CHICAGO, Feb. 4, 2016 /PRNewswire/ -- Grubhub Inc.
(NYSE: GRUB), the leading takeout marketplace, today announced
financial results for the quarter and year ended December 31, 2015.
"The fourth quarter capped off a strong year for Grubhub.
We generated a record $643 million in
gross food sales during the quarter and $2.4
billion during the year," said Matt
Maloney, CEO. "The growth in our delivery network has
greatly expanded our potential universe of restaurant partners,
helping us work with restaurants that don't currently offer
delivery, but want access to our 6.7 million active diners.
As a result, our restaurant network is broader and deeper than
ever, with over 40,000 partners in more than 1,000 cities."
Fourth Quarter and Full Year 2015 Highlights
The following results reflect the financial performance and key
operating metrics of our business for the three months and year
ended December 31, 2015 as compared
to the same period in 2014.
Fourth Quarter Financial Highlights
- Revenues: $100.0 million, a 36%
year-over-year increase from $73.3
million in the fourth quarter of 2014.
- Non-GAAP Adjusted EBITDA: $26.8
million, a 7% year-over-year increase from $25.0 million in the fourth quarter of 2014.
- Net Income: $11.3 million, or
$0.13 per diluted share, a 5%
year-over-year increase from $10.8
million, or $0.13 per diluted
share, in the fourth quarter of 2014.
- Non-GAAP Net Income: $16.7
million, or $0.19 per diluted
share, a 16% year-over-year increase from $14.4 million, or $0.17 per diluted share.
Fourth Quarter Key Business Metrics Highlights
- Active Diners were 6.75 million, a 34% year-over-year increase
from 5.03 million Active Diners in the fourth quarter of 2014.
- Daily Average Grubs were 241,800, a 19% year-over-year increase
from 202,700 Daily Average Grubs in the fourth quarter of
2014.
- Gross Food Sales were $643
million, a 26% year-over-year increase from $508 million in the fourth quarter of 2014.
Full Year Financial Highlights
- Revenues: $361.8 million, a 43%
year-over-year increase from $253.9
million in 2014.
- Non-GAAP Adjusted EBITDA: $105.0
million, a 33% year-over-year increase from $78.7 million in 2014.
- Net Income: $38.1 million, or
$0.44 per diluted share, a 57%
year-over-year increase from $24.3
million, or $0.30 per diluted
share, in 2014.
- Non-GAAP Net Income: $58.1
million, or $0.68 per diluted
share, a 51% year-over-year increase from $38.5 million, or $0.47 per diluted share, in 2014.
Full Year Key Business Metrics Highlights
- Active Diners were 6.75 million, a 34% increase from 5.03
million Active Diners in 2014.
- Daily Average Grubs were 227,100, a 24% year-over-year increase
from 182,800 Daily Average Grubs in 2014.
- Gross Food Sales were $2.4
billion, a 32% year-over-year increase from $1.8 billion processed in 2014.
"We are incredibly proud of the progress we made in 2015.
Our significant upgrades in product and technology as well as our
investments in restaurant partnerships set us up for continued
growth in 2016 and beyond," continued Maloney. "Our
capital-efficient model and strong free cash flow have enabled us
to introduce a share buyback to return value opportunistically to
shareholders while increasing our overall flexibility through the
planned establishment of a credit facility. This flexibility
will allow us to acquire attractive assets at reasonable prices if
the recent market volatility creates opportunities."
First Quarter and Full Year 2016 Guidance
Based on information available as of February 4, 2016, the company is providing the
following financial guidance for the first quarter and full year of
2016:
|
First Quarter
2016
|
|
Full Year
2016
|
|
(in
millions)
|
Expected revenue
range
|
$109 -
$112
|
|
$445 -
$465
|
Expected Adjusted
EBITDA range
|
$30 - $33
|
|
$122 -
$130
|
Fourth Quarter 2015 Financial Results Conference
Call: Grubhub will webcast a conference call today at
9 a.m. CT to discuss the fourth
quarter 2015 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 February 18, 2016.
