GrubHub Inc. (NYSE: GRUB) released its third-quarter earnings report before the markets opened on Wednesday. The company posted $0.23 in earnings per share (EPS) and $123.5 million in revenue. The consensus estimates from Thomson Reuters called for $0.19 in EPS and revenue of $118.45 million. In the same period of last year, GrubHub reported EPS of $0.13 and $85.66 million in revenue.
Gross food sales totaled $735 million in the quarter, a 33% year-over-year increase from $554 million in the third quarter of 2015.
Daily average grubs were 267,500, a 26% increase from 211,500 daily average grubs in the same period of last year. Active diners were 7.69 million, an increase of 19% from 6.43 million active diners in the third quarter of 2015.
In terms of guidance for the fourth quarter, the company expects to have revenues in the range of $136 million to $138 million and adjusted EBITDA in the range of $38 to $40. The consensus estimates are $0.23 in EPS and $136.18 million in revenue.
Matt Maloney, CEO of Grubhub, commented:
We are pleased with Grubhub’s third quarter growth, as we continue building the most comprehensive marketplace for restaurants and takeout diners. Our product improvements and investment in delivery continue to generate high levels of sustainable growth. Grubhub is now delivering for restaurant partners in over 60 markets nationwide, and our growth rate is generally highest in markets where a substantial percentage of orders are being delivered by our drivers.
Adam DeWitt, CFO of Grubhub, added:
Grubhub had strong topline and bottom line results in the third quarter, generating record net revenues and significant operating leverage. This strong growth, combined with the high incremental margins of our business model, drove adjusted EBITDA per order to $1.44, a 31% increase compared to the third quarter of 2015.
On the books, Grubhub’s cash, cash equivalents and short-term investments totaled $296.6 million at the end of the quarter, versus $310.7 million at the end of 2015.
Shares of GrubHub were trading down over 6% at $40.67 on Wednesday, with a consensus analyst price target of $44.06 and a 52-week trading range of $17.77 to $44.58.