GRUBHUB INC., 10-Q filed on 5/11/2020
Quarterly Report
v3.20.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2020
May 01, 2020
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2020  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Trading Symbol GRUB  
Entity Registrant Name GRUBHUB INC.  
Entity Central Index Key 0001594109  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   91,954,814
Entity Current Reporting Status Yes  
Entity Shell Company false  
Entity File Number 1-36389  
Entity Tax Identification Number 46-2908664  
Entity Address, Address Line One 111 W. Washington Street  
Entity Address, Address Line Two Suite 2100  
Entity Address, City or Town Chicago  
Entity Address, State or Province IL  
Entity Address, Postal Zip Code 60602  
City Area Code 877  
Local Phone Number 585-7878  
Title of 12(b) Security Common Stock, $0.0001 par value per share  
Security Exchange Name NYSE  
Entity Incorporation, State or Country Code DE  
Document Transition Report false  
Document Quarterly Report true  
Entity Interactive Data Current Yes  
v3.20.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
CURRENT ASSETS:    
Cash and cash equivalents $ 560,708 $ 375,909
Short-term investments 36,359 49,275
Accounts receivable, less allowances for doubtful accounts 135,661 119,658
Income tax receivable 20,271 3,960
Prepaid expenses and other current assets 18,051 17,515
Total current assets 771,050 566,317
PROPERTY AND EQUIPMENT:    
Property and equipment, net of depreciation and amortization 189,050 172,744
OTHER ASSETS:    
Other assets 32,154 26,836
Operating lease right-of-use asset 101,758 100,632
Goodwill 1,007,968 1,007,968
Acquired intangible assets, net of amortization 487,797 500,481
Total other assets 1,629,677 1,635,917
TOTAL ASSETS 2,589,777 2,374,978
CURRENT LIABILITIES:    
Restaurant food liability 152,551 131,753
Accounts payable 29,317 26,748
Accrued payroll 24,255 19,982
Current operating lease liability 11,999 9,376
Other accruals 87,438 61,504
Total current liabilities 305,560 249,363
LONG-TERM LIABILITIES:    
Deferred taxes, non-current 24,438 27,163
Noncurrent operating lease liability 112,863 111,056
Long-term debt 668,242 493,009
Other accruals 817 817
Total long-term liabilities 806,360 632,045
Commitments and contingencies
STOCKHOLDERS’ EQUITY:    
Preferred Stock, $0.0001 par value. Authorized: 25,000,000 shares as of March 31, 2020 and December 31, 2019; issued and outstanding: no shares as of March 31, 2020 and December 31, 2019.
Common stock, $0.0001 par value. Authorized: 500,000,000 shares at March 31, 2020 and December 31, 2019; issued and outstanding: 91,916,978 and 91,576,060 shares as of March 31, 2020 and December 31, 2019, respectively 9 9
Accumulated other comprehensive loss (2,271) (1,628)
Additional paid-in capital 1,182,757 1,164,400
Retained earnings 297,362 330,789
Total stockholders’ equity 1,477,857 1,493,570
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,589,777 $ 2,374,978
v3.20.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2020
Dec. 31, 2019
Statement Of Financial Position [Abstract]    
Preferred Stock, par value $ 0.0001 $ 0.0001
Preferred Stock, shares authorized 25,000,000 25,000,000
Preferred Stock, shares issued 0 0
Preferred Stock, shares outstanding 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 500,000,000 500,000,000
Common stock, shares issued 91,916,978 91,576,060
Common stock, shares outstanding 91,916,978 91,576,060
v3.20.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Income Statement [Abstract]    
Revenues $ 362,980 $ 323,770
Costs and expenses:    
Operations and support 214,561 161,350
Sales and marketing 90,742 78,454
Technology (exclusive of amortization) 31,273 27,250
General and administrative 38,949 22,787
Depreciation and amortization 33,363 25,089
Total costs and expenses 408,888 314,930
Income (loss) from operations (45,908) 8,840
Interest expense - net 6,380 2,812
Income (loss) before provision for income taxes (52,288) 6,028
Income tax benefit (18,861) (862)
Net income (loss) attributable to common stockholders $ (33,427) $ 6,890
Net income (loss) per share attributable to common stockholders:    
Basic $ (0.36) $ 0.08
Diluted $ (0.36) $ 0.07
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:    
Basic 91,793 90,951
Diluted 91,793 92,918
v3.20.1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Statement Of Income And Comprehensive Income [Abstract]    
Net income (loss) $ (33,427) $ 6,890
OTHER COMPREHENSIVE INCOME (LOSS)    
Foreign currency translation adjustments (643) 227
COMPREHENSIVE INCOME (LOSS) $ (34,070) $ 7,117
v3.20.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (33,427) $ 6,890
Adjustments to reconcile net income (loss) to net cash from operating activities:    
Depreciation 8,658 6,193
Amortization of intangible assets and developed software 24,705 18,896
Stock-based compensation 20,185 16,478
Deferred taxes (2,725) (986)
Other 3,479 735
Change in assets and liabilities:    
Accounts receivable (18,333) (30,391)
Income taxes receivable (16,311) (916)
Prepaid expenses and other assets (4,602) (10,666)
Restaurant food liability 20,857 13,099
Accounts payable 4,678 (18,644)
Accrued payroll 4,277 411
Other accruals 26,085 12,845
Net cash provided by operating activities 37,526 13,944
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchases of investments (19,790) (12,160)
Proceeds from maturity of investments 32,900 11,636
Capitalized website and development costs (14,243) (10,692)
Purchases of property and equipment (19,678) (8,018)
Acquisition of other intangible assets (510) (5,379)
Acquisitions of businesses, net of cash acquired   127
Other cash flows from investing activities (250)  
Net cash used in investing activities (21,571) (24,486)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from borrowings under the credit facility 175,000  
Taxes paid related to net settlement of stock-based compensation awards (8,051) (9,966)
Proceeds from exercise of stock options 1,414 2,424
Repayments of borrowings under the credit facility   (2,031)
Payments for debt issuance costs   (1,647)
Net cash provided by (used in) financing activities 168,363 (11,220)
Net change in cash, cash equivalents, and restricted cash 184,318 (21,762)
Effect of exchange rates on cash, cash equivalents and restricted cash (600) 232
Cash, cash equivalents, and restricted cash at beginning of year 379,594 215,802
Cash, cash equivalents, and restricted cash at end of the period 563,312 194,272
SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS    
Cash paid for income taxes   351
Capitalized property, equipment and website and development costs in accounts payable at period end 3,830 7,851
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH    
Cash and cash equivalents $ 560,708 189,694
Restricted cash included in prepaid expenses and other current assets   $ 1,401
Restricted Cash, Current, Asset, Statement of Financial Position [Extensible List] us-gaap:PrepaidExpenseAndOtherAssetsCurrent us-gaap:PrepaidExpenseAndOtherAssetsCurrent
Restricted cash included in other assets $ 2,604 $ 3,177
Restricted Cash, Noncurrent, Asset, Statement of Financial Position [Extensible List] us-gaap:OtherAssetsNoncurrent us-gaap:OtherAssetsNoncurrent
Total cash, cash equivalents, and restricted cash $ 563,312 $ 194,272
v3.20.1
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Total
Common stock
Additional paid-in capital
Accumulated other comprehensive loss
Retained earnings
Balance, beginning at Dec. 31, 2018 $ 1,442,339 $ 9 $ 1,094,866 $ (1,891) $ 349,355
Balance, beginning (in shares) at Dec. 31, 2018   90,756,548      
Net income (loss) 6,890       6,890
Currency translation 227     227  
Stock-based compensation 19,723   19,723    
Stock option exercises and vesting of restricted stock units, net of withholdings and other 2,424   2,424    
Stock option exercises and vesting of restricted stock units, net of withholdings and other (in shares)   442,171      
Shares repurchased and retired to satisfy tax withholding upon vesting (9,966)   (9,966)    
Shares repurchased and retired to satisfy tax withholding upon vesting (in shares)   (124,434)      
Balance, ending at Mar. 31, 2019 1,461,637 $ 9 1,107,047 (1,664) 356,245
Balance, ending (in shares) at Mar. 31, 2019   91,074,285      
Balance, beginning at Dec. 31, 2019 1,493,570 $ 9 1,164,400 (1,628) 330,789
Balance, beginning (in shares) at Dec. 31, 2019   91,576,060      
Net income (loss) (33,427)       (33,427)
Currency translation (643)     (643)  
Stock-based compensation 24,994   24,994    
Stock option exercises and vesting of restricted stock units, net of withholdings and other 1,414   1,414    
Stock option exercises and vesting of restricted stock units, net of withholdings and other (in shares)   494,525      
Shares repurchased and retired to satisfy tax withholding upon vesting (8,051)   (8,051)    
Shares repurchased and retired to satisfy tax withholding upon vesting (in shares)   (153,607)      
Balance, ending at Mar. 31, 2020 $ 1,477,857 $ 9 $ 1,182,757 $ (2,271) $ 297,362
Balance, ending (in shares) at Mar. 31, 2020   91,916,978      
v3.20.1
Organization
3 Months Ended
Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Organization