About Grubhub
Grubhub (NYSE: GRUB) is one of the
nation's largest portfolios of online and mobile takeout food
ordering and delivery services. Connecting diners to more than
40,000 restaurants in more than 1,000 U.S. cities and London, the company's platforms and services
strive to make takeout better through innovative restaurant
technology, easy-to-use platforms and an improved delivery
experience. The Grubhub Inc. 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
March 5, 2015 and our most recent
Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, 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 December 31,
2015, 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.
Contacts:
|
|
Anan
Kashyap
|
Katie
Norris
|
Corporate Finance
& Investor Relations
|
Press
|
ir@grubhub.com
|
press@grubhub.com
|
GRUBHUB
INC.
|
|
STATEMENTS OF
OPERATIONS
|
(in thousands,
except per share data)
|
|
|
Three Months
Ended
December
31,
|
|
|
Year
Ended
December
31,
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Revenues
|
$
|
99,959
|
|
|
$
|
73,313
|
|
|
$
|
361,825
|
|
|
$
|
253,873
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
24,921
|
|
|
|
19,033
|
|
|
|
91,150
|
|
|
|
66,201
|
|
Operations and
support
|
|
32,483
|
|
|
|
17,766
|
|
|
|
107,424
|
|
|
|
62,509
|
|
Technology (exclusive
of amortization)
|
|
8,802
|
|
|
|
7,212
|
|
|
|
32,782
|
|
|
|
25,185
|
|
General and
administrative
|
|
11,457
|
|
|
|
7,220
|
|
|
|
40,506
|
|
|
|
32,307
|
|
Depreciation and
amortization
|
|
6,657
|
|
|
|
5,809
|
|
|
|
28,034
|
|
|
|
22,687
|
|
Total costs and
expenses
|
|
84,320
|
|
|
|
57,040
|
|
|
|
299,896
|
|
|
|
208,889
|
|
Income before
provision for income taxes
|
|
15,639
|
|
|
|
16,273
|
|
|
|
61,929
|
|
|
|
44,984
|
|
Provision for income
taxes
|
|
4,351
|
|
|
|
5,508
|
|
|
|
23,852
|
|
|
|
20,721
|
|
Net income
|
$
|
11,288
|
|
|
$
|
10,765
|
|
|
$
|
38,077
|
|
|
$
|
24,263
|
|
Net income per share
attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.13
|
|
|
$
|
0.13
|
|
|
$
|
0.45
|
|
|
$
|
0.33
|
|
Diluted
|
$
|
0.13
|
|
|
$
|
0.13
|
|
|
$
|
0.44
|
|
|
$
|
0.30
|
|
Weighted-average
shares used to compute net income per share attributable to common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
84,823
|
|
|
|
81,605
|
|
|
|
84,076
|
|
|
|
73,571
|
|
Diluted
|
|
86,028
|
|
|
|
84,311
|
|
|
|
85,706
|
|
|
|
81,698
|
|
|
|
KEY OPERATING
METRICS
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Active Diners
(000s)
|
|
|
6,746
|
|
|
|
5,029
|
|
|
|
6,746
|
|
|
|
5,029
|
|
Daily Average
Grubs
|
|
|
241,800
|
|
|
|
202,700
|
|
|
|
227,100
|
|
|
|
182,800
|
|
Gross Food Sales
(millions)
|
|
$
|
642.5
|
|
|
$
|
508.0
|
|
|
$
|
2,353.6
|
|
|
$
|
1,787.4
|
|
|
|
|
|
GRUBHUB
INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
169,293
|
|
|
$
|
201,796
|
|
Short term
investments
|
|
141,448
|
|
|
|
111,341
|
|
Accounts receivable,
less allowances for doubtful accounts
|
|
42,051
|
|
|
|
36,127
|
|
Prepaid
expenses
|
|
3,482
|
|
|
|
2,940
|
|
Total current
