CHICAGO, May 3, 2016 /PRNewswire/ -- Grubhub Inc.
(NYSE: GRUB), the leading takeout marketplace, today announced
financial results for the quarter ended March 31, 2016.
"We had a strong start to 2016, generating a record $713 million in gross food sales during the
quarter, even with significant headwinds from weather," said
Matt Maloney, CEO. "Revenue grew
27%, driven by the continued expansion of quality restaurants
through Grubhub delivery, improvements in our technology platform
and the rollout of our updated Grubhub branding."
First Quarter 2016 Highlights
The following results reflect the financial performance and key
operating metrics of our business for the three months ended
March 31, 2016 as compared to the
same period in 2015.
First Quarter Financial Highlights
- Revenues: $112.2 million, a 27%
year-over-year increase from $88.2
million in the first quarter of 2015.
- Non-GAAP Adjusted EBITDA: $32.4
million, a 15% year-over-year increase from $28.3 million in the first quarter of 2015.
- Net Income: $9.9 million, or
$0.12 per diluted share, a 6%
year-over-year decrease from $10.6
million, or $0.12 per diluted
share, in the first quarter of 2015.
- Non-GAAP Net Income: $17.2
million, or $0.20 per diluted
share, a 15% year-over-year increase from $14.9 million, or $0.18 per diluted share.
First Quarter Key Business Metrics Highlights
- Active Diners were 6.97 million, a 24% year-over-year increase
from 5.60 million Active Diners in the first quarter of 2015.
- Daily Average Grubs were 267,800, a 14% year-over-year increase
from 234,700 Daily Average Grubs in the first quarter of 2015.
- Gross Food Sales were $713
million, a 21% year-over-year increase from $590 million in the first quarter of 2015.
Delivery
The Company has entered into an agreement to acquire LAbite, one
of the largest restaurant delivery services in the U.S. In 2015,
LAbite diners ordered almost $80
million in gross food sales, with most of the volume coming
from the greater Los Angeles
area.
"We are excited by the acquisition of LAbite as it adds to the
tremendous strides we've made in expanding the breadth and depth of
our delivery network and boosts our presence in an important
market," noted Maloney. "With more than 5,000 restaurants now using
Grubhub delivery and our total network comprised of more than
44,000 restaurants, we are making great progress towards fulfilling
our goal of being the most comprehensive marketplace for takeout
diners and restaurants."
Excluding the pending acquisition of LAbite, Grubhub is now
delivering annual gross food sales volume of approximately
$250 million. This compares to
almost no delivery volume at the beginning of 2015.
Credit Facility
On April 29, 2016, the Company
entered into a revolving credit facility. The credit facility
will be available to the Company until April
28, 2021 and provides for a commitment of $185 million and the ability to increase the line
under certain conditions up to $215
million.
Second Quarter and Full Year 2016 Guidance*
Based on information available as of May
3rd, 2016, the company is providing the following financial
guidance for the second quarter and full year of 2016:
|
Second Quarter
2016
|
|
Full Year
2016
|
|
(in
millions)
|
Expected revenue
range
|
$109 -
$111
|
|
$450 -
$465
|
Expected Adjusted
EBITDA range
|
$29 - $31
|
|
$122 -
$130
|
*The above guidance excludes any impact from Grubhub's pending
acquisition of LAbite. The Company will update guidance to
include LAbite when the acquisition closes.
