Waitr Holdings Inc. (Nasdaq: WTRH) (“Waitr” or the “Company”), a
leader in on-demand ordering and delivery, today reported financial
results for the first quarter of 2022.
First Quarter 2022 Highlights
- Revenue for the first quarter of 2022 was $35.0 million,
compared to $38.6 million for the fourth quarter of 2021 and $50.9
million for the first quarter of 2021, due in part to macroeconomic
factors in our markets affecting order flow as well as the lack of
stimulus payments in the first quarter of 2022 unlike those
distributed in the first quarter of 2021.
- Net loss for the first quarter of 2022 was $77.2 million, $0.50
per share, compared to a net loss of $3.7 million in the first
quarter of 2021, or $0.03 per share. Net loss for the first quarter
of 2022 included a $67.2 million goodwill impairment mainly due to
a decline in our stock price and market capitalization in mid-March
2022, with other contributing macroeconomic and industry-related
conditions during the first quarter of 2022.
- Adjusted EBITDA1 for the first quarter of 2022 was a loss of
$1.8 million, compared to Adjusted EBITDA of $8.3 million for the
first quarter of 2021.
- As of March 31, 2022, cash on hand was $54.9 million.
“Prior to my tenure at Waitr, we had no integrations with third
party aggregators, point of sale systems or any individual
restaurants. We have since added integrations with Google Food
Ordering (“GFO”), Itsacheckmate, Chowly, Olo Dispatch (“Olo”),
Ordermark and Otter. Olo alone provides access to a large number of
deliveries in our markets for brands such as Whataburger, Your Pie,
Noodles & Company, Qdoba, Mr. Beast Burger, and Virtual Dining
Concepts. As our integration with GFO is further rolled out to our
restaurant base, we believe that our daily order flow should
increase. Additionally, we have completed our first direct
integration with Panera Bread and are currently in various stages
of integrating with 3 other major national quick service restaurant
(“QSR”) brands that we anticipate to be completed in the second and
third quarters of 2022. Assuming all are integrated, these brands
could add up to an additional 1,500 serviceable QSR locations to
our platforms. We are in the final stages of testing an integration
with 7-Eleven, which we anticipate will be completed in the second
quarter of 2022. If completed, we anticipate this integration could
add up to 500 additional serviceable locations. We also recently
signed a partnership agreement with Inspire Brands to bring their
brands, such as Buffalo Wild Wings, Sonic, Jimmy John’s, Rusty
Taco, Mister Donut, Dunkin Donuts and Baskin-Robbins, to the Waitr
platform. We believe that these new partnerships should bring
increased visibility, increased diner access, and increased order
volume to the Company,” said Carl Grimstad, Chairman and CEO of
Waitr.
“We have built our own instant pay technology for our
independent contractor drivers that we intend to commercialize and
rollout to restaurant partners and potentially to other verticals.
Along with instant payment access, our drivers now have access to
other forms of payment including stablecoin, via Figure
technologies, and discounted gift cards through our integration
with Prizeout. For example, with Prizeout, a driver may be able to
buy a $100 gas card for $90 and access other gift cards to over 100
major retailers such as Best Buy, Home Depot, Starbucks and Taco
Bell,” continued Grimstad.
“Another addition to the Company is our proprietary in-stadium
ordering technology that allows fans to avoid long lines at stadium
concession areas by offering delivery to a fan’s seat so that they
don’t miss any live action. Our in-stadium technology is currently
active at the University of Alabama, Louisiana State University and
the New Orleans Saints Superdome and our plan is to add more
venues. We also see our in-stadium technology as a customer
acquisition tool,” said Grimstad.
Additionally Mr. Grimstad noted, “I want to also share that we
are further developing our "deliver anything" initiative with
several third-party technology integrations. As consumers continue
to demand faster service and delivery of a broader range of
products, we believe that last-mile delivery will be an essential
service that both consumers will demand and merchants will need.
