Waitr Holdings Inc. (Nasdaq: WTRH) (“Waitr”), a leader in on-demand food
ordering and delivery, today reported financial results for its fiscal
2019 first quarter ended March 31, 2019.
“We are very pleased with our results this quarter, including revenue
growth of 287%, which was a combination of Waitr driven organic growth
and the successful acquisition of Bite Squad on January 17,” said Chris
Meaux, founder and Chief Executive Officer of Waitr. “Importantly, we
continued to accelerate growth in the markets that we currently serve by
increasing restaurant selection and growing our active diner base.
During the first quarter, we added more than 3,600 restaurants, more
than 240,000 active diners and we continued to expand by adding service
to 49 new cities. Our continued rapid growth gives me confidence that we
have the right team, the right business model and the right technology
in place to optimize our pursuit of the large and growing off premise
market in the United States. 2019 is proving to be a transformational
year as we invest in continued growth, integrate Bite Squad and make
strategic infrastructure investments that will strengthen our foundation
and allow us to grow aggressively and efficiently into 2020 and beyond.”
First Quarter 2019 Financial Highlights
| • |
Revenue for the first quarter of 2019 increased 287% to $48.0 million compared to $12.4 million in the first quarter of 2018. Revenue related to the Bite Squad Merger totaled $22.9 million from the acquisition date through March 31, 2019. On a pro forma basis, revenue for the first quarter of 2019 increased 78% to $52.3 million compared to $29.4 million in the first quarter of 2018. |
| • |
Net loss for the first quarter of 2019 was $24.7 million, or $0.38 per diluted share, compared to a loss of $3.4 million, or $0.34 per diluted share, in the first quarter of 2018. Net loss included $6.9 million of one-time business combination specific expenses related to the Bite Squad transaction and $2.1 million of non-cash stock compensation expenses. |
| • |
Adjusted EBITDA1 for the first quarter of 2019 was a loss of $9.9 million compared to a loss of $2.1 million in the first quarter of 2018. |
First Quarter 2019 Key Business Metrics
| • |
Gross Food Sales2 for the first quarter of 2019 increased 215% to $170.4 million compared to $54.1 million in the first quarter of 2018. Gross Food Sales related to the Bite Squad Merger totaled $70.4 million from the acquisition date through March 31, 2019. |
| • |
Active Diners for the first quarter of 2019 increased 309% to 2.2 million compared to 541.9 thousand for the first quarter of 2018. Active Diners related to the Bite Squad Merger totaled 1.1 million as of March 31, 2019. |
Recent Developments
| • |
On February 25, 2019, Waitr announced the completion and settlement of its exchange offer and consent solicitation relating to its publicly traded warrants. |
| 1 |
Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of GAAP net loss to Adjusted EBITDA is included in the accompanying financial data. See also “Non-GAAP Financial Measure,” included herein. |
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| 2 |
Gross Food Sales represents food and beverage receipts, plus taxes, prepaid gratuities and diner fees. |
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Full Year 2019 Outlook
The combination of our strong start to the year, progress in new markets
and most importantly positive momentum in existing markets makes us
increasingly confident that we will now exceed our initial pro forma
revenue guidance of $250 million.
The results of operations for Bite Squad are included in the Company’s
consolidated financial statements beginning on the acquisition date,
January 17, 2019.
First Quarter 2019 Earnings Conference Call
The Company will host a conference call to discuss first quarter 2019
financial results today at 5:00 p.m. ET. The conference call will be
webcast live from the Company’s investor relations website at http://investors.waitrapp.com.
A supplemental slide presentation will also be available on the
Company’s investor relations website at http://investors.waitrapp.com
prior to the start of the webcast. The call can also be accessed live
over the phone by dialing (877) 705-6003, or for international callers
(201) 493-6725. 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 13690106. That replay will
be available until Wednesday, May 15, 2019.
About Waitr Holdings Inc.
Founded in 2013 and based in Lake Charles, Louisiana, Waitr is a leader
in on-demand food ordering and delivery. Its platforms connect local
restaurants to hungry diners in underserved U.S. markets, providing a
convenient way for diners to discover, order and receive great food from
a wide variety of local restaurants and national chains. As of March 31,
2019, Waitr and Bite Squad operated in small and medium sized markets in
the United States, across approximately 700 cities.
Non-GAAP Financial Measure
Adjusted EBITDA is a financial measure that is not calculated 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, acquisition and
restructuring costs, stock-based compensation expense, impairments of
intangible assets and gains and losses associated with derivatives and
debt extinguishments and when applicable, other expenses that do not
reflect our core operations. 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 and the impact
of stock-based compensation expense. Adjusted EBITDA is not a
measurement of our financial performance under GAAP and should not be
considered as an alternative to performance measures derived in
accordance with GAAP.
See “Non-GAAP Financial Measure/Adjusted EBITDA” below for a
reconciliation of net loss to Adjusted EBITDA for the three months ended
March 31, 2019 and 2018.
Cautionary Note Concerning Forward-Looking Statements
This press release contains “forward-looking statements,” as defined by
the federal securities laws, including statements regarding the future
performance of the Company. Forward-looking statements reflect Waitr’s
current expectations and projections about future events at the time,
and thus involve uncertainty and risk. The words “believe,” “expect,”
“anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,”
“estimate,” “intend,” “predict,” “potential,” “continue,” 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 those described
under the section entitled “Risk Factors” in Waitr’s Annual Report on
Form 10-K, filed with the SEC on March 15, 2019, 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.
