Why Grubhub Earnings Taste So Good
When Grubhub Inc. (NYSE: GRUB) released its second-quarter financial results before the markets opened on Wednesday, the company said that it had $0.50 in earnings per share (EPS) and $239.7 million in revenue. Consensus estimates had called for EPS of $0.42 and $233 million in revenue. The same period of last year reportedly had $0.26 in EPS on revenue of $158.79 million.
During the quarter, so-called Active Diners were 15.6 million, a 70% year-over-year increase from 9.2 million Active Diners in the second quarter of 2017. At the same time, Daily Average Grubs were 423,200, a 35% year-over-year increase from 313,900 last year.
Gross Food Sales were $1.2 billion, a 39% year-over-year increase from $880 million in the second quarter of 2017.
Looking ahead to the third quarter, the company expects to see EBITDA in the range of $58 million to $64 million and revenues between $232 million and $240 million. The consensus estimates are $0.38 in EPS and $230.69 million in revenue for the quarter.
Matt Maloney, Grubhub’s founder and CEO, commented:
We had a standout quarter, highlighted by a record number of new diners trying Grubhub for the first time. We generated robust order growth, while continuing our rapid delivery expansion and adding thousands of high quality new restaurant partners. We’re also thrilled to announce the LevelUp acquisition. LevelUp’s leading restaurant-facing technology and the team they have built in Boston will help Grubhub provide the most comprehensive solution for restaurants, powering everything from online demand generation to fulfillment for restaurants.
Shares of Grubhub were last seen up more than 14% at $124.78, with a consensus analyst price target of $110.59 and a 52-week trading range of $45.45 to $124.49.
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