GrubHub Reports Third Quarter Results

CHICAGO, Oct. 27, 2015 /PRNewswire/ -- GrubHub Inc. (NYSE: GRUB), the leading takeout marketplace, today announced financial results for the quarter ended September 30, 2015. 

"GrubHub delivered strong year-over-year growth in the third quarter, driven by dependable repeat usage and robust new diner adds," said Matt Maloney, CEO.  "During the third quarter, we reached a major milestone: we sent our 300 millionth order to our restaurant partners.  This is a testament to the extraordinary value GrubHub has created for its partners as well as the degree to which we've changed the way people order takeout."

Third Quarter 2015 Highlights

The following results reflect the financial performance and key operating metrics of our business for the three months ended September 30, 2015 as compared to the same period in 2014.

Third Quarter Financial Highlights

• Revenues: $85.7 million, a 38% year-over-year increase from $61.9 million in the third quarter of 2014.
• Non-GAAP Adjusted EBITDA: $21.5 million, a 5% year-over-year increase from $20.4 million in the third quarter of 2014.
• Net Income: $6.9 million, or $0.08 per diluted share, a 6% year-over-year increase from $6.5 million, or $0.08 per diluted share, in the third quarter of 2014.
• Non-GAAP Net Income: $11.5 million, or $0.13 per diluted share, a 13% year-over-year increase from $10.1 million, or $0.12 per diluted share.

Third Quarter Key Business Metrics Highlights

• Active Diners were 6.43 million, a 41% year-over-year increase from 4.57 million Active Diners in the third quarter of 2014.
• Daily Average Grubs were 211,500, a 22% year-over-year increase from 172,700 Daily Average Grubs in the third quarter of 2014.
• Gross Food Sales were $554 million, a 31% year-over-year increase from $424 million in the third quarter of 2014.

"We are seeing encouraging early signs of success with our delivery initiative," continued Maloney.  "While delivery volume remains low relative to overall volume on GrubHub, we've seen tangible improvements in diner frequency, order growth and conversion in some of our secondary markets where restaurants we deliver for generate a significant amount of the overall order volume.  This gives us confidence that our investment in delivery will reap rewards across our entire network over time."

Fourth Quarter Guidance

Based on information available as of October 27, 2015, the company is providing the following financial guidance for the fourth quarter of 2015:

Third Quarter 2015 Financial Results Conference Call: GrubHub will webcast a conference call today at 9 a.m. CT to discuss the third 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 November 10, 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 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, 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 September 30, 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.

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SOURCE GrubHub Inc.