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Exhibit 99.1
GRUBHUB REPORTS RECORD fourth QUARTER AND FULL YEAR 2018 RESULTS
Grubhub generates 40% revenue growth in the fourth quarter
CHICAGO, Feb. 7, 2019 – Grubhub Inc. (NYSE: GRUB), the nation’s leading online and mobile food-ordering and delivery marketplace, today announced financial results for the fourth quarter ended Dec. 31, 2018. The Company posted revenues of $288 million, which is a 40% year-over-year increase from $205 million in the fourth quarter of 2017. Gross Food Sales grew 21% year-over-year to $1.4 billion, up from $1.1 billion in the same period last year.
“2018 was a transformational year for Grubhub. We made great progress connecting hungry takeout diners with the restaurants they want, further positioning ourselves to continue to capture a significant share of the more than $200 billion takeout industry in the U.S.,” said Matt Maloney, Grubhub’s founder and chief executive officer. “We deepened relationships with our restaurant partners through acquisitions of LevelUp and Tapingo, increased the number of restaurants that partner with us to more than 105,000, grew active diners on our platform by 3.2 million, and – most emblematic of the year – accelerated organic DAG growth on our marketplace every single quarter. We couldn’t be more excited about building on this momentum in 2019.”
Fourth Quarter and Full Year 2018 Highlights
The following results reflect the financial performance and key operating metrics of our business for the three and twelve months ended Dec. 31, 2018, as compared to the same periods in 2017.
Fourth Quarter Financial Highlights
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Revenues: $287.7 million, a 40% year-over-year increase from $205.1 million in the fourth quarter of 2017. |
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Net Income (Loss): $(5.2) million, or $(0.06) per diluted share, an 110% year-over-year decrease from $53.5 million, or $0.60 per diluted share, in the fourth quarter of 2017. |
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Non-GAAP Adjusted EBITDA: $42.1 million, a 26% year-over-year decrease from $57.0 million in the fourth quarter of 2017. |
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Non-GAAP Net Income: $17.6 million, or $0.19 per diluted share, a 47% year-over-year decrease from $33.3 million, or $0.37 per diluted share, in the fourth quarter of 2017. |
Fourth Quarter Key Business Metrics Highlights1
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Active Diners were 17.7 million, a 22% year-over-year increase from 14.5 million Active Diners in the fourth quarter of 2017. |
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Daily Average Grubs (DAGs) were 467,500, a 19% year-over-year increase from 392,500 DAGs in the fourth quarter of 2017. |
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Gross Food Sales were $1.4 billion, a 21% year-over-year increase from $1.1 billion in the fourth quarter of 2017. |
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Key Business Metrics are defined in the table below. |
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Grubhub Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2019 10-K Annual Report includes:
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The increase in net cash provided by financing activities was primarily related to $200.0 million in proceeds received from the issuance of our common stock to Yum Restaurant Services Group, LLC (see Part II, Item 8, Note 12, Stockholders Equity) and $22.0 million in additional proceeds received from borrowings under the Previous Credit Agreement in 2018.
Such indicators may include the following, among others: a significant decline in expected future cash flows, a sustained, significant decline in our 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.
Some of these limitations are: Adjusted EBITDA does not reflect our cash expenditures for capital equipment or other contractual commitments; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect capital expenditure requirements for such replacements; Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; and other companies, including companies in the same industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Any adverse change in these factors could have a significant impact on the recoverability of our goodwill and could have a material impact on the consolidated financial statements.
The Companys Adjusted EBITDA may not be comparable to similarly titled measures of other organizations because other organizations may not calculate Adjusted EBITDA in the same manner.
The increase in cash provided...Read more
Changes in non-cash expenses primarily...Read more
Growth in all metrics was...Read more
Sales and marketing expenses also...Read more
Such changes could result in...Read more
If we are unable to...Read more
During the year ended December...Read more
Operations and support expenses also...Read more
The growth in Active Diners...Read more
The growth in Active Diners...Read more
We have used and expect...Read more
The Company has used and...Read more
Our financing activities during the...Read more
These costs primarily included compensation...Read more
The increase was primarily attributable...Read more
Significant changes in our operating...Read more
The growth in Active Diners...Read more
2017 compared to 2016 Income...Read more
Factors that could cause or...Read more
The increase in net cash...Read more
The increase was primarily attributable...Read more
The increase was primarily attributable...Read more
However, our liquidity assumptions may...Read more
The increase was primarily attributable...Read more
In addition, management believes Adjusted...Read more
Depreciation and amortization expenses primarily...Read more
In 2018, we continued our...Read more
We have included Adjusted EBITDA...Read more
Sales and marketing expense was...Read more
Because Adjusted EBITDA facilitates internal...Read more
As of December 31, 2018,...Read more
Growth in all metrics was...Read more
Additionally, we received proceeds of...Read more
The increase in cash flows...Read more
Significant changes in our operating...Read more
We have not experienced any...Read more
Additionally, net income during the...Read more
A reconciliation of Adjusted EBITDA...Read more
Delivery expenses increased during the...Read more
Outstanding credit card receivables are...Read more
As of December 31, 2018,...Read more
Outstanding borrowings under the Credit...Read more
We processed $5.1 billion in...Read more
2018 compared to 2017 Income...Read more
The Credit Agreement contains customary...Read more
In addition, revenue increased during...Read more
2018 compared to 2017 Revenues...Read more
2017 compared to 2016 Revenues...Read more
Amounts deposited with third-party financial...Read more
2018 compared to 2017 Depreciation...Read more
2017 compared to 2016 Depreciation...Read more
The following tables set forth...Read more
These cash, cash equivalents and...Read more
Technology (exclusive of amortization) expenses...Read more
See Part II, Item 8,...Read more
Nevertheless, significant changes in global...Read more
The increase in cash provided...Read more
Compared to 2017, our revenues...Read more
The table above does not...Read more
The decrease was driven by...Read more
These increases were partially offset...Read more
The increase was partially offset...Read more
The increase was primarily due...Read more
This overview summarizes the MD&A;,...Read more
The increase was primarily attributable...Read more
Financial Statements, Disclosures and Schedules
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Grubhub Inc. provided additional information to their SEC Filing as exhibits
CIK: 1594109
Form Type: 10-K Annual Report
Accession Number: 0001564590-19-005487
Submitted to the SEC: Thu Feb 28 2019 11:31:02 AM EST
Accepted by the SEC: Thu Feb 28 2019
Period: Monday, December 31, 2018
Industry: Business Services