1. Organization

Grubhub Inc., a Delaware corporation, and its wholly-owned subsidiaries (collectively referred to as the “Company”) provide an online and mobile takeout marketplace for restaurant pick-up and delivery orders. The Company connects diners and restaurants through restaurant technology and easy-to-use platforms. Diners enter their delivery address or use geo-location within the mobile applications and the Company displays the menus and other relevant information for restaurants in its network. Orders may be placed directly online, via mobile applications or over the phone. The Company primarily charges restaurant partners a per order commission that is primarily percentage-based. In many markets, the Company also provides delivery services to restaurants on its platform that do not have their own delivery operations. The Company’s takeout marketplace, and related platforms where the Company provides marketing services to generate orders, are collectively referred to as the “Platform”.

v3.20.1
Significant Accounting Policies
3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Significant Accounting Policies

2. Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated interim financial statements include the accounts of Grubhub Inc. and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements include all wholly-owned subsidiaries and reflect all normal and recurring adjustments, as well as any other than normal adjustments, that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods and should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 28, 2020 (the “2019 Form 10-K”). All significant intercompany transactions have been eliminated in consolidation. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020.

Use of Estimates

The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. These estimates, judgments and assumptions take into account historical and forward-looking factors that the Company believes are reasonable including, but not limited to, the potential impacts arising from the COVID-19 pandemic and measures implemented to prevent its spread. As the extent and duration of the impacts from the COVID-19 pandemic remain unclear, the Company’s estimates and assumptions may evolve as conditions change. Significant items subject to such estimates, judgments and assumptions include revenue recognition, website and internal-use software development costs, goodwill, valuation and recoverability of intangible assets with finite lives and other long-lived assets, stock-based compensation, and income taxes. Actual results could differ significantly from these estimates.  

Changes in Accounting Principle

See “Recently Issued Accounting Pronouncements” below for a description of accounting principle changes adopted during the three months ended March 31, 2020 related to credit losses. There have been no other material changes to the Company’s significant accounting policies described in the 2019 Form 10-K.

Recently Issued Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables and held-to-maturity debt securities, which requires entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands disclosure requirements. ASU 2016-13 was effective for and adopted by the Company in the first quarter of 2020. The guidance was applied using the modified-retrospective approach. The adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows as credit losses were not expected to be significant. The Company will continue to monitor the impact of the COVID-19 pandemic on expected credit losses.

v3.20.1
Marketable Securities
3 Months Ended
Mar. 31, 2020
Investments Debt And Equity Securities [Abstract]  
Marketable Securities

3. Marketable Securities

The amortized cost, unrealized gains and losses and estimated fair value of the Company’s held-to-maturity marketable securities as of March 31, 2020 and December 31, 2019 were as follows:

 

 

March 31, 2020

 

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Estimated

Fair Value

 

 

 

(in thousands)

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

$

23,293

 

 

$

 

 

$

(30

)

 

$

23,263

 

Corporate bonds

 

 

1,503

 

 

 

 

 

 

(3

)

 

 

1,500

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

34,057

 

 

 

 

 

 

(150

)

 

 

33,907

 

Corporate bonds

 

 

2,302

 

 

 

 

 

 

(3

)

 

 

2,299

 

Total

 

$

61,155

 

 

$

 

 

$

(186

)

 

$

60,969

 

 

 

 

December 31, 2019

 

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Estimated

Fair Value

 

 

 

(in thousands)

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

$

17,548

 

 

$

 

 

$

(34

)

 

$

17,514

 

Corporate bonds

 

 

1,300

 

 

 

 

 

 

 

 

 

1,300

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

46,971

 

 

 

 

 

 

(195

)

 

 

46,776

 

Corporate bonds

 

 

2,304

 

 

 

2

 

 

 

 

 

 

2,306

 

Total

 

$

68,123

 

 

$

2

 

 

$

(229

)

 

$

67,896

 

 

All of the Company’s marketable securities were classified as held-to-maturity investments and have maturities within one year of March 31, 2020. The Company evaluated its marketable securities aggregated by credit rating agency rating, all of which are highly rated, investment grade securities, considering historical investment losses, current market conditions and historical recovery rates of similar securities and determined that no material credit losses were expected as of March 31, 2020.

 

The gross unrealized losses, estimated fair value and length of time the individual marketable securities were in a continuous loss position for those marketable securities in an unrealized loss position as of March 31, 2020 and December 31, 2019 were as follows:

 

 

March 31, 2020

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

 

(in thousands)

 

Commercial paper

 

$

57,170

 

 

$

(180

)

 

$

 

 

$

 

 

$

57,170

 

 

$

(180

)

Corporate bonds

 

 

3,799

 

 

 

(6

)

 

 

 

 

 

 

 

 

3,799

 

 

 

(6

)

Total

 

$

60,969

 

 

$

(186

)

 

$

 

 

$

 

 

$

60,969

 

 

$

(186

)

 

 

 

December 31, 2019

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

 

(in thousands)

 

Commercial paper

 

$

64,290

 

 

$

(229

)

 

$

 

 

$

 

 

$

64,290

 

 

$

(229

)

Total

 

$

64,290

 

 

$

(229

)

 

$

 

 

$

 

 

$

64,290

 

 

$

(229

)

The Company recognized interest income during the three months ended March 31, 2020 and 2019 of $0.9 million and $0.7 million, respectively, within net interest expense on the condensed consolidated statements of operations. During the three months

ended March 31, 2020 and 2019, the Company did not recognize any other-than-temporary impairment losses related to its marketable securities.

The Company’s marketable securities are classified within Level 2 of the fair value hierarchy (see Note 12, Fair Value Measurement, for further details).

v3.20.1
Goodwill and Acquired Intangible Assets
3 Months Ended
Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Acquired Intangible Assets

4. Goodwill and Acquired Intangible Assets

The components of acquired intangible assets as of March 31, 2020 and December 31, 2019 were as follows:

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

 

(in thousands)

 

Restaurant relationships

 

$

492,791

 

 

$

(138,679

)

 

$

354,112

 

 

$

497,788

 

 

$

(135,482

)

 

$

362,306

 

Diner acquisition

 

 

48,293

 

 

 

(22,323

)

 

 

25,970

 

 

 

48,293

 

 

 

(19,909

)

 

 

28,384

 

Developed technology

 

 

35,826

 

 

 

(17,974

)

 

 

17,852

 

 

 

35,826

 

 

 

(15,916

)

 

 

19,910

 

Other

 

 

2,918

 

 

 

(2,731

)

 

 

187

 

 

 

2,918

 

 

 

(2,713

)

 

 

205

 

Total amortizable intangible assets

 

 

579,828

 

 

 

(181,707

)

 

 

398,121

 

 

 

584,825

 

 

 

(174,020

)

 

 

410,805

 

Indefinite-lived trademarks

 

 

89,676

 

 

 

 

 

 

89,676

 

 

 

89,676

 

 

 

 

 

 

89,676

 

Total acquired intangible assets

 

$

669,504

 

 

$

(181,707

)

 

$

487,797

 

 

$

674,501

 

 

$

(174,020

)

 

$

500,481

 

 

The gross carrying amount and accumulated amortization of the Company’s restaurant relationships as of March 31, 2020 were each adjusted by $5.0 million for certain fully amortized assets that were no longer in use.

Amortization expense for acquired intangible assets recognized within depreciation and amortization on the condensed consolidated statements of operations was $12.7 million and $11.9 million for the three months ended March 31, 2020 and 2019, respectively.

During the three months ended March 31, 2020, there were no changes in the carrying amount of goodwill of $1,008.0 million.

Estimated future amortization expense of acquired intangible assets as of March 31, 2020 was as follows:

 

 

(in thousands)

 

The remainder of 2020

 

$

32,960

 

2021

 

 

38,809

 

2022

 

 

36,847

 

2023

 

 

30,348

 

2024

 

 

28,141

 

Thereafter

 

 

231,016

 

Total

 

$

398,121

 

 

v3.20.1
Property and Equipment
3 Months Ended
Mar. 31, 2020
Property Plant And Equipment [Abstract]  
Property and Equipment

5. Property and Equipment

The components of the Company’s property and equipment as of March 31, 2020 and December 31, 2019 were as follows:

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

(in thousands)

 

Developed software

 

$

173,209

 

 

$

154,656

 

Computer equipment

 

 

79,078

 

 

 

74,052

 

Leasehold improvements

 

 

52,220

 

 

 

52,962

 

Furniture and fixtures

 

 

15,019

 

 

 

14,463

 

Purchased software and digital assets

 

 

15,424

 

 

 

13,395

 

Construction in progress

 

 

15,624

 

 

 

6,018

 

Property and equipment

 

 

350,574

 

 

 

315,546

 

Accumulated depreciation and amortization

 

 

(161,524

)

 

 

(142,802

)

Property and equipment, net

 

$

189,050

 

 

$

172,744

 

 

The gross carrying amount and accumulated amortization of the Company’s leasehold improvements, developed software, furniture and fixtures and computer equipment as of March 31, 2020 were adjusted in aggregate by $1.9 million for certain fully amortized assets that were no longer in use.  The Company recorded depreciation and amortization expense for property and equipment other than developed software of $8.7 million and $6.2 million for the three months ended March 31, 2020 and 2019, respectively.

