News Tag: Financial

Grubhub Provides Business Update And Timing Of First Quarter 2020 Earnings Announcement

CHICAGO, April 13, 2020 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB), a leading online and mobile food-ordering and delivery marketplace, today announced it will release first quarter 2020 earnings results after the market close on Wednesday, May 6, 2020, followed by a conference call to discuss its results on Thursday, May 7, 2020, at 8:00 a.m. CT.

The company also today provided a brief business update due to the extraordinary circumstances stemming from the COVID-19 pandemic.

Business Update

During these unprecedented times, our priority is the health, safety and sustainability of our community – the drivers, restaurants and diners who make up our marketplace and our approximately 2,800 Grubhub employees. We have responded quickly to the crisis by launching a number of initiatives to support restaurants, drivers and diners; our focus is on driving as much business as we can to our restaurant partners while dining rooms remain closed.  And we will continue to support the local communities and restaurants that are struggling during this uncertain and difficult period.

For the first quarter of 2020, we expect our revenue and adjusted EBITDA to be slightly above the midpoints of the guidance we issued on February 5, 2020. While the business was trending at or above the high end of our guidance range for the first 10 weeks of the quarter, like most businesses, we experienced a swift change in customer behavior in the middle of March when the pandemic took hold across the country.

Initially, we observed a decrease in orders across our entire business as the news upended typical routines and there was considerable uncertainty about what day-to-day life would be like. In particular, our corporate business, which accounted for a mid-single digit percentage of our orders in the fourth quarter, was dramatically impacted in mid-March as virtually all of our corporate clients shifted to work-from-home models.

In New York City our consumer business was affected more than in other metro areas due to the severity of the COVID-19 impact in that market. We believe this is due to a number of factors, including New York City residents choosing to temporarily leave the city and/or cooking at home more often, as well as more local restaurants deciding to pause operations because of the temporary drop in demand. As a result of all of these factors, our first quarter DAGs ended up flattish compared to the first quarter of 2019.

Exiting the first quarter and in the beginning of the second quarter, we have seen trends improve significantly – so far in April our overall year-over-year DAG growth has been approximately 10%. In markets less affected by the outbreak, diner ordering has returned to, and in many cases exceeded, our pre-COVID-19 expectations. We are also seeing record numbers of new diners and new restaurants on the platform. In markets more affected, New York in particular, we have seen a stabilization in consumer orders, and even some improvement from the low points observed in March, but New York orders remain below pre-COVID volumes. We will discuss these dynamics in more detail during earnings, but we believe what we are now observing on both the positive and negative side, including corporate, is ephemeral, and we expect to see a return to more typical behavior when the COVID-19 impact on daily life wanes.

In this difficult and uncertain environment, we believe Grubhub has a clear responsibility to help restaurants and all working individuals in our ecosystem. We further believe the absolute best way we can support our industry is by driving as much demand as possible to local restaurants, which in turn has significant downstream benefits for restaurant workers, restaurant suppliers, our drivers and countless others in the value chain.

While we are confident we could generate meaningful profits in the second quarter that would keep us comfortably on the previously announced path to deliver at least $100 million of Adjusted EBITDA in 2020, we are instead planning to reinvest most of the profits we expect to generate during the second quarter into programs that directly drive more business to our restaurant partners. We anticipate this enhanced support will take several forms, including numerous Grubhub-funded diner promotions, reduced or eliminated diner delivery fees, platform improvements and products and procedures to help keep drivers, diners and restaurant workers safe.

As a result, we plan to intentionally manage the business to approximately $5 million of Adjusted EBITDA in the second quarter to continue to support our ecosystem. To be clear, this is a completely discretionary short-term business decision designed to support our industry. We are proud that our consistent profitability, highly variable cost structure and strong balance sheet afford us ample liquidity (approximately $600 million as of March 31, including $175 million we added from our revolver) and flexibility during times like these.

We are confident that our ability to manage our business profitably while competing aggressively has not changed, but because of the uncertainty surrounding the timing of when and how the COVID-19 outbreak will resolve, we believe it’s prudent to withdraw our full year 2020 revenue and EBITDA guidance.

When business and social conditions normalize, we expect to return Grubhub to the growth and profit trajectory we were on before COVID-19 – which was at the high end of our expectations laid out over the last couple of quarters. We remain bullish on our industry and our long-term competitive strategy.

