		(7,291)
Acquisitions of businesses, net of cash acquired		737		—
Acquisition of other intangible assets		—		(5,000)
Other cash flows from investing activities		24		492
Net cash used in investing activities		(46,805)		(17,180)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of common stock		200,000		—
Repayments of borrowings under the credit facility		(51,562)		—
Proceeds from exercise of stock options		9,958		8,308
Taxes paid related to net settlement of stock-based compensation awards		(18,717)		(5,523)
Net cash provided by financing activities		139,679		2,785
Net change in cash, cash equivalents, and restricted cash		208,891		53,263
Effect of exchange rates on cash, cash equivalents and restricted cash		(318)		413
Cash, cash equivalents, and restricted cash at beginning of year		238,239		242,214
Cash, cash equivalents, and restricted cash at end of the period	$	446,812	$	295,890
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Cash paid for income taxes	$	7,426	$	13,805

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Net income	$	30,120	$	14,754	$	60,886	$	32,469
Income taxes		4,191		7,341		3,955		14,611
Interest (income) expense – net		8		(314)		1,030		(535)
Depreciation and amortization		19,849		10,414		40,800		20,454
EBITDA		54,168		32,195		106,671		66,999
Acquisition, restructuring and legal costs		1,312		1,495		2,641		1,904
Stock-based compensation		11,939		8,195		22,170		15,438
Adjusted EBITDA	$	67,419	$	41,885	$	131,482	$	84,341

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Net income	$	30,120	$	14,754	$	60,886	$	32,469
Stock-based compensation		11,939		8,195		22,170		15,438
Amortization of acquired intangible assets		9,527		5,100		21,070		10,373
Acquisition, restructuring and legal costs		1,312		1,495		2,641		1,904
Income tax adjustments		(6,628)		(6,315)		(13,305)		(11,834)
Non-GAAP net income	$	46,270	$	23,229	$	93,462	$	48,350
Weighted-average diluted shares used to compute net income per share attributable to common stockholders		92,503		87,700		91,297		87,410
Non-GAAP net income per diluted share attributable to common stockholders	$	0.50	$	0.26	$	1.02	$	0.55

	Guidance
	Three Months Ended September 30, 2018				Year Ended December 31, 2018
	Low		High		Low		High
	(in millions)
Net income	$	18.5	$	22.8	$	103.3	$	113.4
Income taxes		7.3		9.0		20.6		24.5
Interest expense ̶ net		(0.3)		(0.3)		0.5		0.5
Depreciation and amortization		20.0		20.0		81.0		81.0
EBITDA		45.5		51.5		205.4		219.4
Acquisition and restructuring costs		—		—		2.6		2.6
Stock-based compensation		12.5		12.5		48.0		48.0
Adjusted EBITDA	$	58.0	$	64.0	$	256.0	$	270.0

Grubhub Delivery Adds New Markets Nationwide

From Florida to California, Texas to Maine, Grubhub opens up new delivery capabilities for restaurants to provide even more options for diners

CHICAGO, July 19, 2018 /PRNewswire/ — Grubhub, the nation’s leading online and mobile food-ordering company, has expanded its delivery capabilities to dozens of additional markets across 17 states, opening up local restaurants to new customers and providing diners with increased restaurant choice and variety.

From local favorites like The Planing Mill Artisan Pizzeria in Visalia, CA and Cherry’s Jamaican Delight in Reading, PA to larger national and regional options such as Buffalo Wild Wings and Applebee’s, Grubhub has partnered with a range of restaurants to provide diners with the largest variety to order delivery from.

