CHICAGO, Oct. 26, 2016 /PRNewswire/ -- Grubhub Inc. (NYSE:
GRUB), the nation's leading takeout marketplace, today announced
financial results for the quarter ended Sept. 30, 2016. Order growth accelerated to 26%
year-over-year, and the Company posted quarterly revenues of
$123.5 million, which is a 44%
year-over-year increase from $85.7
million in the third quarter of 2015.
"We are pleased with Grubhub's third quarter growth, as we
continue building the most comprehensive marketplace for
restaurants and takeout diners. Our product improvements and
investment in delivery continue to generate high levels of
sustainable growth," said Matt
Maloney, Grubhub CEO. "Grubhub is now delivering for
restaurant partners in over 60 markets nationwide, and our growth
rate is generally highest in markets where a substantial percentage
of orders are being delivered by our drivers."
Third Quarter 2016 Highlights
The following results reflect the financial performance and key
operating metrics of our business for the three months ended
Sept. 30, 2016, as compared to the
same period in 2015.
Third Quarter Financial Highlights
- Revenues: $123.5 million, a 44%
year-over-year increase from $85.7
million in the third quarter of 2015.
- Net Income: $13.2 million, or
$0.15 per diluted share, a 92%
year-over-year increase from $6.9
million, or $0.08 per diluted
share, in the third quarter of 2015.
- Non-GAAP Adjusted EBITDA: $35.5
million, a 65% year-over-year increase from $21.5 million in the third quarter of 2015.
- Non-GAAP Net Income: $19.9
million, or $0.23 per diluted
share, a 73% year-over-year increase from $11.5 million, or $0.13 per diluted share.
Third Quarter Key Business Metrics Highlights
- Active Diners were 7.69 million, a 19% year-over-year increase
from 6.43 million Active Diners in the third quarter of 2015.
- Daily Average Grubs were 267,500, a 26% year-over-year increase
from 211,500 Daily Average Grubs in the third quarter of 2015.
- Gross Food Sales were $735
million, a 33% year-over-year increase from $554 million in the third quarter of 2015.
"Grubhub had strong topline and bottom line results in the third
quarter, generating record net revenues and significant operating
leverage," said Adam DeWitt, Grubhub
CFO. "This strong growth, combined with the high incremental
margins of our business model, drove adjusted EBITDA per order to
$1.44, a 31% increase compared to the
third quarter of 2015."
Fourth Quarter Guidance
Based on information available as of Oct.
26, 2016, the Company is providing the following financial
guidance for the fourth quarter of 2016:
|
Fourth Quarter
2016
|
|
(in
millions)
|
Expected Revenue
range
|
$136 -
$138
|
Expected Adjusted
EBITDA range
|
$38 - $40
|
Third Quarter 2016 Financial Results Conference
Call: Grubhub will webcast a conference call today at
9 a.m. CDT to discuss the third
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 Nov. 9, 2016.
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 45,000 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 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
Feb. 26, 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 Quarterly Report on Form 10-Q that will be
filed for the quarter ended Sept. 30,
2016, 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.
GRUBHUB
INC.
|
|
STATEMENTS OF
OPERATIONS
|
(in thousands,
except per share data)
|
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Revenues
|
$
|
123,461
|
|
|
$
|
85,662
|
|
|
$
|
355,874
|
|
|
$
|
261,866
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
26,499
|
|
|
|
21,443
|
|
|
|
80,687
|
|
|
|
66,229
|
Operations and
support
|
|
44,346
|
|
|
|
27,637
|
|
|
|
120,029
|
|
|
|
74,941
|
Technology (exclusive
of amortization)
|
|
11,006
|
|
|
|
8,412
|
|
|
|
31,765
|
|
|
|
23,980
|
General and
administrative
|
|
11,754
|
|
|
|
