GrubHub's Sales Shine In First Results Since IPO


GrubHub Inc (NYSE:GRUB) reported higher-than-expected revenue in its first quarterly results as a public company as more people used the online food-delivery service to order takeout meals.

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GrubHub's shares jumped as much as 8 percent in extended trading on Thursday after the company also forecast current-quarter sales above estimates.

The company, which delivers everything from expensive steaks to bento boxes, receives a commission from restaurants on orders booked through its website and its mobile application.

Restaurants prefer services such as GrubHub as they cut down the time spent taking orders on the phone during peak hours.

GrubHub Chief Executive Matt Maloney said results were helped by the severe winter, when "people eat in more and dine out less".

The company, which bought its biggest rival Seamless last year, said it expects current-quarter revenue of $53 million-$55 million, above the average analyst estimate of $52.6 million, according to Thomson Reuters I/B/E/S.

GrubHub bought Seamless in August to boost its presence in the U.S. East Coast. Seamless is popular with large businesses, which order food for employees working long hours.

"(The company sees) growth in getting deeper in the existing market," Maloney said, noting that Americans spend about $67 billion every year on takeout from independent restaurants.

GrubHub said that active diners in the quarter ended March 31 grew 49 percent to 3.9 million from a year earlier.

The company's profit more than tripled to $4.4 million, or 6 cents per share, from $1.3 million, or 3 cents per share, a year earlier, before it bought Seamless.

Revenue more than doubled to $58.6 million, above the average analyst estimate of $53.4 million.

Shares of Chicago-based GrubHub, which went public in April, were trading at $32.49 after the bell. The stock closed at $31.38 on Thursday on the New York Stock exchange, 21 percent above its IPO price.

(Reporting By Sampad Patnaik and Supantha Mukherjee in Bangalore; Editing by Saumyadeb Chakrabarty)