With the expansion in the second quarter, Grubhub’s delivery capabilities will now be available to restaurants in new markets, including:

Fayetteville, AR
Santa Barbara, CA
Santa Rosa, CA
Visalia, CA
Vallejo, CA
Cape Coral, FL
Palm Bay-Melbourne, FL
Pensacola, FL
Rockford, IL
South Bend, IN
Lexington, KY
Lafayette, LA
Springfield, MA
Portland, ME
Lansing, MI
Gulfport-Biloxi-Pascagoula, MS
Reno, NV
Salem, OR
Harrisburg, PA
Reading, PA
Scranton, PA
York & Hanover, PA
Beaumont-Port Arthur, TX
Brownsville-Harlingen, TX
McAllen-Edinburg-Mission, TX
Ogden, UT
Provo, UT
Spokane, WA

“Expanding our delivery capabilities throughout the U.S. is incredibly important and an effort we continue to make significant progress on,” stated Stan Chia, chief operating officer, Grubhub. “A key priority is empowering our local restaurant partners with more opportunities to reach new audiences, and with every market we launch, we’re able to connect even more diners with the widest selection of choice.”

Grubhub has always connected diners with restaurants that supply their own drivers. With Grubhub delivery, restaurants without their own delivery capabilities now have the opportunity to leverage Grubhub’s large and growing network of drivers to expand their customer base and grow order volume. This also provides better restaurant choices and variety for Grubhub diners, as more restaurants can now offer their menus for delivery.

To find takeout restaurants available in your area, check out grubhub.com. If you are interested in becoming a Grubhub driver, please visit driver.grubhub.com. To find out how your restaurant can join Grubhub, check out get.grubhub.com. To learn more about Grubhub and its portfolio of brands, please visit newsroom.grubhub.com.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food ordering marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 80,000 restaurant partners in over 1,600 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, Eat24, AllMenus and MenuPages.

Grubhub To Announce Second Quarter 2018 Financial Results On July 25, 2018

CHICAGO, July 11, 2018 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced that it will host a conference call to discuss its second quarter financial results on Wednesday, July 25, 2018, at 9:00 a.m. CT, following the release of the Company’s financial results. CEO Matt Maloney and President & CFO Adam DeWitt will host the webcast.

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

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 80,000 restaurant partners in over 1,600 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, Eat24, AllMenus and MenuPages.

GrubHub Logo

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Grubhub Partners with Jack in the Box® to Bring Food Directly to Diners’ Homes

Partnership Includes Door-to-Door Delivery and Point of Sale Integration

CHICAGO and SAN DIEGO, May 10, 2018 /PRNewswire/ — Grubhub (NYSE: GRUB), the nation’s leading online and mobile food-ordering company, today announced it is partnering with Jack in the Box® to provide delivery for hundreds of locations across the country. Grubhub’s leading network of 15 million active diners will now be able to enjoy popular Jack in the Box menu items such as the delicious Buttery Jack® burger, seasoned curly or regular fries and the fan favorite two tacos, simply by ordering from Grubhub’s online and mobile platforms.

Additionally, the two companies are working together to incorporate Grubhub’s groundbreaking point-of-sale (POS) integration into Jack in the Box’s in-house system, which allows restaurant operators to manage all of their orders, both in-house and delivery, from one device. Grubhub’s POS integration raises the bar for in-house restaurant technology efficiency by eliminating the need to use multiple tablets, offering restaurant employees a streamlined restaurant operations experience. This means more time for staff to focus on what matters most: serving up delicious food.

“We’re excited to add Jack in the Box to our growing list of chain partners, allowing Grubhub to continue to offer our diners the broadest and best set of restaurants,” said Stan Chia, chief operating officer, Grubhub. “Diners will benefit from having their favorite Jack in the Box menu items, Jack’s Spicy Chicken® sandwich and curly fries, delivered to their doorsteps, and we’re happy to make delivery easier for specific locations by integrating directly into their own point-of-sale systems.”

“We are thrilled to partner with Grubhub for marketplace originated delivery and expand upon our budding roster of delivery partners,” said Iwona Alter, Chief Marketing Officer at Jack in the Box. “We look forward to continuing to deliver convenient food experiences to Jack in the Box fans while granting them even more access to some of their favorite late-night and classic Jack menu items.”

