The food delivery company’s stock is up more than 27% this morning, trading at $39.17 per share.
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Grubhub shares popped about 14 percent before the market opened Thursday on news that it beat analyst estimates on revenue and earnings per share. Wall Street’s consensus estimates of $113 million.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 32% YoY to $28.4 million.
GrubHub states that there was a 24% increase in its active diners in the second quarter, boasting a number of 7.35 million users. Gross food sales gained 29% to $733M.
“Grubhub also generated a record number of orders in Q2 despite typical seasonal headwinds”, said Chief Executive, Matt Maloney said in a statement.
Daily Average Grubs were 271,100, a 23 percent year-over-year increase from 220,100 Daily Average Grubs in the second quarter of 2015.
Product enhancements, delivery initiative, and a better brand triggered diner expansion and a substantially-larger engagement in the quarter.
According to analysts at Cowen and Company, Grubhub’s strong second quarter was driven by a better tech platform and mobile app, a better selection of couriers and higher spending in advertising.
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GrubHub, a New York-based online platform for restaurant pick-up and delivery orders, had 7.35 active diners in the quarter, a 24% growth over past year. For fiscal year 2016 (FY16), it projects the top-line to be in the $480-488 million range, with $136-142 million in EBITDA.
