CHICAGO, May 6, 2020 /PRNewswire/ -- Grubhub
Inc. (NYSE: GRUB), a leading online and mobile food-ordering
and delivery marketplace, today announced financial results for the
first quarter ended March 31, 2020
and also posted a letter to shareholders on its investor relations
website. The Company reported revenues of $363 million, which is a 12% year-over-year
increase from $324 million in the
same period last year. Gross Food Sales grew 8% year-over-year to
$1.6 billion, up from $1.5 billion in the same period last year.
"The restaurant industry is facing enormous challenges in light
of the difficult, but necessary, steps taken to keep us safe as we
fight COVID-19," said Matt Maloney,
Grubhub founder and CEO. "Grubhub is using nearly all of our
profits in the second quarter to generate as many additional orders
for our restaurant partners as possible. We hope that the darkest
days are behind our restaurant partners and they can start focusing
on the recovery."
First Quarter 2020 Highlights
The following results
reflect the financial performance and key operating metrics of our
business for the three months ended March
31, 2020, as compared to the same period in 2019.
First Quarter Financial Highlights
- Revenues: $363.0 million, a 12%
year-over-year increase from $323.8
million in the first quarter of 2019.
- Net Income (Loss): $(33.4)
million, or $(0.36) per
diluted share, a decrease from $6.9
million, or $0.07 per diluted
share, in the first quarter of 2019.
- Non-GAAP Adjusted EBITDA: $21.0
million, a 59% year-over-year decrease from $50.9 million in the first quarter of 2019.
- Non-GAAP Net Income (Loss): $(37)
thousand, or $(0.00) per
diluted share, a decrease from $27.9
million, or $0.30 per diluted
share, in the first quarter of 2019.
First Quarter Key Business Metrics
Highlights1
- Active Diners: 23.9 million, a 24% year-over-year increase from
19.3 million Active Diners in the first quarter of 2019.
- Daily Average Grubs (DAGs): 516,300, a 1% year-over-year
decrease from 521,000 DAGs in the first quarter of 2019.
- Gross Food Sales: $1.6 billion,
an 8% year-over-year increase from $1.5
billion in the first quarter of 2019.
"COVID-19 has driven a significant uptick in new diners and
orders from existing users as most restaurant dining rooms have
been temporarily closed nationwide," said Adam DeWitt, Grubhub president and CFO. "At
current volume trends, we could be generating meaningful Adjusted
EBITDA in the second quarter. But as Matt highlighted, we believe
the absolute best use of our cash is to support our restaurants,
their employees, our drivers and the entire takeout ecosystem
through this crisis, by generating as many orders as possible while
funding extra safety measures for restaurants, drivers and diners.
We hope that these additional sales help make a difference to our
partners in this time of crisis."
Second Quarter 2020 Guidance
Based on information
available as of May 6, 2020, the
Company is providing the following financial guidance for the
second quarter of 2020.
|
|
Second Quarter
2020
|
|
|
(in
millions)
|
Expected Adjusted
EBITDA
|
|
$5
|
|
|
|
First Quarter 2020 Financial Results Conference
Call
Grubhub will webcast a conference call tomorrow at
8:00 a.m. CT to discuss the first
quarter 2020 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 on 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
nearly 24 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 200,000 of these restaurants in over
4,000 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, which are made
in reliance on the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements involve substantial risks, known and unknown,
uncertainties, assumptions and other factors that may cause actual
results, performance or achievements including, but not limited to,
achievement of the benefits of our planned additional
investments, to differ materially from future results
expressed or implied by such forward-looking statements.
