CHICAGO, Feb. 8, 2017 /PRNewswire/ -- Grubhub Inc.
(NYSE: GRUB), the nation's leading takeout marketplace, today
announced financial results for the quarter and year ended
Dec. 31, 2016. Orders grew 21%
year-over-year, and the Company posted quarterly revenues of
$137.5 million, which is a 38%
year-over-year increase from $100.0
million in the fourth quarter of 2015.
"Grubhub had a transformative year in 2016. We dramatically
improved our product and reaccelerated order growth. Fueled by
data-driven product enhancements, substantial strides in delivery,
and a refreshed marketing approach, we exited the year growing DAGs
faster than we did a year ago," said Matt
Maloney, Grubhub CEO. "With Grubhub delivery now in roughly
70 markets across the country and a significantly improved
restaurant network, we enter 2017 well positioned to press our
market leading advantage and give Grubhub growth momentum for years
to come."
Fourth Quarter and Full Year 2016 Highlights
The following results reflect the financial performance and key
operating metrics of our business for the three months and year
ended Dec. 31, 2016, as compared to
the same periods in 2015.
Fourth Quarter Financial Highlights
- Revenues: $137.5 million, a 38%
year-over-year increase from $100.0
million in the fourth quarter of 2015.
- Net Income: $13.6 million, or
$0.16 per diluted share, a 21%
year-over-year increase from $11.3
million, or $0.13 per diluted
share, in the fourth quarter of 2015.
- Non-GAAP Adjusted EBITDA: $39.2
million, a 46% year-over-year increase from $26.8 million in the fourth quarter of 2015.
- Non-GAAP Net Income: $19.8
million, or $0.23 per diluted
share, a 19% year-over-year increase from $16.7 million, or $0.19 per diluted share, in the fourth quarter of
2015.
Fourth Quarter Key Business Metrics Highlights
- Active Diners were 8.17 million, a 21% year-over-year increase
from 6.75 million Active Diners in the fourth quarter of 2015.
- Daily Average Grubs were 292,500, a 21% year-over-year increase
from 241,800 Daily Average Grubs in the fourth quarter of
2015.
- Gross Food Sales were $818
million, a 27% year-over-year increase from $643 million in the fourth quarter of 2015.
Full Year Financial Highlights
- Revenues: $493.3 million, a 36%
year-over-year increase from $361.8
million in 2015.
- Net Income: $49.6 million, or
$0.58 per diluted share, a 30%
year-over-year increase from $38.1
million, or $0.44 per diluted
share, in 2015.
- Non-GAAP Adjusted EBITDA: $144.6
million, a 38% year-over-year increase from $105.0 million in 2015.
- Non-GAAP Net Income: $76.6
million, or $0.89 per diluted
share, a 32% year-over-year increase from $58.1 million, or $0.68 per diluted share.
Full Year Key Business Metrics Highlights
- Active Diners were 8.17 million, a 21% year-over-year increase
from 6.75 million Active Diners in 2015.
- Daily Average Grubs were 274,800, a 21% year-over-year
increase from 227,100 Daily Average Grubs in 2015.
- Gross Food Sales were $3.0
billion, a 27% year-over-year increase from $2.4 billion in 2015.
"Our rapid scaling in delivery combined with our substantial
incremental margins helped Grubhub post record profits in 2016.
Adjusted EBITDA grew 38% for the year, with Adjusted EBITDA per
order growing 14% to $1.44 per order
in 2016 from $1.27 the prior year,"
said Adam DeWitt, Grubhub CFO.
"Throughout 2016 and into this year, we've been adding the highest
quality restaurants in all of our markets to our vastly improved
diner platform. We believe this formula will support us in driving
growth across our network, while our scale will help us generate
more cash flow per order over time."
First Quarter and Full Year 2017 Guidance
Based on information available as of Feb.
8, 2017, the Company is providing the following financial
guidance for the first quarter and full year of 2017:
|
First Quarter
2017
|
|
Full Year
2017
|
|
(in
millions)
|
Expected Revenue
range
|
$148 -
$156
|
|
$620 -
$660
|
Expected Adjusted
EBITDA range
|
$37 - $42
|
|
$165 -
$190
|
Fourth Quarter 2017 Financial Results Conference
Call
Grubhub will webcast a conference call today at 9 a.m. CT to discuss the fourth 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
Feb. 22, 2017.