The Company capitalized developed software costs of $19.0 million and $14.5 million for the three months ended March 31, 2020 and 2019, respectively. Amortization expense for developed software costs, recognized in depreciation and amortization in the condensed consolidated statements of operations, for the three months ended March 31, 2020 and 2019 was $12.0 million and $7.0 million, respectively.

v3.20.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

6. Commitments and Contingencies

Legal

In August 2011, Ameranth, Inc. (“Ameranth”) filed a patent infringement action against a number of defendants, including Grubhub Holdings Inc., in the U.S. District Court for the Southern District of California, Case No. 3:11-cv-1810. Ameranth subsequently initiated additional actions for infringement of a related patent, including separate actions against Grubhub Holdings Inc., Case No. 3:12-cv-739, and Seamless North America, LLC, Case No. 3:12-cv-737, which were consolidated along with approximately 40 other cases Ameranth filed in the same district.

In September 2018, the district court granted summary judgment (on another defendant’s motion) of unpatentability on the sole remaining patent and vacated the December 3, 2018 jury trial date for the claims against Grubhub Holdings Inc. and Seamless North America, LLC. In October 2018, the district court entered final judgment on all claims in the case in which summary judgment was granted, and then stayed the remaining cases (including the cases against Grubhub and Seamless). Ameranth then appealed this decision to the U.S. Court of Appeals for the Federal Circuit. In November 2019, the Federal Circuit affirmed the district court’s findings of unpatentability in all material respects, and remanded certain dependent claims to the district court. The Company believes this case lacks merit and that it has strong defenses to all of the infringement claims. The Company intends to defend the suit vigorously. The Company has not recorded an accrual related to this lawsuit as of March 31, 2020, as it does not believe a material loss is probable.

On November 20, 2019, a purported stockholder of the Company filed a putative class action complaint against the Company, Chief Executive Officer Matthew Maloney, and President and Chief Financial Officer Adam DeWitt in the United States District Court for the Northern District of Illinois, Case No. 19 Civ. 7665.  The complaint asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, based on its allegation that the defendants made false and misleading statements about the Company’s growth, competitive landscape, and strategy.  The complaint seeks unspecified compensatory damages and attorneys’ fees, among other relief. Pursuant to a court scheduling order, the plaintiffs will have until May 29, 2020, to file an amended complaint, and the matter is expected to be fully briefed by November 2020. The defendants believe that the lawsuit is without merit and that a material loss is not probable. However, given the early stage of the proceedings, a reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time.

In addition to the matters described above, from time to time, the Company is involved in various other legal proceedings arising from the normal course of business activities, including labor and employment claims, some of which relate to the alleged misclassification of independent contractors. The Company currently has a number of pending putative class actions, Private Attorney General Act lawsuits and arbitrations alleging the misclassification of independent contractors. In January 2020, California State Assembly Bill 5 (“AB5”) went into effect, which codifies a test to determine whether a worker is an employee or independent contractor under California law. In light of AB5, the Company expects to continue to receive an increased number of misclassification claims. Nonetheless, the Company believes that its approach to classification is supported by the law and intends to continue to defend itself vigorously in these matters. The Company does not believe any of the foregoing claims will have a material impact on its consolidated financial statements. However, there is no assurance that any claim will not be combined into a collective or class action. During the three months ended March 31, 2020, the Company recorded a $12.5 million accrual related to the settlement of certain of these matters.

Indemnification

In connection with the merger of Seamless North America, LLC, Seamless Holdings Corporation and Grubhub Holdings Inc. in August 2013, the Company agreed to indemnify Aramark Holdings Corporation for negative income tax consequences associated with the October 2012 spin-off of Seamless Holdings Corporation that were the result of certain actions taken by the Company through

October 29, 2014, in certain instances subject to a $15.0 million limitation. Management is not aware of any actions that would impact the indemnification obligation.

v3.20.1
Debt
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Debt

7. Debt

The following table summarizes the carrying value of the Company’s debt as of March 31, 2020 and December 31, 2019:

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

(in thousands)

 

Senior Notes

 

$

500,000

 

 

$

500,000

 

Revolving loan

 

 

175,000

 

 

 

 

Total debt

 

$

675,000

 

 

$

500,000

 

Less unamortized deferred debt issuance costs

 

 

(6,758

)

 

 

(6,991

)

Long-term debt

 

$

668,242

 

 

$

493,009

 

Senior Notes

On June 10, 2019, the Company’s wholly-owned subsidiary, Grubhub Holdings Inc., issued $500.0 million in aggregate principal amount of 5.500% senior notes due July 1, 2027 (“Senior Notes”) in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. Interest is payable on the Senior Notes semi-annually on January and July of each year, beginning on January 1, 2020. The first interest payment of $15.4 million was made in December 2019. There have been no changes in the terms of the Senior Notes as described in Part II, Item 8, Note 10, Debt, to the Company’s 2019 Form 10-K.

Credit Agreement

On February 6, 2019, the Company entered into an amended and restated credit agreement (the “Credit Agreement”) which provides, among other things, for aggregate revolving loans up to $225 million and provided for term loans in an aggregate principal amount of $325 million. The $325 million term loan portion of the Credit Agreement was extinguished on June 10, 2019. In addition to the revolving loans available under the Credit Agreement, the Company may also incur up to $250 million of incremental revolving or term loans pursuant to the terms and conditions of the Credit Agreement. The credit facility under the Credit Agreement will be available to the Company until February 5, 2024. There were no changes in the terms of the Credit Agreement as described in Part II, Item 8, Note 10, Debt, to the Company’s 2019 Form 10-K during the three months ended March 31, 2020, however, the Company amended the Credit Agreement on May 8, 2020. See Note 13, Subsequent Events, for a description of changes in the terms of the Credit Agreement as a result of the amendment.

Other Information

During the three months ended March 31, 2020, the Company borrowed $175.0 million of revolving loans under the Credit Agreement as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of uncertainty in the global markets resulting from the COVID-19 outbreak. The Company repaid the $175.0 million in borrowings under the Credit Agreement on May 5, 2020. As of March 31, 2020, the Company’s outstanding debt consisted of $500.0 million in Senior Notes and $175.0 million in revolving loans under the Credit Agreement. 

See Note 12, Fair Value Measurement, for the fair value of the Company’s Senior Notes and outstanding revolving loans as of March 31, 2020. The Company was in compliance with the financial covenants of its debt facilities as of March 31, 2020. Additional capacity under the Credit Agreement may be used for general corporate purposes, including funding working capital and future acquisitions.

As of March 31, 2020 and December 31, 2019, unamortized debt issuance costs of $1.1 million in each period related to the revolving loan facility and $6.8 million and $7.0 million, respectively, related to the Senior Notes were recorded as other assets and as a reduction of long-term debt, respectively, on the condensed consolidated balance sheets.

Interest expense includes interest on outstanding borrowings, amortization of debt issuance costs and commitment fees on the undrawn portion available under the credit facility. The Company recognized interest expense of $7.3 million and $3.5 million during the three months ended March 31, 2020 and 2019, respectively.

v3.20.1
Stock-Based Compensation
3 Months Ended
Mar. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

8. Stock-Based Compensation

The Company has granted non-qualified and incentive stock options, restricted stock units and restricted stock awards under its incentive plans. The Company recognizes compensation expense based on estimated grant date fair values for all stock-based awards issued to employees and directors, including stock options, restricted stock awards and restricted stock units. As of March 31, 2020,

there were 2,626,279 shares of common stock authorized and available for issuance pursuant to awards granted under the Grubhub Inc. 2015 Long-Term Incentive Plan (the “2015 Plan”).

Stock-based Compensation Expense

The total stock-based compensation expense related to all stock-based awards was $20.2 million and $16.5 million during the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, $236.1 million of total unrecognized stock-based compensation expense is expected to be recognized over a weighted-average period of 3.0 years.

Excess tax benefits (deficiencies) reflect the total realized value of the Company’s tax deductions from individual stock option exercise transactions and the vesting of restricted stock units in excess (deficient) of the deferred tax assets that were previously recorded. During the three months ended March 31, 2020 and 2019, the Company recognized tax deficiencies from stock-based compensation of $2.5 million and excess tax benefits of $2.3 million, respectively, within income tax benefit in the condensed consolidated statements of operations and within cash flows from operating activities in the condensed consolidated statements of cash flows.

