Grubhub (GRUB) Tops Q2 EPS by 8c, to Acquire LevelUp

Grubhub (NYSE: GRUB) reported Q2 EPS of $0.50, $0.08 better than the analyst estimate of $0.42. Revenue for the quarter came in at $240 million versus the consensus estimate of $233 million.

LevelUp's world-class technology and team will simplify Grubhub's integrations with the nation's top restaurant brands, provide more channels to attract and engage diners, and position us to dramatically accelerate product development for valuable restaurant-facing tools.

With the addition of LevelUp, Grubhub will offer national and independent restaurants the industry's most comprehensive solution to drive online delivery and pickup orders, from demand generation through fulfillment. In addition to making it easier for restaurants like KFC, Taco Bell, Bareburger, and Roti to integrate with the Grubhub marketplace, LevelUp accelerates Grubhub's existing point-of-sale (POS) integration capabilities and provides restaurants with powerful CRM and analytical tools to help them drive more diners to their platform and increase volume from existing diners.

"For the last seven years, the LevelUp team has worked to provide our restaurant partners with a complete solution to engage customers in this rapidly evolving digital landscape," said Seth Priebatsch, LevelUp's founder and chief executive officer. "By becoming a part of Grubhub, we take our biggest and most exciting step in achieving that mission. Together, we will provide restaurants with everything they need to grow profitably as more and more diners opt for the convenience, transparency and control of ordering online."

Grubhub has entered into a definitive agreement to acquire LevelUp for $390 million in cash, subject to standard closing conditions, including the expiration of U.S. antitrust waiting periods. The transaction is expected to be funded through cash on hand and Grubhub's existing credit facility.

Foley Hoag is serving as legal counsel to LevelUp in connection with the acquisition and Kirkland & Ellis LLP is serving as legal counsel to

GUIDANCE:

Grubhub sees Q3 2018 revenue of $232-240 million, versus the consensus of $230 million.

Grubhub sees FY2018 revenue of $966-983 million, versus the consensus of $960.4 million.

For earnings history and earnings-related data on Grubhub (GRUB) click here.

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