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GrubHub Inc. shares fell more than 2% in the extended session Wednesday after the company missed earnings expectations and did not issue revenue guidance amid the COVID-19 pandemic.
The online food-ordering platform GRUB, +6.36% reported a first-quarter net loss of $33.4 million, which amounts of 36 cents a share, versus net income of $6.9 million, or 7 cents a share, in the year-ago period. Adjusted for stock-compensation and other items, earnings were zero cents a share. Analysts expected an adjusted loss of 4 cents a share.
Revenue rose to $363 million from $323.8 million in the year-ago period. The company did not provide second-quarter revenue guidance.
On April 13, GrubHub told investors that it expected quarterly revenue of roughly $360 million, the midpoint of its guidance given Feb. 5 of $350 million to $370 million. The FactSet consensus revenue estimate was $358.1 million.
According to Cascend Securities, delivery demand increased 30% in March, which is the most sudden change it has seen.
Many of the largest food-delivery companies are private, such as DoorDash and Instacart, but Uber Technology Inc. UBER, -0.89% runs the Uber Eats platform. Uber reports earnings Thursday after the closing bell. Cascend said that almost every major food-delivery brand saw increases in the U.S.
GrubHub said in April that while its business was trending higher for the first 10 weeks of the quarter, its sales suffered in mid-March due to the coronavirus pandemic. GrubHub said its corporate business was hurt as offices closed and people were stuck at home. The company said entering the second quarter, ordering trends improved “significantly” in markets less affected by the pandemic.
Though GrubHub has said it “has a clear responsibility to help restaurants and all working individuals in our ecosystem,” it has been criticized for the high commissions and fees it has charged the struggling restaurant industry. Cities such as San Francisco have passed legislation limiting the mount of fees the company is allowed to charge through the pandemic.
GrubHub shares closed up 6.4% during the regular session Wednesday, as the S&P 500 index SPX, -0.69% closed down 0.7%.