Forward-looking statements generally relate to future events or our
future financial or operating performance and include, without
limitation, statements relating to the potential impact of the
COVID-19 outbreak on our business and operations. In some cases,
you can identify forward-looking statements because they contain
words such as "anticipates," "believes," "contemplates," "could,"
"seeks," "estimates," "intends," "may," "plans," "potential,"
"predicts," "projects," "should," "will," "would" or similar
expressions and the negatives of those terms. While forward-looking
statements are our best prediction at the time they are made, you
should not rely upon them. Forward-looking statements represent our
management's beliefs and assumptions only as of May 6, 2020, unless otherwise indicated, and
there is no implication that the information contained in this
press release is made subsequent to such date. For additional
information concerning factors that could affect our financial
results or cause actual results to differ materially from those
expressed or implied in the forward-looking statements, please
refer to the cautionary statements included in our filings with the
Securities and Exchange Commission (the "SEC"), including the "Risk
Factors" section of our Annual Report on Form 10-K filed with the
SEC on February 28, 2020 and our
Quarterly Reports on Form 10-Q and any further disclosures we make
in our Current Reports on Form 8-K. Our SEC filings are available
electronically on our investor website at investors.grubhub.com or
the SEC's website at www.sec.gov. Except as required by law, we
assume no obligation to update these forward-looking statements or
this press release, or to update, supplement or correct the
information set forth in the press release or 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 (loss) and non-GAAP net income (loss) 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 (loss) 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 (loss) and
non-GAAP net income (loss) 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 (loss) and non-GAAP net income (loss)
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 (loss) to Adjusted EBITDA,
non-GAAP net income (loss) and non-GAAP net income (loss) per
diluted share attributable to common stockholders.
1 Key Business Metrics are defined on pages 28 - 29
of our Annual Report on Form 10-K filed on February 28, 2020.
GRUBHUB
INC.
|
STATEMENTS OF
OPERATIONS
|
(in thousands,
except per share data)
|
|
|
Three Months
Ended March
31,
|
|
|
2020
|
|
|
2019
|
|
Revenues
|
$
|
362,980
|
|
|
$
|
323,770
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Operations and
support
|
|
214,561
|
|
|
|
161,350
|
|
Sales and
marketing
|
|
90,742
|
|
|
|
78,454
|
|
Technology (exclusive
of amortization)
|
|
31,273
|
|
|
|
27,250
|
|
General and
administrative
|
|
38,949
|
|
|
|
22,787
|
|
Depreciation and
amortization
|
|
33,363
|
|
|
|
25,089
|
|
Total costs and
expenses
|
|
408,888
|
|
|
|
314,930
|
|
Income (loss) from
operations
|
|
(45,908)
|
|
|
|
8,840
|
|
Interest expense
– net
|
|
6,380
|
|
|
|
2,812
|
|
Income (loss) before
provision for income taxes
|
|
(52,288)
|
|
|
|
6,028
|
|
Income tax
benefit
|
|
(18,861)
|
|
|
|
(862)
|
|
Net income (loss)
attributable to common stockholders
|
$
|
(33,427)
|
|
|
$
|
6,890
|
|
Net income (loss) per
share attributable to common stockholders:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.36)
|
|
|
$
|
0.08
|
|
Diluted
|
$
|
(0.36)
|
|
|
$
|
0.07
|
|
Weighted-average
shares used to compute net income (loss) per share attributable to
