News Tag: Financial

Grubhub Reports Record Third Quarter Results

Grubhub generates 44% revenue growth in the third quarter

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

Third Quarter 2016 Highlights

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

Third Quarter Financial Highlights

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

Third Quarter Key Business Metrics Highlights

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

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

Fourth Quarter Guidance

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

Fourth Quarter 2016

(in millions)

Expected Revenue range

$136 – $138

Expected Adjusted EBITDA range

$38 – $40

 

Third Quarter 2016 Financial Results Conference Call: Grubhub will webcast a conference call today at 9 a.m. CDT to discuss the third quarter 2016 financial results. The webcast can be accessed on the Grubhub Investor Relations website at http://investors.grubhub.com, along with the Company’s earnings press release and financial tables. A replay of the webcast will be available at the same website until Nov. 9, 2016.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile takeout food-ordering marketplace with the most comprehensive network of restaurant partners and largest active diner base. Dedicated to moving eating forward and connecting diners with the food they love from their favorite local restaurants, the Company’s platforms and services strive to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 45,000 restaurant partners in over 1,100 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, Restaurants on the Run, DiningIn and Delivered Dish.

Use of Forward Looking Statements:
This press release contains forward-looking statements regarding our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected financial performance of Grubhub following its recent acquisitions and investment in delivery. Such statements constitute “forward-looking” statements, which are subject to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K filed on Feb. 26, 2016, which are on file with the SEC and are available on the Investor Relations section of our website at http://investors.grubhub.com/. Additional information will be set forth in our Quarterly Report on Form 10-Q that will be filed for the quarter ended Sept. 30, 2016, which should be read in conjunction with these financial results. Please also note that forward-looking statements represent our management’s beliefs and assumptions only as of the date of this press release. Except as required by law, we assume no obligation to publicly update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information, becomes available in the future.

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

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

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

GRUBHUB INC.

STATEMENTS OF OPERATIONS

(in thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended
September 30,

2016

2015

2016

2015

Revenues

$

123,461

$

85,662

$

355,874

$

261,866

Costs and expenses:

Sales and marketing

26,499

21,443

80,687

66,229

Operations and support

44,346

27,637

120,029

74,941

Technology (exclusive of amortization)

11,006

8,412

31,765

23,980

General and administrative

11,754

10,203

37,501

29,049

Depreciation and amortization

9,089

6,299

25,282

21,377

Total costs and expenses

102,694

73,994

295,264

215,576

Income before provision for income taxes

20,767

11,668

60,610

46,290

Provision for income taxes

7,585

4,801

24,690

19,501

Net income attributable to common stockholders

$

13,182

$

6,867

$

35,920

$

26,789

Net income per share attributable to common stockholders:

Basic

$

0.15

$

0.08

$

0.42

$

0.32

Diluted

$

0.15

$

0.08

$

0.42

$

0.31

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

Basic

85,217

84,583

84,889

83,827

Diluted

86,424

85,867

85,957

85,599

 

KEY OPERATING METRICS

Three Months Ended
September 30,

Nine Months Ended
September 30,

2016

2015

2016

2015

Active Diners (000s)

7,685

6,431

7,685

6,431

Daily Average Grubs

267,500

211,500

268,800

222,000

Gross Food Sales (millions)

$

735.0

$

553.6

$

2,180.4

$

1,711.1

 

GRUBHUB INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

September 30,
2016

December 31,

 2015

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

177,838

$

169,293

Short term investments

118,743

141,448

Accounts receivable, less allowances for doubtful accounts

65,729

42,051

Prepaid expenses

6,264

3,482

Total current assets

368,574

356,274

PROPERTY AND EQUIPMENT:

Property and equipment, net of depreciation and amortization

43,398

19,082

OTHER ASSETS:

Other assets

4,873

3,105

Goodwill

437,009

396,220

Acquired intangible assets, net of amortization

318,431

285,567

Total other assets

760,313

684,892

TOTAL ASSETS

$

1,172,285

$

1,060,248

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Restaurant food liability

$

78,321

$

64,326

Accounts payable

9,532

8,189

Accrued payroll

6,103

4,841

Taxes payable

785

426

Other accruals

16,054

11,830

Total current liabilities

110,795

89,612

LONG TERM LIABILITIES:

Deferred taxes, non-current

105,642

87,584

Other accruals

6,245

5,456

Total long term liabilities

111,887

93,040

STOCKHOLDERS’ EQUITY:

Common stock, $0.0001 par value

9

8

Accumulated other comprehensive loss

(1,641)

(604)

Additional paid-in capital

796,414

759,292

Retained earnings

154,821

118,900

Total Stockholders’ Equity

$

949,603

$

877,596

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,172,285

$

1,060,248

 

GRUBHUB INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Nine Months Ended
September 30,

2016

2015

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

35,920

$

26,789

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

Depreciation

5,567

3,846

Provision for doubtful accounts

719

565

Deferred taxes

(1,908)

(2,793)

Amortization of intangible assets

19,715

17,531

Stock-based compensation

17,755

9,378

Deferred rent

980

(73)

Other

(292)

553

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

Accounts receivable

(22,299)

(6,912)

Prepaid expenses and other assets

(2,874)

(1,456)

Restaurant food liability

11,361

(31,444)

Accounts payable

(4,592)

(633)

Accrued payroll

582

(2,150)

Other accruals

1,799

389

Net cash provided by operating activities

62,433

13,590

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of investments

(187,456)

(154,268)

Proceeds from maturity of investments

210,567

122,856

Capitalized website and development costs

(8,859)

(4,961)

Purchases of property and equipment

(17,083)

(2,866)

Acquisitions of businesses, net of cash acquired

(65,849)

(55,687)

Acquisition of other intangible assets

(250)

—

Other cash flows from investing activities

(540)

—

Net cash used in investing activities

(69,470)

(94,926)

CASH FLOWS FROM FINANCING ACTIVITIES

Repurchases of common stock

(14,774)

—

Proceeds from exercise of stock options

11,814

10,689

Excess tax benefits related to stock-based compensation

22,114

21,987

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

(1,205)

—

Payments for debt issuance costs

(1,477)

—

Net cash provided by financing activities

16,472

32,676

Net change in cash and cash equivalents

9,435

(48,660)

Effect of exchange rates on cash

(890)

(108)

Cash and cash equivalents at beginning of year

169,293

201,796

Cash and cash equivalents at end of the period

$

177,838

$

153,028

SUPPLEMENTAL DISCLOSURE OF NON CASH ITEMS

Fair value of common stock issued for acquisitions

$

—

$

15,980

Cash paid for income taxes

5,757

—

 

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(in thousands, except per share data)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2016

2015

2016

2015

Net income

$

13,182

$

6,867

$

35,920

$

26,789

Income taxes

7,585

4,801

24,690

19,501

Depreciation and amortization

9,089

6,299

25,282

21,377

EBITDA

29,856

17,967

85,892

67,667

Acquisition and restructuring costs

261

383

1,789

1,086

Stock-based compensation

5,349

3,113

17,755

9,378

Adjusted EBITDA

$

35,466

$

21,463

$

105,436

$

78,131

Three Months Ended
September 30,

Nine Months Ended
September 30,

2016

2015

2016

2015

Net income

$

13,182

$

6,867

$

35,920

$

26,789

Stock-based compensation

5,349

3,113

17,755

9,378

Amortization of acquired intangible assets

5,385

4,674

16,070

13,462

Accelerated write-down of Seamless technology platform

—

—

—

1,897

Acquisition and restructuring costs

261

383

1,789

1,086

Income tax adjustments

(4,243)

(3,538)

(14,780)

(11,181)

Non-GAAP net income

$

19,934

$

11,499

$

56,754

$

41,431

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

86,424

85,867

85,957

85,599

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

$

0.23

$

0.13

$

0.66

$

0.48

 

Guidance

Three Months Ended
December 31, 2016

Low

High

(in millions)

Net income

$

14

$

15

Income taxes

9

10

Depreciation and amortization

9

9

EBITDA

32

34

Acquisition and restructuring costs

—

—

Stock-based compensation

6

6

Adjusted EBITDA

$

38

$

40

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

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

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

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

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

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

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

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering company. Dedicated to moving eating forward and connecting diners with the food they love from their favorite local restaurants, the Company’s platforms and services strive to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 45,000 restaurant partners in over 1,100 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, Restaurants on the Run, DiningIn and Delivered Dish.

