CHICAGO, May 1, 2018 /PRNewswire/ -- Grubhub Inc.
(NYSE: GRUB), the nation's leading online and mobile food-ordering
and delivery marketplace, today announced financial results for the
first quarter ended March 31, 2018.
For the first quarter, the Company posted revenues of $232.6 million, which is a 49% year-over-year
increase from $156.1 million in the
first quarter of 2017. Gross Food Sales grew 39% year-over-year to
$1.2 billion, up from $898 million in the year-ago period.
"Our team executed well in the first quarter, making meaningful
progress toward our most significant goals for 2018. We've already
launched dozens of new delivery markets, completed our Yelp and
Eat24 integrations a quarter earlier than expected, and attracted a
record quarterly number of organic new diners," said Grubhub CEO
Matt Maloney. "Our restaurant
partnerships are broader and deeper than ever before, increasing
our value to diners and driving sustained diner and order
growth."
First Quarter 2018 Highlights
The following results reflect the financial performance and key
operating metrics of our business for the three months ended
March 31, 2018, as compared to the
same period in 2017.
First Quarter Financial Highlights
- Revenues: $232.6 million, a 49%
year-over-year increase from $156.1
million in the first quarter of 2017.
- Net Income: $30.8 million, or
$0.34 per diluted share, a 74%
year-over-year increase from $17.7
million, or $0.20 per diluted
share, in the first quarter of 2017.
- Non-GAAP Adjusted EBITDA: $64.1
million, a 51% year-over-year increase from $42.5 million in the first quarter of 2017.
- Non-GAAP Net Income: $47.2
million, or $0.52 per diluted
share, an 88% year-over-year increase from $25.1 million, or $0.29 per diluted share, in the first quarter of
2017.
First Quarter Key Business Metrics Highlights
- Active Diners were 15.1 million, a 72% year-over-year increase
from 8.8 million Active Diners in the first quarter of 2017.
- Daily Average Grubs (DAGs) were 436,900, a 35% year-over-year
increase from 324,600 DAGs in the first quarter of 2017.
- Gross Food Sales were $1.2
billion, a 39% year-over-year increase from $898 million in the first quarter of 2017.
"Organic DAG growth accelerated for the second quarter in a row,
fueled by the most comprehensive restaurant marketplace and our
efficient delivery," said Grubhub President and CFO Adam DeWitt. "Our scale continues to generate
improving profitability, leading to strong EBITDA per order of
$1.63 during the first quarter, even
as we push hard on delivery market expansion and spreading diner
awareness."
Second Quarter and Full Year 2018 Guidance
Based on information available as of May
1, 2018, the Company is providing the following financial
guidance for the second quarter and full year of 2018:
|
Second Quarter
2018
|
|
Full Year
2018
|
|
(in
millions)
|
Expected Revenue
range
|
$228 -
$236
|
|
$930 -
$965
|
Expected Adjusted
EBITDA range
|
$59 - $65
|
|
$242 -
$262
|
First Quarter 2018 Financial Results Conference
Call
Grubhub will webcast a conference call today at 9 a.m. CT to discuss the first quarter 2018
financial results. The webcast can be accessed on the Grubhub
Investor Relations website at http://investors.grubhub.com, along
with the Company's earnings press release and financial tables. A
replay of the webcast will be available at the same website until
May 15, 2018.
About Grubhub
Grubhub (NYSE: GRUB) is the nation's
leading online and mobile takeout food-ordering marketplace with
the largest and most comprehensive network of restaurant partners,
as well as the largest diner base. Dedicated to connecting diners
with the food they love from their favorite local restaurants,
Grubhub strives to elevate food ordering through innovative
restaurant technology, easy-to-use platforms and an improved
delivery experience. Grubhub is proud to work with more than 80,000
restaurant partners in over 1,600 U.S. cities and London. The Grubhub portfolio of brands
includes Grubhub, Seamless, Eat24, AllMenus and MenuPages.
