Waitr Holdings Inc. (Nasdaq: WTRH) (“Waitr” or the “Company”), a leader in on-demand food ordering and delivery, today announced its preliminary unaudited financial results for the second quarter ended June 30, 2020.
Preliminary Unaudited Second Quarter 2020 Results
On a preliminary, estimated basis:
- Revenue for the second quarter of 2020 was approximately $60 million, compared to $51.3 million in the second quarter of 2019.
- Net Income for the second quarter of 2020 was at least $8 million, compared to a net loss of $24.9 million in the second quarter of 2019.
- Adjusted EBITDA1 for the second quarter of 2020 was at least $15 million, compared to negative EBITDA of $14.9 million in the second quarter of 2019, an increase of almost $30 million.
- As of June 30, 2020, cash on hand was approximately $66 million.
- During the second quarter of 2020, the Company converted approximately $12.5 million of its convertible notes into common stock. On July 2, 2020 the Company paid down $12.5 million of its senior secured term loan.
Business Update
“We are pleased to present a preliminary look at our second quarter results and we are excited to deliver strong revenue growth and profitability, driven, in part, by an uptick in new diners and orders. While the events of the last several months have accelerated the adoption of our platform by consumers, we believe the important steps we adopted early this year, pre-pandemic, to super-charge our business are starting to be recognized in our financial results,” said Carl Grimstad, Chairman and CEO of Waitr.
“Continued strong results reflect the hard work of our team members, our restaurant partners and our drivers, as well as the trust that we have earned from consumers who have relied on us to deliver high-quality food throughout the pandemic,” added Mr. Grimstad. “Over the course of the last six months, we have reinforced our presence in our most important markets by increasing delivery areas, adding grocery and alcohol delivery services, and expanding our customer service and dispatch teams. All these growth initiatives are being supported by a leaner cost structure and with an eye on efficiencies and appropriate returns on deployed capital.”
Since the onset of the pandemic, Waitr has been nimble in adapting its business. Waitr continues to actively work with our local communities, diners, restaurant partners, drivers and employees in joint efforts to mitigate risks and hardships arising from the ongoing pandemic. The Company has been working with new and existing restaurant partners to boost their delivery potential and sustain their businesses in the current environment, and has provided restaurants with free marketing and promotions, discounted delivery fees and other support. Waitr also recently added a donation feature to its app, the proceeds from which will go to Feeding America and other similar charities to help feed those in need.
“The increased demand for our services enables us to provide our communities with employment opportunities for drivers,” said Mr. Grimstad. “The increase in the number of drivers, in turn, ensures expanded capacity and improved service for our restaurant partners and diners.”
The Company expects to release its second quarter 2020 results in early August. The date on which the Company expects to issue such release will be announced in the near future.
Preliminary Results
The financial results presented in this press release are preliminary, estimated and unaudited. They are subject to the completion and finalization of Waitr’s financial and accounting closing procedures and reflect management’s estimates based solely upon information available to management as of the date of this press release. Further information learned during that completion and finalization may alter the final results. In addition, the preliminary estimates should not be viewed as a substitute for full quarter financial statements prepared in accordance with generally accepted accounting principles in the United States of America. There is a possibility that Waitr’s second quarter financial results could vary materially from these preliminary estimates. In addition to the completion of the financial closing procedures of Waitr, factors that could cause actual results to differ from those described above are set forth below under “Cautionary Note Concerning Forward-Looking Statements.” Accordingly, you should not place undue reliance upon this preliminary information.
