Press Release Details

GrubHub Reports Record First Quarter Results

04/29/2015

GrubHub generates 51% percent revenue growth in the first quarter

CHICAGO, April 29, 2015 /PRNewswire/ -- GrubHub Inc. (NYSE: GRUB), the leading takeout marketplace, today announced financial results for the quarter ended March 31, 2015. 

"Positive seasonal tailwinds and good organic growth propelled GrubHub to record top line and bottom line results in the first quarter," commented Matt Maloney, CEO. "We continue to broaden and deepen our reach, with 5.6 million diners generating more than 21 million orders for our 35,000 restaurant partners in the first three months of the year. Due to our strong growth in diners, Daily Average Grubs grew 30 percent compared to the first quarter last year."

First Quarter 2015 Highlights

The following results reflect the financial performance and key operating metrics of our business for the three months ended March 31, 2015 as compared to the same period in 2014.

First Quarter Financial Highlights

  • Revenues: $88.2 million, a 51% year-over-year increase from $58.6 million in the first quarter of 2014.
  • Non-GAAP Adjusted EBITDA: $28.3 million, a 72% year-over-year increase from $16.4 million in the first quarter of 2014.
  • Net Income: $10.6 million, a 143% year-over-year increase from $4.4 million in the first quarter of 2014.

First Quarter Key Business Metrics Highlights

  • Active Diners were 5.60 million, a 46% year-over-year increase from 3.85 million Active Diners in the first quarter of 2014.
  • Daily Average Grubs were 234,700, a 30% year-over-year increase from 181,200 Daily Average Grubs in the first quarter of 2014.
  • Gross Food Sales were $590 million, a 36% year-over-year increase from $433 million processed in the first quarter of 2014.

"As previously announced, in addition to the DiningIn acquisition we closed in early February, we completed our acquisition of Restaurants on the Run later in the month and continue to be excited about providing delivery as part of an integrated suite of products for our independent restaurant partners," noted Maloney. "We believe that by providing the last mile, we can improve the diner experience, increase the total market and potentially lower the cost of delivery by leveraging our unequaled scale."

Second Quarter and Full Year 2015 Guidance

Based on information available as of April 29, 2015, the company is providing the following financial guidance for the second quarter and full year of 2015:


Second Quarter 2015


Full Year 2015


(in millions)

Expected revenue range

$83.5 - $85.5


$346 - $361

Expected Adjusted EBITDA range

$23.0 - $25.0


$101 - $109

First Quarter 2015 Financial Results Conference Call: GrubHub will webcast a conference call today at 9 a.m. CT to discuss the first 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 May 5th, 2015.

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 35,000 restaurants in more than 900 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 and DiningIn.

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. 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, 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 March 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 is a financial measure that is 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 merger and restructuring costs, income taxes, depreciation and amortization and stock-based compensation expense. We use Adjusted EBITDA as a key performance measure because we believe it facilitates 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 is not a measurement 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 Adjusted EBITDA Reconciliation" below for a reconciliation of net income to Adjusted EBITDA.

Contacts:



Anan Kashyap

Abby Hunt


Corporate Finance & Investor Relations

Press


ir@grubhub.com

press@grubhub.com



GRUBHUB INC.

CONDENSED STATEMENTS OF OPERATIONS – UNAUDITED

(in thousands, except per share data)



Three Months Ended March 31,



2015



2014


Revenues

$

88,249



$

58,613


Costs and expenses:








Sales and marketing


24,107




16,117


Operations and support


22,701




15,107


Technology (exclusive of amortization)


7,666




5,347


General and administrative


9,101




8,324


Depreciation and amortization


6,249




5,515


Total costs and expenses


69,824




50,410


Income before provision for income taxes


18,425




8,203


Provision for income taxes


7,855




3,850


Net income attributable to common stockholders

$

10,570



$

4,353


Net income per share attributable to common stockholders:








Basic

$

0.13



$

0.08


Diluted

$

0.12



$

0.06


Weighted average shares used to compute net income per share attributable to common stockholders:








Basic


82,783




55,210


Diluted


85,098




77,365



KEY OPERATING METRICS



Three Months Ended March 31,



2015



2014


Active Diners (000s)


5,604




3,851


Daily Average Grubs


234,700




181,200


Gross Food Sales (millions)

$

589.9



$

433.0




GRUBHUB INC.


CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED


(in thousands, except share data)



















March 31, 2015



December 31, 2014


ASSETS








CURRENT ASSETS:








Cash and cash equivalents

$

188,155



$

201,796


Short term investments


110,069




111,341


Accounts receivable, less allowances for doubtful accounts


49,614




36,127


Deferred taxes, current


792




825


Prepaid expenses


2,915




2,940


Total current assets


351,545




353,029


PROPERTY AND EQUIPMENT:








Property and equipment, net of depreciation and amortization


16,102




16,003


OTHER ASSETS:








Other assets


3,507




3,543


Goodwill


387,385




352,788


Acquired intangible assets, net of amortization


289,495




254,339


Total other assets


680,387




610,670


TOTAL ASSETS

$

1,048,034



$

979,702


LIABILITIES AND STOCKHOLDERS' EQUITY








CURRENT LIABILITIES:








Restaurant food liability

$

115,892



$

91,575


Accounts payable


4,060




3,371


Accrued payroll


3,695




5,958


Taxes payable


707




1,660


Other accruals


12,211




8,441


Total current liabilities


136,565




111,005


LONG TERM LIABILITIES:








Deferred taxes, non-current


93,430




92,244


Other accruals


5,826




5,931


Total long term liabilities


99,256




98,175


Commitments and Contingencies








STOCKHOLDERS' EQUITY:








Common stock, $0.0001 par value


8




8


Accumulated other comprehensive loss


(555)




(262)


Additional paid-in capital


721,366




689,953


Retained earnings


91,394




80,823


Total Stockholders' Equity

$

812,213



$

770,522


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,048,034



$

979,702




GRUBHUB INC.


CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED


(in thousands)













Three Months Ended March 31,




2015



2014


CASH FLOWS FROM OPERATING ACTIVITIES









Net income


$

10,570



$

4,353


Adjustments to reconcile net income to net cash from operating

   activities:









Depreciation



1,215




1,168


Provision for doubtful accounts



93




361


Deferred taxes



1,219




3,208


Intangible asset amortization



5,034




4,347


Tenant allowance amortization



(40)




(40)


Stock-based compensation



3,007




2,403


Deferred rent



(1)




(21)


Investment premium amortization



280





Change in assets and liabilities, net of the effects of business

   acquisitions:









Accounts receivable



(11,862)




(10,994)


Prepaid expenses and other assets



255




626


Restaurant food liability



24,376




18,678


Accounts payable



(1,826)




(56)


Accrued payroll



(3,146)




943


Other accruals



1,248




2,860


Net cash provided by operating activities



30,422




27,836


CASH FLOWS FROM INVESTING ACTIVITIES









Purchases of investments



(37,068)





Proceeds from maturity of investments



38,060





Capitalized website and development costs



(1,213)




(449)


Purchases of property and equipment



(441)




(1,776)


Acquisitions of businesses, net of cash acquired



(55,506)




-


Net cash used in investing activities



(56,168)




(2,225)


CASH FLOWS FROM FINANCING ACTIVITIES









Repurchases of common stock






(116)


Proceeds from exercise of stock options



5,823




1,036


Excess tax benefit related to stock-based compensation



6,492





Taxes paid related to net settlement of stock-based compensation awards






(362)


Net cash provided by financing activities



12,315




558


Net change in cash and cash equivalents



(13,431)




26,169


Effect of exchange rates on cash



(210)




49


Cash and cash equivalents at beginning of year



201,796




86,542


Cash and cash equivalents at end of the period


$

188,155



$

112,760


SUPPLEMENTAL DISCLOSURE OF NON CASH ITEMS









Fair value of common stock issued for acquisitions



15,980





Cash paid for income taxes






395



NON-GAAP ADJUSTED EBITDA RECONCILATION



Three Months Ended

March 31,



2015



2014



(in thousands)


Net income

$

10,570



$

4,353


Income taxes


7,855




3,850


Depreciation and amortization


6,249




5,515


EBITDA


24,674




13,718


Acquisition and restructuring costs


569




285


Stock-based compensation


3,007




2,403


Adjusted EBITDA

$

28,250



$

16,406


 

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SOURCE GrubHub Inc.