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Business investment Presentation

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Published Date:08-07-2017
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Investor Presentation June 2014 Safe Harbor Statement This presentation contains “forward-looking” statements, within the meaning of the federal securities laws, that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, potential market opportunities and the effects of competition. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation. You should read the prospectus filed with the Securities and Exchange Commission (the “SEC”) on April 7, 2014, including the Risk Factors set forth therein and the documents that we have filed as exhibits to the registration statement, of which the prospectus is a part, and any further disclosures we make on related subjects in our quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC completely and with the understanding that our actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. This presentation includes certain non-GAAP financial measures as defined by SEC rules. We have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in the Appendix. In this presentation, unless the context otherwise requires, financial results and operating metrics (i) prior to the merger on August 8, 2013 reflect the combined historical results for GrubHub and Seamless, which operated as separate companies, and (ii) on or after August 8, 2013 reflect the results of GrubHub Inc. (the merged company). 2 Company Overview Matt Maloney - CEO Our Mission is to Make Takeout Better Hungry Diners Restaurants 4 Largest Online and Mobile Takeout Marketplace Combined Revenues (MM) 1.7B 170 (1) +49% Y/Y Gross Food Sales - Run rate 119 78 59 39 3.85 MM (1) Active Diners 2011 2012 2013 Q1 2013 Q1 2014 Combined Adjusted EBITDA (MM) 181,200 40 (1) Daily Average Grubs +192% Y/Y 16 10 6 6 30,000 / 700 (1) (1) Restaurants Cities 2011 2012 2013 Q1 2013 Q1 2014 (1) As of Q1 2014 5 Massive, Untapped & Highly Fragmented Market Online 5% (1) 95% Paper Menus and Phones 350,000 67B (1) Independent restaurants Spent by consumers on Online vs. call-in takeout (1) (2) takeout annually orders Total U.S. Addressable Market 8.5 - 9.5B (3) 13% - 14% commission rate (1) Based on data from a 2013 industry report prepared by Euromonitor International and our analysis of such data (2) Based on 2013 GrubHub Gross Food Sales relative to the 67Bn takeout market in 2012 and GrubHub’s size relative to competitors based on ComScore data on total visits to online delivery websites from the three months ended January 31, 2014 6 (3) Commission rate represents a range of GrubHub Inc. commission rates Takeout: Broken for Restaurants Reaching Hungry Diners is Difficult Marketing Requires Upfront Expense Capital and Resource Constrained Limited Technology Expertise 7 Takeout: Broken for Diners Limited Choices Frustrating Phone Calls Long Hold Times Error-Prone 8 GrubHub Makes Takeout Better 9 Why Restaurants Love GrubHub More Orders at Full Menu Prices Higher Margin Takeout Reach New Customers Low Risk, High Return Insight from Order Data 10 Why Diners Love GrubHub Expanded Choices Convenience Control and Transparency Superior Service Free to Use 11 Two-sided Network Perpetuates Growth (1) (2) Number of Restaurants Active Diners Combined (000s) Combined (MM) 3.4 30 2.3 21.3 1.6 14.0 2011 2012 Now 2011 2012 2013 (3) (4) Gross Food Sales Daily Average Grubs Combined (B) Combined (000s) 135.5 1.3 93.6 0.9 59.2 0.5 2011 2012 2013 2011 2012 2013 (1) Totals for the years ended December 31, 2011 and 2012 reflect restaurants on GrubHub and Seamless platforms excluding estimated duplicate restaurants. Restaurant total for the year ended December 31, 2013 reflects restaurants for GrubHub Inc. (2) Calculated as the number of unique diner accounts from which an order has been placed in the past twelve months through our platform (3) Calculated as the total value of food, beverages, taxes, prepaid gratuities, and any delivery fees for all revenue generating orders processed through our platform during the twelve months ended December 31 12 (4) Calculated as the number of revenue generating orders placed on our platform divided by the number of days for a given period Long History of Product Innovation Restaurant Delivery Driver Corporate Mobile Technology Tools 13 Mobile Products Reinforce Growth 44% of Orders in Q1 2014 vs. 35% of (1) Orders in Q1 2013 Same Commission Rate as Desktop Increases Use Cases (1) Q1 2013 data reflects Seamless mobile orders only, while Q1 2014 data reflects orders for GrubHub Inc. (the merged company) 14 Marketing Raises Awareness Combined Advertising Spend (MM) 31 27 Substantial Awareness Opportunity Multi-channel Strategy Reaches 16 Potential Diners On and Offline National and Local Outreach 2011 2012 2013 15 GrubHub & Seamless = Massive Scale, Reach and Growth Scale and Growth Unparalleled Geographic Reach More Efficient Marketing and Sales Product and Technology Fit 16 Restaurant-Driven Pricing Restaurants Decide their own Pricing Restaurants can Impact Placement with Pricing GrubHub Historically seen Improvement of Take-rates in Markets over Time Launched on Seamless in April 2014 with Promising Results 17 Financials Adam DeWitt - CFO Strong Financial Model Transactional Model at Scale Strong Growth Demonstrated Profitability and Operating Leverage Capital Efficient 19 Consistent Growth in Key Metrics… Active Diners Daily Average Grubs Combined (MM) Combined (000s) +49% Y/Y +40% Y/Y 3.9 181.2 3.4 135.5 2.6 129.1 2.3 93.6 1.6 59.2 2011 2012 2013 Q1 Q1 2011 2012 2013 Q1 Q1 2013 2014 2013 2014 20