Use of Forward Looking Statements
This press release
contains forward-looking statements regarding Grubhub, "the
Company's" or our management's future expectations, beliefs,
intentions, goals, strategies, plans and prospects, including the
expected benefits to, and financial performance of, Grubhub
following the acquisition of Eat24 and its commercial agreements
with Yelp and Yum! Brands. Such statements
constitute "forward-looking statements", which are
subject to the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements involve substantial known and unknown risks,
uncertainties and assumptions that could cause actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Such risks and uncertainties include,
but are not limited to, the matters set forth in the filings that
we make with the Securities and Exchange Commission from time to
time, including those set forth in the section entitled "Risk
Factors" in our Annual Report on Form 10-K filed on
February 28, 2018, which is on file
with the SEC and is available on the Investor Relations section of
our website at http://investors.grubhub.com. Additional information
will be set forth in our Quarterly Report on Form 10-Q that will be
filed for the quarter ended March 31,
2018, which should be read in conjunction with these
financial results. Please also note that forward-looking statements
represent management's beliefs and assumptions only as of the date
of this press release. Except as required by law, we disclaim any
intention to, and undertake no obligation to, publicly update these
forward-looking statements, or to update the reasons actual results
could differ materially from those anticipated in the
forward-looking statements, even if new information becomes
available in the future.
Use of Non-GAAP Financial Measures
Adjusted EBITDA,
non-GAAP net income and non-GAAP net income per diluted share
attributable to common stockholders are financial measures that are
not calculated in accordance with accounting principles generally
accepted in the United States, or
GAAP.
We define Adjusted EBITDA as net income adjusted to exclude
acquisition, restructuring and certain legal costs, income taxes,
interest income and expense, depreciation and amortization and
stock-based compensation expense. Non-GAAP net income and non-GAAP
net income per diluted share attributable to common stockholders
exclude acquisition, restructuring and certain legal costs,
amortization of acquired intangible assets, stock-based
compensation expense and other nonrecurring items as well as the
income tax effects of these non-GAAP adjustments. We use these
non-GAAP financial measures as key performance measures because we
believe they facilitate operating performance comparisons from
period to period by excluding potential differences primarily
caused by variations in capital structures, tax positions, the
impact of acquisitions, restructuring and certain legal costs, the
impact of depreciation and amortization expense on our fixed assets
and the impact of stock-based compensation expense. Adjusted
EBITDA, non-GAAP net income and non-GAAP net income per diluted
share attributable to common stockholders are not measurements of
our financial performance under GAAP and should not be considered
as an alternative to performance measures derived in accordance
with GAAP.
See "Schedule of Non-GAAP Financial Measures
Reconciliation" below for a reconciliation of net income to
Adjusted EBITDA, non-GAAP net income and non-GAAP net income per
diluted share attributable to common stockholders.
GRUBHUB
INC.
|
STATEMENTS OF
OPERATIONS
|
(in thousands,
except per share data)