First Quarter 2016 Financial Results Conference
Call: Grubhub will webcast a conference call today at
9 a.m. CT to discuss the first
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 May 17, 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 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 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 March 31, 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
March
31,
|
|
2016
|
|
2015
|
Revenues
|
$
|
112,240
|
|
$
|
88,249
|
Costs and
expenses:
|
|
|
|
|
|
Sales and
marketing
|
|
28,833
|
|
|
24,107
|
Operations and
support
|
|
34,987
|
|
|
22,701
|
Technology (exclusive
of amortization)
|
|
10,192
|
|
|
7,666
|
General and
administrative
|
|
13,589
|
|
|
9,101
|
Depreciation and
amortization
|
|
7,308
|
|
|
6,249
|
Total costs and
expenses
|
|
94,909
|
|
|
69,824
|
Income before
provision for income taxes
|
|
17,331
|
|
|
18,425
|
Provision for income
taxes
|
|
7,398
|
|
|
7,855
|
Net income
attributable to common stockholders
|
$
|
9,933
|
|
$
|
10,570
|
Net income per share
attributable to common stockholders:
|
|
|
|
|
|
Basic
|
$
|
0.12
|
|
$
|
0.13
|
Diluted
|
$
|
0.12
|
|
$
|
0.12
|
Weighted-average
shares used to compute net income per share attributable to common
stockholders:
|
|
|
|
|
|
Basic
|
|
84,710
|
|
|
82,783
|
Diluted
|
|
85,699
|
|
|
85,098
|
KEY OPERATING
METRICS
|
|
|
Three Months
Ended
March
31,
|
|
2016
|
|
2015
|
Active Diners
(000s)
|
|
6,970
|
|
|
5,604
|
Daily Average
Grubs
|
|
267,800
|
|
|
234,700
|
Gross Food Sales
(millions)
|
$
|
712.8
|
|
$
|
589.9
|
GRUBHUB
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
203,312
|
|
$
|
169,293
|
Short term
investments
|
|
121,129
|
|
|
141,448
|
Accounts receivable,
less allowances for doubtful accounts
|
|
51,414
|
|
|
42,051
|
Prepaid
expenses
|
|
3,578
|
|
|
3,482
|
Total current
assets
|
|
379,433
|
|
|
356,274
|
PROPERTY AND
EQUIPMENT:
|
|
|
|
|
|
Property and
equipment, net of depreciation and amortization
|
|
24,226
|
|
|
19,082
|
OTHER
ASSETS:
|
|
|
|
|
|
Other
assets
|
|
3,383
|
|
|
3,105
|
Goodwill
|
|
396,220
|
|
|
396,220
|
Acquired intangible
assets, net of amortization
|
|
280,772
|
|
|
285,567
|
Total other
assets
|
|
680,375
|
|
|
684,892
|
TOTAL
ASSETS
|
$
|
1,084,034
|
|
$
|
1,060,248
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Restaurant food
liability
|
$
|
74,375
|
|
$
|
64,326
|
Accounts
payable
|
|
4,176
|
|
|
8,189
|
Accrued
payroll
|
|
3,805
|
|
|
4,841
|
Taxes
payable
|
|
423
|
|
|
426
|
Other
accruals
|
|
15,699
|
|
|
11,830
|
Total current
liabilities
|
|
98,478
|
|
|
89,612
|
LONG TERM
LIABILITIES:
|
|
|
|
|
|
Deferred taxes,
non-current
|
|
84,262
|
|
|
87,584
|
Other
accruals
|
|
5,523
|
|
|
5,456
|
Total long term
liabilities
|
|
89,785
|
|
|
93,040
|
Commitments and
contingencies
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
Common stock, $0.0001
par value
|
|
8
|
|
|
8
|
Accumulated other
comprehensive loss
|
|
(826)
|
|
|
(604)
|
Additional paid-in
capital
|
|
767,756
|
|
|
759,292
|
Retained
earnings
|
|
128,833
|
|
|
118,900
|
Total Stockholders'
Equity
|
$
|
895,771
|
|
$
|
877,596
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
1,084,034
|
|
$
|
1,060,248
|
GRUBHUB
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
$
|
9,933
|
|
$
|
10,570
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
