GrubHub’s Revenue Soars as Online Orders Reach a Record High

July 29, 2016, 6:38 AM UTC
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
Daniel Acker/ Bloomberg via Getty Images

GrubHub‘s (GRUB) revenue increased more than expected in the second quarter as a record number of people used its service to order meals online, sending the company’s shares surging to a new year-high.

GrubHub‘s third-quarter revenue forecast also topped analysts’ estimates, indicating the company may have got a handle on the rising competition from’s (AMZN) Prime Now and recent entrant Uber’s (UBER) UberEATS.

The company’s shares rose as much as 27.8% to $39.29 in morning trading on Thursday and were the biggest gainer on the New York Stock Exchange on Thursday.

GrubHub, which serves more than 44,000 takeout restaurants in over 1,000 U.S. cities and London, said the number of active diners using its services rose 24% to 7.35 million in the second quarter ended June 30.

Grubhub also generated a record number of orders in Q2 despite typical seasonal headwinds,” said Chief Executive, Matt Maloney said in a statement.

The company’s revenue rose to $120.2 million from $88 million in the quarter, topping analysts average estimate of $114.2 million, according to Thomson Reuters.

Net income attributable to shareholders rose to $12.8 million, or 15 cents per share, from $9.4 million, or 11 cents per share, a year earlier.

The company forecast third-quarter revenue of $116 million-$119 million. Analysts on average were expecting $113.9 million.

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