CHICAGO, April 27, 2017 /PRNewswire/ -- Grubhub Inc.
(NYSE: GRUB), the nation's leading takeout marketplace, today
announced financial results for the first quarter ended
March 31, 2017. DAGs grew 21%
year-over-year, and the Company posted quarterly revenues of
$156.1 million, which is a 39%
year-over-year increase from $112.2
million in the first quarter of 2016.
"More new diners tried Grubhub than ever before in the first
quarter. We are seeing clear signs of success from a more
diverse restaurant base, broader marketing reach, and continuous
improvement of our product," said Matt
Maloney, Grubhub CEO. "We already had the most
comprehensive takeout marketplace in the U.S., and delivery has
enabled our restaurant network to grow significantly in both
breadth and depth, making Grubhub the place to go for online
takeout."
First Quarter 2017 Highlights
The following results reflect the financial performance and key
operating metrics of our business for the three months ended
March 31, 2017, as compared to the
same period in 2016.
First Quarter Financial Highlights
- Revenues: $156.1 million, a 39%
year-over-year increase from $112.2
million in the first quarter of 2016.
- Net Income: $17.7 million, or
$0.20 per diluted share, a 78%
year-over-year increase from $9.9
million, or $0.12 per diluted
share, in the first quarter of 2016.
- Non-GAAP Adjusted EBITDA: $42.7
million, a 32% year-over-year increase from $32.4 million in the first quarter of 2016.
- Non-GAAP Net Income: $25.1
million, or $0.29 per diluted
share, a 46% year-over-year increase from $17.2 million, or $0.20 per diluted share, in the first quarter of
2016.
First Quarter Key Business Metrics Highlights
- Active Diners were 8.75 million, a 26% year-over-year increase
from 6.97 million Active Diners in the first quarter of 2016.
- Daily Average Grubs (DAGs) were 324,600, a 21% year-over-year
increase from 267,800 Daily Average Grubs in the first quarter of
2016.
- Gross Food Sales were $898
million, a 26% year-over-year increase from $713 million in the first quarter of 2016.
"Grubhub's growth on both sides of our network helped drive DAGs
growth of 21% and EBITDA growth of 32% compared to the prior year,"
said Adam DeWitt, Grubhub
CFO. "We generated significant operating leverage, in part due
to our continued improvement in delivery efficiency. As a
result, EBITDA per order was up 10% year over year to $1.46, even while we invested aggressively in
product and marketing to drive future growth."
Second Quarter and Full Year 2017 Guidance
Based on information available as of April 27, 2017, the Company is providing the
following financial guidance for the second quarter and full year
of 2017:
|
Second Quarter
2017
|
|
Full Year
2017
|
|
(in
millions)
|
Expected Revenue
range
|
$153 -
$161
|
|
$632 -
$662
|
Expected Adjusted
EBITDA range
|
$38 - $44
|
|
$170 -
$190
|
First Quarter 2017 Financial Results Conference
Call
Grubhub will webcast a conference call today at 9 a.m. CT to discuss the first quarter 2017
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 11, 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. 28, 2017, which is 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 Mar. 31,
2017, 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
March
31,
|
|
|
2017
|
|
|
2016
|
|
Revenues
|
$
|
156,134
|
|
|
$
|
112,240
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
35,438
|
|
|
|
28,833
|
|
Operations and
support
|
|
59,519
|
|
|
|
34,987
|
|
Technology (exclusive
