GrubHub Inc. shares rose in the extended session Wednesday after the online food-ordering platform reported increased revenue that beat estimates as the pandemic continued to bolster its business, even though it posted a wider-than-expected loss.
Shares of GrubHub
rose 1.3% in after-hours trading after closing the regular session down nearly 2.5% to $75.49. The company swung to a third-quarter loss of $9.2 million, or 10 cents a share, compared with a profit of $1 million, or 1 cents a share, in the year-ago period. Its loss per order was 15 cents. Analysts surveyed by FactSet had forecast a loss of 6 cents a share on revenue of $437.8 million.
As he did in the last quarter when his company posted a loss, GrubHub Chief Executive Matt Maloney cited his company’s help of its partners. “Since March, we have supported our restaurant partners with hundreds of millions of dollars through increased marketing support, reduced commissions, and bonuses and personal protective equipment for drivers.”
The company said it had 30 million active diners, a 41% increase from 21.2 million in the year-ago quarter. Revenue rose to $493.9 million from $322 million in the year-ago quarter, a 53% increase.
Adjusted earnings were $43.8 million, adjusted for merger, acquisition, restructuring and legal costs, plus stock-based compensation.
Chicago-based GrubHub is being bought by European company Just Eat Takeaway.com. That purchase was approved by JET shareholders earlier this month and is expected to be completed in the first half of next year.
GrubHub shares are up 55% this year.