Shares of online and mobile food-ordering company, GrubHub Inc. (NYSE: GRUB) fell after missing analysts’ expectations, but beats on revenue. The company reported fourth-quarter earnings of $0.23, missing by $0.02, on revenues of $137.5 million, beating by $0.19 million. Orders grew 21 percent year-over-year, and the company’s revenue is a 38 percent year-over-year increase from $100 million in the fourth quarter of 2015.
GrubHub connects more than 40,000 local restaurants with diners in more than 1,000 cities across the United States. For restaurants, GrubHub generates higher margin takeout orders at full menu prices. The Company’s target market is primarily consists of independent restaurants. Diners can access the platform through www.grubhub.com and www.seamless.com. The Company offers diners access to the network through its mobile applications designed for iPhone, iPad, Android, iWatch and Apple TV devices. The Company provides a corporate program that helps businesses address problems in food ordering and associated billing. In certain markets, the Company also provides delivery services to restaurants on its platform that do not have their own delivery operations. Allmenus.com and MenuPages.com provide an aggregated database of approximately 380,000 menus from restaurants.
“Grubhub had a transformative year in 2016. We dramatically improved our product and reaccelerated order growth. Fueled by data-driven product enhancements, substantial strides in delivery, and a refreshed marketing approach, we exited the year growing DAGs faster than we did a year ago,” said Matt Maloney, Grubhub CEO. “With Grubhub delivery now in roughly 70 markets across the country and a significantly improved restaurant network, we enter 2017 well positioned to press our market leading advantage and give Grubhub growth momentum for years to come.”
Fourth Quarter Financial Highlights
Revenues: $137.5 million, a 38% year-over-year increase from $100.0 million in the fourth quarter of 2015.
-Net Income: $13.6 million, or $0.16 per diluted share, a 21% year-over-year increase from $11.3 million, or $0.13 per diluted share, in the fourth quarter of 2015.
-Non-GAAP Adjusted EBITDA: $39.2 million, a 46% year-over-year increase from $26.8 million in the fourth quarter of 2015.
-Non-GAAP Net Income: $19.8 million, or $0.23 per diluted share, a 19% year-over-year increase from $16.7 million, or $0.19 per diluted share, in the fourth quarter of 2015.