Grubhub announces its results for the first quarter of 2019

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Grubhub generates revenue growth of 39% in the first quarter

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "CHICAGO, April 25, 2019 / PRNewswire / – Grubhub Inc.& nbsp; (WORM), the leading online and mobile food order and delivery market, announced today the financial results of its first quarter ended on March 31, 2019. The company achieved a turnover of $ 324 million, which represents an increase of 39% over $ 233 million in the first quarter of 2018. Gross sales of food products increased 21% year-over-year to $ 1.5 billion, from $ 1.2 billion last year at the same time. "data-reactid =" 12 ">CHICAGO, April 25, 2019 / PRNewswire / – Grubhub Inc. (GRUB), Canada's leading online and mobile food ordering and delivery market, announced today the financial results of its first quarter ended March 31, 2019. The company achieved a turnover of $ 324 million, which represents an increase of 39% over $ 233 million in the first quarter of 2018. Gross sales of food products increased 21% year-over-year to $ 1.5 billion, from $ 1.2 billion at the same time last year.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" We are extremely proud of our team for another fantastic quarter : record growth in the number of restaurants, adding thousands of new quality restaurants to our platform and sixth consecutive acceleration of the pace of orders. Despite our recent growth in growth investments, order-adjusted EBITDA improved over the quarter, underscoring our ability to grow sustainably over the long term, "said Grubhub's founder and CEO. Matt Maloney. "Our partnership model allows both large and small restaurant brands to take ownership of their online business." The successful launch of Taco Bell, which has generated significant additional activity for Taco Bell and Grubhub, illustrates how These partnerships can be powerful. " reactid = "13"> "We are extremely proud of our entire team for this fantastic new quarter of execution: record growth in the number of restaurants, growth of thousands of new quality restaurants added to our platform and sixth Accelerated acceleration of order picking Despite our recent growth in growth investments, order-adjusted EBITDA improved over the quarter, underscoring our ability to grow in a sustainable manner over the long term, "said the founder and CEO. Chief Executive Officer of Grubhub. Matt Maloney. "Our partnership model allows both large and small restaurant brands to take ownership of their online business." The successful launch of Taco Bell, which has generated significant additional activity for Taco Bell and Grubhub, illustrates how These partnerships can be powerful. "

Highlights of the first quarter of 2019

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The following results reflect financial performance and key operation measures of our company for the three months ended March 31, 2019, compared to the same period in 2018. "data-reactid =" 15 "> The following results reflect the financial performance and the main operating parameters of our business for the quarter ended March 31, 2019, compared to the same period in 2018.

First Quarter Financial Highlights

income: $ 323.8 million, a 39% year-over-year increase over $ 232.6 million in the first quarter of 2018.
Net revenue: $ 6.9 million, or $ 0.07 per diluted share, a 78% decrease from $ 30.8 million, or $ 0.34 per diluted share, in the first quarter of 2018.
Non-GAAP adjusted EBITDA: $ 50.9 million, down 21% year-on-year relative to $ 64.1 million in the first quarter of 2018.
Non-GAAP net income: $ 27.9 million, or $ 0.30 per diluted share, a 41% decrease from $ 47.2 million, or $ 0.52 per diluted share, in the first quarter of 2018.

Key statistics for the first quarter¹

Active Diners represented 19.3 million euros, an increase of 28% compared to 15.1 million in the first quarter of 2018.
Average daily worms rose to 521,000, an increase of 19% from 436,900 in the first quarter of 2018.
Raw food sales were $ 1.5 billion, a 21% year-over-year increase over $ 1.2 billion in the first quarter of 2018.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" The strong momentum of our activities in 2018 following the first quarter of 2019, including continued growth acceleration and a 21% sequential increase in adjusted EBITDA. The dramatic increase in the size and diversity of our client base, combined with the consistent value expressed in the additional disclosure, is preparing us for a great future, "added Grubhub's President and Chief Financial Officer. Adam DeWitt. "We expect our usual seasonality in the second and third quarters, and we are staying on track for our results and net results for the full year of 2019." "data-reactid =" 27 ">" The strong momentum of our activities in 2018 continues in the first quarter of 2019, with notably the acceleration of growth and a sequential increase of 21% in adjusted EBITDA. The dramatic increase in the size and diversity of our client base, combined with the consistent value expressed in the additional disclosure, is preparing us for a great future, "added Grubhub's President and Chief Financial Officer. Adam DeWitt. "We are anticipating our typical seasonality in the second and third quarters, and we remain on track to achieve our key and ultimate goals for the full year of 2019."