of amortization)
|
|
13,192
|
|
|
|
10,192
|
|
General and
administrative
|
|
12,960
|
|
|
|
13,589
|
|
Depreciation and
amortization
|
|
10,040
|
|
|
|
7,308
|
|
Total costs and
expenses
|
|
131,149
|
|
|
|
94,909
|
|
Income before
provision for income taxes
|
|
24,985
|
|
|
|
17,331
|
|
Provision for income
taxes
|
|
7,270
|
|
|
|
7,398
|
|
Net income
attributable to common stockholders
|
$
|
17,715
|
|
|
$
|
9,933
|
|
Net income per share
attributable to common stockholders:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.21
|
|
|
$
|
0.12
|
|
Diluted
|
$
|
0.20
|
|
|
$
|
0.12
|
|
Weighted-average
shares used to compute net income per share attributable to common
stockholders:
|
|
|
|
|
|
|
|
Basic
|
|
85,874
|
|
|
|
84,710
|
|
Diluted
|
|
87,120
|
|
|
|
85,699
|
|
KEY OPERATING
METRICS
|
|
|
Three Months
Ended
March
31,
|
|
|
2017
|
|
|
2016
|
|
Active Diners
(000s)
|
|
8,751
|
|
|
|
6,970
|
|
Daily Average
Grubs
|
|
324,600
|
|
|
|
267,800
|
|
Gross Food Sales
(millions)
|
$
|
898.1
|
|
|
$
|
712.8
|
|
GRUBHUB
INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31, 2016
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
275,037
|
|
|
$
|
239,528
|
|
Short term
investments
|
|
86,235
|
|
|
|
84,091
|
|
Accounts receivable,
less allowances for doubtful accounts
|
|
62,400
|
|
|
|
60,550
|
|
Prepaid
expenses
|
|
9,245
|
|
|
|
12,168
|
|
Total current
assets
|
|
432,917
|
|
|
|
396,337
|
|
PROPERTY AND
EQUIPMENT:
|
|
|
|
|
|
|
|
Property and
equipment, net of depreciation and amortization
|
|
51,579
|
|
|
|
46,555
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
|
Other
assets
|
|
4,316
|
|
|
|
4,530
|
|
Goodwill
|
|
436,455
|
|
|
|
436,455
|
|
Acquired intangible
assets, net of amortization
|
|
313,357
|
|
|
|
313,630
|
|
Total other
assets
|
|
754,128
|
|
|
|
754,615
|
|
TOTAL
ASSETS
|
$
|
1,238,624
|
|
|
$
|
1,197,507
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Restaurant food
liability
|
$
|
94,660
|
|
|
$
|
83,349
|
|
Accounts
payable
|
|
10,030
|
|
|
|
7,590
|
|
Accrued
payroll
|
|
5,805
|
|
|
|
7,338
|
|
Taxes
payable
|
|
3,062
|
|
|
|
865
|
|
Other
accruals
|
|
18,950
|
|
|
|
11,348
|
|
Total current
liabilities
|
|
132,507
|
|
|
|
110,490
|
|
LONG TERM
LIABILITIES:
|
|
|
|
|
|
|
|
Deferred taxes,
non-current
|
|
100,631
|
|
|
|
108,022
|
|
Other
accruals
|
|
6,898
|
|
|
|
6,876
|
|
Total long term
liabilities
|
|
107,529
|
|
|
|
114,898
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value
|
|
9
|
|
|
|
9
|
|
Accumulated other
comprehensive loss
|
|
(1,971)
|
|
|
|
(2,078)
|
|
Additional paid-in
capital
|
|
811,727
|
|
|
|
805,731
|
|
Retained
earnings
|
|
188,823
|
|
|
|
168,457
|
|
Total Stockholders'
Equity
|
$
|
998,588
|
|
|
$
|
972,119
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
1,238,624
|
|
|
$
|
1,197,507
|
|
GRUBHUB
INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
|
2017
|
|
|
2016
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
17,715
|
|
|
$
|
9,933
|
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
2,412
|
|
|
|
1,344
|
|
Provision for doubtful
accounts
|
|
|
95
|
|
|
|
443
|
|
Deferred
taxes
|
|
|
(4,741)
|
|
|
|
(3,321)
|
|
Amortization of
intangible assets
|
|
|
7,628
|
|
|
|
5,964
|
|
Stock-based
compensation
|
|
|
7,243
|
|
|
|
6,901
|
|
Deferred
rent
|
|
|
58
|
|
|
|
135
|
|
Other
|
|
|
(110)
|
|
|
|
(109)
|
|
Change in assets and
liabilities, net of the effects of business
acquisitions:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(1,721)
|
|
|
|
(9,956)
|
|