Stay safe, and we look forward to providing you with a more comprehensive update on the business in early May.

Matt Maloney, Founder and CEO
Adam DeWitt, President and CFO

First Quarter Earnings Call
Grubhub will release first quarter 2020 earnings results after the market close on Wednesday, May 6, 2020, followed by a conference call to discuss its results on Thursday, May 7, 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 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.

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, statements related to the potential impact of the COVID-19 outbreak on our business and operations, as well as 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, 2020, which is on file with the SEC and are available on the Investor Relations section of our website at https://investors.grubhub.com. 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 is a financial measure that is not calculated in accordance with accounting principles generally accepted in the United States, or GAAP.

We define Adjusted EBITDA as net income (loss) adjusted to exclude acquisition, restructuring and certain legal costs, income taxes, net interest expense, depreciation and amortization and stock-based compensation expense. We use 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 is not a measurement of our financial performance under GAAP and should not be considered as an alternative to performance measures derived in accordance with GAAP.

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.

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.

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.

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
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.

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 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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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.

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.

_____________________________
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.
2 Stock-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.

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 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.

 

Grubhub Announces Pricing of $500 Million Senior Notes Offering

CHICAGO, June 6, 2019 /PRNewswire/ — Grubhub Inc. (NYSE:GRUB) (“Grubhub”), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced that its wholly-owned subsidiary, Grubhub Holdings Inc. (“Grubhub Holdings”), has priced an offering of $500 million aggregate principal amount of new 5.500% senior notes due 2027 (the “notes”) in a private offering. The sale of the notes is expected to be completed on or about June 10, 2019, subject to customary closing conditions. The notes will be senior unsecured obligations of Grubhub Holdings and will be guaranteed by Grubhub and each of its domestic subsidiaries that serve as guarantors under Grubhub’s credit facility.

Grubhub intends to use the net proceeds from the offering primarily to repay the approximately $340 million of outstanding borrowings under its existing secured credit facility.

The notes and related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes and related guarantees. Any offers of the notes and related guarantees are being made only by means of a private offering memorandum. The notes and related guarantees have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

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.

Forward-Looking Statements

This press release contains “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, such as those regarding the closing of the notes offering, involve substantial known and unknown risks, uncertainties and assumptions that could cause actual results to differ materially from any future results expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the closing of the notes offering as well as the other risks and uncertainties 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.  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 Announces $400 Million Senior Notes Offering

CHICAGO, June 3, 2019 /PRNewswire/ — Grubhub Inc. (NYSE: GRUB) (“Grubhub”), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced that its wholly-owned subsidiary, Grubhub Holdings Inc. (“Grubhub Holdings”), intends to offer $400 million aggregate principal amount of new senior notes due 2027 (the “notes”) in a private offering.

The notes will be senior unsecured obligations of Grubhub Holdings and will be guaranteed by Grubhub and each of its domestic subsidiaries that serve as guarantors under Grubhub’s credit facility. Grubhub intends to use the net proceeds from the offering primarily to repay the approximately $340 million of outstanding borrowings under its existing secured credit facility.

The notes and related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes and related guarantees. Any offers of the notes and related guarantees will be made only by means of a private offering memorandum. The notes and related guarantees have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

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.

Forward-Looking Statements
This press release contains “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, such as those regarding the notes offering, involve substantial known and unknown risks, uncertainties and assumptions that could cause actual results to differ materially from any future results expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the notes offering being subject to market conditions as well as the other risks and uncertainties 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. 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 Reports First Quarter 2019 Results

Grubhub generates 39% revenue growth in the first quarter

CHICAGO, April 25, 2019 /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, 2019. The Company posted revenues of $324 million, which is a 39% year-over-year increase from $233 million in the first quarter of 2018. Gross Food Sales grew 21% year-over-year to $1.5 billion, up from $1.2 billion in the same period last year.

“We are extremely proud of our entire team for another fantastic quarter of execution – record new diner growth, thousands of new quality restaurants added to our platform and a sixth consecutive quarter of organic order acceleration. Even with our recent ramp in growth investments, adjusted EBITDA per order improved during the quarter, underscoring our ability to grow in a long-term sustainable manner,” said Grubhub Founder and CEO Matt Maloney. “Our partnership model allows restaurant brands, large and small, to own their online business. The success of the Taco Bell launch, which drove meaningful incremental business to both Taco Bell and Grubhub, exemplifies how powerful these partnerships can be.”

