Grubhub Inc. (GRUB) has reported a 78.34 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $17.72 million, or $0.20 a share in the quarter, compared with $9.93 million, or $0.12 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $25.12 million, or $0.29 a share compared with $17.24 million or $0.20 a share, a year ago. Revenue during the quarter surged 39.11 percent to $156.13 million from $112.24 million in the previous year period. Total expenses were 84 percent of quarterly revenues, down from 84.56 percent for the same period last year. This has led to an improvement of 56 basis points in operating margin to 16 percent.
Operating income for the quarter was $24.98 million, compared with $17.33 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $42.68 million compared with $32.37 million in the prior year period. At the same time, adjusted EBITDA margin contracted 151 basis points in the quarter to 27.33 percent from 28.84 percent in the last year period.
"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," said Matt Maloney, Grubhub chief executive officer. "We already had the most comprehensive takeout marketplace in the U.S., and delivery has enabled our restaurant network to grow significantly in both breadth and depth, making Grubhub the place to go for online takeout."
For financial year 2017, Grubhub Inc. forecasts revenue to be in the range of $632 million to $662 million. It projects net income to be in the range of $57.20 million to $69.10 million for the same period.
For the second-quarter, Grubhub Inc. forecasts revenue to be in the range of $153 million to $161 million. It projects net income to be in the range of $11.60 million to $15.20 million for the same period.
Operating cash flow improves significantly
Grubhub Inc. has generated cash of $51.59 million from operating activities during the quarter, up 176.38 percent or $32.92 million, when compared with the last year period. The company has spent $14.06 million cash to meet investing activities during the quarter as against cash inflow of $14.38 million in the last year period.
The company has spent $2.10 million cash to carry out financing activities during the quarter as against cash inflow of $1.17 million in the last year period.
Cash and cash equivalents stood at $275.04 million as on Mar. 31, 2017, up 35.28 percent or $71.72 million from $203.31 million on Mar. 31, 2016.
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