In a statement, GrubHun CEO Matt Maloney said the company “delivered strong year-over-year growth in the third quarter, driven by dependable repeat usage and robust new diner adds”.
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The company faced service outages in the quarter as it moved to a new technology platform, Chief Financial Officer Adam DeWitt said on an analyst call. GrubHub typically sees a surge in orders during colder weather.
GrubHub (NYSE:GRUB) is an online food order and delivery company operating in more than 900 USA cities and London.
The company, which only took meal orders previously, has now been investing heavily in its food delivery business.
The company earned almost $6.9 million in the third quarter, up 6 percent from about $6.5 million in the third quarter of 2014.
GrubHub connects home and office diners with more than 35,000 restaurants. Ridesharing service Uber [UBER.UL] has also expanded its meal delivery service in a few cities.
So what: GrubHub shares have slumped sharply in recent months on concerns over increased competition, and today’s Q3 miss – adjusted EPS of $0.13 missed the average analyst estimate by $0.01 – coupled with downbeat guidance only reinforces those concerns.
2015 fourth-quarter outlook: GrubHub expects revenue in the $98 to $100 million range in the fourth quarter of 2015.
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Share price: GrubHub traded down about 30 percent early Tuesday at about $22.50. However, it failed to meet analysts’ estimates for the company, which were set at 14 cents per share. They fell to a low of $22.49. Revenue was more than $73 million in the fourth quarter of 2014, more than double what the company brought in during the same period in 2013. This is up 38% from the $61.9 million that it reported during the same time previous year.