Online ordering and delivery from Jack in the Box via Grubhub is now available at hundreds of locations in over 20 markets, including Los Angeles, San Diego, San Francisco, Dallas, Phoenix, Denver, St. Louis and Las Vegas. To kick off the partnership, the companies will offer free Jack in the Box delivery, with minimum purchase, from all available stores, May 10-16, 2018. Grubhub plans to expand to hundreds more Jack in the Box locations throughout 2018.

To find takeout restaurants available in your area, please visit grubhub.com, and for more information on Grubhub, please visit newsroom.grubhub.com.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 80,000 restaurant partners in over 1,600 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, Eat24, AllMenus and MenuPages.

About Jack in the Box Inc.
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states and Guam. For more information on Jack in the Box, including franchising opportunities, visit www.jackinthebox.com.

Grubhub Reports Record First Quarter Results

Grubhub generates 49% revenue growth in the first quarter

CHICAGO, May 1, 2018 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced financial results for the first quarter ended March 31, 2018. For the first quarter, the Company posted revenues of $232.6 million, which is a 49% year-over-year increase from $156.1 million in the first quarter of 2017. Gross Food Sales grew 39% year-over-year to $1.2 billion, up from $898 million in the year-ago period.

“Our team executed well in the first quarter, making meaningful progress toward our most significant goals for 2018. We’ve already launched dozens of new delivery markets, completed our Yelp and Eat24 integrations a quarter earlier than expected, and attracted a record quarterly number of organic new diners,” said Grubhub CEO Matt Maloney. “Our restaurant partnerships are broader and deeper than ever before, increasing our value to diners and driving sustained diner and order growth.”

First Quarter 2018 Highlights

The following results reflect the financial performance and key operating metrics of our business for the three months ended March 31, 2018, as compared to the same period in 2017.

First Quarter Financial Highlights

Revenues: $232.6 million, a 49% year-over-year increase from $156.1 million in the first quarter of 2017.
Net Income: $30.8 million, or $0.34 per diluted share, a 74% year-over-year increase from $17.7 million, or $0.20 per diluted share, in the first quarter of 2017.
Non-GAAP Adjusted EBITDA: $64.1 million, a 51% year-over-year increase from $42.5 million in the first quarter of 2017.
Non-GAAP Net Income: $47.2 million, or $0.52 per diluted share, an 88% year-over-year increase from $25.1 million, or $0.29 per diluted share, in the first quarter of 2017.

First Quarter Key Business Metrics Highlights

Active Diners were 15.1 million, a 72% year-over-year increase from 8.8 million Active Diners in the first quarter of 2017.
Daily Average Grubs (DAGs) were 436,900, a 35% year-over-year increase from 324,600 DAGs in the first quarter of 2017.
Gross Food Sales were $1.2 billion, a 39% year-over-year increase from $898 million in the first quarter of 2017.

“Organic DAG growth accelerated for the second quarter in a row, fueled by the most comprehensive restaurant marketplace and our efficient delivery,” said Grubhub President and CFO Adam DeWitt. “Our scale continues to generate improving profitability, leading to strong EBITDA per order of $1.63 during the first quarter, even as we push hard on delivery market expansion and spreading diner awareness.”

Second Quarter and Full Year 2018 Guidance

Based on information available as of May 1, 2018, the Company is providing the following financial guidance for the second quarter and full year of 2018:

	Second Quarter 2018	Full Year 2018
	(in millions)
Expected Revenue range	$228 – $236	$930 – $965
Expected Adjusted EBITDA range	$59 – $65	$242 – $262

First Quarter 2018 Financial Results Conference Call
Grubhub will webcast a conference call today at 9 a.m. CT to discuss the first quarter 2018 financial results. The webcast can be accessed on the Grubhub Investor Relations website at http://investors.grubhub.com, along with the Company’s earnings press release and financial tables. A replay of the webcast will be available at the same website until May 15, 2018.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 80,000 restaurant partners in over 1,600 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, Eat24, AllMenus and MenuPages.