First Quarter 2019 Highlights

The following results reflect the financial performance and key operating metrics of our business for the three months ended March 31, 2019, as compared to the same period in 2018.

First Quarter Financial Highlights

  • Revenues: $323.8 million, a 39% year-over-year increase from $232.6 million in the first quarter of 2018.
  • Net Income: $6.9 million, or $0.07 per diluted share, a 78% year-over-year decrease from $30.8 million, or $0.34 per diluted share, in the first quarter of 2018.
  • Non-GAAP Adjusted EBITDA: $50.9 million, a 21% year-over-year decrease from $64.1 million in the first quarter of 2018.
  • Non-GAAP Net Income: $27.9 million, or $0.30 per diluted share, a 41% year-over-year decrease from $47.2 million, or $0.52 per diluted share, in the first quarter of 2018.

First Quarter Key Business Metrics Highlights1

  • Active Diners were 19.3 million, a 28% year-over-year increase from 15.1 million Active Diners in the first quarter of 2018.
  • Daily Average Grubs (DAGs) were 521,000, a 19% year-over-year increase from 436,900 DAGs in the first quarter of 2018.
  • Gross Food Sales were $1.5 billion, a 21% year-over-year increase from $1.2 billion in the first quarter of 2018.

“The strong momentum in our business throughout 2018 continued in the first quarter of 2019, including continued accelerating growth and a 21% sequential increase in adjusted EBITDA. The dramatic increase in the scale and diversity of our diner base combined with the consistent diner value outlined in the supplemental disclosure sets us up for a great future,” added Grubhub President and CFO, Adam DeWitt. “We anticipate our typical seasonality in the second and third quarters and remain on track for both our topline and bottom-line objectives for the full year 2019.”

Second Quarter and Full Year 2019 Guidance

Based on information available as of April 25, 2019, the Company is providing the following financial guidance for the second quarter and full year of 2019.

Second Quarter
2019

Full Year 2019

(in millions)

Expected Revenue range

$305 – $325

$1,315 – $1,415

Expected Adjusted EBITDA range

$49 – $59

$235 – $265

First Quarter 2019 Financial Results Conference Call and Supplemental Information

Grubhub will webcast a conference call today at 3:30 p.m. CT to discuss the first quarter 2019 financial results.  The webcast can be accessed on the Grubhub Investor Relations website at https://investors.grubhub.com. A replay of the webcast will be available at the same website.

This quarter the Company will post supplemental information about the business and financial results, which will be available on the Grubhub Investor Relations website, along with the Company’s earnings press release and financial tables.

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.

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 March 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.

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 March 31,

2019

2018

Revenues

$

323,770

$

232,570

Costs and expenses:

Operations and support

161,350

96,283

Sales and marketing

78,454

48,756

Technology (exclusive of amortization)

27,250

17,331

General and administrative

22,787

17,697

Depreciation and amortization

25,089

20,951

Total costs and expenses

314,930

201,018

Income from operations

8,840

31,552

Interest expense – net

2,812

1,022

Income before provision for income taxes

6,028

30,530

Income tax benefit

(862)

(236)

Net income attributable to common stockholders

$

6,890

$

30,766

Net income attributable to common stockholders

Basic

$

0.08

$

0.35

Diluted

$

0.07

$

0.34

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

Basic

90,951

87,085

Diluted

92,918

90,091

 

KEY BUSINESS METRICS

Three Months Ended March 31,

2019

2018

Active Diners (000s)

19,286

15,078

Daily Average Grubs

521,000

436,900

Gross Food Sales (millions)

$

1,502.3

$

1,245.0

 

GRUBHUB INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

March 31, 2019

December   31,   2018

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

189,694

$

211,245

Short-term investments

14,704

14,084

Accounts receivable, less allowances for doubtful accounts

141,047

110,855

Income tax receivable

10,865

9,949

Prepaid expenses and other current assets

19,936

17,642

Total current assets

376,246

363,775

PROPERTY AND EQUIPMENT:

Property and equipment, net of depreciation and amortization

136,347

119,495

OTHER ASSETS:

