GrubHub Inc’s (NYSE: GRUB) revenue has beat expectations in the second quarter, causing its shares to skyrocket. Not only that, GrubHub’s third quarter forecast also beat analysts’ estimates, indicating that the company is in a good position, even though competitors, such as Amazon’s Prime Now and UberEATS, are entering the market.
Due to a huge number of people using its services, the company has set record numbers of orders online. Its shares increased 27% Thursday morning, landing on a price of $39.29. This was one of the biggest increases in the stock market on Thursday.
GrubHub states that there was a 24% increase in its active diners in the second quarter, boasting a number of 7.35 million users. The company is currently partnered with 44,000 takeout restaurants, serving customers in over 1000 cities located in U.S and London.
Matt Maloney, Chief Executive said “Grubhub also generated a record number of orders in Q2 despite typical seasonal headwinds.”
GrubHub Inc.’s revenue hit $120.2 million, a $30 million dollar increase from the company’s last quarter, beating out analyst’s estimate of $114.2 million.
The company also predicts that its revenue for the third quarter will be $116 million, beating out analyst’s estimate of $113.9 million.