Use of Forward Looking Statements
This press release contains forward-looking statements regarding Grubhub, “the Company’s” or our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected benefits to, and financial performance of, Grubhub following the acquisition of Eat24 and its commercial agreements with Yelp and Yum! Brands. Such statements constitute “forward-looking statements”, which are subject to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve substantial known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K filed on February 28, 2018, which is on file with the SEC and is available on the Investor Relations section of our website at http://investors.grubhub.com. Additional information will be set forth in our Quarterly Report on Form 10-Q that will be filed for the quarter ended March 31, 2018, which should be read in conjunction with these financial results. Please also note that forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release. Except as required by law, we disclaim any intention to, and undertake no obligation to, publicly update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

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

	Three Months Ended March 31,
	2018		2017
Revenues	$	232,570	$	156,134
Costs and expenses:
Operations and support		96,283		59,519
Sales and marketing		48,756		35,438
Technology (exclusive of amortization)		17,331		13,192
General and administrative		17,697		13,181
Depreciation and amortization		20,951		10,040
Total costs and expenses		201,018		131,370
Income from operations		31,552		24,764
Interest (income) expense – net		1,022		(221)
Income before provision for income taxes		30,530		24,985
Income tax (benefit) expense		(236)		7,270
Net income attributable to common stockholders	$	30,766	$	17,715
Net income per share attributable to common stockholders:
Basic	$	0.35	$	0.21
Diluted	$	0.34	$	0.20
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		87,085		85,874
Diluted		90,091		87,120

KEY OPERATING METRICS

	Three Months Ended March 31,
	2018		2017
Active Diners (000s)		15,078		8,751
Daily Average Grubs		436,900		324,600
Gross Food Sales (millions)	$	1,245.0	$	898.1

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

	March 31, 2018		December 31, 2017
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	272,258	$	234,090
Short-term investments		16,052		23,605
Accounts receivable, less allowances for doubtful accounts		100,129		95,970
Prepaid expenses and other current assets		9,847		6,818
Total current assets		398,286		360,483
PROPERTY AND EQUIPMENT:
Property and equipment, net of depreciation and amortization		79,399		71,384
OTHER ASSETS:
Other assets		6,697		6,487
Goodwill		589,862		589,862
Acquired intangible assets, net of amortization		504,011		515,553
Total other assets		1,100,570		1,111,902
TOTAL ASSETS	$	1,578,255	$	1,543,769
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Restaurant food liability	$	126,853	$	119,922
Accounts payable		12,202		7,607
Accrued payroll		9,897		13,186
Taxes payable		1,514		3,109
Short-term debt		4,688		3,906
Other accruals		34,237		26,818
Total current liabilities		189,391		174,548
LONG-TERM LIABILITIES:
Deferred taxes, non-current		71,316		74,292
Other accruals		17,207		7,468
Long-term debt		143,121		169,645
Total long-term liabilities		231,644		251,405
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value		9		9
Accumulated other comprehensive loss		(872)		(1,228)
Additional paid-in capital		856,443		849,043
Retained earnings		301,640		269,992
Total Stockholders’ Equity	$	1,157,220	$	1,117,816
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,578,255	$	1,543,769

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

	Three Months Ended March 31,
	2018		2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	30,766	$	17,715
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		5,050		2,412
Provision for doubtful accounts		325		95
Deferred taxes		(2,976)		(4,741)
Amortization of intangible assets		15,901		7,628
Stock-based compensation		10,231		7,243
Deferred rent		1,633		58
Amortization of deferred loan costs		333		124
Other		(243)		(234)
Change in assets and liabilities, net of the effects of business acquisitions:
Accounts receivable		3,918		(1,721)
Prepaid expenses and other assets		(3,516)		2,957
Restaurant food liability		6,885		11,297
Accounts payable		601		483
Accrued payroll		(3,295)		(1,534)
Other accruals		5,887		9,808
Net cash provided by operating activities		71,500		51,590
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments		(10,537)		(57,783)
Proceeds from maturity of investments		18,166		55,833
Capitalized website and development costs		(6,262)		(4,150)
Purchases of property and equipment		(5,462)		(3,056)
Acquisitions of business, net of cash acquired		737		—
Acquisition of other intangible assets		—		(5,000)
Other cash flows from investing activities		16		91
Net cash used in investing activities		(3,342)		(14,065)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowings under the credit facility		(25,781)		—
Proceeds from exercise of stock options		6,948		1,584
Taxes paid related to net settlement of stock-based compensation awards		(11,485)		(3,688)
Net cash used in financing activities		(30,318)		(2,104)
Net change in cash, cash equivalents, and restricted cash		37,840		35,421
Effect of exchange rates on cash, cash equivalents and restricted cash		356		97
Cash, cash equivalents, and restricted cash at beginning of year		238,239		242,214
Cash, cash equivalents, and restricted cash at end of the period	$	276,435	$	277,732
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS
Cash paid for income taxes	$	227	$	746

