WTRH - Earnings call transcript Q3 2019

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Operator

Greetings, and welcome to Waitr Holdings Third Quarter Earnings Conference Call. This conference call will include forward-looking statements within the meaning of the securities law. These forward-looking statements will include things about the company's strategic priorities and certain statements of expectation and plans.

Forward-looking statements are subject to risks and uncertainties that could cause our results to differ materially from the forward-looking statements that are contained in our company's filings with the SEC, including the Risk Factors section in our Form 10-K. The company does not assume any obligation to publicly release any revisions to the forward-looking statements discussed during the call.

we call, understand to and the the results this measures non-GAAP to on with financial help accordance to company's that addition, we'll certain refer financial supplement GAAP. In in provide financial performance Investors The website today financial to company found and counterparts our can the non-GAAP with at filed the GAAP measures earnings comparable be has release reconciliation section directly the these Waitr a in provided investors.waitr.com. of of the most SEC on earlier Officer; Executive Chief Karl Price, Adam is call today's Accounting Chief and Officer. Hosting Meche,

I Mr. would sir. like over now to turn Price. call the to ahead, Please go

Adam Price

Hello, third Waitr. Welcome earnings call everyone. for to the quarter

the Although also And the while the first with past is although confidence was over our in There CEO. a in time multiple long this our on This may of business with challenges, quarter I success cash as business of business the and Waitr. a we challenging is to sector, third sustain position, term. approach my I want many making talk reiterate quarter and I want clear. to to a some challenged, value business we are bring to be our our business changes opportunities. how see that concerns see stress business. a these shareholders call about throughout focused to I this perception to have External about the are

at building confidence are starts My The Waitr's strong. blocks Waitr forward about the path incredibly foundation. with

stayed First, on medium-sized around that were markets the U.S. we mover focused and have in first to small strategy.

place of out top market market to around or Waitr the Hawaii. from after share Louisiana, Minnesota, year share markets, and in in to is in first all U.S., first markets XX competitive our in even intense XX last pressure, result, a XX are These our the top As in Florida, markets. of X out second still of

revenue start from base active processed. the rates Second, every of of over XX,XXX in take share Waitr's signed increased even update with to has August, the restaurant order all the agreements to restaurant year have for partners, restaurant our whom

to from Third, business. current Waitr and for there's still platform many operations, a areas build our sustainable increase streamline revenue

These last are ending towards a adjusted succeed, me million, give on profitability. that business that are of With In order things this seen to tangible I have the an in of we the loss quarter large, million cash basis. profitable $XX just move and QX $XX.X over some or for know need taking confidence. balance quickly towards EBITDA steps we operating we of to breakeven

create operations, and We to streamline also better operation. have been improvements while making reducing continue in that customer overhead experiences our

last disclosed instituted our earnings call, to million actions achieve annualized savings. and over we that During $X we plans in

As costs due in we these a part of saw $X.X changes. support large and result, quarter-over-quarter operations million a in decrease to

we few an we savings confident past initiatives These up maximize long-term bring streamline $XX will annualized make to ramped additional the operations are during value. are During expected to and changes in XXXX. months, improvements million incremental which shareholder

to process of These a and discuss to XXX Recently, reductions savings amount being which our by people, multiple to $XX reduce will these changes expected these constitute are in we some savings. across like that I'd savings. payroll million staff realized annual began approximately departments. an

reducing This implemented our team be sales development have automated we team efficient management sales lead to velocity field allow while a sales, XX%. by system representative relationship These time. allowed in a example, will and constructing higher with For sales more size their process. are a more sales our changes customer generation

XX%. on back of will contract the get restaurant vendors partner to takes to we leveraged decrease execution to office This For from our with have amount process, the new up for consolidated onboarding, automated partnerships it live software tools, time improved a platform and by teams.

consolidation customer the teams reducing service first cross-training resulted while quarter levels time response For also of since costs. significantly has and in support, improved increased and

to by average since improved overall the time Specifically, over customers response has XX% QX.

driver For other field across turnover customer metrics. operations, costs, we our against each markets and delivery analyzed overhead times have needs of

a to We in-market not observation a of markets customer best-in-class moved to that virtual subset achieved. have management based an is experiences delivery of of necessary is on until scale certain achieve management volume

markets were and high We close unprofitable. decided also of customer clearly coupled driver revenue with acquisition to QX These because end costs have XX contribution, non-core approximately markets by low of and the subsidies.

