GrubHub Inc. reported second-quarter results that beat expectations and the online food ordering and delivery company raised its outlook for the year.
The Chicago company's shares rose 23% to $37.83 in recent trading, hitting a new 52-weeks high, as adjusted per-share earnings and revenue beat expectations.
"This is a clear re-acceleration of the business," Chief Executive Matt Maloney said in an interview, noting that having sales pick up during in the second quarter is unusual for its business, which tends to be a slower season as weather improves and diners are more likely to eat out.
GrubHub, which went public in April 2014, has generated increasing profit by charging restaurants a commission on orders booked through its service. The company's acquisitions of DiningIn and Restaurants on the Run last year expanded GrubHub's presence in online ordering as well as deliveries for independent restaurants.
For the year, the company raised its revenue guidance to $480 million to $488 million, from its previous projection for revenue of $450 million to $465 million.
For the third quarter, GrubHub forecast revenue of $116 million to $119 million, above estimates of analysts polled by Thomson Reuters for $114 million.
In the second quarter, GrubHub's number of active diners?accounts used to place at least one order in the previous 12 months?rose 24% to 7.35 million and average daily orders rose 23%. Gross food sales grew 29% to $733 million.
By contrast, in May GrubHub Inc. reported first-quarter earnings that merely met results and its shares fell as much as 15% amid concerns that its growth was slowing.
Over all, GrubHub reported a profit of $12.8 million, or 15 cents a share, up from $9.4 million, or 11 cents a share, a year earlier. Excluding acquisition-related charges and other items, adjusted per-share earnings rose to 23 cents from 17 cents. Analysts expected per-share profit of 19 cents.
Revenue increased 37% to $120.2 million. The company had expected revenue of $113 million to $115 million.
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