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GrubHub earnings miss on higher spending to fend off competition

(Reuters) – GrubHub Inc’s quarterly profit missed analyst estimates on Tuesday, hit by rising costs, such as the online food delivery company, faces off against a rival Uber, Eat, and DoorDash, and the sending of the inventory is at 6.6%.

GrubHub has acquired more than a half-dozen or so companies since its stock market debut in April 2014, and is spending aggressively to fend off competition.

In the second quarter, the company continued splurging of money on sales and marketing initiatives in the future. The total costs and expenses increased 55.3% to $318.9 million.

Net income attributable to common shareholders decreased to $1.3 million, or 1 cent per diluted share, for the second quarter ended June 30 from $30.1 million, or 33 cents a share, a year earlier.

With the exception of the items, the company earned 27 cents a share, compared with analysts ‘ estimates of 30 cents a share, according to IBES data, Refinitiv.

The revenue, however, increased by 36% to € 325.1 million, beating analysts ‘ expectations of $318.8 million.

Reporting by Abhishek Manikandan in Bengaluru; Editing by Saumyadeb Chakrabarty and Mark Kuber

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