GrubHub released its second quarter earnings report before opening bell this morning, posting earnings of 17 cents per share, a 146% increase from last year on revenue of $88 million, a 47% increase from last year’s $60 million. Analysts had been looking for earnings per share of 13 cents and revenue of $85.32 million.
GrubHub sees strong diner growth
GrubHub saw non-GAAP adjusted EBITDA rise 68% year over year to $28.4 million and net income surge by 247% compared to last year to 11 cents per share or $9.4 million.
The food delivery service recorded a 42% increase in the number of active diners, which rose to 5.93 million from 4.19 million in last year’s second quarter. Daily average Grubs increased 26% from last year to 220,100, while gross food sales increased 34% to $598 million.
GrubHub expands into new markets
Management also revealed progress in expanding GrubHub’s delivery capabilities. They reported that the company will have doubled the number of markets in which it offers delivery service by next week. This follows the acquisitions of two other restaurant delivery companies in February. Management said over half of their 6 million diners are living in markets with GrubHub delivery.
Further, they said they significantly increased the consumer interface on Seamless, which they said now combines all the best features of all GrubHub’s platforms into a single experience. The interface’s updated design is cleaner, centered on mobile, and more intuitive. Management also said they upgraded to just one technology stack, which should make scaling the business easier and increase the time to market for new features.
GrubHub provides guidance
For the third quarter, GrubHub management expects to see revenue of between $85 million and $87 million. They’re projecting between $358 million and $364 million in revenue for the full year. They expect between $23 million and $25 million in adjusted EBITDA for the third quarter and between $104 million and $112 million for the full year.
As of this writing, shares of GrubHub were up 14.94% at $35.62 per share in premarket trading.