When Grubhub Inc. (NYSE: GRUB) released its second-quarter financial results before the markets opened on Tuesday, the food delivery service posted $0.27 in earnings per share (EPS) and $325 million in revenue. The consensus estimates had called for $0.30 in EPS and $318.76 million in revenue, and the same period of last year reportedly had $0.50 in EPS and $239.74 million in revenue.
Gross Food Sales grew 20% year over year to $1.5 billion, up from $1.2 billion in the same period of last year.
At the same time, active diners increased 30% year over year to 20.3 million, and daily active grubs increased 16% to 488,900.
Looking ahead to the third quarter, the company expects to see revenue in the range of $320 million to $340 million and adjusted EBITDA of $53 million to $60 million. Consensus estimates call for $0.34 in EPS and $332 million in revenue for the quarter.
Matt Maloney, Grubhub founder and CEO, commented:
The team continued executing in the second quarter, adding thousands of new, high-quality independent and enterprise restaurants and growing our active diner base to more than 20 million. We are excited about the trajectory of our two-sided marketplace – both in terms of geographic diversity and depth in individual markets. Restaurants are increasingly valuing the incremental sales and products we provide, while diners highly regard our robust restaurant selection and consistently low transaction fees.
Shares of Grubhub traded down about 10% Tuesday, at $71.84 in a 52-week range of $60.20 to $149.35. The consensus price target is $98.04.
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