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Revenues
|
$
|
232,570
|
|
$
|
156,134
|
Costs and
expenses:
|
|
|
|
|
|
Operations and
support
|
|
96,283
|
|
|
59,519
|
Sales and
marketing
|
|
48,756
|
|
|
35,438
|
Technology (exclusive
of amortization)
|
|
17,331
|
|
|
13,192
|
General and
administrative
|
|
17,697
|
|
|
13,181
|
Depreciation and
amortization
|
|
20,951
|
|
|
10,040
|
Total costs and
expenses
|
|
201,018
|
|
|
131,370
|
Income from
operations
|
|
31,552
|
|
|
24,764
|
Interest (income)
expense - net
|
|
1,022
|
|
|
(221)
|
Income before
provision for income taxes
|
|
30,530
|
|
|
24,985
|
Income tax (benefit)
expense
|
|
(236)
|
|
|
7,270
|
Net income
attributable to common stockholders
|
$
|
30,766
|
|
$
|
17,715
|
Net income per share
attributable to common stockholders:
|
|
|
|
|
|
Basic
|
$
|
0.35
|
|
$
|
0.21
|
Diluted
|
$
|
0.34
|
|
$
|
0.20
|
Weighted-average
shares used to compute net income per share attributable to common
stockholders:
|
|
|
|
|
|
Basic
|
|
87,085
|
|
|
85,874
|
Diluted
|
|
90,091
|
|
|
87,120
|
KEY OPERATING
METRICS
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Active Diners
(000s)
|
|
15,078
|
|
|
8,751
|
Daily Average
Grubs
|
|
436,900
|
|
|
324,600
|
Gross Food Sales
(millions)
|
$
|
1,245.0
|
|
$
|
898.1
|
GRUBHUB
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
March 31,
2018
|
|
December 31, 2017
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
272,258
|
|
$
|
234,090
|
Short-term
investments
|
|
16,052
|
|
|
23,605
|
Accounts receivable,
less allowances for doubtful accounts
|
|
100,129
|
|
|
95,970
|
Prepaid expenses and
other current assets
|
|
9,847
|
|
|
6,818
|
Total current
assets
|
|
398,286
|
|
|
360,483
|
PROPERTY AND
EQUIPMENT:
|
|
|
|
|
|
Property and
equipment, net of depreciation and amortization
|
|
79,399
|
|
|
71,384
|
OTHER
ASSETS:
|
|
|
|
|
|
Other
assets
|
|
6,697
|
|
|
6,487
|
Goodwill
|
|
589,862
|
|
|
589,862
|
Acquired intangible
assets, net of amortization
|
|
504,011
|
|
|
515,553
|
Total other
assets
|
|
1,100,570
|
|
|
1,111,902
|
TOTAL
ASSETS
|
$
|
1,578,255
|
|
$
|
1,543,769
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Restaurant food
liability
|
$
|
126,853
|
|
$
|
119,922
|
Accounts
payable
|
|
12,202
|
|
|
7,607
|
Accrued
payroll
|
|
9,897
|
|
|
13,186
|
Taxes
payable
|
|
1,514
|
|
|
3,109
|
Short-term
debt
|
|
4,688
|
|
|
3,906
|
Other
accruals
|
|
34,237
|
|
|
26,818
|
Total current
liabilities
|
|
189,391
|
|
|
174,548
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Deferred taxes,
non-current
|
|
71,316
|
|
|
74,292
|
Other
accruals
|
|
17,207
|
|
|
7,468
|
Long-term
debt
|
|
143,121
|
|
|
169,645
|
Total long-term
liabilities
|
|
231,644
|
|
|
251,405
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
Common stock, $0.0001
par value
|
|
9
|
|
|
9
|
Accumulated other
comprehensive loss
|
|
(872)
|
|
|
(1,228)
|
Additional paid-in
capital
|
|
856,443
|
|
|
849,043
|
Retained
earnings
|
|
301,640
|
|
|
269,992
|
Total Stockholders'
Equity
|
$
|
1,157,220
|
|
$
|
1,117,816
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
1,578,255
|
|
$
|
1,543,769
|
GRUBHUB
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
$
|
30,766
|
|
$
|
17,715
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
Depreciation
|
|
5,050
|
|
|
2,412
|
Provision for doubtful
accounts
|
|
325
|
|
|
95
|
Deferred
taxes
|
|
(2,976)
|
|
|
(4,741)
|
Amortization of
intangible assets
|
|
15,901
|
|
|
7,628
|
Stock-based
compensation
|
|
10,231
|
|
|
7,243
|
Deferred
rent
|
|
1,633
|
|
|
58
|
Amortization of
deferred loan costs
|
|
333
|
|
|
124
|
Other
|
|
(243)
|
|
|
(234)
|
Change in assets and
liabilities, net of the effects of business