these cost growth and managing at core penetration our markets Additionally, of opportunity markets. came in the numerous

Waitr-branded our will savings operations, markets in across labor us and is all cost. a department coming down enormous annual closures, automated Again, resulting we the putting Over during from our $XX improvement that clear largest million our scheduling alone. approximately Incremental still totaling potential to total engineering costs, implementing market anticipate better has and of development our amount is assignment rolled delivery addition order in driver additional from markets QX, million on on continued improvement for and line drive of changes and along with the In savings, closures, science routing the to market annual our anticipate data restructuring and teams $XX per-order we profitability. path first QX to Driver out this efficiency. operations, QX. version to item in

team change approach. this requires you from at a and commitment new expect, the senior magnitude a renewed of times As operating might

reason, Yurecko, month end For members. as Board CFO, Jeff we X departure at of our this of last the the as well saw

qualified and over up principal departure, for With responsibilities. financial Meche, Jeff Officer, CFO the Chief our future. growth Yurecko's this continued We taking is both are actively the in and help Karl us Board Accounting to interviewing role for time positions through candidates set us

it over Karl. to Now to want turn I

Karl Meche

Thank you, Adam.

prior weather a revenue of summer forma increased sequential Third the from $XX.X basis, by driven quarter quarter growth. of million seasonality, on or These well month declined factors, however, increased to restaurants, for effects organic to due offset the by increased lower hurricanes temporarily quarter including Storm certain quarter in Dorian, were increase On effect such activity. partly and by quarter the revenue agreement order our XXX% as events, during and the in volume million. rollout of per attributable markets, which a master basis, to in XX% services third On by revenue took $X.X which new number X% revenue order as competitive year-over-year operations Imelda, pro Barry Tropical ceased an as declines a August.

diners XXXX pro the the daily third quarter an Diners Average order increase food gross for year-over-year a XX% $XX.XX. driven XX% forma Active by XX% of largely XXXX, of XXX%, XXXX, On $XX.XX third Gross quarter daily increased factors on also year-over-year the orders On XX% September average the compared declined under more million to the food sales average combined of previously sales million XX, a quarter. $XXX.X from forma increased Active an acquisition by X% year-over-year. to with basis. a to size year-over-year by and as noted. just basis, to pro of second than growth. $XX.X increase for for grew quarter, were increasing due XX% increased basis, million increase the also Diners of Bite from a organic Squad orders by sequential and totaled slightly forma a of pro basis, On XXX% X.X with $XX,XXX

in savings of however, quarter as costs the a by decreased driver year-over-year sequential a well volume. increase $XX.X the the as prior million expenses support $XX.X for driven Operations million and support achieved quarter, by million, driven by lower staff significant were reduction. increase costs On $X.X operations our June order third and basis, largely from from

of local variable as customer support Our such operations the ground delivery team. primarily and card drivers, order our of comprised credit and cost fulfillment are of market support our cost the costs costs processing,

from gross the order less a as $X.XX order revenue support to revenue in changes attributable of in define the basis, per order revenue, prior profit The XX% expenses, revenue which was the a quarter, or in the per $X.XX or from August. for of operations year. gross improved XX% profit improvement per was and approximately change MSA On we

to during significant inefficient scale achieved. as new early market activity each slight market the dedicated market XXXX tends decline driven months fixed until new gross by delivery is was be adds end costs and However, margin in the

quarter, for and $XXX,XXX Sales $XX.X million expenses second increase quarter. the a over the marketing were

associated September and of included quarter traditional fall digital third incremental part in into and spend our marketing with October. campaign, media The ran latter which the launched

expect expenses the We us. marketing of to the sales our and decline quarter bulk behind next fall spend with marketing

various with build-out and capitalized ongoing to enhancement of increased primarily Research the XXX% of team costs the Squad a quarter, initiatives. the engineering year-over-year in lower quarter team. as these Relative by portion and Bite approximately of to development were this million expenses $XXX,XXX R&D the the expenses $X.X second connection engineering or we larger due inclusion product

to short continue We product and R&D teams. product the to focus slightly expect key increase we in to relative members and as our on engineering spend initiatives term add

increased in the Bite year, and increased General quarter or result impact $XXX,XXX the XXX% corporate flat. of third in primarily relatively $X.X onetime by remained year-over-year, G&A last and increased the the the a the Squad noncash third and $X.X equity administrative second quarter, Depreciation Bite Squad acquisition amortization and removing from intangible From primarily to of assets expenses million compensation, of of amortization the from overhead. driven third quarter quarter million items merger.