common stockholders:
|
|
|
|
|
|
|
|
Basic
|
|
91,793
|
|
|
|
90,951
|
|
Diluted
|
|
91,793
|
|
|
|
92,918
|
|
KEY BUSINESS
METRICS
|
|
|
|
|
Three Months
Ended March
31,
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
Active Diners
(000s)
|
|
|
|
23,892
|
|
|
|
19,286
|
|
|
Daily Average
Grubs
|
|
|
|
516,300
|
|
|
|
521,000
|
|
|
Gross Food Sales
(millions)
|
|
|
$
|
1,630
|
|
|
$
|
1,502
|
|
|
GRUBHUB
INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2020
|
|
|
December
31, 2019
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
560,708
|
|
|
$
|
375,909
|
|
Short-term
investments
|
|
36,359
|
|
|
|
49,275
|
|
Accounts receivable,
less allowances for doubtful accounts
|
|
135,661
|
|
|
|
119,658
|
|
Income tax
receivable
|
|
20,271
|
|
|
|
3,960
|
|
Prepaid expenses and
other current assets
|
|
18,051
|
|
|
|
17,515
|
|
Total current
assets
|
|
771,050
|
|
|
|
566,317
|
|
PROPERTY AND
EQUIPMENT:
|
|
|
|
|
|
|
|
Property and
equipment, net of depreciation and amortization
|
|
189,050
|
|
|
|
172,744
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
|
Other
assets
|
|
32,154
|
|
|
|
26,836
|
|
Operating lease
right-of-use asset
|
|
101,758
|
|
|
|
100,632
|
|
Goodwill
|
|
1,007,968
|
|
|
|
1,007,968
|
|
Acquired intangible
assets, net of amortization
|
|
487,797
|
|
|
|
500,481
|
|
Total other
assets
|
|
1,629,677
|
|
|
|
1,635,917
|
|
TOTAL
ASSETS
|
$
|
2,589,777
|
|
|
$
|
2,374,978
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Restaurant food
liability
|
$
|
152,551
|
|
|
$
|
131,753
|
|
Accounts
payable
|
|
29,317
|
|
|
|
26,748
|
|
Accrued
payroll
|
|
24,255
|
|
|
|
19,982
|
|
Current operating
lease liability
|
|
11,999
|
|
|
|
9,376
|
|
Other
accruals
|
|
87,438
|
|
|
|
61,504
|
|
Total current
liabilities
|
|
305,560
|
|
|
|
249,363
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
|
Deferred taxes,
non-current
|
|
24,438
|
|
|
|
27,163
|
|
Noncurrent operating
lease liability
|
|
112,863
|
|
|
|
111,056
|
|
Long-term
debt
|
|
668,242
|
|
|
|
493,009
|
|
Other
accruals
|
|
817
|
|
|
|
817
|
|
Total long-term
liabilities
|
|
806,360
|
|
|
|
632,045
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value
|
|
9
|
|
|
|
9
|
|
Accumulated other
comprehensive loss
|
|
(2,271)
|
|
|
|
(1,628)
|
|
Additional paid-in
capital
|
|
1,182,757
|
|
|
|
1,164,400
|
|
Retained
earnings
|
|
297,362
|
|
|
|
330,789
|
|
Total
Stockholders' Equity
|
$
|
1,477,857
|
|
|
$
|
1,493,570
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
2,589,777
|
|
|
$
|
2,374,978
|
|
GRUBHUB
INC.
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(33,427)
|
|
|
$
|
6,890
|
|
Adjustments to
reconcile net income (loss) to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
8,658
|
|
|
|
6,193
|
|
Amortization of
intangible assets and developed software
|
|
|
24,705
|
|
|
|
18,896
|
|
Stock-based
compensation
|
|
|
20,185
|
|
|
|
16,478
|
|
Deferred
taxes
|
|
|
(2,725)
|
|
|
|
(986)
|
|
Other
|
|
|
3,479
|
|
|
|
735
|
|
Change in assets and
liabilities, net of the effects of business
acquisitions:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(18,333)
|
|
|
|
(30,391)
|
|
Income taxes
receivable
|
|
|
(16,311)
|
|
|
|
(916)
|
|
Prepaid expenses and
other assets
|
|
|
(4,602)
|
|
|
|
(10,666)
|
|
Restaurant food
liability
|
|
|
20,857
|
|
|
|
13,099
|
|
Accounts
payable
|
|
|
4,678
|
|
|
|
(18,644)
|
|
Accrued
payroll
|
|
|
4,277
|
|
|
|
411
|
|
Other
accruals
|
|
|
26,085
|
|
|
|
12,845
|
|
Net cash provided by
operating activities
|
|
|
37,526
|
|
|
|
13,944
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchases of
investments
|
|