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 (or to third parties
making the forward-looking statements).
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (In thousands, except share and per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2019 | 2018 | |||||||
| REVENUE | $ | 48,032 | $ | 12,409 | ||||
| COSTS AND EXPENSES: | ||||||||
| Operations and support (1) | 36,183 | 9,116 | ||||||
| Sales and marketing (1) | 10,323 | 2,364 | ||||||
| Research and development | 1,940 | 588 | ||||||
| General and administrative (1) | 18,918 | 3,513 | ||||||
| Depreciation and amortization | 4,116 | 226 | ||||||
| Impairment of intangible assets | 18 | — | ||||||
| Loss on disposal of assets | 5 | 8 | ||||||
| TOTAL COSTS AND EXPENSES | 71,503 | 15,815 | ||||||
| LOSS FROM OPERATIONS | (23,471 | ) | (3,406 | ) | ||||
| OTHER EXPENSES (INCOME) AND LOSSES (GAINS), NET | ||||||||
| Interest expense | 1,605 | 172 | ||||||
| Interest income | (339 | ) | (1 | ) | ||||
| Gain on derivatives | — | (162 | ) | |||||
| Other expenses (income) | (50 | ) | 1 | |||||
| NET LOSS BEFORE INCOME TAX EXPENSE | (24,687 | ) | (3,416 | ) | ||||
| Income tax expense | 62 | 11 | ||||||
| NET LOSS | $ | (24,749 | ) | $ | (3,427 | ) | ||
| LOSS PER SHARE: | ||||||||
| Basic and diluted | $ | (0.38 | ) | $ | (0.34 | ) | ||
| Weighted average common shares outstanding – basic and diluted | 64,525,683 | 10,050,180 | ||||||
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(1) Certain prior period amounts have been reclassified to conform to the current period’s presentation. The Company has revised the classification of certain employee-related wages and payroll taxes associated with such wages to better align the statement of operations line items with departmental responsibilities and management of operations. |
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KEY BUSINESS METRICS |
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| Three Months Ended March 31, | |||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||
| Active Diners (as of period end) | 2,215,326 | 541,858 | |||||||||||||||||
| Average Daily Orders | 57,253 | 16,991 | |||||||||||||||||
| Gross Food Sales (dollars in thousands) | $ | 170,403 | $ | 54,126 | |||||||||||||||
| Average Order Size (in dollars) | $ | 35.86 | $ | 35.39 | |||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands, except per share data) | ||||||||
| (Unaudited) | ||||||||
| March 31, | December 31, | |||||||
| 2019 | 2018 (1) | |||||||
|
ASSETS |
||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 43,615 | $ | 209,340 | ||||
| Accounts receivable, net | 8,299 | 3,687 | ||||||
| Capitalized contract costs, current | 2,163 | 1,869 | ||||||
| Prepaid expenses and other current assets | 4,947 | 4,548 | ||||||
| TOTAL CURRENT ASSETS | 59,024 | 219,444 | ||||||
| Property and equipment, net | 4,673 | 4,551 | ||||||
| Capitalized contract costs, noncurrent | 957 | 827 | ||||||
| Goodwill | 225,797 | 1,408 | ||||||
| Intangible assets, net | 101,077 | 261 | ||||||
| Other noncurrent assets | 552 | 61 | ||||||
| TOTAL ASSETS | $ | 392,080 | $ | 226,552 | ||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| LIABILITIES | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 2,731 | $ | 1,827 | ||||
| Restaurant food liability | 8,566 | 208 | ||||||
| Accrued payroll | 6,349 | 3,055 | ||||||
| Short-term loan | — | 658 | ||||||
| Deferred revenue, current | 3,642 | 3,314 | ||||||
| Income tax payable | 87 | 25 | ||||||
| Other current liabilities | 12,933 | 4,508 | ||||||
| TOTAL CURRENT LIABILITIES | 34,308 | 13,595 | ||||||
| Long-term debt | 119,570 | 80,985 | ||||||
| Accrued workers’ compensation liability | 733 | 908 | ||||||
| Deferred revenue, noncurrent | 1,375 | 1,356 | ||||||
| Other noncurrent liabilities | 228 | 217 | ||||||
| TOTAL LIABILITIES | 156,214 | 97,061 | ||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Common stock, $0.0001 par value | 7 | 5 | ||||||
| Additional paid in capital | 331,539 | 200,417 | ||||||
| Accumulated deficit | (95,680 | ) | (70,931 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 235,866 | 129,491 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 392,080 | $ | 226,552 | ||||
|
(1) Certain prior period amounts have been reclassified to conform |
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| NON-GAAP FINANCIAL MEASURE | ||||||||||||||
| ADJUSTED EBITDA | ||||||||||||||
| (In thousands) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended March 31, | ||||||||||||||
| 2019 | 2018 | |||||||||||||
| NET LOSS | $ | (24,749 | ) | $ | (3,427 | ) | ||||||||
| Interest expense | 1,605 | 172 | ||||||||||||
| Income taxes | 62 | 11 | ||||||||||||
| Depreciation and amortization | 4,116 | 226 | ||||||||||||
| Stock-based compensation | 2,063 | 1,106 | ||||||||||||
| Gain on derivatives | — | (162 | ) | |||||||||||
| Impairment of intangible assets | 18 | — | ||||||||||||
| Business combination related expenditures | 6,949 | — | ||||||||||||
| ADJUSTED EBITDA | $ | (9,936 | ) | $ | (2,074 | ) | ||||||||
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