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 50,000 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 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 and our most recent
Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 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 Annual Report on Form 10-K that will be filed for
the year ended Dec. 31, 2016, 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 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
December
31,
|
|
|
Year
Ended
December
31,
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Revenues
|
$
|
137,457
|
|
|
$
|
99,959
|
|
|
$
|
493,331
|
|
|
$
|
361,825
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
29,636
|
|
|
|
24,921
|
|
|
|
110,323
|
|
|
|
91,150
|
|
Operations and
support
|
|
51,727
|
|
|
|
32,483
|
|
|
|
171,756
|
|
|
|
107,424
|
|
Technology (exclusive
of amortization)
|
|
10,689
|
|
|
|
8,802
|
|
|
|
42,454
|
|
|
|
32,782
|
|
General and
administrative
|
|
12,252
|
|
|
|
11,457
|
|
|
|
49,753
|
|
|
|
40,506
|
|
Depreciation and
amortization
|
|
9,911
|
|
|
|
6,657
|
|
|
|
35,193
|
|
|
|
28,034
|
|
Total costs and
expenses
|
|
114,215
|
|
|
|
84,320
|
|
|
|
409,479
|
|
|
|
299,896
|
|
Income before
provision for income taxes
|
|
23,242
|
|
|
|
15,639
|
|
|
|
83,852
|
|
|
|
61,929
|
|
Provision for income
taxes
|
|
9,605
|
|
|
|
4,351
|
|
|
|
34,295
|
|
|
|
23,852
|
|
Net income
attributable to common stockholders
|
$
|
13,637
|
|
|
$
|
11,288
|
|
|
$
|
49,557
|
|
|
$
|
38,077
|
|
Net income per share
attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.16
|
|
|
$
|
0.13
|
|
|
$
|
0.58
|
|
|
$
|
0.45
|
|
Diluted
|
$
|
0.16
|
|
|
$
|
0.13
|
|
|
$
|
0.58
|
|
|
$
|
0.44
|
|
Weighted-average
shares used to compute net income per share attributable to common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
85,608
|
|
|
|
84,823
|
|
|
|
85,069
|
|
|
|
84,076
|
|
Diluted
|
|
86,666
|
|
|
|
86,028
|
|
|
|
86,135
|
|
|
|
85,706
|
|
KEY OPERATING
METRICS
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
|
Year
Ended
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Active Diners
(000s)
|
|
|
8,174
|
|
|
|
6,746
|
|
|
|
8,174
|
|
|
|
6,746
|
|
Daily Average
Grubs
|
|
|
292,500
|
|
|
|
241,800
|
|
|
|
274,800
|
|
|
|
227,100
|
|
Gross Food Sales
(millions)
|
|
$
|
817.7
|
|
|
$
|
642.5
|
|
|
$
|
2,998.1
|
|
|
$
|
2,353.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRUBHUB
INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
2016
|
|
|
December 31,
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
239,528
|
|
|
$
|
169,293
|
|
Short term
investments
|
|
84,091
|
|
|
|
141,448
|
|
Accounts receivable,
less allowances for doubtful accounts
|
|
60,550
|
|
|
|
42,051
|
|
Prepaid
expenses
|
|
12,168
|
|
|
|
3,482
|
|
Total current
assets
|
|
396,337
|
|
|
|
356,274
|
|
PROPERTY AND
EQUIPMENT:
|
|
|
|
|
|
|
|
Property and
equipment, net of depreciation and amortization
|
|
46,555
|
|
|
|
19,082
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
|
Other
assets
|
|
4,530
|
|
|
|
3,105
|
|
Goodwill
|
|
436,455
|
|
|
|
396,220
|
|
Acquired intangible
assets, net of amortization
|
|
313,630
|
|
|
|
285,567
|
|
Total other
assets
|
|
754,615
|
|
|
|
684,892
|
|
TOTAL
ASSETS
|
$
|
1,197,507
|
|
|
$
|
1,060,248
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Restaurant food
liability
|
$
|
83,349
|
|
|
$
|
64,326
|
|
Accounts