The Company capitalized stock-based compensation expense as website and software development costs of $4.8 million and $3.2 million during the three months ended March 31, 2020 and 2019, respectively.

Stock Options

The Company granted 224,509 and 301,873 stock options under the 2015 Plan during the three months ended March 31, 2020 and 2019, respectively. The fair value of each stock option award was estimated based on the assumptions below as of the grant date using the Black-Scholes-Merton option pricing model. Expected volatility is based on the historical and implied volatilities of the Company’s own common stock. The Company uses historical data to estimate option exercises and employee terminations within the valuation model. Separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term calculation for option awards considers a combination of the Company’s historical and estimated future exercise behavior. The risk-free rate for the period within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

The assumptions used to determine the fair value of the stock options granted during the three months ended March 31, 2020 and 2019 were as follows:

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Weighted-average fair value options granted

 

$

19.67

 

 

$

31.27

 

Average risk-free interest rate

 

 

1.44

%

 

 

2.44

%

Expected stock price volatility

 

 

48.3

%

 

 

48.1

%

Dividend yield

 

None

 

 

None

 

Expected stock option life (years)

 

 

4.00

 

 

 

4.00

 

 

Stock option awards as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020, were as follows:

 

 

Options

 

 

Weighted-Average

Exercise Price

 

 

Aggregate Intrinsic Value (thousands)

 

 

Weighted-Average

Exercise Term

(years)

 

Outstanding at December 31, 2019

 

 

2,750,275

 

 

$

38.74

 

 

$

50,737

 

 

 

6.28

 

Granted

 

 

224,509

 

 

 

50.56

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(1,805

)

 

 

26.20

 

 

 

 

 

 

 

 

 

Exercised

 

 

(64,551

)

 

 

21.90

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2020

 

 

2,908,428

 

 

 

40.03

 

 

 

33,258

 

 

 

6.33

 

Vested and expected to vest at March 31, 2020

 

 

2,820,034

 

 

 

39.35

 

 

 

33,088

 

 

 

6.25

 

Exercisable at March 31, 2020

 

 

2,099,401

 

 

$

31.50

 

 

$

31,679

 

 

 

5.48

 

 

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the fair value of the common stock and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options on each date. This amount will change in future periods

based on the fair value of the Company’s stock and the number of options outstanding. The aggregate intrinsic value of awards exercised was $2.0 million and $6.1 million during the three months ended March 31, 2020 and 2019, respectively.

The Company recorded compensation expense for stock options of $3.2 million and $4.0 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, total unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options was $21.8 million and is expected to be recognized over a weighted-average period of 2.3 years.

Restricted Stock Units

Non-vested restricted stock units as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020 were as follows:

 

 

Restricted Stock Units

 

 

 

Shares

 

 

Weighted-Average

Grant Date Fair

Value

 

Outstanding at December 31, 2019

 

 

3,096,025

 

 

$

70.62

 

Granted

 

 

1,869,059

 

 

 

50.63

 

Forfeited

 

 

(132,597

)

 

 

72.23

 

Vested

 

 

(429,974

)

 

 

71.79

 

Outstanding at March 31, 2020

 

 

4,402,513

 

 

$

61.97

 

Compensation expense related to restricted stock units was $17.0 million and $12.5 million during the three months ended March 31, 2020 and 2019, respectively. The aggregate fair value as of the vest date of restricted stock units that vested during the three months ended March 31, 2020 and 2019 was $22.5 million and $26.9 million, respectively. As of March 31, 2020, $214.3 million of total unrecognized compensation cost, adjusted for estimated forfeitures, related to 3,778,925 non-vested restricted stock units expected to vest with weighted-average grant date fair values of $62.21 is expected to be recognized over a weighted-average period of 3.1 years. The fair value of these awards was determined based on the Company’s stock price at the grant date and assumes no expected dividend payments through the vesting period.

v3.20.1
Income Taxes
3 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

9. Income Taxes

The Company’s effective tax rate was 36.1% and negative 14.3% during the three months ended March 31, 2020 and 2019, respectively. On March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which includes provisions, among others, that allow the Company to carryback net operating losses to a year with a higher federal income tax rate and technical corrections to tax depreciation methods for qualified improvement property. The income tax benefit for the three months ended March 31, 2020 included a $6.8 million benefit related to net operating losses that can now be carried back as a result of the CARES Act, partially offset by tax deficiencies on stock-based compensation of $2.5 million. The income tax benefit for the three months ended March 31, 2019 included excess tax benefits of $2.3 million (see Note 8, Stock-Based Compensation, for additional details).

The Company is currently under examination by the Internal Revenue Service for its federal income tax return for the tax year ended December 31, 2017. The Company does not believe, but cannot predict with certainty, that there will not be any additional tax liabilities, penalties and/or interest as a result of the audit.

v3.20.1
Stockholders' Equity
3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Stockholders' Equity

10. Stockholders’ Equity

As of March 31, 2020 and December 31, 2019, the Company was authorized to issue two classes of stock: common stock and preferred stock.

Common Stock

Each holder of common stock has one vote per share of common stock held on all matters that are submitted for stockholder vote. At March 31, 2020 and December 31, 2019, there were 500,000,000 shares of common stock authorized. At March 31, 2020 and December 31, 2019, there were 91,916,978 and 91,576,060 shares issued and outstanding, respectively. The Company did not hold any shares as treasury shares as of March 31, 2020 or December 31, 2019.

On January 22, 2016, the Company’s Board of Directors approved a program that authorizes the repurchase of up to $100 million of the Company’s common stock exclusive of any fees, commissions or other expenses relating to such repurchases through open market purchases or privately negotiated transactions at the prevailing market price at the time of purchase. The repurchase

program was announced on January 25, 2016. Repurchased stock may be retired or held as treasury shares. The repurchase authorizations do not obligate the Company to acquire any particular amount of common stock or adopt any particular method of repurchase and may be modified, suspended or terminated at any time at management’s discretion. Repurchased and retired shares will result in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted net income per share at the time of the transaction. During the three months ended March 31, 2020, the Company did not repurchase any shares of its common stock.

Preferred Stock

The Company was authorized to issue 25,000,000 shares of preferred stock. There were no issued or outstanding shares of preferred stock as of March 31, 2020 or December 31, 2019.

v3.20.1
Earnings Per Share Attributable to Common Stockholders
3 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share Attributable to Common Stockholders

11. Earnings Per Share Attributable to Common Stockholders

Basic earnings per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration for common stock equivalents. Diluted net income per share attributable to common stockholders is computed by dividing net income by the weighted-average number of common shares outstanding during the period and potentially dilutive common stock equivalents, including stock options and restricted stock units, except in cases where the effect of the common stock equivalent would be antidilutive. Potential common stock equivalents consist of common stock issuable upon exercise of stock options and vesting of restricted stock units using the treasury stock method. For periods of net loss, basic and diluted earnings per share are the same as the effect of the assumed exercise of stock options and vesting of restricted stock units is anti-dilutive.

The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stockholders for the three months ended March 31, 2020 and 2019:

 

Three Months Ended March 31,

 

 

2020

 

 

2019

 

 

(in thousands, except per share data)

 

Basic earnings (loss) per share:

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders (numerator)

$

(33,427

)

 

$

6,890

 

Shares used in computation (denominator)

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

91,793

 

 

 

90,951

 

Basic earnings (loss) per share

$

(0.36

)

 

$

0.08

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders (numerator)

$

(33,427

)

 

$

6,890

 

Shares used in computation (denominator)

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

91,793

 

 

 

90,951

 

Effect of dilutive securities:

 

 

 

 

 

 

 

Stock options

 

 

 

 

1,308

 

Restricted stock units

 

 

 

 

659

 

Weighted-average diluted shares

 

91,793

 

 

 

92,918

 

Diluted earnings (loss) per share

$

(0.36

)

 

$

0.07

 

 

The number of shares of common stock underlying stock-based awards excluded from the calculation of diluted net income (loss) per share attributable to common stockholders because their effect would have been antidilutive for the three months ended March 31, 2020 and 2019 were as follows:  

 

Three Months Ended March 31,

 

 

2020

 

 

2019

 

 

(in thousands)

 

Anti-dilutive shares underlying stock-based awards:

 

 

 

 

 

 

 

Stock options

 

2,908

 

 

 

845

 

Restricted stock units

 

4,403

 

 

 

572

 

 

v3.20.1
Fair Value Measurement
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurement

12. Fair Value Measurement

Certain assets and liabilities are required to be recorded at fair value on a recurring basis. Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The accounting guidance for fair value measurements prioritizes valuation methodologies based on the reliability of the inputs in the following three-tier value hierarchy:

 

Level 1

Quoted prices in active markets for identical assets or liabilities.