Depreciation
|
|
1,344
|
|
|
1,215
|
Provision for doubtful
accounts
|
|
443
|
|
|
93
|
Deferred
taxes
|
|
(3,321)
|
|
|
1,219
|
Amortization of
intangible assets
|
|
5,964
|
|
|
5,034
|
Stock-based
compensation
|
|
6,901
|
|
|
3,007
|
Other
|
|
26
|
|
|
239
|
Change in assets and
liabilities, net of the effects of business
acquisitions:
|
|
|
|
|
|
Accounts
receivable
|
|
(9,956)
|
|
|
(11,862)
|
Prepaid expenses and
other assets
|
|
(136)
|
|
|
255
|
Restaurant food
liability
|
|
10,081
|
|
|
24,376
|
Accounts
payable
|
|
(5,434)
|
|
|
(1,826)
|
Accrued
payroll
|
|
(1,034)
|
|
|
(3,146)
|
Other
accruals
|
|
3,855
|
|
|
1,248
|
Net cash provided by
operating activities
|
|
18,666
|
|
|
30,422
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchases of
investments
|
|
(56,227)
|
|
|
(37,068)
|
Proceeds from maturity
of investments
|
|
76,615
|
|
|
38,060
|
Capitalized website
and development costs
|
|
(2,331)
|
|
|
(1,213)
|
Purchases of property
and equipment
|
|
(3,259)
|
|
|
(441)
|
Acquisitions of
businesses, net of cash acquired
|
|
—
|
|
|
(55,506)
|
Acquisition of other
intangible assets
|
|
(250)
|
|
|
—
|
Other cash flows from
investing activities
|
|
(173)
|
|
|
—
|
Net cash provided by
(used in) investing activities
|
|
14,375
|
|
|
(56,168)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Repurchases of common
stock
|
|
(9,771)
|
|
|
—
|
Proceeds from exercise
of stock options
|
|
1,012
|
|
|
5,823
|
Excess tax benefits
related to stock-based compensation
|
|
10,610
|
|
|
6,492
|
Taxes paid related to
net settlement of stock-based compensation awards
|
|
(682)
|
|
|
—
|
Net cash provided by
financing activities
|
|
1,169
|
|
|
12,315
|
Net change in cash
and cash equivalents
|
|
34,210
|
|
|
(13,431)
|
Effect of exchange
rates on cash
|
|
(191)
|
|
|
(210)
|
Cash and cash
equivalents at beginning of year
|
|
169,293
|
|
|
201,796
|
Cash and cash
equivalents at end of the period
|
$
|
203,312
|
|
$
|
188,155
|
SUPPLEMENTAL
DISCLOSURE OF NON CASH ITEMS
|
|
|
|
|
|
Fair value of common
stock issued for acquisitions
|
$
|
—
|
|
$
|
15,980
|
NON-GAAP FINANCIAL
MEASURES RECONCILIATION
(in thousands,
except per share data)
|
|
|
Three Months
Ended
March
31,
|
|
2016
|
|
2015
|
Net income
|
$
|
9,933
|
|
$
|
10,570
|
Income
taxes
|
|
7,398
|
|
|
7,855
|
Depreciation and
amortization
|
|
7,308
|
|
|
6,249
|
EBITDA
|
|
24,639
|
|
|
24,674
|
Acquisition and
restructuring costs
|
|
831
|
|
|
569
|
Stock-based
compensation
|
|
6,901
|
|
|
3,007
|
Adjusted
EBITDA
|
$
|
32,371
|
|
$
|
28,250
|
|
Three Months
Ended
March
31,
|
|
2016
|
|
2015
|
Net income
|
$
|
9,933
|
|
$
|
10,570
|
Stock-based
compensation
|
|
6,901
|
|
|
3,007
|
Amortization of
acquired intangible assets
|
|
5,045
|
|
|
4,115
|
Acquisition and
restructuring costs
|
|
831
|
|
|
569
|
Income tax
adjustments
|
|
(5,469)
|
|
|
(3,330)
|
Non-GAAP net
income
|
$
|
17,241
|
|
$
|
14,931
|
Weighted-average
diluted shares used to compute net income per share attributable to
common stockholders
|
|
85,699
|
|
|
85,098
|
Non-GAAP net income
per diluted share attributable to common stockholders
|
$
|
0.20
|
|
$
|
0.18
|
Logo - http://photos.prnewswire.com/prnh/20151014/276973LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/grubhub-reports-record-first-quarter-results-300261372.html
SOURCE GrubHub Inc.