of of share the third or in million year. last or compared the $X.XX share of third $X.XX $X.X loss a for loss Net million quarter to loss $XXX.X was a per per quarter

growth. and included third loss remained a $XX.X Adjusted compared the positioned both loss for stock of million considered noncash of impairment adjusted as was the $X.X in within expenses net quarter $XXX.X a noncash our company third million compensation XXXX EBITDA. charges, of $X.X EBITDA million the for quarter largely Third million quarter loss to

of consisting we cash primarily $XX.X of of As million, money cash XXXX, had deposits. market September on and XX, hand

notes. primarily had outstanding million approximately $XX.X loans of million also of and of We debt consisting of convertible $XX.X million, total $XXX.X term long-term

business As profitability. business Adam, to aggressively the clearly management already identify the by continues moving to improvements to demonstrate to continued drive efficiencies, commitment towards which our mentioned

call to up to I'll questions. now back turn take Adam over we wrap the Adam? before

Adam Price

Karl. you, Thank

our I financials. the serve executing plan our time has get completed best We've on and the will in that interests strategic the alternatives the as announced concluded at touch independent of earnings on The Board focusing call. forward-looking will first an by company. public we this Before stockholders strategic process the review review company strategic to of questions, prior

the to we individual CFO of implement Moving on suspending no guidance a guidance time longer who for place we in who upon. to new ongoing previous should guidance this, analyze the search are the business, light and to Once owns plan In a relied had financials. have our has forward-looking we again. CFO, principal be

of the Since significantly the want guidance, delivery end won't not markets operations of October. and well. also information launching of did slightly the be been X% number on Since October. this the start and customer declining trended declining. upward slowed Please down performance volumes July, on diners we week start only of to we X% per of end commenting stable, distinct through have Because August, as the period that volumes has note as order is provide over trends, new to we of

last our sales in average the Over have X an and in market seen both increase gross we larger-volume share market. months, average

order last to best X in time when anticipate is XX order was and continue lifetime months, the previous the orders this implications level P&L. value The the faster been long-term team have has the it on We service the than is customer customer our and when places from Over delivering on to the improve of months. ever. operations to delivered

steady you to forward, to the expect several improvements should Moving compared flow in quarters. cash see past

markets still should and existing great on also to a there growth see base, brand a where refocus a potential. expect user awareness strong lot is of You

would With like that, for questions. the we line to open

Operator

you. Thank

be now Piper Our coming question from conducting from is session. will [Operator Nicole question-and-answer first We today Miller Instructions] a Jaffray.

live. is Your now line

Nicole Miller

you. afternoon. appreciate I the update. Good Thank

Adam Price

Nicole. Thanks,

Nicole Miller

Can don't they but I out way restructuring? did which can question, about the to of? like talk non-core? talk which can so have Consumer-facing right that you we to you so to were not we core departments want understanding they want you maybe better how first be ask understand? the personnel just just Can say define department you that about know restructuring. but it, of come If versus a might

Adam Price

Yes. Absolutely.

and the departments be would primary along with So sales operations. marketing

the tools the by us new was representative process, during As much in on make higher by and sales the gains people. – fewer team development that using script, sales mentioned efficiency propelled and velocity sales allowed to we with

there in needed. sales a So significant was the reduction field staff

operations. operations the of and On about the of And the to for closing significant back office in then precisely the support allowed markets business, of operations the amount side processes reduce field a headcount our consolidation allowed the restructure in operations. various field we the us XX of just talked that streamlining

affected as that well things as dispatch. onboarding So support like customer restaurant and

Nicole Miller

what we the when common how have talk you did those? or the closing with of then And choose about did not common And have identify the core maybe XX they in in markets, markets? and

Adam Price

great a question. That's Yes.

