GrubHub Revenue Soars 36.3% in Q4 Earnings

GrubHub IPO
The GrubHub Inc. app is displayed on an Apple Inc. iPhone 5 in Tiskilwa, Illinois, U.S., on Wednesday, April 2, 2014. GrubHub Inc., the Internet platform that enables users to order pick-up and delivery from restaurants, raised the expected price range for its initial public offering to $23 to $25 per share from $20 to $22 in a regulatory filing on Tuesday. The company plans to list on the New York Stock Exchange under the ticker symbol GRUB. Photographer: Daniel Acker/Bloomberg via Getty Images
Photograph by Daniel Acker — Bloomberg via Getty Images

GrubHub, the online food order and delivery company, reported a 36.3% jump in revenue for the last three months of 2015 as more diners used its services.

In addition to its namesake brand, GrubHub owns Seamless, AllMenus, and MenuPages.

The company’s (GRUB) net income rose to $11.3 million in the fourth quarter ended Dec. 31, from $10.8 million a year earlier.

On a per-share basis, earnings were flat at 13 cents. Revenue increased to $100 million from $73.3 million.

“The growth in our delivery network has greatly expanded our potential universe of restaurant partners, helping us work with restaurants that don’t currently offer delivery, but want access to our 6.7 million active diners,” CEO Matt Maloney said in a statement. “As a result, our restaurant network is broader and deeper than ever, with over 40,000 partners in more than 1,000 cities.”

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The company’s 6.75 million “active diners” in the fourth quarter were a 34% increase from the same time period a year ago.

“Daily average grubs,” as GrubHub calls them, were 241,800, up 19% from the same time a year ago. Gross food sales were up 26% to $643 million.

GrubHub reported full-year revenues of $361.8 million, up 43% from a year ago, and gross food sales of $2.4 billion.

“Our capital-efficient model and strong free cash flow have enabled us to introduce a share buyback to return value opportunistically to shareholders while increasing our overall flexibility through the planned establishment of a credit facility,” Maloney added. “This flexibility will allow us to acquire attractive assets at reasonable prices if the recent market volatility creates opportunities.”

With additional reporting from Reuters.

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