|
(19,790)
|
|
|
|
(12,160)
|
|
Proceeds from maturity
of investments
|
|
|
32,900
|
|
|
|
11,636
|
|
Capitalized website
and development costs
|
|
|
(14,243)
|
|
|
|
(10,692)
|
|
Purchases of property
and equipment
|
|
|
(19,678)
|
|
|
|
(8,018)
|
|
Acquisition of other
intangible assets
|
|
|
(510)
|
|
|
|
(5,379)
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
—
|
|
|
|
127
|
|
Other cash flows from
investing activities
|
|
|
(250)
|
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(21,571)
|
|
|
|
(24,486)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from
borrowings under the credit facility
|
|
|
175,000
|
|
|
|
—
|
|
Taxes paid related to
net settlement of stock-based compensation awards
|
|
|
(8,051)
|
|
|
|
(9,966)
|
|
Proceeds from exercise
of stock options
|
|
|
1,414
|
|
|
|
2,424
|
|
Repayments of
borrowings under the credit facility
|
|
|
—
|
|
|
|
(2,031)
|
|
Payments for debt
issuance costs
|
|
|
—
|
|
|
|
(1,647)
|
|
Net cash provided by
(used in) financing activities
|
|
|
168,363
|
|
|
|
(11,220)
|
|
Net change in cash,
cash equivalents, and restricted cash
|
|
|
184,318
|
|
|
|
(21,762)
|
|
Effect of exchange
rates on cash, cash equivalents and restricted cash
|
|
|
(600)
|
|
|
|
232
|
|
Cash, cash
equivalents, and restricted cash at beginning of year
|
|
|
379,594
|
|
|
|
215,802
|
|
Cash, cash
equivalents, and restricted cash at end of the period
|
|
$
|
563,312
|
|
|
$
|
194,272
|
|
SUPPLEMENTAL
DISCLOSURE OF NON-CASH ITEMS
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
|
$
|
—
|
|
|
$
|
351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRUBHUB
INC.
|
NON-GAAP FINANCIAL
MEASURES RECONCILIATION
|
(in thousands,
except per share and per order data)
|
|
|
|
Three Months
Ended March
31,
|
|
|
|
2020
|
|
|
2019
|
|
Net income
(loss)
|
|
$
|
(33,427)
|
|
|
$
|
6,890
|
|
Income
taxes
|
|
|
(18,861)
|
|
|
|
(862)
|
|
Interest expense -
net
|
|
|
6,380
|
|
|
|
2,812
|
|
Depreciation and
amortization
|
|
|
33,363
|
|
|
|
25,089
|
|
EBITDA
|
|
|
(12,545)
|
|
|
|
33,929
|
|
Acquisition,
restructuring and certain legal costs
|
|
|
13,376
|
|
|
|
486
|
|
Stock-based
compensation
|
|
|
20,185
|
|
|
|
16,478
|
|
Adjusted
EBITDA
|
|
$
|
21,016
|
|
|
$
|
50,893
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
order
|
|
$
|
(0.71)
|
|
|
$
|
0.15
|
|
Adjusted EBITDA per
order
|
|
$
|
0.45
|
|
|
$
|
1.09
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
|
|
2020
|
|
|
2019
|
|
Net income
(loss)
|
|
$
|
(33,427)
|
|
|
$
|
6,890
|
|
Stock-based
compensation
|
|
|
20,185
|
|
|
|
16,478
|
|
Amortization of
acquired intangible assets
|
|
|
12,685
|
|
|
|
11,942
|
|
Acquisition,
restructuring and certain legal costs
|
|
|
13,376
|
|
|
|
486
|
|
Income tax
adjustments
|
|
|
(12,856)
|
|
|
|
(7,862)
|
|
Non-GAAP income
(loss)
|
|
$
|
(37)
|
|
|
$
|
27,934
|
|
Weighted-average
diluted shares used to compute income (loss) per share attributable
to common stockholders
|
|
|
91,793
|
|
|
|
92,918
|
|
Non-GAAP income
(loss) per diluted share attributable to common
stockholders
|
|
$
|
(0.00)
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
Guidance
|
|
|
|
Three Months
Ended
June 30, 2020
|
|
|
|
(in
millions)
|
|
Net loss
|
|
$
|
(42)
|
|
Income
taxes
|
|
|
(16)
|
|
Interest expense -
net
|
|
|
7
|
|
Depreciation and
amortization
|
|
|
34
|
|
EBITDA
|
|
|
(17)
|
|
Acquisition,
restructuring and certain legal costs
|
|
|
—
|
|
Stock-based
compensation
|
|
|
22
|
|
Adjusted
EBITDA
|
|
$
|
5
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/grubhub-reports-first-quarter-2020-results-301054242.html
SOURCE Grubhub Inc.