GrubHub Gobbles-Up Revenue With Increased Customer Demand From Online Foodies
It doesn't take a complicated app or business idea to strike it rich, and some of the most popular apps are so simple, you've probably slapped yourself on the forehead while muttering, 'Why didn't I think of that?!' Just look at GrubHub. It's a food delivery service that grabs your grub from local hubs and brings it to you. That simple concept resulted in record revenues of $61.9 million for the company's fiscal quarter ended September 30, 2014.
"GrubHub delivered strong third quarter results featuring record revenues and adjusted EBITDA driven by growth in all of our key business metrics," said Matt Maloney, CEO. "Due to the strength of our brand and effectiveness of our new brand campaign, growth in active diners remained strong even as we reduced overall advertising spend sequentially in the seasonally slow third quarter."
GrubHub is growing in a big way. That $61.9 million revenue represents a 51 percent year-over-year growth rate. After paying the bills, GrubHub was left with a $6.5 million profit for the quarter, which is up a whopping 442 percent from the same period a year ago. Why the sudden increase?
Maloney credits the growth to "continued momentum from the roll-out of restaurant-driven pricing." Whether or not that's truly the reason, the numbers are impressive. GrubHub served 4.57 million diners during the quarter, up 50 percent from the 3.05 million it served a year ago. Daily average grubs jumped by a third to 172,700, and gross food sales rose 37 percent to $424 million.
"GrubHub delivered strong third quarter results featuring record revenues and adjusted EBITDA driven by growth in all of our key business metrics," said Matt Maloney, CEO. "Due to the strength of our brand and effectiveness of our new brand campaign, growth in active diners remained strong even as we reduced overall advertising spend sequentially in the seasonally slow third quarter."
GrubHub is growing in a big way. That $61.9 million revenue represents a 51 percent year-over-year growth rate. After paying the bills, GrubHub was left with a $6.5 million profit for the quarter, which is up a whopping 442 percent from the same period a year ago. Why the sudden increase?
Maloney credits the growth to "continued momentum from the roll-out of restaurant-driven pricing." Whether or not that's truly the reason, the numbers are impressive. GrubHub served 4.57 million diners during the quarter, up 50 percent from the 3.05 million it served a year ago. Daily average grubs jumped by a third to 172,700, and gross food sales rose 37 percent to $424 million.
