May 6, 2020 - Economy & Business
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Food delivery company GrubHub's stock dropped by more than 5% in after-hours trading after it delivered mixed Q1 results, with strong revenue, widening losses and a year-on-year decrease in daily average orders.
Why it matters: The coronavirus pandemic is expected to help delivery services as Americans remain home and shift how they interact with restaurants. Yet tech companies that enable them also face mounting costs relating to their workers' health and safety, and GrubHub's Q1 results suggest existing headwinds going into the crisis.
By the numbers:
- Loss per share: $0.36, compared to $0.04 expected.
- Revenue: $363 million, compared to $357 million expected.
- Active diners: 23.89 million, up from 19.29 million a year ago.
- Daily average orders: 516,300, down from 521,000 a year ago.
- Gross food sales: $1.63 billion, up from $1.5 billion a year ago.