The above graph represents the Grubhub sales and marketing expenses by quarter, starting from fiscal Q1 2013 to the recently completed quarter. Approximately 25% of Grubhub’s total revenue in Q1 2020 was spent on marketing and sales activities, totalling $90.7 million. The 15.7% YoY surge in sales and marketing spending was primarily due to the company’s advertising campaigns across various media channels, as well as some 15% growth in its sales and marketing teams.
Increase in Grubhub Sales and Marketing Expenses: History
|Source||Grubhub Quarterly Reports, SEC Filings|
|Note||Grubhub fiscal year starts from January 1st|
It is important to note that Grubhub has always been spending over 20% of its total quarterly revenue on sales and marketing, except Q2 2018 when the sales and marketing spending as percent of total revenue stood at 19.3%.
Grubhub sales and marketing expenses surged over 2X, from $10.1 million in Q1 2013 to $24.1 million in Q1 2015. The growth was primarily attributable to the increase in advertising campaigns, particularly in television, as well as growth in the sales and marketing teams.
Surprisingly, in Q4 2018, the US-based food delivery firm spent a massive $69.9 million on sales and marketing activities, representing an impressive 54% YoY growth. This was also the first time when Grubhub spent more than $50 million on sales and marketing in a single quarter.
Grubhub’s other operating expenses include operations and support, technology, general and administrative, etc.
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