 

Level 2

Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities.

 

Level 3

Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require.

The Company applied the following methods and assumptions in estimating its fair value measurements. The Company’s commercial paper, investments in corporate bonds, certain money market funds and Senior Notes are classified as Level 2 within the fair value hierarchy because they are valued using inputs other than quoted prices in active markets that are observable directly or indirectly. The fair value of the Company’s outstanding borrowings under the Credit Agreement is classified as Level 3 within the fair value hierarchy because it is valued using an income approach, which utilizes a discounted cash flow technique that considers the credit profile of the Company. Accounts receivable, restaurant food liability and accounts payable approximate fair value due to their generally short-term maturities.

The following table presents the fair value, for disclosure purposes only, and carrying value of the Company’s assets and liabilities that are recorded at other than fair value as of March 31, 2020 and December 31, 2019: 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

Level 2

 

Level 3

 

Carrying Value

 

 

Level 2

 

Carrying Value

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

7,273

 

$

 

$

7,273

 

 

$

28

 

$

28

 

Commercial paper

 

 

57,170

 

 

 

 

57,350

 

 

 

64,290

 

 

64,519

 

Corporate bonds

 

 

3,799

 

 

 

 

3,805

 

 

 

3,606

 

 

3,604

 

Total assets

 

$

68,242

 

$

 

$

68,428

 

 

$

67,924

 

$

68,151

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, including current maturities

 

$

442,150

 

$

173,758

 

$

675,000

 

 

$

467,500

 

$

500,000

 

Total liabilities

 

$

442,150

 

$

173,758

 

$

675,000

 

 

$

467,500

 

$

500,000

 

 

 

v3.20.1
Subsequent Events
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

13. Subsequent Events

On May 5, 2020, the Company repaid $175.0 million in revolving loans under the credit facility and on May 8, 2020, the Company entered into Amendment No. 1 to its Credit Agreement (the “Amendment”). The Amendment amends the Credit Agreement by, among other things, (i) permitting the Company to net unrestricted cash and cash equivalents in excess of $175.0 million against the Consolidated Total Net Leverage Ratio (as defined in the Credit Agreement) in any quarter through and including March 31, 2021; (ii) modifying the definition of Consolidated EBITDA to permit the Company to add back cash costs and expenses associated with litigations, claims, proceedings or investigations, up to a maximum of 25% of Consolidated EBITDA (as defined in the Credit Agreement) after giving effect to such addback; and (iii) modifying the definitions of Adjusted Eurodollar Rate and Alternate Base Rate to establish minimum rates of 0.75% and 1.75%, respectively.

There have been no other material changes in the terms of the Credit Agreement as described in Part II, Item 8, Note 10, Debt, to the Company’s 2019 Form 10-K. However, the foregoing summary does not purport to be complete and is qualified in its entirety by reference to Amendment No. 1, filed as Exhibit 10.1 to this Quarterly Report on Form 10-Q and incorporated herein by reference.

v3.20.1
Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated interim financial statements include the accounts of Grubhub Inc. and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements include all wholly-owned subsidiaries and reflect all normal and recurring adjustments, as well as any other than normal adjustments, that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods and should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 28, 2020 (the “2019 Form 10-K”). All significant intercompany transactions have been eliminated in consolidation. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020.

Use of Estimates

Use of Estimates

The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. These estimates, judgments and assumptions take into account historical and forward-looking factors that the Company believes are reasonable including, but not limited to, the potential impacts arising from the COVID-19 pandemic and measures implemented to prevent its spread. As the extent and duration of the impacts from the COVID-19 pandemic remain unclear, the Company’s estimates and assumptions may evolve as conditions change. Significant items subject to such estimates, judgments and assumptions include revenue recognition, website and internal-use software development costs, goodwill, valuation and recoverability of intangible assets with finite lives and other long-lived assets, stock-based compensation, and income taxes. Actual results could differ significantly from these estimates.  

Changes in Accounting Principle and Recently Issued Accounting Pronouncements

Changes in Accounting Principle

See “Recently Issued Accounting Pronouncements” below for a description of accounting principle changes adopted during the three months ended March 31, 2020 related to credit losses. There have been no other material changes to the Company’s significant accounting policies described in the 2019 Form 10-K.

Recently Issued Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables and held-to-maturity debt securities, which requires entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands disclosure requirements. ASU 2016-13 was effective for and adopted by the Company in the first quarter of 2020. The guidance was applied using the modified-retrospective approach. The adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows as credit losses were not expected to be significant. The Company will continue to monitor the impact of the COVID-19 pandemic on expected credit losses.

v3.20.1
Marketable Securities (Tables)
3 Months Ended
Mar. 31, 2020
Investments Debt And Equity Securities [Abstract]  
Summary of Held-to-Maturity Marketable Securities

The amortized cost, unrealized gains and losses and estimated fair value of the Company’s held-to-maturity marketable securities as of March 31, 2020 and December 31, 2019 were as follows:

 

 

March 31, 2020

 

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Estimated

Fair Value

 

 

 

(in thousands)

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

$

23,293

 

 

$

 

 

$

(30

)

 

$

23,263

 

Corporate bonds

 

 

1,503

 

 

 

 

 

 

(3

)

 

 

1,500

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

34,057

 

 

 

 

 

 

(150

)

 

 

33,907

 

Corporate bonds

 

 

2,302

 

 

 

 

 

 

(3

)

 

 

2,299

 

Total

 

$

61,155

 

 

$

 

 

$

(186

)

 

$

60,969

 

 

 

 

December 31, 2019

 

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Estimated

Fair Value

 

 

 

(in thousands)

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

$

17,548

 

 

$

 

 

$

(34

)

 

$

17,514

 

Corporate bonds

 

 

1,300

 

 

 

 

 

 

 

 

 

1,300

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

46,971

 

 

 

 

 

 

(195

)

 

 

46,776

 

Corporate bonds

 

 

2,304

 

 

 

2

 

 

 

 

 

 

2,306

 

Total

 

$

68,123

 

 

$

2

 

 

$

(229

)

 

$

67,896

 

Summary of Continuous Unrealized Loss on Marketable Securities

The gross unrealized losses, estimated fair value and length of time the individual marketable securities were in a continuous loss position for those marketable securities in an unrealized loss position as of March 31, 2020 and December 31, 2019 were as follows:

 

 

March 31, 2020

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

 

(in thousands)

 

Commercial paper

 

$

57,170

 

 

$

(180

)

 

$

 

 

$

 

 

$

57,170

 

 

$

(180

)

Corporate bonds

 

 

3,799

 

 

 

(6

)

 

 

 

 

 

 

 

 

3,799

 

 

 

(6

)

Total

 

$

60,969

 

 

$

(186

)

 

$

 

 

$

 

 

$

60,969

 

 

$

(186

)

 

 

 

December 31, 2019

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

Estimated

Fair Value

 

 

Unrealized Loss

 

 

 

(in thousands)

 

Commercial paper

 

$

64,290

 

 

$

(229

)

 

$

 

 

$

 

 

$

64,290

 

 

$

(229

)

Total

 

$

64,290

 

 

$

(229

)

 

$

 

 

$

 

 

$

64,290

 

 

$

(229

)

v3.20.1
Goodwill and Acquired Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Components of Acquired Intangible Assets (Infinite Lived)

The components of acquired intangible assets as of March 31, 2020 and December 31, 2019 were as follows:

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

 

(in thousands)

 

Restaurant relationships

 

$

492,791

 

 

$

(138,679

)

 

$

354,112

 

 

$

497,788

 

 

$

(135,482

)

 

$

362,306

 

Diner acquisition

 

 

48,293

 

 

 

(22,323

)

 

 

25,970

 

 

 

48,293

 

 

 

(19,909

)

 

 

28,384

 

Developed technology

 

 

35,826

 

 

 

(17,974

)

 

 

17,852

 

 

 

35,826

 

 

 

(15,916

)

 

 

19,910

 

Other

 

 

2,918

 

 

 

(2,731

)

 

 

187

 

 

 

2,918

 

 

 

(2,713

)

 

 

205

 

Total amortizable intangible assets

 

 

579,828

 

 

 

(181,707

)

 

 

398,121

 

 

 

584,825

 

 

 

(174,020

)

 

 

410,805

 

Indefinite-lived trademarks

 

 

89,676

 

 

 

 

 

 

89,676

 

 

 

89,676

 

 

 

 

 

 

89,676

 

Total acquired intangible assets

 

$

669,504

 

 

$

(181,707

)

 

$

487,797

 

 

$

674,501

 

 

$

(174,020

)

 

$

500,481

 

 

Components of Acquired Intangible Assets (Finite Lived)

The components of acquired intangible assets as of March 31, 2020 and December 31, 2019 were as follows:

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

 

(in thousands)

 

Restaurant relationships

 

$

492,791

 

 

$

(138,679

)

 

