Grubhub Reports Q2 Earnings, Sales and Users Jump But Profits Dip

Grubhub released its 2020 second quarter results earlier today and the numbers show a massive spike in usage. The period from March 1st to June 30th reported revenues jumped 41% going from $459 million from $325 compared to the previous period. 

Active diners on the platform improved 35% to 27.5 million, an increase of 7.2 million users from Q2 of 2019. Gross food sales topped $2.3 billion, a 59% year-over-year increase.

While top-line revenue numbers and engagement were rosy, non-GAAP adjusted EBITDA saw a 76% decrease and net loss was reported at $15.9 million compared to a profitable second quarter in 2019. 

Grubhub CEO and founder, Matt Maloney stated: 

"Our singular focus for the second quarter was to support our restaurant partners as much as possible in their time of need. With a little help from increased demand, we are proud to announce we were able to spend approximately $100 million supporting and keeping restaurants, drivers and diners safe during these difficult times,"

Despite the support Grubhub has publicly pledged for restaurants, they have been under fire in cities throughout the country with mandates capping fees as restaurants struggle to survive from the combination of lost traffic, reduced hours, and capacity restrictions. 

Grubhub said they would not be reporting further guidance due to their pending acquisition by Just Eat Takeaway.com.