10,203
|
|
|
|
37,501
|
|
|
|
29,049
|
Depreciation and
amortization
|
|
9,089
|
|
|
|
6,299
|
|
|
|
25,282
|
|
|
|
21,377
|
Total costs and
expenses
|
|
102,694
|
|
|
|
73,994
|
|
|
|
295,264
|
|
|
|
215,576
|
Income before
provision for income taxes
|
|
20,767
|
|
|
|
11,668
|
|
|
|
60,610
|
|
|
|
46,290
|
Provision for income
taxes
|
|
7,585
|
|
|
|
4,801
|
|
|
|
24,690
|
|
|
|
19,501
|
Net income
attributable to common stockholders
|
$
|
13,182
|
|
|
$
|
6,867
|
|
|
$
|
35,920
|
|
|
$
|
26,789
|
Net income per share
attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.15
|
|
|
$
|
0.08
|
|
|
$
|
0.42
|
|
|
$
|
0.32
|
Diluted
|
$
|
0.15
|
|
|
$
|
0.08
|
|
|
$
|
0.42
|
|
|
$
|
0.31
|
Weighted-average
shares used to compute net income per share attributable to common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
85,217
|
|
|
|
84,583
|
|
|
|
84,889
|
|
|
|
83,827
|
Diluted
|
|
86,424
|
|
|
|
85,867
|
|
|
|
85,957
|
|
|
|
85,599
|
KEY OPERATING
METRICS
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Active Diners
(000s)
|
|
7,685
|
|
|
|
6,431
|
|
|
|
7,685
|
|
|
|
6,431
|
Daily Average
Grubs
|
|
267,500
|
|
|
|
211,500
|
|
|
|
268,800
|
|
|
|
222,000
|
Gross Food Sales
(millions)
|
$
|
735.0
|
|
|
$
|
553.6
|
|
|
$
|
2,180.4
|
|
|
$
|
1,711.1
|
GRUBHUB
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except share data)
|
|
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
177,838
|
|
|
$
|
169,293
|
Short term
investments
|
|
118,743
|
|
|
|
141,448
|
Accounts receivable,
less allowances for doubtful accounts
|
|
65,729
|
|
|
|
42,051
|
Prepaid
expenses
|
|
6,264
|
|
|
|
3,482
|
Total current
assets
|
|
368,574
|
|
|
|
356,274
|
PROPERTY AND
EQUIPMENT:
|
|
|
|
|
|
|
Property and
equipment, net of depreciation and amortization
|
|
43,398
|
|
|
|
19,082
|
OTHER
ASSETS:
|
|
|
|
|
|
|
Other
assets
|
|
4,873
|
|
|
|
3,105
|
Goodwill
|
|
437,009
|
|
|
|
396,220
|
Acquired intangible
assets, net of amortization
|
|
318,431
|
|
|
|
285,567
|
Total other
assets
|
|
760,313
|
|
|
|
684,892
|
TOTAL
ASSETS
|
$
|
1,172,285
|
|
|
$
|
1,060,248
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Restaurant food
liability
|
$
|
78,321
|
|
|
$
|
64,326
|
Accounts
payable
|
|
9,532
|
|
|
|
8,189
|
Accrued
payroll
|
|
6,103
|
|
|
|
4,841
|
Taxes
payable
|
|
785
|
|
|
|
426
|
Other
accruals
|
|
16,054
|
|
|
|
11,830
|
Total current
liabilities
|
|
110,795
|
|
|
|
89,612
|
LONG TERM
LIABILITIES:
|
|
|
|
|
|
|
Deferred taxes,
non-current
|
|
105,642
|
|
|
|
87,584
|
Other
accruals
|
|
6,245
|
|
|
|
5,456
|
Total long term
liabilities
|
|
111,887
|
|
|
|
93,040
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common stock, $0.0001
par value
|
|
9
|
|
|
|
8
|
Accumulated other
comprehensive loss
|
|
(1,641)
|
|
|
|
(604)
|
Additional paid-in
capital
|
|
796,414
|
|
|
|
759,292
|
Retained
earnings
|
|
154,821
|
|
|
|
118,900
|
Total Stockholders'
Equity
|
$
|
949,603
|
|
|
$
|
877,596
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
1,172,285
|
|
|
$
|
1,060,248
|
GRUBHUB
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
2016
|
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net income
|
|
$
|
35,920
|
|
|
$
|
26,789
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
5,567
|
|
|
|
3,846
|
Provision for doubtful
accounts
|
|
|
719
|
|
|
|
565
|
Deferred
taxes
|
|
|
(1,908)
|
|
|
|
(2,793)
|
Amortization of
intangible assets
|
|
|
19,715
|
|
|
|
17,531
|
Stock-based
compensation
|
|
|
17,755
|
|
|
|
9,378
|
Deferred
rent
|
|
|
980
|
|
|
|
(73)
|
Other
|
|
|
(292)
|
|
|
|
553
|
Change in assets and
liabilities, net of the effects of business
acquisitions:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(22,299)
|
|
|
|
(6,912)
|
Prepaid expenses and
other assets
|
|
|
(2,874)
|
|
|
|
(1,456)
|
Restaurant food
liability
|
|
|
11,361
|
|
|
|
(31,444)
|
Accounts
