Seeking Alpha
All posts from Seeking Alpha
Seeking Alpha in Seeking Alpha - Read, Decide, Invest.,

GrubHub: Focus On Growth Is Rewarded By Investors As They Applaud The Announced Deals

Investors in GrubHub (GRUB) are very enthusiastic about the fourth quarter results and two bolt-on deals which the company made.

The strong operational momentum gives the company confidence to issue upbeat guidance for the coming year, as the company aggressively pursues the possibilities in a huge takeout market. I can only applaud this strategy, warranting a speculative long-term position.

Ending 2014 On A Strong Note

The earnings report shows that GrubHub ended the year on a strong note, with revenues being up by 50% to $73.3 million. This actually marks a very modest sales acceleration compared to the 49% sales growth reported for the entire year.

Adjusted EBITDA rose by 92% to $25.0 million, translating into adjusted EBITDA margins of 34.1%, compared to the full-year margins of 31.0% of sales. Most spectacular has been the improvement in the bottom line with net earnings nearly five-folding to $10.8 million.… Read More …