payable
|
|
7,590
|
|
|
|
8,189
|
|
Accrued
payroll
|
|
7,338
|
|
|
|
4,841
|
|
Taxes
payable
|
|
865
|
|
|
|
426
|
|
Other
accruals
|
|
11,348
|
|
|
|
11,830
|
|
Total current
liabilities
|
|
110,490
|
|
|
|
89,612
|
|
LONG TERM
LIABILITIES:
|
|
|
|
|
|
|
|
Deferred taxes,
non-current
|
|
108,022
|
|
|
|
87,584
|
|
Other
accruals
|
|
6,876
|
|
|
|
5,456
|
|
Total long term
liabilities
|
|
114,898
|
|
|
|
93,040
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value
|
|
9
|
|
|
|
8
|
|
Accumulated other
comprehensive loss
|
|
(2,078)
|
|
|
|
(604)
|
|
Additional paid-in
capital
|
|
805,731
|
|
|
|
759,292
|
|
Retained
earnings
|
|
168,457
|
|
|
|
118,900
|
|
Total Stockholders'
Equity
|
$
|
972,119
|
|
|
$
|
877,596
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
1,197,507
|
|
|
$
|
1,060,248
|
|
GRUBHUB
INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
49,557
|
|
|
$
|
38,077
|
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
8,921
|
|
|
|
5,085
|
|
Provision for doubtful
accounts
|
|
|
1,102
|
|
|
|
850
|
|
Deferred
taxes
|
|
|
1,027
|
|
|
|
(3,835)
|
|
Amortization of
intangible assets
|
|
|
26,272
|
|
|
|
22,949
|
|
Stock-based
compensation
|
|
|
23,559
|
|
|
|
13,450
|
|
Deferred
rent
|
|
|
1,286
|
|
|
|
32
|
|
Other
|
|
|
(406)
|
|
|
|
529
|
|
Change in assets and
liabilities, net of the effects of business
acquisitions:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(17,488)
|
|
|
|
(4,343)
|
|
Prepaid expenses and
other assets
|
|
|
(8,765)
|
|
|
|
242
|
|
Restaurant food
liability
|
|
|
16,451
|
|
|
|
(29,409)
|
|
Accounts
payable
|
|
|
(3,204)
|
|
|
|
3,312
|
|
Accrued
payroll
|
|
|
1,819
|
|
|
|
(2,104)
|
|
Other
accruals
|
|
|
(2,453)
|
|
|
|
(80)
|
|
Net cash provided by
operating activities
|
|
|
97,678
|
|
|
|
44,755
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchases of
investments
|
|
|
(226,694)
|
|
|
|
(220,667)
|
|
Proceeds from maturity
of investments
|
|
|
284,662
|
|
|
|
189,872
|
|
Capitalized website
and development costs
|
|
|
(12,809)
|
|
|
|
(7,137)
|
|
Purchases of property
and equipment
|
|
|
(24,087)
|
|
|
|
(4,150)
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
(65,849)
|
|
|
|
(73,907)
|
|
Acquisition of other
intangible assets
|
|
|
(250)
|
|
|
|
—
|
|
Other cash flows from
investing activities
|
|
|
(492)
|
|
|
|
(408)
|
|
Net cash used in
investing activities
|
|
|
(45,519)
|
|
|
|
(116,397)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
|
(14,774)
|
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
|
13,468
|
|
|
|
11,919
|
|
Excess tax benefits
related to stock-based compensation
|
|
|
24,906
|
|
|
|
27,830
|
|
Taxes paid related to
net settlement of stock-based compensation awards
|
|
|
(2,779)
|
|
|
|
(345)
|
|
Payments for debt
issuance costs
|
|
|
(1,477)
|
|
|
|
—
|
|
Net cash provided by
financing activities
|
|
|
19,344
|
|
|
|
39,404
|
|
Net change in cash
and cash equivalents
|
|
|
71,503
|
|
|
|
(32,238)
|
|
Effect of exchange
rates on cash
|
|
|
(1,268)
|
|
|
|
(265)
|
|
Cash and cash
equivalents at beginning of year
|
|
|
169,293
|
|
|
|
201,796
|
|
Cash and cash
equivalents at end of the period
|
|
$
|
239,528
|
|
|
$
|
169,293
|
|
SUPPLEMENTAL
DISCLOSURE OF NON CASH ITEMS
|
|
|
|
|
|
|
|
|
Fair value of common
stock issued for acquisitions
|
|
$
|
—
|
|
|
$
|
15,980
|
|
Cash paid for income
taxes
|
|
|
8,722
|
|
|
|
—
|
|
GRUBHUB
INC.