Our vision is to be able to deliver "anything" to consumers, same
day, from any type of business. We believe that coupled with our
solid driver base, our “deliver anything” capability should allow
us to increase revenue potential for the Company, as well as the
earnings potential for our drivers. Moreover, we believe that we
will be able to continue to facilitate merchant access to
third-party payment solution providers to grow that revenue stream,
whether organically or through acquisition.”
“We are happy with our progress facilitating over 2,300
merchants with access to third party providers, and we plan to grow
this merchant base. We believe that the residual revenue from these
customers should continue to grow. We continue to evaluate
non-plant touching technology in the cannabis industry, as well as
"Buy Now, Pay Later" options to be added to our platforms.
“With our recent new hires, the Company’s first Chief Technology
Officer and Chief Information Officer, we have begun the process of
migrating from three platforms to a single technology platform and
application. When COVID hit, we chose to focus engineering
resources on smaller technology upgrades to ensure the stability of
the platforms. We now have the appropriate time and resources to
consolidate our platforms which, once completed, should provide
cost and resource savings. The shift to one platform and
application should streamline our product build cycles to
facilitate the addition of various feature-enhancements as well as
to streamline our service levels,” added Grimstad.
"When I became CEO of Waitr, we had approximately $131 million
of debt. With our newly negotiated pay-down and extension of the
debt maturity to May 15, 2024, the Company’s debt balance will be
approximately $65 million, a decrease of 50% over this time,”
explained Grimstad.
“Now, with respect to our performance in the first quarter, we
continue to experience negative macroeconomic factors that weighed
on our markets in the first quarter of 2022, headlined by inflation
and high gas prices. As a result, orders were lighter than
expected. We believe part of this is due to our smaller, lower
income markets and our restaurant selection having limited lower
priced QSR options. However, as noted earlier, we are currently
integrating with 3 major brands that should help our order flow by
offering more lower-priced restaurant options. We remain excited
about our future. As previously announced, we are making progress
on our rebranding strategy to “ASAP” which will serve as the
foundation of our brand moving forward of delivering anything ASAP.
We believe this name better embodies the future direction of our
Company as we continue to expand our product offerings to all of
our constituents. You will start seeing the ASAP brand in the
marketplace in the near future as we start to roll out the name and
move to a complete rebrand in the third and fourth quarters of
2022,” added Mr. Grimstad.
“We remain focused on executing these initiatives with the goal
to see positive traction during the second half of 2022,” concluded
Mr. Grimstad.
First Quarter 2022 Key Business Metrics
- Average Daily Orders were 22,907 for the first quarter of
2022.
- Active Diners as of March 31, 2022 were approximately 1.5
million.
First Quarter 2022 Earnings Conference Call
The Company will host a conference call to discuss first quarter
2022 financial results today at 5 p.m. ET. The conference call will
be webcast live from the Company’s investor relations website at
http://investors.waitrapp.com. The call can also be accessed live
over the phone by dialing (877) 300-8521, or for international
callers (412) 317-6026. A replay will be available one hour after
the call and can be accessed by dialing (844) 512-2921 or (412)
317-6671 for international callers; the conference ID is 10166846.
The replay will be available until Monday, May 16, 2022.
About Waitr Holdings Inc.
Founded in 2013 and based in Lafayette, Louisiana, Waitr
operates an online ordering technology platform, providing
delivery, carryout and dine-in options. Waitr, along with Bite
Squad and Delivery Dudes, connect local restaurants and grocery
stores to diners in underserved U.S. markets. Additionally, Waitr
facilitates access to third parties that provide payment processing
solutions for restaurants and other merchants. Together, they are a
convenient way to discover, order and receive great food and other
products from local restaurants, national chains and grocery
stores. As of March 31, 2022, Waitr, Bite Squad and Delivery Dudes
operate in approximately 1,000 cities throughout the United
States.