Forecast for the second quarter and fiscal year 2019

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Based on information available from April 25, 2019, the company provides the following financial forecasts for the second quarter and the full year in 2019. "data-reactid =" 29 "> On the basis of the information available at the date of April 25, 2019, the company provides the following financial forecasts for the second quarter and fiscal year 2019.

	Second district 2019	Complete year 2019
	(in millions)
Expected income	$ 305 – $ 325	$ 1,315 – $ 1,415
Adjusted EBITDA expected	$ 49 – $ 59	$ 235 – $ 265

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Conference call and additional information on the financial results for the first quarter of 2019"data-reactid =" 32 ">Conference call and additional information on the financial results for the first quarter of 2019

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Grubhub will webcast a teleconference today at 15:30. CT to discuss the financial results of the first quarter of 2019. & nbsp; The webcast is available on the Grubhub Investor Relations website at the following address: https://investors.grubhub.com. A retransmission of the webcast will be available on the same website. "Data-reactid =" 33 "> Grubhub will webcast a teleconference today at 15:30. CT discuss the financial results for the first quarter of 2019. You can access the webcast on the Grubhub Investor Relations website at https://investors.grubhub.com. A retransmission of the webcast will be available on the same website.

During this quarter, the Company will release additional information on commercial and financial results, which will be available on the Grubhub Investor Relations website, as well as the company's press release and financial tables.

About Grubhub

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Grubhub (WORM) is the leading online and mobile marketplace for ordering and delivering meals online with the largest and most comprehensive partner restaurant network, as well as the largest restaurant base. Dedicated to bringing customers closer to the food that they love from their favorite local restaurants, Grubhub strives to improve ordering of dishes through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub is proud to work with more than 115,000 partner restaurants in more than 2,200 US cities and London. The Grubhub brand portfolio includes the Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages brands. "Data-reactid =" 36 "> Grubhub (GRUB) is the leading online and mobile food ordering and delivery market with the largest and most comprehensive A network of restaurant partners, as well as the largest database Grubhub's goal is to connect customers with the food they love from their favorite local restaurants, and strives to improve meal orders with innovative restaurant technology, easy-to-use platforms to use and an improved delivery experience Grubhub is proud to be working with more than 115,000 partner restaurants in more than 2,200 US cities and London. The Grubhub brand portfolio includes Grubhub, Seamless, LevelUp, Tapingo, AllMenus and MenuPages.

Use of forward-looking statements

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This press release contains forward-looking statements about Grubhub," the Company "or the expectations, opinions, intentions, objectives, strategies, plans and prospects of our management, including the expected benefits and financial performance of Grubhub, including its acquisitions, which constitute" forward-looking statements ". are subject to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements involve significant, unknown risks and uncertainties and assumptions that could result in a material difference between results, performance or achievements. and future results, performance or achievements expressed implicitly or implicitly in the forward-looking statements. include, but are not limited to, items set forth in the documents we file with Securities and Exchange C from time to time, including those described under "Risk Factors" & nbsp; of our annual report on Form 10-K filed on February 28, 2019, which is in the records of the SEC and is available in the Investors section of our website at https://investors.grubhub.com. Additional information will be provided in our quarterly report on Form 10-Q that will be filed for the quarter ended March 31, 2019, which should be read in conjunction with these financial results. Please also note that the forward-looking statements represent the views and assumptions of management as of the date of this press release. Except as required by law, we disclaim any intention to update these forward-looking statements publicly and assume no obligation to update such statements or update the reasons why actual results could differ materially from those anticipated in the forward-looking statements. forward looking, even if new information was available. becomes available in the future. "data-reactid =" 38 "> This press release contains forward-looking statements about Grubhub," the Company "or the expectations, beliefs, intentions, objectives, strategies, plans and prospects of our management, including "forward-looking statements", which are governed by the provisions of the "safe harbor" of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a large number of and unknown risks, uncertainties and assumptions that could any material results, performance or achievements and future results, results, performance or achievements expressed or implied by the forward-looking statements, which include, but are not limited to, the matters set forth in the forward-looking statements. documents we periodically file with the Securities and E xchange Commission, including those set out in the "Risk Factors" section of our annual report on Form 10-K filed on February 28, 2019, which is on file with the SEC and is available in the Investor Relations section of our website at https://investors.grubhub.com. Additional information will be provided in our quarterly report on Form 10-Q that will be filed for the quarter ended March 31, 2019, which should be read in conjunction with these financial results. Please also note that the forward-looking statements represent the views and assumptions of management as of the date of this press release. Except as required by law, we disclaim any intention to update these forward-looking statements publicly and assume no obligation to update such statements or update the reasons why actual results could differ materially from those anticipated in the forward-looking statements. forward looking, even if new information was available. becomes available in the future.

