Grubhub reports 39% revenue growth in Q1 2019

29th April 2019 (Last Updated April 29th, 2019 12:24)

US-based food-ordering marketplace Grubhub has reported 39% year-over-year increase in revenues to $324m for the first quarter (Q1) ending 31 March 2019, compared to $233m last year.

Grubhub reports 39% revenue growth in Q1 2019
Grubhub has a network of more than 95,000 restaurant partners. Credit: Grubhub.

US-based food-ordering marketplace Grubhub has reported 39% year-over-year increase in revenues to $324m for the first quarter (Q1) ending 31 March 2019, compared to $233m last year.

The company’s gross food sales grew by 21% year-over-year to $1.5bn, compared to $1.2bn in the same period last year.

Net income of the company was $6.9m, or $0.07 per diluted share in Q1 2019, a 78% year-over-year decline compared to $30.8m, or $0.34 per diluted share, in the first quarter of 2018.

For the quarter, 19.3 million active diners used the platform, a 28% year-over-year increase compared to 15.1 million last year.

Grubhub president and chief financial officer Adam DeWitt said: “The strong momentum in our business throughout 2018 continued in the first quarter of 2019, including continued accelerating growth and a 21% sequential increase in adjusted EBITDA.

“The dramatic increase in the scale and diversity of our diner base combined with the consistent diner value outlined in the supplemental disclosure sets us up for a great future.

“We anticipate our typical seasonality in the second and third quarters and remain on track for both our topline and bottom-line objectives for the full year 2019.”

“We anticipate our typical seasonality in the second and third quarters and remain on track for both our topline and bottom-line objectives for the full year 2019.”

Grubhub CEO and founder Matt Maloney said: “We are extremely proud of our entire team for another fantastic quarter of execution record new diner growth, thousands of new quality restaurants added to our platform and a sixth consecutive quarter of organic order acceleration.

“Our partnership model allows restaurant brands, large and small to own their online business.”

The expected revenue for full year 2019 would range between $1,315m – $1,415m, and $305m – $325m for second quarter 2019, the company noted. With expected adjusted EBITDA would range between $235m – $265m for full year 2019 and $49m – $59m for second quarter 2019.