payable
|
|
|
(4,592)
|
|
|
|
(633)
|
Accrued
payroll
|
|
|
582
|
|
|
|
(2,150)
|
Other
accruals
|
|
|
1,799
|
|
|
|
389
|
Net cash provided by
operating activities
|
|
|
62,433
|
|
|
|
13,590
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Purchases of
investments
|
|
|
(187,456)
|
|
|
|
(154,268)
|
Proceeds from maturity
of investments
|
|
|
210,567
|
|
|
|
122,856
|
Capitalized website
and development costs
|
|
|
(8,859)
|
|
|
|
(4,961)
|
Purchases of property
and equipment
|
|
|
(17,083)
|
|
|
|
(2,866)
|
Acquisitions of
businesses, net of cash acquired
|
|
|
(65,849)
|
|
|
|
(55,687)
|
Acquisition of other
intangible assets
|
|
|
(250)
|
|
|
|
—
|
Other cash flows from
investing activities
|
|
|
(540)
|
|
|
|
—
|
Net cash used in
investing activities
|
|
|
(69,470)
|
|
|
|
(94,926)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
|
(14,774)
|
|
|
|
—
|
Proceeds from exercise
of stock options
|
|
|
11,814
|
|
|
|
10,689
|
Excess tax benefits
related to stock-based compensation
|
|
|
22,114
|
|
|
|
21,987
|
Taxes paid related to
net settlement of stock-based compensation awards
|
|
|
(1,205)
|
|
|
|
—
|
Payments for debt
issuance costs
|
|
|
(1,477)
|
|
|
|
—
|
Net cash provided by
financing activities
|
|
|
16,472
|
|
|
|
32,676
|
Net change in cash
and cash equivalents
|
|
|
9,435
|
|
|
|
(48,660)
|
Effect of exchange
rates on cash
|
|
|
(890)
|
|
|
|
(108)
|
Cash and cash
equivalents at beginning of year
|
|
|
169,293
|
|
|
|
201,796
|
Cash and cash
equivalents at end of the period
|
|
$
|
177,838
|
|
|
$
|
153,028
|
SUPPLEMENTAL
DISCLOSURE OF NON CASH ITEMS
|
|
|
|
|
|
|
|
Fair value of common
stock issued for acquisitions
|
|
$
|
—
|
|
|
$
|
15,980
|
Cash paid for income
taxes
|
|
|
5,757
|
|
|
|
—
|
NON-GAAP FINANCIAL
MEASURES RECONCILIATION
|
(in thousands,
except per share data)
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Net income
|
$
|
13,182
|
|
|
$
|
6,867
|
|
|
$
|
35,920
|
|
|
$
|
26,789
|
Income
taxes
|
|
7,585
|
|
|
|
4,801
|
|
|
|
24,690
|
|
|
|
19,501
|
Depreciation and
amortization
|
|
9,089
|
|
|
|
6,299
|
|
|
|
25,282
|
|
|
|
21,377
|
EBITDA
|
|
29,856
|
|
|
|
17,967
|
|
|
|
85,892
|
|
|
|
67,667
|
Acquisition and
restructuring costs
|
|
261
|
|
|
|
383
|
|
|
|
1,789
|
|
|
|
1,086
|
Stock-based
compensation
|
|
5,349
|
|
|
|
3,113
|
|
|
|
17,755
|
|
|
|
9,378
|
Adjusted
EBITDA
|
$
|
35,466
|
|
|
$
|
21,463
|
|
|
$
|
105,436
|
|
|
$
|
78,131
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Net income
|
$
|
13,182
|
|
|
$
|
6,867
|
|
|
$
|
35,920
|
|
|
$
|
26,789
|
Stock-based
compensation
|
|
5,349
|
|
|
|
3,113
|
|
|
|
17,755
|
|
|
|
9,378
|
Amortization of
acquired intangible assets
|
|
5,385
|
|
|
|
4,674
|
|
|
|
16,070
|
|
|
|
13,462
|
Accelerated write-down
of Seamless technology platform
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,897
|
Acquisition and
restructuring costs
|
|
261
|
|
|
|
383
|
|
|
|
1,789
|
|
|
|
1,086
|
Income tax
adjustments
|
|
(4,243)
|
|
|
|
(3,538)
|
|
|
|
(14,780)
|
|
|
|
(11,181)
|
Non-GAAP net
income
|
$
|
19,934
|
|
|
$
|
11,499
|
|
|
$
|
56,754
|
|
|
$
|
41,431
|
Weighted-average
diluted shares used to compute net income per share attributable to
common stockholders
|
|
86,424
|
|
|
|
85,867
|
|
|
|
85,957
|
|
|
|
85,599
|
Non-GAAP net income
per diluted share attributable to common stockholders
|
$
|
0.23
|
|
|
$
|
0.13
|
|
|
$
|
0.66
|
|
|
$
|
0.48
|
|
Guidance
|
|
Three Months
Ended
December 31, 2016
|
|
Low
|
|
|
High
|
|
(in
millions)
|
Net income
|
$
|
14
|
|
|
$
|
15
|
Income
taxes
|
|
9
|
|
|
|
10
|
Depreciation and
amortization
|
|
9
|
|
|
|
9
|
EBITDA
|
|
32
|
|
|
|
34
|
Acquisition and
restructuring costs
|
|
—
|
|
|
|
—
|
Stock-based
compensation
|
|
6
|
|
|
|
6
|
Adjusted
EBITDA
|
$
|
38
|
|
|
$
|
40
|
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SOURCE Grubhub Inc.