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

	Three Months Ended March 31,
	2018		2017
Net income	$	30,766	$	17,715
Income taxes		(236)		7,270
Interest (income) expense – net		1,022		(221)
Depreciation and amortization		20,951		10,040
EBITDA		52,503		34,804
Acquisition, restructuring and legal costs		1,329		409
Stock-based compensation		10,231		7,243
Adjusted EBITDA	$	64,063	$	42,456

	Three Months Ended March 31,
	2018		2017
Net income	$	30,766	$	17,715
Stock-based compensation		10,231		7,243
Amortization of acquired intangible assets		11,543		5,273
Acquisition, restructuring and legal costs		1,329		409
Income tax adjustments		(6,677)		(5,519)
Non-GAAP net income	$	47,192	$	25,121
Weighted-average diluted shares used to compute net income per share attributable to common stockholders		90,091		87,120
Non-GAAP net income per diluted share attributable to common stockholders	$	0.52	$	0.29

	Guidance
	Three Months Ended June 30, 2018				Year Ended December 31, 2018
	Low		High		Low		High
	(in millions)
Net income	$	19.5	$	23.8	$	79.8	$	94.2
Income taxes		7.5		9.2		30.9		36.5
Interest expense ̶ net		1.0		1.0		4.0		4.0
Depreciation and amortization		19.0		19.0		80.0		80.0
EBITDA		47.0		53.0		194.7		214.7
Acquisition and restructuring costs		—		—		1.3		1.3
Stock-based compensation		12.0		12.0		46.0		46.0
Adjusted EBITDA	$	59.0	$	65.0	$	242.0	$	262.0

Grubhub Makes Ordering Food with Friends Even Easier with Venmo Integration

New payment option offers diners another quick and secure way to pay for the food they love, while also allowing them to more easily split the bill
CHICAGO and NEW YORK , April 17, 2018 /PRNewswire/ — Grubhub (NYSE: GRUB), the nation’s leading online and mobile food-ordering company, today announced the availability of Venmo as a payment option for their diners.

Diners purchasing food on Grubhub, Seamless, or Eat24 mobile apps can now pay with their Venmo balance, linked bank account or debit card. Once the order is placed, diners can split the bill with Venmo, making it easier than ever to share the costs of group food orders with friends. This functionality is available to anyone who has the Venmo app installed on their mobile device and will automatically show up in their available payment options at checkout.

“More than sixty percent of our orders are placed on mobile devices, so we always look for ways to make it easier for diners to find, order and pay for the food they want, when and where they want it,” said Sam Hall, chief product officer, Grubhub. “We’re thrilled to bring Venmo as a payment to our diners, offering another popular and trusted way to pay for meals. Adding the ‘split the bill’ feature provides an additional level of convenience our diners have come to expect from us.”

“Venmo was founded to provide people with an easier way to make and share payments with friends and family,” said Mike Vaughan, Chief Operating Officer, Venmo. “We’re excited to further our longstanding partnership with Grubhub through this integration and given so many food-related payments occur on Venmo each day, it brings the social payment experience our customers love to the mobile buying experiences we know they already enjoy.”

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 80,000 restaurant partners in over 1,600 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, Eat24, AllMenus and MenuPages.

