Grubhub: generates 40% revenue growth in Q4-2018

Chicago / IL. (grub) Grubhub Inc., the United States’ leading online and mobile food-ordering and delivery marketplace, announced financial results for the fourth quarter ended Dec. 31, 2018. The Company posted revenues of USD 288 million, which is a 40 percent year-over-year increase from USD 205 million in the fourth quarter of 2017. Gross Food Sales grew 21 percent year-over-year to USD 1.4 billion, up from USD 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 USD 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

• Revenues: USD 287.7 million, a 40 percent year-over-year increase from USD 205.1 million in the fourth quarter of 2017.
• Net Income (Loss): USD (5.2) million, or USD (0.06) per diluted share, an 110 percent year-over-year decrease from USD 53.5 million, or USD 0.60 per diluted share, in the fourth quarter of 2017.
• Non-GAAP Adjusted Ebitda: USD 42.1 million, a 26 percent year-over-year decrease from USD 57.0 million in the fourth quarter of 2017.
• Non-GAAP Net Income: USD 17.6 million, or USD 0.19 per diluted share, a 47 percent year-over-year decrease from USD 33.3 million, or USD 0.37 per diluted share, in the fourth quarter of 2017.

Fourth Quarter Key Business Metrics Highlights(1)

• Active Diners were 17.7 million, a 22 percent year-over-year increase from 14.5 million Active Diners in the fourth quarter of 2017.
• Daily Average Grubs (DAGs) were 467,500, a 19 percent year-over-year increase from 392,500 DAGs in the fourth quarter of 2017.
• Gross Food Sales were USD 1.4 billion, a 21 percent year-over-year increase from USD 1.1 billion in the fourth quarter of 2017.

Full Year Financial Highlights

• Revenues: USD 1.0 billion, a 47 percent year-over-year increase from USD 683.1 million in 2017.
• Net Income: USD 78.5 million, or USD 0.85 per diluted share, a 21 percent year-over-year decrease from USD 99.0 million, or USD 1.12 per diluted share, in 2017.
• Non-GAAP Adjusted Ebitda: USD 233.7 million, a 27 percent year-over-year increase from USD 184.0 million in 2017.
• Non-GAAP Net Income: USD 153.3 million, or USD 1.66 per diluted share, a 44 percent year-over-year increase from USD 106.1 million, or USD 1.20 per diluted share, in 2017.

Full Year Key Business Metrics Highlights(1)

• Active Diners were 17.7 million, a 22 percent year-over-year increase from 14.5 million Active Diners in 2017.
• Daily Average Grubs (DAGs) were 435,900, a 31 percent year-over-year increase from 334,000 DAGs in 2017.
• Gross Food Sales were USD 5.1 billion, a 34 percent year-over-year increase from USD 3.8 billion in 2017.

(1)Key Business Metrics are defined in the table below.

«In the fourth quarter, we announced meaningful incremental investments in marketing and the launch of new Grubhub Delivery markets. Both investments yielded great results, contributing to record active diners during the quarter and accelerated DAG growth, with exceptionally strong growth in our newer markets,» said Adam DeWitt, Grubhub’s president and chief financial officer. «These strategic investments have laid the ideal foundation for long-term profitable growth. We also expect them to help us generate meaningful operating leverage throughout 2019, with per order economics likely similar to the third quarter of 2018 as we exit this year.»

First Quarter and Full Year 2019 Guidance

Based on information available as of February 07, 2019, the Company is providing the following financial guidance for the first quarter and full year of 2019.

(in millions)	First Quarter 2019		Full Year 2019
Expected Revenue range	USD 310 to USD 330		USD 1,315 to USD 1,415
Expected Adjusted Ebitda range	USD 40 to USD 50		USD 235 to USD 265