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

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

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

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

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering company. Dedicated to moving eating forward and connecting diners with the food they love from their favorite local restaurants, the Company’s platforms and services strive to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 45,000 restaurant partners in over 1,100 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, Restaurants on the Run, DiningIn and Delivered Dish.

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Grubhub Reports Record Second Quarter Results

Grubhub generates 37% revenue growth in the second quarter

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

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

Second Quarter 2016 Highlights

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

Second Quarter Financial Highlights

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

Second Quarter Key Business Metrics Highlights

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

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

Third Quarter and Full Year 2016 Guidance

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

Third Quarter 2016

Full Year 2016

(in millions)

Expected Revenue range

$116 – $119

$480 – $488

Expected Adjusted EBITDA range

$30 – $32

$136 – $142

Second Quarter 2016 Financial Results Conference Call: Grubhub will webcast a conference call today at 9 a.m. CT to discuss the second quarter 2016 financial results. The webcast can be accessed on the Grubhub Investor Relations website at http://investors.grubhub.com, along with the Company’s earnings press release and financial tables. A replay of the webcast will be available at the same website until August 11, 2016.

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering company. Dedicated to moving eating forward and connecting diners with the food they love from their favorite local restaurants, the Company’s platforms and services strive to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 45,000 restaurant partners in over 1,100 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, Restaurants on the Run, DiningIn and Delivered Dish.

Use of Forward Looking Statements:
This press release contains forward-looking statements regarding our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected financial performance of Grubhub following its recent acquisitions and investment in delivery. Such statements constitute “forward-looking” statements, which are subject to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K filed on February 26, 2016, which are on file with the SEC and are available on the Investor Relations section of our website at http://investors.grubhub.com/. Additional information will be set forth in our Quarterly Report on Form 10-Q that will be filed for the quarter ended June 30, 2016, which should be read in conjunction with these financial results. Please also note that forward-looking statements represent our management’s beliefs and assumptions only as of the date of this press release. Except as required by law, we assume no obligation to publicly update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information, becomes available in the future.

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

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

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

GRUBHUB INC.

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

Three Months Ended

June 30,

Six Months Ended
June 30,

2016

2015

2016

2015

Revenues

$

120,173

$

87,955

$

232,413

$

176,204

Costs and expenses:

Sales and marketing

25,355

20,679

54,188

44,786

Operations and support

40,696

24,603

75,683

47,304

Technology (exclusive of amortization)

10,567

7,902

20,759

15,568

General and administrative

12,158

9,745

25,747

18,846

Depreciation and amortization

8,885

8,829

16,193

15,078

Total costs and expenses

97,661

71,758

192,570

141,582

Income before provision for income taxes

22,512

16,197

39,843

34,622

Provision for income taxes

9,707

6,845

17,105

14,700

Net income attributable to common stockholders

$

12,805

$

9,352

$

22,738

$

19,922

Net income per share attributable to common stockholders:

Basic

$

0.15

$

0.11

$

0.27

$

0.24

Diluted

$

0.15

$

0.11

$

0.27

$

0.23

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

Basic

84,741

84,116

84,725

83,449

Diluted

85,749

85,833

85,724

85,465

 

KEY OPERATING METRICS

Three Months Ended
June 30,

Six Months Ended
June 30,

2016

2015

2016

2015

Active Diners (000s)

7,352

5,932

7,352

5,932

Daily Average Grubs

271,100

220,100

269,500

227,300

Gross Food Sales (millions)