About Venmo
Venmo, a service of PayPal, Inc., is a leading mobile app in the U.S. used to move money between friends and family and pay at millions of retailers. Venmo makes payment a fun, social experience that eliminates the awkwardness that comes with cash or checks. For more information, visit https://www.venmo.com.

About PayPal
Fueled by a fundamental belief that having access to financial services creates opportunity, PayPal Holdings, Inc. (NASDAQ: PYPL) is committed to democratizing financial services and empowering people and businesses to join and thrive in the global economy. Our open digital payments platform gives PayPal’s 227 million active account holders the confidence to connect and transact in new and powerful ways, whether they are online, on a mobile device, in an app, or in person. Through a combination of technological innovation and strategic partnerships, PayPal creates better ways to manage and move money, and offers choice and flexibility when sending payments, paying or getting paid. Available in more than 200 markets around the world, the PayPal platform, including Braintree, Venmo and Xoom, enables consumers and merchants to receive money in more than 100 currencies, withdraw funds in 56 currencies and hold balances in their PayPal accounts in 25 currencies. For more information on PayPal, visit https://www.paypal.com/about. For PayPal Holdings, Inc. financial information, visit https://investor.paypal-corp.com.

Grubhub To Announce First Quarter 2018 Financial Results On May 1, 2018

CHICAGO, April 11, 2018 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced that it will host a conference call to discuss its first quarter financial results on Tuesday, May 1, 2018, at 9:00 a.m. CT, following the release of the Company’s financial results. CEO Matt Maloney and CFO Adam DeWitt will host the webcast.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 80,000 restaurant partners in over 1,600 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, Eat24, AllMenus and MenuPages.

Grubhub Expands Delivery Offering to 34 Additional Markets Nationwide

From Honolulu to Charleston, more restaurants can now use Grubhub’s delivery capabilities, giving diners a wider restaurant selection

CHICAGO, April 2, 2018 /PRNewswire/ — Grubhub, the nation’s leading online and mobile food-ordering company, has expanded its delivery capabilities to 34 more markets across 19 states. The expansion was completed throughout the first quarter of 2018 and is part of Grubhub’s plan to grow its delivery network to reach more than 100 new markets this year.

These cities join the more than 80 markets throughout the U.S. that already have Grubhub Delivery capabilities, which allow restaurants to offer their menus for delivery and provide diners with better restaurant choice and variety. Restaurants partnering with Grubhub for delivery include national and regional options like Buffalo Wild Wings, BJ’s Restaurants & Brewhouse, Red Robin Gourmet Burgers and Brews, On the Border and The Cheesecake Factory® in many markets. As Yum! Brands’ only national partner for ordering and delivery, Grubhub will also be adding KFC and Taco Bell locations to these markets across the country in the coming months.

With the expansion, Grubhub’s delivery capabilities will now be available to restaurants in the following markets:

Little Rock, AR
Bakersfield, CA
Fresno, CA
Modesto, CA
Stockton, CA
Deltona & Daytona Beach, FL
Lakeland, FL
Sarasota, FL
Augusta, GA
Honolulu, HI
Boise, ID
Fort Wayne, IN
Des Moines, IA
Wichita, KS
Baton Rouge, LA
Shreveport, LA
Jackson, MS
Springfield, MO
Fayetteville, NC
Greensboro, NC
Winston-Salem, NC
Akron, OH
Canton, OH
Dayton, OH
Toledo, OH
Youngstown, OH
Oklahoma City, OK
Charleston, SC
Columbia, SC
Greenville, SC
Chattanooga, TN
Memphis, TN
Corpus Christi, TX
Tacoma, WA

“We’re thrilled to expand our delivery offering to these markets across the U.S., making quick progress on our plan to expand our delivery capabilities throughout the coming year,” said Stan Chia, chief operating officer, Grubhub. “These additional markets are part of our vision to connect more diners with even more of their favorite local restaurants across the country, and provide them with the widest selection of choice wherever they are.”