assets
|
|
356,274
|
|
|
|
352,204
|
|
PROPERTY AND
EQUIPMENT:
|
|
|
|
|
|
|
|
Property and
equipment, net of depreciation and amortization
|
|
19,082
|
|
|
|
16,003
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
|
Other
assets
|
|
3,105
|
|
|
|
3,543
|
|
Goodwill
|
|
396,220
|
|
|
|
352,788
|
|
Acquired intangible
assets, net of amortization
|
|
285,567
|
|
|
|
254,339
|
|
Total other
assets
|
|
684,892
|
|
|
|
610,670
|
|
TOTAL
ASSETS
|
$
|
1,060,248
|
|
|
$
|
978,877
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Restaurant food
liability
|
$
|
64,326
|
|
|
$
|
91,575
|
|
Accounts
payable
|
|
8,189
|
|
|
|
3,371
|
|
Accrued
payroll
|
|
4,841
|
|
|
|
5,958
|
|
Taxes
payable
|
|
426
|
|
|
|
1,660
|
|
Other
accruals
|
|
11,830
|
|
|
|
8,441
|
|
Total current
liabilities
|
|
89,612
|
|
|
|
111,005
|
|
LONG TERM
LIABILITIES:
|
|
|
|
|
|
|
|
Deferred taxes,
non-current
|
|
87,584
|
|
|
|
91,419
|
|
Other
accruals
|
|
5,456
|
|
|
|
5,931
|
|
Total long term
liabilities
|
|
93,040
|
|
|
|
97,350
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value
|
|
8
|
|
|
|
8
|
|
Accumulated other
comprehensive loss
|
|
(604)
|
|
|
|
(262)
|
|
Additional paid-in
capital
|
|
759,292
|
|
|
|
689,953
|
|
Retained
earnings
|
|
118,900
|
|
|
|
80,823
|
|
Total Stockholders'
Equity
|
$
|
877,596
|
|
|
$
|
770,522
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
1,060,248
|
|
|
$
|
978,877
|
|
|
|
|
|
GRUBHUB
INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
2015
|
|
|
2014
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
38,077
|
|
|
$
|
24,263
|
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
5,085
|
|
|
|
5,032
|
|
Provision for doubtful
accounts
|
|
|
850
|
|
|
|
426
|
|
Loss on disposal of
fixed assets
|
|
|
—
|
|
|
|
11
|
|
Deferred
taxes
|
|
|
(3,835)
|
|
|
|
4,612
|
|
Intangible asset
amortization
|
|
|
22,949
|
|
|
|
17,655
|
|
Tenant allowance
amortization
|
|
|
(159)
|
|
|
|
(159)
|
|
Stock-based
compensation
|
|
|
13,450
|
|
|
|
9,393
|
|
Deferred
rent
|
|
|
32
|
|
|
|
(17)
|
|
Investment premium
amortization
|
|
|
688
|
|
|
|
315
|
|
Change in assets and
liabilities, net of the effects of business
acquisitions:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(4,343)
|
|
|
|
(7,394)
|
|
Prepaid expenses and
other assets
|
|
|
242
|
|
|
|
(1,669)
|
|
Restaurant food
liability
|
|
|
(29,409)
|
|
|
|
13,414
|
|
Accounts
payable
|
|
|
3,312
|
|
|
|
(259)
|
|
Accrued
payroll
|
|
|
(2,104)
|
|
|
|
4,243
|
|
Other
accruals
|
|
|
(80)
|
|
|
|
3,038
|
|
Net cash provided by
operating activities
|
|
|
44,755
|
|
|
|
72,904
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchases of
investments
|
|
|
(220,667)
|
|
|
|
(113,156)
|
|
Proceeds from maturity
of investments
|
|
|
189,872
|
|
|
|
1,500
|
|
Capitalized website
and development costs
|
|
|
(7,137)
|
|
|
|
(3,431)
|
|
Purchases of property
and equipment
|
|
|
(4,150)
|
|
|
|
(3,653)
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
(73,907)
|
|
|
|
—
|
|
Other cash flows from