$

732.6

$

567.6

$

1,445.4

$

1,157.5

 

GRUBHUB INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

June 30, 2016

December 31, 2015

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

132,924

$

169,293

Short term investments

136,883

141,448

Accounts receivable, less allowances for doubtful accounts

57,087

42,051

Prepaid expenses

6,602

3,482

Total current assets

333,496

356,274

PROPERTY AND EQUIPMENT:

Property and equipment, net of depreciation and amortization

32,320

19,082

OTHER ASSETS:

Other assets

5,218

3,105

Goodwill

437,009

396,220

Acquired intangible assets, net of amortization

323,816

285,567

Total other assets

766,043

684,892

TOTAL ASSETS

$

1,131,859

$

1,060,248

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Restaurant food liability

$

71,276

$

64,326

Accounts payable

11,282

8,189

Accrued payroll

6,118

4,841

Taxes payable

1,020

426

Other accruals

14,267

11,830

Total current liabilities

103,963

89,612

LONG TERM LIABILITIES:

Deferred taxes, non-current

103,376

87,584

Other accruals

5,818

5,456

Total long term liabilities

109,194

93,040

STOCKHOLDERS’ EQUITY:

Common stock, $0.0001 par value

8

8

Accumulated other comprehensive loss

(1,396)

(604)

Additional paid-in capital

778,452

759,292

Retained earnings

141,638

118,900

Total Stockholders’ Equity

$

918,702

$

877,596

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,131,859

$

1,060,248

 

GRUBHUB INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Six Months Ended June 30,

2016

2015

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

22,738

$

19,922

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

Depreciation

3,327

2,721

Provision for doubtful accounts

420

260

Deferred taxes

(4,174)

35

Amortization of intangible assets

12,866

12,357

Stock-based compensation

12,406

6,265

Other

316

417

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

Accounts receivable

(11,722)

(8,460)

Prepaid expenses and other assets

(3,315)

(485)

Restaurant food liability

4,278

3,052

Accounts payable

(858)

(3,957)

Accrued payroll

595

(3,000)

Other accruals

316

1,417

Net cash provided by operating activities

37,193

30,544

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of investments

(123,723)

(65,645)

Proceeds from maturity of investments

128,490

64,618

Capitalized website and development costs

(5,380)

(3,104)

Purchases of property and equipment

(8,362)

(1,201)

Acquisitions of businesses, net of cash acquired

(67,528)

(55,687)

Acquisition of other intangible assets

(250)

—

Other cash flows from investing activities

(576)

—

Net cash used in investing activities

(77,329)

(61,019)

CASH FLOWS FROM FINANCING ACTIVITIES

Repurchases of common stock

(14,774)

—

Proceeds from exercise of stock options

2,878

9,777

Excess tax benefits related to stock-based compensation

18,767

14,421

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

(938)

—

Payments for debt issuance costs

(1,477)

—

Net cash provided by financing activities

4,456

24,198

Net change in cash and cash equivalents

(35,680)

(6,277)

Effect of exchange rates on cash

(689)

76

Cash and cash equivalents at beginning of year

169,293

201,796

Cash and cash equivalents at end of the period

$

132,924

$

195,595

SUPPLEMENTAL DISCLOSURE OF NON CASH ITEMS

Fair value of common stock issued for acquisitions

$

—

$

15,980

Cash paid for income taxes

3,250

—

 

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(in thousands, except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2016

2015

2016

2015

Net income

$

12,805

$

9,352

$

22,738

$

19,922

Income taxes

9,707

6,845

17,105

14,700

Depreciation and amortization

8,885

8,829

16,193

15,078

EBITDA

31,397

25,026

56,036

49,700

Acquisition and restructuring costs

697

134

1,528

703

Stock-based compensation

5,505

3,258

12,406

6,265

Adjusted EBITDA

$

37,599

$

28,418

$

69,970

$

56,668

Three Months Ended
June 30,

Six Months Ended
June 30,

2016

2015

2016

2015

Net income

$

12,805

$

9,352

$

22,738

$

19,922

Stock-based compensation

5,505

3,258

12,406

6,265

Amortization of acquired intangible assets

5,640

4,673

10,685

8,788

Accelerated write-down of Seamless technology platform

—

1,897

—

1,897

Acquisition and restructuring costs

697

134

1,528

703

Income tax adjustments

(5,068)

