Grubhub Inc. (NYSE: GRUB) reported its fourth quarter financial results on Thursday before market open and missed its quarterly estimates, causing shares to plunge by 19%.
For the fourth quarter, Grubhub reported earnings of USD 19 cents per share on revenue of USD 287.7 Million. Analysts expected earnings of USD 28 cents per share on revenue of USD 290 Million.
Despite the earnings miss, Grubhub saw a strong increase across its charts. Revenue increased by 40% year-over-year, while earnings per share rose by 47% in the same period.
Active diners were 17.7 million for the quarter, increasing by 22% from 14.5 million last year. Daily average grubs, which is the number of orders placed on the platform, were 467,500, increasing 19% year-over-year. Gross food sales totaled USD 1.4 Billion, increasing by 21% year-over-year.
Grubhub saw its quarterly and annual cost and expenses increase. For the quarter, expenses rose to USD 290.47 Million from USD 178.92 Million. As for the full year, the Company reported that expenses rose to USD 922.29 Million from USD 598.31 Million a year prior.
“2018 was a transformational year for Grubhub. We made great progress connecting hungry takeout diners with the restaurants they want, further positioning ourselves to continue to capture a significant share of the more than USD 200 Billion takeout industry in the U.S.,” said Matt Maloney, Grubhub’s Founder and Chief Executive Officer.
“We deepened relationships with our restaurant partners through acquisitions of LevelUp and Tapingo, increased the number of restaurants that partner with us to more than 105,000, grew active diners on our platform by 3.2 million, and – most emblematic of the year – accelerated organic DAG growth on our marketplace every single quarter. We couldn’t be more excited about building on this momentum in 2019.” concluded Maloney.
For the first quarter, Grubhub expects revenue in the range of USD 310 Million to USD 330 Million and an adjusted EBITDA range between USD 40 Million to USD 50 Million. As for the full year, the Company expects revenue between USD 1.3 Billion to USD 1.4 Billion and an adjusted EBITDA range of USD 235 Million to USD 265 Million.