Online food delivery service GrubHub saw a big uptick in customers during the first three months of the year, sending its shares surging more than 18% in mid-day trading on Thursday.
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GrubHub's stock is going crazy because it added so many new 'active diners' (GRUB)
GrubHub CEO Matt Maloney attributed the growth to broader marketing reach, a growing selection of restaurants and product improvements.
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The company said "active diners" on its app totaled 8.75 million in the first quarter of the year, up 26% from the year-ago period. Gross food sales of $828 million were also up 26%.
The strong performance comes despite heated competition from other food-delivery startups and tech giants such as Uber, Amazon and Yelp.
GrubHub's Q1 revenue rose 39% year on year to $156.1 million, ahead of the $153 million expected by analysts polled by Thomson Reuters. The company's net income increased 70% year-on-year to $17.7 million, with earnings per share, excluding certain items, of $0.29.
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GrubHub's stock was up 18.45% at $41.51, with nearly three times the average volume of shares trading hands on Thursday.
Look at that chart:
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