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Exhibit 99.1
GRUBHUB REPORTS RECORD third QUARTER RESULTS
Grubhub generates 52% revenue growth in the third quarter
CHICAGO, Oct. 25, 2018 – Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced financial results for the third quarter ended Sept. 30, 2018. The Company posted revenues of $247 million, which is a 52% year-over-year increase from $163 million in the third quarter of 2017. Gross Food Sales grew 40% year-over-year to $1.2 billion, up from $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
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Revenues: $247.2 million, a 52% year-over-year increase from $163.1 million in the third quarter of 2017. |
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Net Income: $22.7 million, or $0.24 per diluted share, a 75% year-over-year increase from $13.0 million, or $0.15 per diluted share, in the third quarter of 2017. |
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Non-GAAP Adjusted EBITDA: $60.1 million, a 41% year-over-year increase from $42.7 million in the third quarter of 2017. |
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Non-GAAP Net Income: $42.2 million, or $0.45 per diluted share, a 72% year-over-year increase from $24.5 million, or $0.28 per diluted share, in the third quarter of 2017. |
Third Quarter Key Business Metrics Highlights (excludes LevelUp impact in 2018)
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Active Diners were 16.4 million, a 67% year-over-year increase from 9.8 million Active Diners in the third quarter of 2017. |
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Daily Average Grubs (DAGs) were 416,000, a 37% year-over-year increase from 304,500 DAGs in the third quarter of 2017. |
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Gross Food Sales were $1.2 billion, a 40% year-over-year increase from $867 million in the third quarter of 2017. |
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Grubhub Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2018 10-K Annual Report includes:
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The increase in net cash provided by financing activities was primarily related to $200 million in proceeds received from the issuance of our common stock to Yum Restaurant Services Group, LLC (see Note 12, Stockholders Equity) and $175 million in proceeds received from borrowings under the Credit Agreement.
Such indicators may include the following, among others: a significant decline in expected future cash flows, a sustained, significant decline in the Companys stock price and market capitalization, a significant adverse change in legal factors or in the business climate, unanticipated competition, the testing for recoverability of a significant asset group and slower growth rates.
Any adverse change in these factors could have a significant impact on the recoverability of the Companys goodwill and could have a material impact on the consolidated financial statements.
30 Cash Flows Provided by Financing Activities The Companys financing activities during the periods presented consisted of proceeds from the issuance of common stock, proceeds from borrowings under the Credit Agreement, repayments of borrowings under the Credit Agreement, taxes paid related to net settlement of stock-based compensation awards and proceeds from the exercises of stock options.
The increase in non-cash expenses primarily related to an increase in depreciation and amortization of $28.7 million, an increase of $12.5 million related to stock-based compensation, an increase in deferred taxes of $4.2 million and an increase in deferred rent of $3.8 million.
The Company?s Adjusted EBITDA may...Read more
New Accounting Pronouncements and Pending...Read more
Income Tax (Benefit) Expense Income...Read more
Such changes could result in...Read more
If the Company is unable...Read more
Income Tax Expense Income tax...Read more
The growth in Active Diners...Read more
The growth in Active Diners...Read more
The Company has used and...Read more
The Company included Adjusted EBITDA...Read more
For restaurants, Grubhub generates higher...Read more
The increase was primarily attributable...Read more
The increase was primarily attributable...Read more
However, the Company?s liquidity assumptions...Read more
The increase was primarily attributable...Read more
In addition, management believes Adjusted...Read more
Inflation Risk Management does not...Read more
Because Adjusted EBITDA facilitates internal...Read more
As of September 30, 2018,...Read more
The following table sets forth...Read more
Growth in all metrics was...Read more
The increase was primarily related...Read more
Additionally, the Company received proceeds...Read more
The increase was primarily attributable...Read more
Acquisitions of Business and Other...Read more
The Company has not experienced...Read more
Although depreciation and amortization are...Read more
Acquisitions of Businesses and Other...Read more
A reconciliation of Adjusted EBITDA...Read more
Other companies, including companies in...Read more
In addition, revenue increased during...Read more
Outstanding credit card receivables are...Read more
The Credit Agreement contains customary...Read more
Depreciation and Amortization Depreciation and...Read more
Depreciation and Amortization Depreciation and...Read more
28 Amounts deposited with third-party...Read more
These cash, cash equivalents and...Read more
Delivery expenses increased during the...Read more
25 Technology (exclusive of amortization)...Read more
Technology (exclusive of amortization) Technology...Read more
Nevertheless, significant changes in global...Read more
The Company does not undertake...Read more
Revenues Revenues increased by $84.2...Read more
26 Revenues Revenues increased by...Read more
The total aggregate consideration of...Read more
In some cases, you can...Read more
Cash Flows Used in Investing...Read more
Factors that could cause or...Read more
Financial Statements, Disclosures and Schedules
Inside this 10-Q Quarterly Report
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Grubhub Inc. provided additional information to their SEC Filing as exhibits
CIK: 1594109
Form Type: 10-Q Quarterly Report
Accession Number: 0001564590-18-027428
Submitted to the SEC: Tue Nov 06 2018 11:17:11 AM EST
Accepted by the SEC: Tue Nov 06 2018
Period: Sunday, September 30, 2018
Industry: Business Services