Use of non-GAAP financial measures

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Adjusted EBITDA, non-GAAP net income and non-GAAP Diluted earnings per share attributable to common shareholders is a financial measure that is not determined in accordance with Canadian generally accepted accounting principles. United States, or GAAP. "data-reactid =" 44 "> Adjusted EBITDA, non-GAAP net income and non-GAAP diluted net earnings per share attributable to ordinary shareholders are financial measures that are not calculated in accordance with generally accepted accounting principles. United States, or GAAP.

We define Adjusted EBITDA as Adjusted net income to exclude acquisition, restructuring and certain court costs, income taxes, net interest expense, depreciation and stock-based compensation expense. Diluted net income per share and non-GAAP diluted net earnings per share attributable to common shareholders exclude acquisition, restructuring and certain litigation costs, amortization of intangible assets acquired, compensation expense based on equity and other non-recurring items, as well as the tax consequences of these non-GAAP adjustments. We use these non-GAAP financial measures as key performance measures because we believe they facilitate comparisons of operating performance from period to period by excluding potential differences primarily due to changes in structure. capital, tax position, impact of acquisitions, restructuring and certain legal costs. the impact of depreciation expense on our fixed assets and the impact of stock-based compensation expense. Adjusted EBITDA, non-GAAP net income and diluted net earnings per share not attributable to common shareholders are not a measure of our financial performance under GAAP and should not be considered an alternative to performance measures. calculated in accordance with GAAP.

See "Reconciliation of Non-GAAP Financial Measures" below for a reconciliation of net income to Adjusted EBITDA, non-GAAP net income and non-GAAP diluted net earnings per share attributable to equity holders. 39 ordinary shares.



¹ Key trade measures are defined on page 29 of our annual report on Form 10-K filed February 28, 2019.

GRUBHUB INC. STATES OF OPERATION (in thousands, except per share data)

	Three months ended March 31
	2019		2018
Income	$	323.770	$	232.570
Costs and expenses:
Operations and support		161,350		96,283
Sales and Marketing		78,454		48,756
Technology (excluding depreciation)		27,250		17,331
general and administrative		22,787		17,697
Depreciation and amortization		25,089		20,951
Total fees and expenses		314.930		201 018
Revenue from operations		8,840		31,552
Interest expense – net		2,812		1,022
Income before provision for income taxes		6,028		30,530
Tax benefit		(862)		(236)
Net income attributable to common shareholders	$	6,890	$	30,766
Net income attributable to common shareholders
Basic	$	0.08	$	0.35
Diluted	$	0.07	$	0.34
Weighted average number of shares used to calculate net earnings per share attributable to common shareholders:
Basic		90,951		87,085
Diluted		92,918		90,091

Main commercial indicators

	Three months ended March 31
	2019		2018
Active diners (in thousands)		19,286		15,078
Daily mean of worms		521,000		436,900
Gross sales of food products (in millions)	$	1 502.3	$	1,245.0

GRUBHUB INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except shared data)



	March 31, 2019		December 31 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	189,694	$	211,245
short-term investments		14,704		14,084
Accounts receivable less provisions for doubtful accounts		141,047		110,855
Income tax receivable		10,865		9,949
Expenses paid in advance and other current assets		19,936		17,642
Total current assets		376,246		363.775
PROPERTY AND EQUIPMENT:
Tangible fixed assets, net of depreciation		136,347		119,495
OTHER ASSETS:
other assets		22,427		14,186
Active right to use rental agreement		78,674		–
Good will		1 005 381		1,019,239
Intangible assets acquired, net of depreciation		534,989		549,013
Total other assets		1,641,471		1,582,438
TOTAL ASSETS	$	2,154,064	$	2065708
LIABILITIES AND SHAREHOLDERS 'EQUITY
CURRENT LIABILITIES:
Responsibility of restaurants	$	140,469	$	127,344
Accounts payable		15,677		26,656
Accumulated payroll		18,586		18,173
Tax payable		1,179		422
Slice of long-term debt		10,156		6,250
Current lease liability outstanding		13,436		–
Other provisions		50,164		44,323
Total current liabilities		249.667		223.168
LONG-TERM LIABILITIES:
Deferred taxes, non-current		31,411		46.383
Non-current rental liabilities		82,405		–
Long-term debt		328193		335.548
Other provisions		751		18,270
Total long-term liabilities		442,760		400,201
SHAREHOLDERS 'EQUITY:
Common shares, par value $ 0.0001		9		9
Accumulated other comprehensive income		(1.664)		(1.891)
Issue premium		1,107,047		1,094,866
Retained earnings		356.245		349,355
Total equity of shareholders	$	1,461,637	$	1,442,339
TOTAL LIABILITIES AND EQUITY	$	2,154,064	$	2065708

