Grubhub Inc. (NYSE: GRUB) reported third quarter financial results. Grubhub reported USD 322 Million in revenue, a 30% increase year over year from USD 247 Million in q3 of 2018. Gross food sales reached USD 1.4 Billion, an 15% increase from USD 1.2 Billion last year. The company reported 21.2 Million active diners for the third quarter, a 29% increase year over year from q3 2018’s
“Our teams had another strong quarter of execution, adding nearly one million active diners and 15,000 restaurants to our platform,” said Matt Maloney, Grubhub founder and CEO. “As we detail in our shareholder letter, we are entering the next phase of growth in the U.S. online food ordering industry where it is increasingly important to create a differentiated experience for diners and long-term value for restaurants. We are excited to leverage the robust profitability of our core business and best-in-class restaurant-facing products to grow our two-sided marketplace in a sustainable manner.”
Daily Average Grubs accumulated to 457,300 which is a 10% increase from 416,000 in Q3 2018. Gross food sales reached USD 1.4 Billion, a 15% year over year increase from USD 1.2 Billion a year prior.
“Last year, in the fourth quarter, we made opportunistic investments to expand delivery market coverage, increase new diner advertising and accelerate our enterprise brand sales efforts. Through the third quarter of 2019, we believe all three of these initiatives had a positive impact on our business and long-term shareholder value,” said Adam DeWitt, Grubhub President and CFO. “Importantly, we demonstrated the ability to generate operating leverage consistently throughout 2019 with EBITDA per order increasing 31% from $0.98 in the fourth quarter of 2018 to $1.28 in the third quarter of 2019. We are excited to embark on the initiatives detailed in the shareholder letter to further differentiate our marketplace for both restaurants and diners and position us for maintaining, and eventually improving, profitability.”
The company expects q4 revenue to range from 315 to USD 335 Million and adjusted EBITDA to range from 15 to USD 25 Million. Shares of Grubhub fell below USD 37 Tuesday morning, post announcement.