Other assets

22,427

14,186

Operating lease right-of-use asset

78,674

—

Goodwill

1,005,381

1,019,239

Acquired intangible assets, net of amortization

534,989

549,013

Total other assets

1,641,471

1,582,438

TOTAL ASSETS

$

2,154,064

$

2,065,708

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Restaurant food liability

$

140,469

$

127,344

Accounts payable

15,677

26,656

Accrued payroll

18,586

18,173

Taxes payable

1,179

422

Current portion of long-term debt

10,156

6,250

Current operating lease liability

13,436

—

Other accruals

50,164

44,323

Total current liabilities

249,667

223,168

LONG-TERM LIABILITIES:

Deferred taxes, non-current

31,411

46,383

Noncurrent operating lease liability

82,405

—

Long-term debt

328,193

335,548

Other accruals

751

18,270

Total long-term liabilities

442,760

400,201

STOCKHOLDERS’ EQUITY:

Common stock, $0.0001 par value

9

9

Accumulated other comprehensive loss

(1,664)

(1,891)

Additional paid-in capital

1,107,047

1,094,866

Retained earnings

356,245

349,355

Total stockholders’ equity

$

1,461,637

$

1,442,339

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

2,154,064

$

2,065,708

 

GRUBHUB INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended March 31,

2019

2018

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

6,890

$

30,766

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

Depreciation

6,193

5,050

Deferred taxes

(986)

(2,976)

Amortization of intangible assets and developed software

18,896

15,901

Stock-based compensation

16,478

10,231

Other

735

2,048

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

Accounts receivable

(30,391)

(172)

Income taxes receivable

(916)

4,090

Prepaid expenses and other assets

(10,666)

(3,516)

Restaurant food liability

13,099

6,885

Accounts payable

(18,644)

601

Accrued payroll

411

(3,295)

Other accruals

12,845

5,887

Net cash provided by operating activities

13,944

71,500

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of investments

(12,160)

(10,537)

Proceeds from maturity of investments

11,636

18,166

Capitalized website and development costs

(10,692)

(6,262)

Purchases of property and equipment

(8,018)

(5,462)

Acquisition of other intangible assets

(5,379)

—

Acquisitions of businesses, net of cash acquired

127

737

Other cash flows from investing activities

—

16

Net cash used in investing activities

(24,486)

(3,342)

CASH FLOWS FROM FINANCING ACTIVITIES

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

(9,966)

(11,485)

Proceeds from exercise of stock options

2,424

6,948

Repayments of borrowings under the credit facility

(2,031)

(25,781)

Payments for debt issuance costs

(1,647)

—

Net cash used in financing activities

(11,220)

(30,318)

Net change in cash, cash equivalents, and restricted cash

(21,762)

37,840

Effect of exchange rates on cash, cash equivalents and restricted cash

232

356

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

$

194,272

$

276,435

SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS

Cash paid for income taxes

$

351

$

227

 

GRUBHUB INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(in thousands, except per share data)

Three Months Ended March 31,

2019

2018

Net income

$

6,890

$

30,766

Income taxes

(862)

(236)

Interest expense – net

2,812

1,022

Depreciation and amortization

25,089

20,951

EBITDA

33,929

52,503

Acquisition, restructuring and legal costs

486

1,329

Stock-based compensation

16,478

10,231

Adjusted EBITDA

$

50,893

$

64,063

Three Months Ended March 31,

2019

2018

Net income

$

6,890

$

30,766

Stock-based compensation

16,478

10,231

Amortization of acquired intangible assets

11,942

11,543

Acquisition, restructuring and legal costs

486

1,329

Income tax adjustments

(7,862)

(6,677)

Non-GAAP net income

$

27,934

$

47,192

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

92,918

90,091

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

$

0.30

$

0.52

 

Guidance

Three Months Ended
June 30, 2019

Year Ended
December 31, 2019

Low

High

Low

High

(in millions)

Net income

$

0.6

$

7.5

$

29.7

$

50.4

Income taxes

0.3

3.4

13.4

22.7

Interest expense ̶ net

2.8

2.8

11.4

11.4

Depreciation and amortization

27.0

27.0

106.0

106.0

EBITDA

30.7

40.7

160.5

190.5

Acquisition and restructuring costs

—

—

0.5

0.5

Stock-based compensation

18.3

18.3

74.0

74.0

Adjusted EBITDA

$

49.0

$

59.0

$

235.0

$

265.0