Grubhub: Reports Record Third Quarter Results

Chicago / IL. (grub) Grubhub Inc., the United States’ leading take-out marketplace, announced financial results for the quarter ended September 30, 2016. Order growth accelerated to 26 percent year-over-year, and the Company posted quarterly revenues of 123.5 million USD, which is a 44 percent year-over-year increase from 85.7 million USD 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 USD, a 44 percent year-over-year increase from 85.7 million USD in the third quarter of 2015.
• Net Income: 13.2 million USD, or 0.15 USD per diluted share, a 92 percent year-over-year increase from 6.9 million USD, or 0.08 USD per diluted share, in the third quarter of 2015.
• Non-GAAP Adjusted Ebitda: 35.5 million USD, a 65 percent year-over-year increase from 21.5 million USD in the third quarter of 2015.
• Non-GAAP Net Income: 19.9 million USD, or 0.23 USD per diluted share, a 73 percent year-over-year increase from 11.5 million USD, or 0.13 USD per diluted share.

Third Quarter Key Business Metrics Highlights

• Active Diners were 7.69 million, a 19 percent year-over-year increase from 6.43 million Active Diners in the third quarter of 2015.
• Daily Average Grubs were 267’500, a 26 percent year-over-year increase from 211’500 Daily Average Grubs in the third quarter of 2015.
• Gross Food Sales were 735 million USD, a 33 percent year-over-year increase from 554 million USD 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 USD, a 31 percent 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:

• Expected Revenue range: 136 to 138 million USD
• Expected Adjusted Ebitda range: 38 to 40 million USD