Grubhub has always connected diners with restaurants that supply their own drivers. With Grubhub Delivery, restaurants without their own delivery capabilities now have the opportunity to leverage Grubhub’s large and growing network of drivers to expand their customer base and grow order volume. This also provides better restaurant choices and variety for Grubhub diners, as more restaurants can now offer their menus for delivery.

To find takeout restaurants available in your area, check out grubhub.com. If you are interested in becoming part of the Grubhub Delivery team, please visit driver.grubhub.com. To find out how your restaurant can join Grubhub, check out get.grubhub.com. To learn more about Grubhub and its portfolio of brands, please visit newsroom.grubhub.com.

Yelp and Grubhub Complete Online Ordering Integration

Yelp diners can now discover tens of thousands of new options for delivery, while providing Grubhub restaurant partners with more orders

SAN FRANCISCO & CHICAGO–(BUSINESS WIRE) — Yelp Inc. (NYSE: YELP), the leader in connecting people with great local businesses, and Grubhub (NYSE: GRUB), the nation’s leading online and mobile food ordering company, today announced the successful integration of Grubhub’s restaurant network onto the Yelp platform.

The combination of Grubhub’s unmatched restaurant network and efficient delivery infrastructure with Yelp’s large purchase-oriented audience positions us to generate thousands of new diners and millions of orders for Grubhub restaurant partners. Yelp users will be able to order from far more local restaurants, while taking advantage of Grubhub’s overall lowest-cost delivery.

“By tapping into Grubhub’s restaurant network, Yelp now offers users the ability to order from a larger and better selection of restaurants across the country,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. “Our long-term partnership with Grubhub strengthens Yelp’s competitive position in the restaurant category, which brings millions of users to our platform every day.”

“We’re thrilled to complete our integration with Yelp, which enhances the online ordering experience for diners and will drive more orders to our restaurants from Yelp’s tens of millions of monthly users,” said Matt Maloney, Grubhub’s founder and chief executive officer. “For the first time, Yelp users can order from Grubhub’s huge network of local favorites, some that don’t provide their own delivery services, including many of the most popular restaurants in each market.”

As Yelp continues to provide more options to users, the company is also carefully engineering new product experiences to make it even easier to find, order and transact with restaurants that offer food delivery and takeout. To accompany the inventory, Yelp released a new mobile Delivery tab, available to iOS and Android users, where consumers can find the very best local food delivery and takeout. Through the Delivery tab, Yelp surfaces useful information — like which restaurants offer free delivery or which hot spots in your area offer delivery — to help consumers find the most relevant ordering options available.

About Grubhub

Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food ordering marketplace with the largest and most comprehensive network of restaurant partners, as well as the largest diner base. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub strives to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 80,000 restaurant partners in over 1,600 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, Eat24, AllMenus and MenuPages.

About Yelp

Yelp Inc. (NYSE: YELP) connects people with great local businesses. Yelp was founded in San Francisco in July 2004. Since then, Yelp has taken root in major metros in more than 30 countries. Approximately 29 million unique devices accessed Yelp via the Yelp app, approximately 77 million unique visitors visited Yelp via desktop computer and approximately 64 million unique visitors visited Yelp via mobile website on a monthly average basis during the fourth quarter of 2017. By the end of the same quarter, Yelpers had written approximately 148 million rich, local reviews, making Yelp the leading local guide for real word-of-mouth on everything from boutiques and mechanics to restaurants and dentists.

Forward-Looking Statements

This press release contains forward-looking statements regarding Grubhub and Yelp management’s expectations and beliefs regarding the long-term partnership between Grubhub and Yelp, as well as the potential impact of the partnership on each company’s business, consumers and restaurant partners. 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 Grubhub and Yelp make with the Securities and Exchange Commission from time to time, including those set forth under the caption “Risk Factors” in each company’s Annual Report on Form 10-K available at http://investors.grubhub.com/ and http://www.yelp-ir.com, respectively, or the SEC’s website at www.sec.gov. 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, Grubhub and Yelp 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.

News Type: Press Releases