Cautionary Note Concerning Forward-Looking Statements
This press release contains “forward-looking statements,” as
defined by the federal securities laws, including statements
regarding the Company’s financial results, implementation of
strategic initiatives, debt pay-down and future performance of the
Company. Forward-looking statements reflect Waitr’s current
expectations and projections about future events, and thus involve
uncertainty and risk. The words “believe,” “strategy,” “expect,”
“anticipate,” “will,” “could,” “would,” “should,” “may,” “might,”
“plan,” “estimate,” “intend,” “predict,” “potential,” “continue,”
“goal,” and the negatives of these words and other similar
expressions generally identify forward-looking statements. Such
forward-looking statements are subject to various risks and
uncertainties, including the impact of the coronavirus (COVID-19)
pandemic on the Company’s business and operations, and those
described under the section entitled “Risk Factors” in Waitr’s
Annual Report on Form 10-K for the year ended December 31, 2021,
filed with the SEC on March 11, 2022, as such factors may be
updated from time to time in Waitr’s periodic filings with the SEC,
which are accessible on the SEC’s website at www.sec.gov.
Additional information will be set forth in Waitr’s Quarterly
Report on Form 10-Q for the three months ended March 31, 2022,
which will be filed with the SEC on May [9], 2022, and should be
read in conjunction with these financial results. Accordingly,
there are or will be important factors that could cause actual
outcomes or results to differ materially from those indicated in
these statements. These factors should not be construed as
exhaustive and should be read in conjunction with the other
cautionary statements that are included in this release and in
Waitr’s filings with the SEC. While forward-looking statements
reflect Waitr’s good faith beliefs, they are not guarantees of
future performance. Waitr disclaims any obligation to publicly
update or revise any forward-looking statement to reflect changes
in underlying assumptions or factors, new information, data or
methods, future events or other changes after the date of this
press release, except as required by applicable law. You should not
place undue reliance on any forward-looking statements, which are
based only on information currently available to Waitr.
WAITR HOLDINGS INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended
March 31,
2022
2021
REVENUE
$
35,040
$
50,930
COSTS AND EXPENSES:
Operations and support
20,279
30,338
Sales and marketing
6,253
4,016
Research and development
1,311
999
General and administrative
11,545
10,186
Depreciation and amortization
3,065
2,917
Goodwill impairment
67,190
—
Gain on disposal of assets
(17
)
(3
)
TOTAL COSTS AND EXPENSES
109,626
48,453
(LOSS) INCOME FROM OPERATIONS
(74,586
)
2,477
OTHER EXPENSES AND LOSSES, NET
Interest expense
1,704
1,901
Other expense
910
4,264
NET LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
(77,200
)
(3,688
)
Income tax expense
16
24
NET LOSS FROM CONTINUING
OPERATIONS
$
(77,216
)
$
(3,712
)
LOSS PER SHARE:
Basic
$
(0.50
)
$
(0.03
)
Diluted
$
(0.50
)
$
(0.03
)
Weighted-average shares used to compute
net loss per share:
Weighted average common shares
outstanding – basic
153,629,968
112,334,094
Weighted average common shares
outstanding – diluted
153,629,968
112,334,094
WAITR HOLDINGS INC.