$

354,112

 

 

$

497,788

 

 

$

(135,482

)

 

$

362,306

 

Diner acquisition

 

 

48,293

 

 

 

(22,323

)

 

 

25,970

 

 

 

48,293

 

 

 

(19,909

)

 

 

28,384

 

Developed technology

 

 

35,826

 

 

 

(17,974

)

 

 

17,852

 

 

 

35,826

 

 

 

(15,916

)

 

 

19,910

 

Other

 

 

2,918

 

 

 

(2,731

)

 

 

187

 

 

 

2,918

 

 

 

(2,713

)

 

 

205

 

Total amortizable intangible assets

 

 

579,828

 

 

 

(181,707

)

 

 

398,121

 

 

 

584,825

 

 

 

(174,020

)

 

 

410,805

 

Indefinite-lived trademarks

 

 

89,676

 

 

 

 

 

 

89,676

 

 

 

89,676

 

 

 

 

 

 

89,676

 

Total acquired intangible assets

 

$

669,504

 

 

$

(181,707

)

 

$

487,797

 

 

$

674,501

 

 

$

(174,020

)

 

$

500,481

 

 

Estimated Future Amortization of Acquired Intangible Assets

Estimated future amortization expense of acquired intangible assets as of March 31, 2020 was as follows:

 

 

(in thousands)

 

The remainder of 2020

 

$

32,960

 

2021

 

 

38,809

 

2022

 

 

36,847

 

2023

 

 

30,348

 

2024

 

 

28,141

 

Thereafter

 

 

231,016

 

Total

 

$

398,121

 

v3.20.1
Property and Equipment (Tables)
3 Months Ended
Mar. 31, 2020
Property Plant And Equipment [Abstract]  
Components of Property and Equipment

The components of the Company’s property and equipment as of March 31, 2020 and December 31, 2019 were as follows:

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

(in thousands)

 

Developed software

 

$

173,209

 

 

$

154,656

 

Computer equipment

 

 

79,078

 

 

 

74,052

 

Leasehold improvements

 

 

52,220

 

 

 

52,962

 

Furniture and fixtures

 

 

15,019

 

 

 

14,463

 

Purchased software and digital assets

 

 

15,424

 

 

 

13,395

 

Construction in progress

 

 

15,624

 

 

 

6,018

 

Property and equipment

 

 

350,574

 

 

 

315,546

 

Accumulated depreciation and amortization

 

 

(161,524

)

 

 

(142,802

)

Property and equipment, net

 

$

189,050

 

 

$

172,744

 

 

v3.20.1
Debt (Tables)
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Debt

The following table summarizes the carrying value of the Company’s debt as of March 31, 2020 and December 31, 2019:

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

(in thousands)

 

Senior Notes

 

$

500,000

 

 

$

500,000

 

Revolving loan

 

 

175,000

 

 

 

 

Total debt

 

$

675,000

 

 

$

500,000

 

Less unamortized deferred debt issuance costs

 

 

(6,758

)

 

 

(6,991

)

Long-term debt

 

$

668,242

 

 

$

493,009

 

v3.20.1
Stock-Based Compensation (Tables)
3 Months Ended
Mar. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Assumptions Used to Determine Fair Value of Stock Options Granted

The assumptions used to determine the fair value of the stock options granted during the three months ended March 31, 2020 and 2019 were as follows:

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Weighted-average fair value options granted

 

$

19.67

 

 

$

31.27

 

Average risk-free interest rate

 

 

1.44

%

 

 

2.44

%

Expected stock price volatility

 

 

48.3

%

 

 

48.1

%

Dividend yield

 

None

 

 

None

 

Expected stock option life (years)

 

 

4.00

 

 

 

4.00

 

 

Summary of Stock Option Activity

Stock option awards as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020, were as follows:

 

 

Options

 

 

Weighted-Average

Exercise Price

 

 

Aggregate Intrinsic Value (thousands)

 

 

Weighted-Average

Exercise Term

(years)

 

Outstanding at December 31, 2019

 

 

2,750,275

 

 

$

38.74

 

 

$

50,737

 

 

 

6.28

 

Granted

 

 

224,509

 

 

 

50.56

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(1,805

)

 

 

26.20

 

 

 

 

 

 

 

 

 

Exercised

 

 

(64,551

)

 

 

21.90

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2020

 

 

2,908,428

 

 

 

40.03

 

 

 

33,258

 

 

 

6.33

 

Vested and expected to vest at March 31, 2020

 

 

2,820,034

 

 

 

39.35

 

 

 

33,088

 

 

 

6.25

 

Exercisable at March 31, 2020

 

 

2,099,401

 

 

$

31.50

 

 

$

31,679

 

 

 

5.48

 

 

Non-vested Restricted Stock Units

Non-vested restricted stock units as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020 were as follows:

 

 

Restricted Stock Units

 

 

 

Shares

 

 

Weighted-Average

Grant Date Fair

Value

 

Outstanding at December 31, 2019

 

 

3,096,025

 

 

$

70.62

 

Granted

 

 

1,869,059

 

 

 

50.63

 

Forfeited

 

 

(132,597

)

 

 

72.23

 

Vested

 

 

(429,974

)

 

 

71.79

 

Outstanding at March 31, 2020

 

 

4,402,513

 

 

$

61.97

 

v3.20.1
Earnings Per Share Attributable to Common Stockholders (Tables)
3 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Net Income (Loss) Per Share

The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stockholders for the three months ended March 31, 2020 and 2019:

 

Three Months Ended March 31,

 

 

2020

 

 

2019

 

 

(in thousands, except per share data)

 

Basic earnings (loss) per share:

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders (numerator)

$

(33,427

)

 

$

6,890

 

Shares used in computation (denominator)

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

91,793

 

 

 

90,951

 

Basic earnings (loss) per share

$

(0.36

)

 

$

0.08

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders (numerator)

$

(33,427

)

 

$

6,890

 

Shares used in computation (denominator)

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

91,793

 

 

 

90,951

 

Effect of dilutive securities:

 

 

 

 

 

 

 

Stock options

 

 

 

 

1,308

 

Restricted stock units

 

 

 

 

659

 

Weighted-average diluted shares

 

91,793

 

 

 

92,918

 

Diluted earnings (loss) per share

$

(0.36

)

 

$

0.07

 

 

Anti-dilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share

The number of shares of common stock underlying stock-based awards excluded from the calculation of diluted net income (loss) per share attributable to common stockholders because their effect would have been antidilutive for the three months ended March 31, 2020 and 2019 were as follows:  

 

Three Months Ended March 31,

 

 

2020

 

 

2019

 

 

(in thousands)

 

Anti-dilutive shares underlying stock-based awards:

 

 

 

 

 

 

 

Stock options

 

2,908

 

 

 

845

 

Restricted stock units

 

4,403

 

 

 

572

 

v3.20.1
Fair Value Measurement (Tables)
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value and Carrying Value of Assets and Liabilities Recorded at Other Than Fair Value

The following table presents the fair value, for disclosure purposes only, and carrying value of the Company’s assets and liabilities that are recorded at other than fair value as of March 31, 2020 and December 31, 2019: 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

Level 2

 

Level 3

 

Carrying Value

 

 

Level 2

 

Carrying Value

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

7,273

 

$

 

$

7,273

 

 

$

28

 

$

28

 

Commercial paper

 

 

57,170

 

 

 

 

57,350

 

 

 

64,290

 

 

64,519

 

Corporate bonds

 

 

3,799

 

 

 

 

3,805

 

 

 

3,606

 

 

3,604

 

Total assets

 

$

68,242

 

$

 

$

68,428

 

 

$

67,924

 

$

68,151

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, including current maturities

 

$

442,150

 

$

173,758

 

$

675,000

 

 

$

467,500

 

$

500,000

 

Total liabilities

 

$

442,150

 

$

173,758

 

$

675,000

 

 

$

467,500

 

$

500,000

 

