On Thursday, shares of online and mobile food ordering company Grubhub Inc. are popping, up over 19% in morning trading after they reported first-quarter financial results that beat expectations.
Grubhub reported earnings of 29 cents per share (this number excludes 9 cents from non-recurring items), surpassing the Zacks Consensus Estimate of 24 cents per share. Revenues of $156.1 million also beat our consensus estimate and increased 39% year-over-year. Non-GAAP adjusted EBITDA came in at $42.7 million, growing 32% from the year-ago period.
In Q1, active diners were 8.75 million, increasing 26% year-over-year from 6.97 million active diners in the first quarter of 2016. Daily Average Grubs (DAGs) were 324,600, growing 21% year-over-year, while gross food sales were $898 million grew 26% from the prior year period.
"More new diners tried Grubhub than ever before in the first quarter. We are seeing clear signs of success from a more diverse restaurant base, broader marketing reach, and continuous improvement of our product," said Matt Maloney, Grubhub CEO.
"We already had the most comprehensive takeout marketplace in the U.S., and delivery has enabled our restaurant network to grow significantly in both breadth and depth, making Grubhub the place to go for online takeout,” he continued.
Looking ahead, Grubhub expects second-quarter revenues in the range of $153 million to $161 million and fiscal 2017 revenues in the range of $632 million to $662 million. The company also forecasts second-quarter adjusted EBITDA between $38 million and $44 million, and full year 2017 adjusted EBITDA between $170 million and $190 million.
Currently, GRUB is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘C.’
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Here's Why Grubhub (GRUB) Stock is Popping 19% After Earnings
On Thursday, shares of online and mobile food ordering company Grubhub Inc. are popping, up over 19% in morning trading after they reported first-quarter financial results that beat expectations.
Grubhub reported earnings of 29 cents per share (this number excludes 9 cents from non-recurring items), surpassing the Zacks Consensus Estimate of 24 cents per share. Revenues of $156.1 million also beat our consensus estimate and increased 39% year-over-year. Non-GAAP adjusted EBITDA came in at $42.7 million, growing 32% from the year-ago period.
In Q1, active diners were 8.75 million, increasing 26% year-over-year from 6.97 million active diners in the first quarter of 2016. Daily Average Grubs (DAGs) were 324,600, growing 21% year-over-year, while gross food sales were $898 million grew 26% from the prior year period.
"More new diners tried Grubhub than ever before in the first quarter. We are seeing clear signs of success from a more diverse restaurant base, broader marketing reach, and continuous improvement of our product," said Matt Maloney, Grubhub CEO.
"We already had the most comprehensive takeout marketplace in the U.S., and delivery has enabled our restaurant network to grow significantly in both breadth and depth, making Grubhub the place to go for online takeout,” he continued.
Looking ahead, Grubhub expects second-quarter revenues in the range of $153 million to $161 million and fiscal 2017 revenues in the range of $632 million to $662 million. The company also forecasts second-quarter adjusted EBITDA between $38 million and $44 million, and full year 2017 adjusted EBITDA between $170 million and $190 million.
Currently, GRUB is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘C.’
Zacks’ Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but chosen members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting today, and for the next month, you can follow all Zacks’ private buys and sells in real time. Our experts cover all kinds of trades: value, momentum, ETFs, stocks under $10, stocks that corporate insiders are buying up, and companies that are about to report positive earnings surprises. You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks’ secret trades>>