|
|
NON-GAAP FINANCIAL
MEASURES RECONCILIATION
|
|
(in thousands,
except per share data)
|
|
|
|
|
Three Months
Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Net income
|
$
|
13,637
|
|
|
$
|
11,288
|
|
|
$
|
49,557
|
|
|
$
|
38,077
|
|
Income
taxes
|
|
9,605
|
|
|
|
4,351
|
|
|
|
34,295
|
|
|
|
23,852
|
|
Depreciation and
amortization
|
|
9,911
|
|
|
|
6,657
|
|
|
|
35,193
|
|
|
|
28,034
|
|
EBITDA
|
|
33,153
|
|
|
|
22,296
|
|
|
|
119,045
|
|
|
|
89,963
|
|
Acquisition and
restructuring costs
|
|
253
|
|
|
|
468
|
|
|
|
2,042
|
|
|
|
1,554
|
|
Stock-based
compensation
|
|
5,804
|
|
|
|
4,072
|
|
|
|
23,559
|
|
|
|
13,450
|
|
Adjusted
EBITDA
|
$
|
39,210
|
|
|
$
|
26,836
|
|
|
$
|
144,646
|
|
|
$
|
104,967
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Net income
|
$
|
13,637
|
|
|
$
|
11,288
|
|
|
$
|
49,557
|
|
|
$
|
38,077
|
|
Stock-based
compensation
|
|
5,804
|
|
|
|
4,072
|
|
|
|
23,559
|
|
|
|
13,450
|
|
Amortization of
acquired intangible assets
|
|
4,801
|
|
|
|
4,774
|
|
|
|
20,871
|
|
|
|
18,236
|
|
Accelerated write-down
of Seamless technology platform
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,897
|
|
Acquisition and
restructuring costs
|
|
253
|
|
|
|
468
|
|
|
|
2,042
|
|
|
|
1,554
|
|
Income tax
adjustments
|
|
(4,692)
|
|
|
|
(3,928)
|
|
|
|
(19,472)
|
|
|
|
(15,109)
|
|
Non-GAAP net
income
|
$
|
19,803
|
|
|
$
|
16,674
|
|
|
$
|
76,557
|
|
|
$
|
58,105
|
|
Weighted-average
diluted shares used to compute net income per share attributable to
common stockholders
|
|
86,666
|
|
|
|
86,028
|
|
|
|
86,135
|
|
|
|
85,706
|
|
Non-GAAP net income
per diluted share attributable to common stockholders
|
$
|
0.23
|
|
|
$
|
0.19
|
|
|
$
|
0.89
|
|
|
$
|
0.68
|
|
|
|
Guidance
|
|
|
|
Three Months
Ended
March 31,
2017
|
|
|
Year
Ended
December 31,
2017
|
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
|
|
|
(in
millions)
|
|
Net income
|
|
$
|
12.5
|
|
|
$
|
15.5
|
|
|
$
|
58.6
|
|
|
$
|
73.5
|
|
Income
taxes
|
|
|
8.5
|
|
|
|
10.5
|
|
|
|
39.9
|
|
|
|
50.0
|
|
Depreciation and
amortization
|
|
|
9.5
|
|
|
|
9.5
|
|
|
|
39.0
|
|
|
|
39.0
|
|
EBITDA
|
|
|
30.5
|
|
|
|
35.5
|
|
|
|
137.5
|
|
|
|
162.5
|
|
Acquisition and
restructuring costs
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Stock-based
compensation
|
|
|
6.5
|
|
|
|
6.5
|
|
|
|
27.5
|
|
|
|
27.5
|
|
Adjusted
EBITDA
|
|
$
|
37.0
|
|
|
$
|
42.0
|
|
|
$
|
165.0
|
|
|
$
|
190.0
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/grubhub-reports-record-fourth-quarter-and-full-year-2016-results-300403842.html
SOURCE Grubhub Inc.