Prepaid expenses and
other assets
|
|
|
2,957
|
|
|
|
(136)
|
|
Restaurant food
liability
|
|
|
11,297
|
|
|
|
10,081
|
|
Accounts
payable
|
|
|
483
|
|
|
|
(5,434)
|
|
Accrued
payroll
|
|
|
(1,534)
|
|
|
|
(1,034)
|
|
Other
accruals
|
|
|
9,808
|
|
|
|
3,855
|
|
Net cash provided by
operating activities
|
|
|
51,590
|
|
|
|
18,666
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchases of
investments
|
|
|
(57,783)
|
|
|
|
(56,227)
|
|
Proceeds from maturity
of investments
|
|
|
55,833
|
|
|
|
76,615
|
|
Capitalized website
and development costs
|
|
|
(4,150)
|
|
|
|
(2,331)
|
|
Purchases of property
and equipment
|
|
|
(3,056)
|
|
|
|
(3,259)
|
|
Acquisition of other
intangible assets
|
|
|
(5,000)
|
|
|
|
(250)
|
|
Other cash flows from
investing activities
|
|
|
91
|
|
|
|
(173)
|
|
Net cash provided by
(used in) investing activities
|
|
|
(14,065)
|
|
|
|
14,375
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
|
—
|
|
|
|
(9,771)
|
|
Proceeds from exercise
of stock options
|
|
|
1,584
|
|
|
|
1,012
|
|
Excess tax benefits
related to stock-based compensation
|
|
|
—
|
|
|
|
10,610
|
|
Taxes paid related to
net settlement of stock-based compensation awards
|
|
|
(3,688)
|
|
|
|
(682)
|
|
Net cash provided by
(used in) financing activities
|
|
|
(2,104)
|
|
|
|
1,169
|
|
Net change in cash
and cash equivalents
|
|
|
35,421
|
|
|
|
34,210
|
|
Effect of exchange
rates on cash
|
|
|
88
|
|
|
|
(191)
|
|
Cash and cash
equivalents at beginning of year
|
|
|
239,528
|
|
|
|
169,293
|
|
Cash and cash
equivalents at end of the period
|
|
$
|
275,037
|
|
|
$
|
203,312
|
|
GRUBHUB
INC.
|
NON-GAAP FINANCIAL
MEASURES RECONCILIATION
|
(in thousands,
except per share data)
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
|
2016
|
Net income
|
$
|
17,715
|
|
|
$
|
9,933
|
Income
taxes
|
|
7,270
|
|
|
|
7,398
|
Depreciation and
amortization
|
|
10,040
|
|
|
|
7,308
|
EBITDA
|
|
35,025
|
|
|
|
24,639
|
Acquisition and
restructuring costs
|
|
409
|
|
|
|
831
|
Stock-based
compensation
|
|
7,243
|
|
|
|
6,901
|
Adjusted
EBITDA
|
$
|
42,677
|
|
|
$
|
32,371
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
|
2016
|
Net income
|
$
|
17,715
|
|
|
$
|
9,933
|
Stock-based
compensation
|
|
7,243
|
|
|
|
6,901
|
Amortization of
acquired intangible assets
|
|
5,273
|
|
|
|
5,045
|
Acquisition and
restructuring costs
|
|
409
|
|
|
|
831
|
Income tax
adjustments
|
|
(5,519)
|
|
|
|
(5,469)
|
Non-GAAP net
income
|
$
|
25,121
|
|
|
$
|
17,241
|
Weighted-average
diluted shares used to compute net income per share attributable to
common stockholders
|
|
87,120
|
|
|
|
85,699
|
Non-GAAP net income
per diluted share attributable to common stockholders
|
$
|
0.29
|
|
|
$
|
0.20
|
|
Guidance
|
|
|
Three Months
Ended
June 30,
2017
|
|
|
Year
Ended
December 31,
2017
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
|
|
(in
millions)
|
|
Net income
|
$
|
11.6
|
|
|
$
|
15.2
|
|
|
$
|
57.2
|
|
|
$
|
69.1
|
|
Income
taxes
|
|
7.9
|
|
|
|
10.3
|
|
|
|
38.9
|
|
|
|
47.0
|
|
Depreciation and
amortization
|
|
10.5
|
|
|
|
10.5
|
|
|
|
42.5
|
|
|
|
42.5
|
|
EBITDA
|
|
30.0
|
|
|
|
36.0
|
|
|
|
138.6
|
|
|
|
158.6
|
|
Acquisition and
restructuring costs
|
|
—
|
|
|
|
—
|
|
|
|
0.4
|
|
|
|
0.4
|
|
Stock-based
compensation
|
|
8.0
|
|
|
|
8.0
|
|
|
|
31.0
|
|
|
|
31.0
|
|
Adjusted
EBITDA
|
$
|
38.0
|
|
|
$
|
44.0
|
|
|
$
|
170.0
|
|
|
$
|
190.0
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/grubhub-reports-record-first-quarter-results-300446766.html
SOURCE Grubhub Inc.