CONSOLIDATED BALANCE
SHEETS
(In thousands, except per
share data)
(Unaudited)
March 31, 2022
December 31,
2021
ASSETS
CURRENT ASSETS
Cash
$
54,877
$
60,111
Accounts receivable, net
3,875
3,027
Capitalized contract costs, current
1,285
1,170
Prepaid expenses and other current
assets
5,293
8,706
TOTAL CURRENT ASSETS
65,330
73,014
Property and equipment, net
3,137
3,763
Capitalized contract costs, noncurrent
3,346
3,183
Goodwill
63,434
130,624
Intangible assets, net
43,000
43,126
Operating lease right-of-use assets
3,901
4,327
Other noncurrent assets
999
1,070
TOTAL ASSETS
$
183,147
$
259,107
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
CURRENT LIABILITIES
Accounts payable
$
5,985
$
7,018
Restaurant food liability
2,591
3,327
Accrued payroll
1,446
2,988
Short-term loans for insurance
financing
1,293
3,142
Income tax payable
90
74
Operating lease liabilities
1,420
1,581
Other current liabilities
20,055
19,309
TOTAL CURRENT LIABILITIES
32,880
37,439
Long term debt - related party
82,284
81,977
Accrued medical contingency
—
53
Operating lease liabilities, net of
current portion
2,745
3,034
Other noncurrent liabilities
59
2,115
TOTAL LIABILITIES
117,968
124,618
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value
15
15
Additional paid in capital
511,515
503,609
Accumulated deficit
(446,351
)
(369,135
)
TOTAL STOCKHOLDERS’ EQUITY
65,179
134,489
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
183,147
$
259,107
WAITR HOLDINGS INC.
CONSOLIDATED CASH FLOW
STATEMENTS
(In thousands)
(Unaudited)
Three Months Ended March
31,
2022
2021
Cash flows from operating
activities:
Net loss
$
(77,216
)
$
(3,712
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Non-cash interest expense
310
772
Stock-based compensation
1,671
2,078
Gain on disposal of assets
(17
)
(3
)
Depreciation and amortization
3,065
2,917
Goodwill impairment
67,190
—
Amortization of capitalized contract
costs
302
194
Change in fair value of contingent
consideration liability
81
—
Other
(24
)
(66
)
Changes in assets and liabilities:
Accounts receivable
(848
)
(1,624
)
Capitalized contract costs
(580
)
(655
)
Prepaid expenses and other current
assets
3,413
1,899
Other noncurrent assets
93
27
Accounts payable
(1,033
)
20
Restaurant food liability
(736
)
1,589
Income tax payable
16
24
Accrued payroll
(1,542
)
1,479
Accrued medical contingency
(53
)
(143
)
Other current liabilities
(940
)
8,051
Other noncurrent liabilities
(387
)
(38
)
Net cash (used in) provided by
operating activities
(7,235
)
12,809
Cash flows from investing
activities:
Purchases of property and equipment
(26
)
(165
)
Internally developed software
(2,347
)
(1,722
)
Purchase of domain names
(12
)
—
Acquisitions, net of cash acquired
—
(10,927
)
Proceeds from sale of property and
equipment
—
9
Net cash used in investing
activities
(2,385
)
(12,805
)
Cash flows from financing
activities:
Proceeds from issuance of stock
6,235
—
Payments on long-term loan
—
(14,472
)
Payments on short-term loans for insurance
financing
(1,849
)
(1,583
)
Payments on acquisition loans
—
(66
)
Proceeds from exercise of stock
options
—
6
Taxes paid related to net settlement on
stock-based compensation
—
(732
)
Net cash provided by (used in)
financing activities
4,386
(16,847
)
Net change in cash
(5,234
)
(16,843
)
Cash, beginning of period
60,111
84,706
Cash, end of period
$
54,877
$
67,863
Supplemental disclosures of cash flow
information:
Cash paid during the period for
interest
$
1,394
$
1,129
Supplemental disclosures of non-cash
investing and financing activities:
Stock issued as consideration in
acquisition
—
11,500
Noncash impact of operating lease assets
upon adoption
—
5,387
Noncash impact of operating lease
liabilities upon adoption
—
5,792
WAITR HOLDINGS INC. NON-GAAP FINANCIAL
MEASURE ADJUSTED EBITDA (In thousands) (Unaudited)
Adjusted EBITDA is not required by, nor presented in accordance
with, generally accepted accounting principles in the United States
of America (“GAAP”). We define Adjusted EBITDA as net loss adjusted
to exclude interest expense, income taxes, depreciation and