 

v3.20.1
Summary of Held-to-Maturity Marketable Securities (Detail) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Schedule Of Held To Maturity Securities [Line Items]    
Amortized Cost $ 61,155 $ 68,123
Unrealized Gains   2
Unrealized Losses (186) (229)
Estimated Fair Value 60,969 67,896
Commercial Paper | Cash and Cash Equivalents    
Schedule Of Held To Maturity Securities [Line Items]    
Amortized Cost 23,293 17,548
Unrealized Losses (30) (34)
Estimated Fair Value 23,263 17,514
Commercial Paper | Short Term Investments    
Schedule Of Held To Maturity Securities [Line Items]    
Amortized Cost 34,057 46,971
Unrealized Losses (150) (195)
Estimated Fair Value 33,907 46,776
Corporate Bonds | Cash and Cash Equivalents    
Schedule Of Held To Maturity Securities [Line Items]    
Amortized Cost 1,503 1,300
Unrealized Losses (3)  
Estimated Fair Value 1,500 1,300
Corporate Bonds | Short Term Investments    
Schedule Of Held To Maturity Securities [Line Items]    
Amortized Cost 2,302 2,304
Unrealized Gains   2
Unrealized Losses (3)  
Estimated Fair Value $ 2,299 $ 2,306
v3.20.1
Summary of Continuous Unrealized Loss on Marketable Securities (Detail) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Schedule Of Held To Maturity Securities [Line Items]    
Estimated Fair Value, Less Than 12 Months $ 60,969 $ 64,290
Unrealized Loss, Less Than 12 Months (186) (229)
Estimated Fair Value, 12 Months or Greater 0 0
Unrealized Loss, 12 Months or Greater 0 0
Estimated Fair Value, Total 60,969 64,290
Unrealized Loss, Total (186) (229)
Commercial Paper    
Schedule Of Held To Maturity Securities [Line Items]    
Estimated Fair Value, Less Than 12 Months 57,170 64,290
Unrealized Loss, Less Than 12 Months (180) (229)
Estimated Fair Value, 12 Months or Greater 0 0
Unrealized Loss, 12 Months or Greater 0 0
Estimated Fair Value, Total 57,170 64,290
Unrealized Loss, Total (180) $ (229)
Corporate Bonds    
Schedule Of Held To Maturity Securities [Line Items]    
Estimated Fair Value, Less Than 12 Months 3,799  
Unrealized Loss, Less Than 12 Months (6)  
Estimated Fair Value, 12 Months or Greater 0  
Unrealized Loss, 12 Months or Greater 0  
Estimated Fair Value, Total 3,799  
Unrealized Loss, Total $ (6)  
v3.20.1
Marketable Securities - Additional Information (Detail) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Schedule Of Held To Maturity Securities [Line Items]    
Other-than-temporary impairment losses related to marketable securities $ 0 $ 0
Net Interest (Income) Expense    
Schedule Of Held To Maturity Securities [Line Items]    
Interest income $ 900,000 $ 700,000
v3.20.1
Components of Acquired Intangible Assets (Detail) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]    
Total acquired intangible assets, Gross Carrying Amount $ 669,504 $ 674,501
Amortizable intangible assets, Accumulated Amortization (181,707) (174,020)
Total acquired intangible assets, Net Carrying Value 487,797 500,481
Amortizable intangible assets, Gross Carrying Amount 579,828 584,825
Amortizable intangible assets, Net Carrying Value 398,121 410,805
Indefinite-lived trademarks 89,676 89,676
Restaurant relationships    
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]    
Amortizable intangible assets, Accumulated Amortization (138,679) (135,482)
Amortizable intangible assets, Gross Carrying Amount 492,791 497,788
Amortizable intangible assets, Net Carrying Value 354,112 362,306
Diner acquisition    
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]    
Amortizable intangible assets, Accumulated Amortization (22,323) (19,909)
Amortizable intangible assets, Gross Carrying Amount 48,293 48,293
Amortizable intangible assets, Net Carrying Value 25,970 28,384
Developed technology    
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]    
Amortizable intangible assets, Accumulated Amortization (17,974) (15,916)
Amortizable intangible assets, Gross Carrying Amount 35,826 35,826
Amortizable intangible assets, Net Carrying Value 17,852 19,910
Other    
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]    
Amortizable intangible assets, Accumulated Amortization (2,731) (2,713)
Amortizable intangible assets, Gross Carrying Amount 2,918 2,918
Amortizable intangible assets, Net Carrying Value $ 187 $ 205
v3.20.1
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Finite Lived Intangible Assets [Line Items]      
Gross carrying amount of intangible assets $ 579,828,000   $ 584,825,000
Accumulated amortization of intangible assets 181,707,000   174,020,000
Intangible assets amortization expense 12,700,000 $ 11,900,000  
Changes in carrying amount of goodwill 0    
Carrying amount of goodwill 1,007,968,000   1,007,968,000
Restaurant relationships      
Finite Lived Intangible Assets [Line Items]      
Gross carrying amount of intangible assets 492,791,000   497,788,000
Accumulated amortization of intangible assets 138,679,000   $ 135,482,000
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations | Restaurant relationships      
Finite Lived Intangible Assets [Line Items]      
Gross carrying amount of intangible assets 5,000,000.0    
Accumulated amortization of intangible assets $ 5,000,000.0    
v3.20.1
Estimated Future Amortization of Acquired Intangible Assets (Detail) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]    
The remainder of 2020 $ 32,960  
2021 38,809  
2022 36,847  
2023 30,348  
2024 28,141  
Thereafter 231,016  
Amortizable intangible assets, Net Carrying Value $ 398,121 $ 410,805
v3.20.1
Components of Property and Equipment (Detail) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Property Plant And Equipment [Line Items]    
Property and equipment $ 350,574 $ 315,546
Accumulated depreciation and amortization (161,524) (142,802)
Property and equipment, net 189,050 172,744
Developed software    
Property Plant And Equipment [Line Items]    
Property and equipment 173,209 154,656
Computer equipment    
Property Plant And Equipment [Line Items]    
Property and equipment 79,078 74,052
Leasehold improvements    
Property Plant And Equipment [Line Items]    
Property and equipment 52,220 52,962
Furniture and fixtures    
Property Plant And Equipment [Line Items]    
Property and equipment 15,019 14,463
Purchased Software and Digital Assets    
Property Plant And Equipment [Line Items]    
Property and equipment 15,424 13,395
Construction in progress    
Property Plant And Equipment [Line Items]    
Property and equipment $ 15,624 $ 6,018
v3.20.1
Property and Equipment - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Property Plant And Equipment [Line Items]      
Gross carrying amount property and equipment $ 350,574   $ 315,546
Accumulated amortization 161,524   142,802
Depreciation and amortization 33,363 $ 25,089  
Capitalized developed software costs 19,000 14,500  
Property And Equipment Excluding Developed Software      
Property Plant And Equipment [Line Items]      
Depreciation and amortization 8,700 6,200  
Leasehold Improvements Developed Software Furniture and Fixtures and Computer Equipment | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations      
Property Plant And Equipment [Line Items]      
Gross carrying amount property and equipment 1,900    
Accumulated amortization 1,900    
Developed software      
Property Plant And Equipment [Line Items]      
Gross carrying amount property and equipment 173,209   $ 154,656
Depreciation and amortization $ 12,000 $ 7,000  
v3.20.1
Commitments and Contingencies - Additional Information (Detail1)
3 Months Ended
Mar. 31, 2020
USD ($)
Loss Contingencies [Line Items]  
Accrual related to lawsuit $ 0
Accrual recorded related to settlement 12,500,000
Maximum | Merger Income Tax Consequences  
Loss Contingencies [Line Items]  
Indemnification related to business combination $ 15,000,000.0
v3.20.1
Schedule of Debt (Detail) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]    
Total debt $ 675,000 $ 500,000
Less unamortized deferred debt issuance costs (6,758) (6,991)
Long-term debt 668,242 493,009
Senior Notes    
Debt Instrument [Line Items]    
Total debt 500,000 $ 500,000
Revolving loan    
Debt Instrument [Line Items]    
Total debt $ 175,000  
v3.20.1
Debt - Additional Information (Detail) - USD ($)
1 Months Ended 3 Months Ended
May 05, 2020
Jun. 10, 2019
Feb. 06, 2019
Dec. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Debt Instrument [Line Items]            
Amount borrowed revolving loans         $ 175,000,000  
Long-term debt       $ 500,000,000 675,000,000  
Unamortized deferred debt issuance costs       6,991,000 6,758,000  
Interest expense         7,300,000 $ 3,500,000
Revolving Loans            
Debt Instrument [Line Items]            
Long-term debt         175,000,000  
Credit Agreement            
Debt Instrument [Line Items]            
Credit facility, additional borrowing capacity         250,000,000  
Credit facility, expiration date     Feb. 05, 2024      
Credit Agreement | Revolving Loans            
Debt Instrument [Line Items]            
Credit facility, maximum borrowing capacity     $ 225,000,000      
Amount borrowed revolving loans         175,000,000.0  
Long-term debt         175,000,000.0  
Unamortized debt issuance expense       1,100,000 1,100,000  
Credit Agreement | Revolving Loans | Subsequent Event            
Debt Instrument [Line Items]            
Repayment of revolving loan under credit facility $ 175,000,000.0          
Credit Agreement | Term Loans            
Debt Instrument [Line Items]            
Long-term debt     $ 325,000,000      