GRUBHUB INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Three months ended March 31
	2019		2018
CASH FLOW RELATED TO OPERATING ACTIVITIES
Net revenue	$	6,890	$	30,766
Adjustments to reconcile net income and cash flow from operating activities:
Depreciation		6,193		5,050
Deferred taxes		(986)		(2,976)
Amortization of intangible assets and software developed		18,896		15,901
Stock-based compensation		16,478		10,231
Other		735		2,048
Changes in assets and liabilities net of the effects of business acquisitions:
Accounts receivable		(30,391)		(172)
Income taxes receivable		(916)		4,090
Expenses paid in advance and other assets		(10,666)		(3,516)
Responsibility of restaurants		13,099		6,885
Accounts payable		(18,644)		601
Accumulated payroll		411		(3,295)
Other provisions		12,845		5,887
Net cash provided by operating activities		13.944		71,500
CASH FLOW FROM INVESTMENT ACTIVITIES
Investment purchases		(12.160)		(10,537)
Product of investment maturity		11,636		18,166
Capitalized Website and Development Costs		(10,692)		(6,262)
Purchases of goods and equipment		(8,018)		(5,462)
Acquisition of other intangible assets		(5,379)		–
Acquisitions of businesses, net of cash acquired		127		737
Other cash flows from investing activities		–		16
Net cash used in investing activities		(24,486)		(3.342)
CASH FLOW RELATED TO FINANCING ACTIVITIES
Taxes paid on the net settlement of stock-based compensation awards		(9,966)		(11,485)
Product of the exercise of stock options		2,424		6,948
Repayments of loans on the credit facility		(2.031)		(25,781)
Payments for debt issuance costs		(1.647)		–
Net cash used in financing activities		(11,220)		(30,318)
Net change in cash, cash equivalents and restricted cash		(21,762)		37,840
Effect of exchange rates on cash, cash equivalents and restricted cash		232		356
Cash, cash equivalents and restricted cash at the beginning of the year		215,802		238,239
Cash, cash equivalents and restricted cash at the end of the period	$	194,272	$	276.435
ADDITIONAL DISCLOSURE OF ELEMENTS WITHOUT SILVER
Cash paid for income taxes	$	351	$	227

GRUBHUB INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in thousands, except per share data)

	Three months ended March 31
	2019		2018
Net revenue	$	6,890	$	30,766
Income taxes		(862)		(236)
Interest expense – net		2,812		1,022
Depreciation and amortization		25,089		20,951
EBITDA		33,929		52,503
Acquisition, Restructuring and Legal Costs		486		1,329
Stock-based compensation		16,478		10,231
Adjusted EBITDA	$	50,893	$	64,063

	Three months ended March 31
	2019		2018
Net revenue	$	6,890	$	30,766
Stock-based compensation		16,478		10,231
Amortization of intangible assets acquired		11,942		11,543
Acquisition, Restructuring and Legal Costs		486		1,329
Tax adjustments		(7.862)		(6,677)
Non-GAAP net income	$	27.934	$	47,192
Weighted average number of diluted shares used to calculate net earnings per share attributable to common shareholders		92,918		90,091
Non-GAAP diluted net income per share attributable to common shareholders	$	0.30	$	0.52

	Orientation
	Three months have ended June 30, 2019				Year ended December 31, 2019
	Low		high		Low		high
	(in millions)
Net revenue	$	0.6	$	7.5	$	29.7	$	50.4
Income taxes		0.3		3.4		13.4		22.7
Interest expense ̶ net		2.8		2.8		11.4		11.4
Depreciation and amortization		27.0		27.0		106.0		106.0
EBITDA		30.7		40.7		160.5		190.5
Acquisition and Restructuring Fees		–		–		0.5		0.5
Stock-based compensation		18.3		18.3		74.0		74.0
Adjusted EBITDA	$	49.0	$	59.0	$	235.0	$	265.0

Grubhub logo. (PRNewsFoto / GrubHub)

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