amortization expense, goodwill impairment, stock-based compensation
expense, gain on disposal of assets, change in fair value of
contingent consideration liability, acquisition transaction related
expenditures and other non-recurring adjustments and accrued legal
reserve and contingency. We use this non-GAAP financial measure as
a key performance measure because we believe it facilitates
operating performance comparisons from period to period by
excluding potential differences primarily caused by variations in
capital structures, tax positions, the impact of acquisitions and
restructuring, the impact of depreciation and amortization expense
on our fixed assets, the impact of goodwill impairment and
stock-based compensation expense and other items that do not
reflect our core operations. Adjusted EBITDA is not a measurement
of our financial performance under GAAP and should not be
considered as an alternative to net loss or other performance
measures derived in accordance with GAAP. A reconciliation of net
loss to Adjusted EBITDA is provided below:
Three Months Ended March
31,
2022
2021
NET LOSS
$
(77,216
)
$
(3,712
)
Interest expense
1,704
1,901
Income taxes
16
24
Depreciation and amortization expense
3,065
2,917
Goodwill impairment
67,190
—
Stock-based compensation expense
1,671
2,078
Gain on disposal of assets
(17
)
(3
)
Change in fair value of contingent
consideration liability
81
—
Transaction related expenditures and other
non-recurring adjustments
915
1,068
Accrued legal reserve and contingency
800
4,000
ADJUSTED EBITDA
$
(1,791
)
$
8,273
WAITR HOLDINGS INC. NON-GAAP FINANCIAL
MEASURES ADJUSTED NET INCOME (LOSS) AND ADJUSTED EARNINGS (LOSS)
PER DILUTED SHARE (In thousands, except share and per share data)
(Unaudited)
Adjusted net income (loss) and adjusted earnings (loss) per
diluted share are not required by, nor presented in accordance
with, GAAP. We define adjusted earnings (loss) per diluted share as
adjusted net income (loss) divided by our weighted average common
shares outstanding - diluted. Adjusted net income (loss) is
calculated as net loss plus goodwill impairment, change in fair
value of contingent consideration liability, acquisition
transaction related expenditures and other non-recurring
adjustments and accrued legal reserve and contingency. We use these
non-GAAP financial measures because we believe they facilitate
period to period comparisons of operating performance, by excluding
potential differences primarily caused by non-recurring items.
Goodwill impairment, change in fair value of contingent
consideration liability, acquisition transaction related expenses
and accrued legal reserve and contingency are considered
non-recurring items. Adjusted net income (loss) and adjusted
earnings (loss) per diluted share are not measurements of our
financial performance under GAAP and should not be considered as an
alternative to net income (loss) or earnings (loss) per share or
other performance measures derived in accordance with GAAP. A
reconciliation of net income (loss) to adjusted net income (loss),
along with adjusted earnings (loss) per diluted share, is provided
below:
Three Months Ended March
31,
2022
2021
Net loss
$
(77,216
)
$
(3,712
)
Goodwill impairment
67,190
—
Change in fair value of contingent
consideration liability
81
—
Transaction related expenditures and other
non-recurring adjustments
915
1,068
Accrued legal reserve and contingency
800
4,000
Adjusted net income (loss)
$
(8,230
)
$
1,356
Weighted average common shares outstanding
- diluted
153,629,968
112,334,094
Adjusted earnings (loss) per diluted
share
$
(0.05
)
$
0.01
_____________________________________ 1Adjusted EBITDA is a
non-GAAP financial measure. A reconciliation of GAAP net loss to
Adjusted EBITDA is included in the “Non-GAAP Financial
Measure/Adjusted EBITDA” table below.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220509006043/en/
Investors WaitrIR@icrinc.com
Media WaitrPR@icrinc.com
Waitr (NASDAQ:WTRH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Waitr (NASDAQ:WTRH)
Historical Stock Chart
From Apr 2023 to Apr 2024