Debt extinguishment amount   $ 325,000,000        
Senior notes            
Debt Instrument [Line Items]            
Long-term debt       500,000,000 $ 500,000,000  
Senior notes | Grubhub Holdings Inc.            
Debt Instrument [Line Items]            
Long-term debt   $ 500,000,000.0        
Debt instrument, interest rate   5.50%        
Debt instrument, payment terms         Interest is payable on the Senior Notes semi-annually on January and July of each year, beginning on January 1, 2020  
Debt instrument, maturity date   Jul. 01, 2027        
Debt instrument, first interest payment       $ 15,400,000    
v3.20.1
Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation $ 20,185 $ 16,478
Total unrecognized stock-based compensation expense $ 236,100  
Unrecognized compensation expense recognition period 3 years  
Recognized excess tax deficiencies (benefits) from stock-based compensation $ 2,500 (2,300)
Stock-based compensation capitalized as website and software development cost $ 4,800 3,200
Options, Granted 224,509  
Aggregate intrinsic value of awards exercised $ 2,000 6,100
Stock Options    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation $ 3,200 4,000
Unrecognized compensation expense recognition period 2 years 3 months 18 days  
Unrecognized stock-based compensation expense $ 21,800  
Restricted Stock Units    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation $ 17,000 12,500
Unrecognized compensation expense recognition period 3 years 1 month 6 days  
Fair value of awards vested during the period $ 22,500 $ 26,900
Unrecognized compensation expense related to share based awards other than options $ 214,300  
Non-vested restricted stock units or awards expected to vest 3,778,925  
Weighted average grant date fair value $ 62.21  
2015 Long-Term Incentive Plan    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Shares of common stock authorized 2,626,279  
Common stock shares available for issuance 2,626,279  
Options, Granted 224,509 301,873
v3.20.1
Assumptions Used to Determine Fair Value of Stock Options Granted (Detail) - $ / shares
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]    
Weighted-average fair value options granted $ 19.67 $ 31.27
Average risk-free interest rate 1.44% 2.44%
Expected stock price volatility 48.30% 48.10%
Dividend yield 0.00% 0.00%
Expected stock option life (years) 4 years 4 years
v3.20.1
Stock Option Activity (Detail) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Options    
Options, Beginning Balance 2,750,275  
Options, Granted 224,509  
Options, Forfeited (1,805)  
Options, Exercised (64,551)  
Options, Ending Balance 2,908,428 2,750,275
Options, Vested and expected to vest 2,820,034  
Options, Exercisable 2,099,401  
Weighted-Average Exercise Price    
Weighted-Average Exercise Price, Beginning Balance $ 38.74  
Weighted-Average Exercise Price, Granted 50.56  
Weighted-Average Exercise Price, Forfeited 26.20  
Weighted-Average Exercise Price, Exercised 21.90  
Weighted-Average Exercise Price, Ending Balance 40.03 $ 38.74
Weighted-Average Exercise Price, Vested and expected to vest 39.35  
Weighted-Average Exercise Price, Exercisable $ 31.50  
Aggregate Intrinsic Value/Weighted-Average Exercise Term    
Aggregate Intrinsic Value $ 33,258 $ 50,737
Aggregate Intrinsic Value, Vested and expected to vest 33,088  
Aggregate Intrinsic Value, Exercisable $ 31,679  
Weighted-Average Exercise Term, Outstanding Balance 6 years 3 months 29 days 6 years 3 months 10 days
Weighted-Average Exercise Term, Vested and expected to vest 6 years 3 months  
Weighted-Average Exercise Term, Exercisable 5 years 5 months 23 days  
v3.20.1
Non-vested Restricted Stock Units (Detail) - Restricted Stock Units
3 Months Ended
Mar. 31, 2020
$ / shares
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Shares, Beginning Balance | shares 3,096,025
Shares, Granted | shares 1,869,059
Shares, Forfeited | shares (132,597)
Shares, Vested | shares (429,974)
Shares, Ending Balance | shares 4,402,513
Weighted-Average Grant Date Fair Value, Beginning Balance | $ / shares $ 70.62
Weighted-Average Grant Date Fair Value, Granted | $ / shares 50.63
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares 72.23
Weighted-Average Grant Date Fair Value, Vested | $ / shares 71.79
Weighted-Average Grant Date Fair Value, Ending Balance | $ / shares $ 61.97
v3.20.1
Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Income Tax Disclosure [Abstract]    
Effective income tax rate 36.10% (14.30%)
Benefit related to net operating losses that carried back as result of CARES Act $ 6.8  
Excess tax benefits from stock-based compensation $ 2.5 $ (2.3)
Income tax examination description The Company is currently under examination by the Internal Revenue Service for its federal income tax return for the tax year ended December 31, 2017. The Company does not believe, but cannot predict with certainty, that there will not be any additional tax liabilities, penalties and/or interest as a result of the audit.  
v3.20.1
Stockholders' Equity - Additional Information (Detail) - USD ($)
3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Jan. 22, 2016
Class Of Stock [Line Items]      
Number of votes per share one vote per share    
Common stock, shares authorized 500,000,000 500,000,000  
Common stock, shares issued 91,916,978 91,576,060  
Common stock, shares outstanding 91,916,978 91,576,060  
Treasury stock, shares 0 0  
Preferred Stock, shares authorized 25,000,000 25,000,000  
Preferred Stock, shares issued 0 0  
Preferred Stock, shares outstanding 0 0  
Common stock | Stock Repurchase Program      
Class Of Stock [Line Items]      
Stock repurchase program, announced date Jan. 25, 2016    
Common stock repurchased, Shares 0    
Maximum | Common stock | Stock Repurchase Program      
Class Of Stock [Line Items]      
Authorized to repurchase of common stock     $ 100,000,000
v3.20.1
Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Basic earnings (loss) per share:    
Net income (loss) attributable to common stockholders (numerator) $ (33,427) $ 6,890
Shares used in computation (denominator)    
Weighted-average common shares outstanding 91,793 90,951
Basic earnings (loss) per share $ (0.36) $ 0.08
Diluted earnings (loss) per share:    
Net income (loss) attributable to common stockholders (numerator) $ (33,427) $ 6,890
Shares used in computation (denominator)    
Weighted-average common shares outstanding 91,793 90,951
Effect of dilutive securities:    
Weighted-average diluted shares 91,793 92,918
Diluted earnings (loss) per share $ (0.36) $ 0.07
Stock Options    
Effect of dilutive securities:    
Stock options, Restricted stock units, shares   1,308
Restricted Stock Units    
Effect of dilutive securities:    
Stock options, Restricted stock units, shares   659
v3.20.1
Anti-dilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share (Detail) - shares
shares in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Stock Options    
Anti-dilutive shares underlying stock-based awards:    
Anti-dilutive shares underlying stock-based awards 2,908 845
Restricted Stock Units    
Anti-dilutive shares underlying stock-based awards:    
Anti-dilutive shares underlying stock-based awards 4,403 572
v3.20.1
Schedule of Fair Value and Carrying Value of Assets and Liabilities Recorded at Other Than Fair Value (Detail) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Fair Value | Level 2    
Assets    
Assets, fair value disclosure $ 68,242 $ 67,924
Liabilities    
Long-term debt, including current maturities 442,150 467,500
Total liabilities 442,150 467,500
Fair Value | Level 3    
Liabilities    
Long-term debt, including current maturities 173,758  
Total liabilities 173,758  
Carrying Value    
Assets    
Assets, fair value disclosure 68,428 68,151
Liabilities    
Long-term debt, including current maturities 675,000 500,000
Total liabilities 675,000 500,000
Money Market Funds | Fair Value | Level 2    
Assets    
Assets, fair value disclosure 7,273 28
Money Market Funds | Carrying Value    
Assets    
Assets, fair value disclosure 7,273 28
Commercial Paper | Fair Value | Level 2    
Assets    
Assets, fair value disclosure 57,170 64,290
Commercial Paper | Carrying Value    
Assets    
Assets, fair value disclosure 57,350 64,519
Corporate Bonds | Fair Value | Level 2    
Assets    
Assets, fair value disclosure 3,799 3,606
Corporate Bonds | Carrying Value    
Assets    
Assets, fair value disclosure $ 3,805 $ 3,604
v3.20.1
Subsequent Events - Additional Information (Detail) - Subsequent Event - USD ($)
$ in Millions
May 08, 2020
May 05, 2020
Credit Agreement | Revolving Loans    
Subsequent Event [Line Items]    
Repayment of revolving loan under credit facility   $ 175.0
Amended Credit Agreement    
Subsequent Event [Line Items]    
Debt instrument description of variable rate basis (iii) modifying the definitions of Adjusted Eurodollar Rate and Alternate Base Rate to establish minimum rates of 0.75% and 1.75%, respectively.  
Debt instrument description of amendment terms (i) permitting the Company to net unrestricted cash and cash equivalents in excess of $175.0 million against the Consolidated Total Net Leverage Ratio (as defined in the Credit Agreement) in any quarter through and including March 31, 2021; (ii) modifying the definition of Consolidated EBITDA to permit the Company to add back cash costs and expenses associated with litigations, claims, proceedings or investigations, up to a maximum of 25% of Consolidated EBITDA (as defined in the Credit Agreement) after giving effect to such addback