Chicago / IL. (grub) Grubhub Inc., the United States’ leading online and mobile food-ordering and delivery marketplace, announced financial results for the third quarter ended Sept. 30, 2018. The Company posted revenues of USD 247 million, which is a 52 percent year-over-year increase from USD 163 million in the third quarter of 2017. Gross Food Sales grew 40 percent year-over-year to USD 1.2 billion, up from USD 867 million in the year ago period.
«We added more organic new diners this quarter than ever before, helping drive the highest organic DAG growth we’ve seen in a year and a half. Better restaurant selection, a more intelligent diner platform, and more strategic marketing continue to bring more high quality diners to Grubhub», said Matt Maloney, Grubhub’s founder and chief executive officer. «With solid traction in new diner acquisition over multiple quarters and increased coverage across the country from our delivery expansion, we are in prime position to invest incrementally in advertising and accelerate online ordering adoption».
Third Quarter 2018 Highlights
The following results reflect the financial performance and key operating metrics of our business for the three months ended Sept. 30, 2018, as compared to the same period in 2017.
Third Quarter Financial Highlights
- Revenues: USD 247.2 million, a 52 percent year-over-year increase from USD 163.1 million in the third quarter of 2017.
- Net Income: USD 22.7 million, or USD 0.24 per diluted share, a 75 percent year-over-year increase from USD 13.0 million, or USD 0.15 per diluted share, in the third quarter of 2017.
- Non-GAAP Adjusted Ebitda: USD 60.1 million, a 41 percent year-over-year increase from USD 42.7 million in the third quarter of 2017.
- Non-GAAP Net Income: USD 42.2 million, or USD 0.45 per diluted share, a 72 percent year-over-year increase from USD 24.5 million, or USD 0.28 per diluted share, in the third quarter of 2017.
Third Quarter Key Business Metrics Highlights (excludes LevelUp impact in 2018)
- Active Diners were 16.4 million, a 67 percent year-over-year increase from 9.8 million Active Diners in the third quarter of 2017.
- Daily Average Grubs (DAGs) were 416,000, a 37 percent year-over-year increase from 304,500 DAGs in the third quarter of 2017.
- Gross Food Sales were USD 1.2 billion, a 40 percent year-over-year increase from USD 867 million in the third quarter of 2017.
«We are excited to invest behind the diner and order momentum of the last several quarters. We have significant opportunity to accelerate diner growth by broadening delivery coverage areas and increasing marketing spend», said Adam DeWitt, Grubhub’s president and chief financial officer. «As a result, we are opportunistically investing an incremental USD 20- USD 30 million in marketing and delivery expansion in the fourth quarter, taking our total 2018 investment in growth to substantially more than USD 200 million. The 200 total delivery markets we will launch in 2018 plus accelerated diner growth put us in a great position to capture takeout orders as they move online».
Fourth Quarter 2018 Guidance
Based on information available as of Oct. 25, 2018, the Company is providing the following financial guidance for the fourth quarter of 2018. This guidance excludes any impact from the potential acquisitions of Tapingo and certain assets of OrderUp, which have not yet closed and are subject to standard closing conditions: Expected Revenue range is USD 283 million to USD 293 million, expected Adjusted Ebitda range is USD 40 million to USD 50 million.