acquisitions:
|
|
|
|
|
|
Accounts
receivable
|
|
3,918
|
|
|
(1,721)
|
Prepaid expenses and
other assets
|
|
(3,516)
|
|
|
2,957
|
Restaurant food
liability
|
|
6,885
|
|
|
11,297
|
Accounts
payable
|
|
601
|
|
|
483
|
Accrued
payroll
|
|
(3,295)
|
|
|
(1,534)
|
Other
accruals
|
|
5,887
|
|
|
9,808
|
Net cash provided by
operating activities
|
|
71,500
|
|
|
51,590
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchases of
investments
|
|
(10,537)
|
|
|
(57,783)
|
Proceeds from maturity
of investments
|
|
18,166
|
|
|
55,833
|
Capitalized website
and development costs
|
|
(6,262)
|
|
|
(4,150)
|
Purchases of property
and equipment
|
|
(5,462)
|
|
|
(3,056)
|
Acquisitions of
business, net of cash acquired
|
|
737
|
|
|
—
|
Acquisition of other
intangible assets
|
|
—
|
|
|
(5,000)
|
Other cash flows from
investing activities
|
|
16
|
|
|
91
|
Net cash used in
investing activities
|
|
(3,342)
|
|
|
(14,065)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Repayments of
borrowings under the credit facility
|
|
(25,781)
|
|
|
—
|
Proceeds from exercise
of stock options
|
|
6,948
|
|
|
1,584
|
Taxes paid related to
net settlement of stock-based compensation awards
|
|
(11,485)
|
|
|
(3,688)
|
Net cash used in
financing activities
|
|
(30,318)
|
|
|
(2,104)
|
Net change in cash,
cash equivalents, and restricted cash
|
|
37,840
|
|
|
35,421
|
Effect of exchange
rates on cash, cash equivalents and restricted cash
|
|
356
|
|
|
97
|
Cash, cash
equivalents, and restricted cash at beginning of year
|
|
238,239
|
|
|
242,214
|
Cash, cash
equivalents, and restricted cash at end of the period
|
$
|
276,435
|
|
$
|
277,732
|
SUPPLEMENTAL
DISCLOSURE OF NON-CASH ITEMS
|
|
|
|
|
|
Cash paid for income
taxes
|
$
|
227
|
|
$
|
746
|
GRUBHUB
INC.
|
NON-GAAP FINANCIAL
MEASURES RECONCILIATION
|
(in thousands,
except per share data)
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Net income
|
$
|
30,766
|
|
$
|
17,715
|
Income
taxes
|
|
(236)
|
|
|
7,270
|
Interest (income)
expense - net
|
|
1,022
|
|
|
(221)
|
Depreciation and
amortization
|
|
20,951
|
|
|
10,040
|
EBITDA
|
|
52,503
|
|
|
34,804
|
Acquisition,
restructuring and legal costs
|
|
1,329
|
|
|
409
|
Stock-based
compensation
|
|
10,231
|
|
|
7,243
|
Adjusted
EBITDA
|
$
|
64,063
|
|
$
|
42,456
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Net income
|
$
|
30,766
|
|
$
|
17,715
|
Stock-based
compensation
|
|
10,231
|
|
|
7,243
|
Amortization of
acquired intangible assets
|
|
11,543
|
|
|
5,273
|
Acquisition,
restructuring and legal costs
|
|
1,329
|
|
|
409
|
Income tax
adjustments
|
|
(6,677)
|
|
|
(5,519)
|
Non-GAAP net
income
|
$
|
47,192
|
|
$
|
25,121
|
Weighted-average
diluted shares used to compute net income per share attributable to
common stockholders
|
|
90,091
|
|
|
87,120
|
Non-GAAP net income
per diluted share attributable to common stockholders
|
$
|
0.52
|
|
$
|
0.29
|
|
Guidance
|
|
Three Months
Ended June 30,
2018
|
|
Year
Ended December 31,
2018
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
(in
millions)
|
Net income
|
$
|
19.5
|
|
$
|
23.8
|
|
$
|
79.8
|
|
$
|
94.2
|
Income
taxes
|
|
7.5
|
|
|
9.2
|
|
|
30.9
|
|
|
36.5
|
Interest expense ̶
net
|
|
1.0
|
|
|
1.0
|
|
|
4.0
|
|
|
4.0
|
Depreciation and
amortization
|
|
19.0
|
|
|
19.0
|
|
|
80.0
|
|
|
80.0
|
EBITDA
|
|
47.0
|
|
|
53.0
|
|
|
194.7
|
|
|
214.7
|
Acquisition and
restructuring costs
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
1.3
|
Stock-based
compensation
|
|
12.0
|
|
|
12.0
|
|
|
46.0
|
|
|
46.0
|
Adjusted
EBITDA
|
$
|
59.0
|
|
$
|
65.0
|
|
$
|
242.0
|
|
$
|
262.0
|
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SOURCE Grubhub Inc.