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The online restaurant delivery business showed off strong growth across the board in its first-quarter report as user growth, revenue, and profits all grew more than anticipated. The parent of sites like Seamless, MenuPages, and its namesake GrubHub said revenue jumped 39% in the period to $156.1 million, which was better than expectations of $153 million.
That growth was fueled by a 26% jump in active diners to 8.75 million and 21% growth in Daily Average Grubs, or orders, to 324,600. On the bottom line, adjusted earnings per share increased from $0.20 to $0.29, beating estimates of $0.24.
CEO Matt Maloney said, "More new diners tried GrubHub than ever before in the first quarter. We are seeing clear signs of success from a more diverse restaurant base, broader marketing reach, and continuous improvement of our product."
As the leader in the fast-growing online restaurant delivery industry, GrubHub is likely to see a long tail of growth ahead of it -- with the business complementing other trends in e-commerce as more Americans stay home to do things that they used to go out for like shop and stream movies. The company is also better positioned in smaller cities across the country than rivals like UberEats and Postmates, giving it an advantage.
For the current quarter, GrubHub sees revenue growing by about 30% to $153 million-$161 million and a similar pace for the full year. With its operating leverage and momentum, profit growth could be even stronger.