(4,314)

(10,537)

(7,644)

Non-GAAP net income

$

19,579

$

15,000

$

36,820

$

29,931

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

85,749

85,833

85,724

85,465

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

$

0.23

$

0.17

$

0.43

$

0.35

Guidance

Three Months Ended

September 30, 2016

Year Ended

December 31, 2016

Low

High

Low

High

(in millions)

Net income

$

8

$

9

$

42

$

46

Income taxes

6

7

32

34

Depreciation and amortization

10

10

37

37

EBITDA

24

26

111

117

Acquisition and restructuring costs

—

—

—

—

Stock-based compensation

6

6

25

25

Adjusted EBITDA

$

30

$

32

$

136

$

142

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

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

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

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering company. Dedicated to moving eating forward and connecting diners with the food they love from their favorite local restaurants, the company’s platforms and services strive to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 44,000 restaurant partners in over 1,000 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, Restaurants on the Run, DiningIn, Delivered Dish and LAbite.

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Grubhub Reports Record Second Quarter Results

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

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

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering company. Dedicated to moving eating forward and connecting diners with the food they love from their favorite local restaurants, the company’s platforms and services strive to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 44,000 restaurant partners in over 1,000 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, Restaurants on the Run, DiningIn, Delivered Dish and LAbite.

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Grubhub Completes Acquisition Of LAbite

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

Second Quarter and Full Year 2016 Guidance

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

Second Quarter 2016

Full Year 2016

(in millions)

Expected revenue range

$113 – $115

$465 – $480

Expected Adjusted EBITDA range

$30 – $32

$125 – $133

About Grubhub
Grubhub (NYSE: GRUB) is the nation’s leading online and mobile food-ordering company. Dedicated to moving eating forward and connecting diners with the food they love from their favorite local restaurants, the company’s platforms and services strive to elevate food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 44,000 restaurant partners in over 1,000 U.S. cities and London. The Grubhub portfolio of brands includes Grubhub, Seamless, AllMenus, MenuPages, LAbite, Restaurants on the Run, DiningIn and Delivered Dish.

Use of Forward Looking Statements:
This press release contains forward-looking statements regarding our management’s future expectations, beliefs, intentions, goals, strategies, plans and prospects, including the expected financial performance of Grubhub following its recent acquisitions and investment in delivery. Such statements constitute “forward-looking” statements, which are subject to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and assumptions that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, the matters set forth in the filings that we make with the Securities and Exchange Commission from time to time, including those set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K filed on February 26, 2016, which are on file with the SEC and are available on the Investor Relations section of our website at http://investors.grubhub.com/. Our financial results should be read in conjunction with our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 that was filed on May 9, 2016. Please also note that forward-looking statements represent our management’s beliefs and assumptions only as of the date of this press release. Except as required by law, we assume no obligation to publicly update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information, becomes available in the future.

Use of Non-GAAP Financial Measures
Adjusted EBITDA is a financial measure that is not calculated in accordance with accounting principles generally accepted in the United States, or GAAP.

We define Adjusted EBITDA as net income adjusted to exclude acquisition and restructuring costs, income taxes, depreciation and amortization and stock-based compensation expense. We use these non-GAAP financial measures as key performance measures because we believe they facilitate operating performance comparisons from period to period by excluding potential differences primarily caused by variations in capital structures, tax positions, the impact of acquisitions and restructuring, the impact of depreciation and amortization expense on our fixed assets and the impact of stock-based compensation expense. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to performance measures derived in accordance with GAAP.

Contacts:

Anan Kashyap

Katie Norris 

Corporate Finance & Investor
Relations

Press
press@grubhub.com 

ir@grubhub.com

 

Grubhub logo.

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