Grubhub’s Growth Decelerates for the Fifth Straight Quarter
Grubhub (NYSE: GRUB) lost about 30% of its value over the past 12 months as its growth slowed, its expenses surged, and its profits turned into losses. It lost its crown as the top food delivery platform in America to DoorDash, and it struggled to present any viable turnaround plans for its core business.
Grubhub's mixed fourth-quarter earnings report indicated that that pain would likely continue. Its revenue grew 19% annually to $287.7 million, which beat estimates by $16.6 million but marked its fifth straight quarter of decelerating growth.
On a GAAP basis, it posted a net loss of $27.7 million, compared to its loss of $5.2 million a year earlier. On a non-GAAP basis, it reported a net loss of $4.2 million, down from a profit of $17.6 million in the prior-year quarter. That translated to a net loss of $0.05 per share, which missed estimates by two cents.
Source Fool.com