investing activities
|
|
|
(408)
|
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(116,397)
|
|
|
|
(118,740)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net proceeds from the
issuance of common stock
|
|
|
—
|
|
|
|
142,541
|
|
Repurchases of common
stock
|
|
|
—
|
|
|
|
(116)
|
|
Proceeds from exercise
of stock options
|
|
|
11,919
|
|
|
|
8,322
|
|
Excess tax benefit
related to stock-based compensation
|
|
|
27,830
|
|
|
|
12,975
|
|
Taxes paid related to
net settlement of stock-based compensation awards
|
|
|
(345)
|
|
|
|
(2,070)
|
|
Preferred stock tax
distributions
|
|
|
—
|
|
|
|
(320)
|
|
Net cash provided by
financing activities
|
|
|
39,404
|
|
|
|
161,332
|
|
Net change in cash
and cash equivalents
|
|
|
(32,238)
|
|
|
|
115,496
|
|
Effect of exchange
rates on cash
|
|
|
(265)
|
|
|
|
(242)
|
|
Cash and cash
equivalents at beginning of year
|
|
|
201,796
|
|
|
|
86,542
|
|
Cash and cash
equivalents at end of the period
|
|
$
|
169,293
|
|
|
$
|
201,796
|
|
SUPPLEMENTAL
DISCLOSURE OF NON CASH ITEMS
|
|
|
|
|
|
|
|
|
Fair value of common
stock issued for acquisitions
|
|
$
|
15,980
|
|
|
$
|
—
|
|
Cash paid for income
taxes
|
|
|
—
|
|
|
|
1,326
|
|
|
|
NON-GAAP FINANCIAL
MEASURES RECONCILIATION
|
(in thousands,
except per share data)
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Net income
|
|
$
|
11,288
|
|
|
$
|
10,765
|
|
|
$
|
38,077
|
|
|
$
|
24,263
|
|
Income
taxes
|
|
|
4,351
|
|
|
|
5,508
|
|
|
|
23,852
|
|
|
|
20,721
|
|
Depreciation and
amortization
|
|
|
6,657
|
|
|
|
5,809
|
|
|
|
28,034
|
|
|
|
22,687
|
|
EBITDA
|
|
|
22,296
|
|
|
|
22,082
|
|
|
|
89,963
|
|
|
|
67,671
|
|
Acquisition and
restructuring costs
|
|
|
468
|
|
|
|
477
|
|
|
|
1,554
|
|
|
|
1,639
|
|
Stock-based
compensation
|
|
|
4,072
|
|
|
|
2,412
|
|
|
|
13,450
|
|
|
|
9,393
|
|
Adjusted
EBITDA
|
|
$
|
26,836
|
|
|
$
|
24,971
|
|
|
$
|
104,967
|
|
|
$
|
78,703
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Net income
|
$
|
11,288
|
|
|
$
|
10,765
|
|
|
$
|
38,077
|
|
|
$
|
24,263
|
|
Stock-based
compensation
|
|
4,072
|
|
|
|
2,412
|
|
|
|
13,450
|
|
|
|
9,393
|
|
Amortization of
acquired intangible assets
|
|
4,774
|
|
|
|
3,526
|
|
|
|
18,236
|
|
|
|
14,102
|
|
Accelerated write-down
of Seamless technology platform
|
|
—
|
|
|
|
—
|
|
|
|
1,897
|
|
|
|
—
|
|
Acquisition and
restructuring costs
|
|
468
|
|
|
|
477
|
|
|
|
1,554
|
|
|
|
1,639
|
|
Income tax
adjustments
|
|
(3,928)
|
|
|
|
(2,778)
|
|
|
|
(15,109)
|
|
|
|
(10,883)
|
|
Non-GAAP net
income
|
$
|
16,674
|
|
|
$
|
14,402
|
|
|
$
|
58,105
|
|
|
$
|
38,514
|
|
Weighted-average
diluted shares used to compute net income per share attributable to
common stockholders
|
|
86,028
|
|
|
|
84,311
|
|
|
|
85,706
|
|
|
|
81,698
|
|
Non-GAAP net income
per diluted share attributable to common stockholders
|
$
|
0.19
|
|
|
$
|
0.17
|
|
|
$
|
0.68
|
|
|
$
|
0.47
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/grubhub-reports-fourth-quarter-and-full-year-2015-results-300215155.html
SOURCE GrubHub Inc.