So there all clear that there common, they was one path in to is had thing a not was which profitability.

business we didn't flow we in to various gone lot to markets of get the the just and Our of and need now after to chart a costs, our a at analysis that those cash and cognizant overhead we're for markets there that into looking resources very way have. And – path have the these business sustainability. metrics that with see the the

resources to pull and go from the markets we markets – there where into have current full those those our is force so a it a positions. strategy great concentrate was back And felt markets, clear better much of path lot in a where we

Nicole Miller

And marketplace final went just and did I'm What that some quarter, the main some role forgetting play? are up, role integration question. What seasonality general play? X about seasonality numbers down. last if did played you the And think of of role. the helpful, just a lot topics. play? tonight the a And just last went perhaps What did role entities Remember

Adam Price

the us. most Waitr and integration has Yes. core on with behind been we're of Karl over to point managing the talk jointly the touch for that out seasonality. integrated operations, and way can I'll I'll business all integration the The are same Bite operations, where about market. Squad general efforts the part, individuals. markets

impact was business. So this I don't an like integration really feel in

acceleration the I that landscape, front. sense don't we an had on that on or really Noting think seen haven't deceleration in a that impact the competitive dramatic

X% competitive fairly the market have X nonlinear that there's growth see don't July way X% business through in of indication no in just the all of talk real behavior share, tipping Karl about our an our acceleration happening All seasonality, the though. decline change are relatively trends October. can or the or landscape. point in a shown we stable. of the specifically to so anything that I'd been in very distinct that's our constant. or volumes There's end the since market there's markets And say

Karl Meche

the have Squad look operations Dorian came both we you few through, affected of storms a for along a I from Waitr large Barry each. – which a Coast. Bite and the From And concentration see if Yes. markets of a and summer, Gulf the our perspective, days and Imelda, think you few certain at the

you had quiet if hurricane and think prior in to season that I think markets. we calm I relatively year, compare our a

define that to vacation. students, that that simply summer And go so return students or and combined we typically on college seasonality away certain down I tends and slow go see go with tends when home markets as folks with you what heavy with to when think home our are

see we in a think July through and into typically slowdown May June school beginning I late resumes. when and so August And

Adam Price

think just industry, in Yes. now. I'll common trend players all the is out And the this close of with general the to right I

haven't We forward. a saw similar followed the during industry of I'm this in size competitors, period. massive change of since slowdowns the you And seen sure, some they the as March

a on think these that point we business, Waitr-specific different But happened industry-wide standard. we're we much improve. there's trends, so can wasn't really a our it have There's can pattern always in obviously an some to. in we things So seeing of things item would I and that wish

Nicole Miller

it. Thank you. appreciate I

Operator

you. Thank

question Deutsche Bank. from from is Kunal Madhukar next coming Our today

line live. Your is

Kunal Madhukar

if may. I couple, Hi, thanks. A

strategy? process you path in And strategic responded, like then the to stable shares can the this of give a the how with – have terms selling? who's changes down? us and behind been stability And profitability to happened, if the precipitously the all right is have ranks, of shares have and and management sense the is given that In everyone management regard now why

Adam Price

Yes.

can don't And we can't significantly that happy going we spent every filed. any mean that reduce letting our the improve released on the or strategizing experiences. shareholders answer And information. just shares into that customer without on but say side also feel customer business involved those the is sophisticated I go of down have that so We and as department. We would definitively all this quick large leadership, leadership cost of to leadership single bringing confident selling I'm I in changes outlining But say So several do the of see which better move of the changes in we executing that operation, aligning insights significantly changes the management that alignment, don't because are who's is And have allow scrutinizing making our fully of of those very for quarter and yes. and I to and ready really already types experiences. in we're all you – team to of business changes forward. on in and overhead aligned the are

Kunal Madhukar

great. Okay, you. Thank

Operator

Thank you.

today Alex question coming Fuhrman from is from next Our Craig-Hallum.

is line Your now live.

Alex Fuhrman

closing. Thanks guys. thing and I my sense us taking loss ask and the a by third wanted EBITDA XX is in the those of question. revenue how Great, that to you about markets quarter? for year-to-date much was just Can give generated markets you're One

Adam Price

the numbers. recently. not launched specific We're mean is, broader I I'll Yes. trend were were that quote these relatively think say I going to markets

previously about didn't adapt really the successful presence using competitive a markets. these I we're And that strategies but were of think to in were markets I've with that. in talked, business Alex, you on factor early

had that levels, they And maintain in end velocity. means what you're continuing these promotions up contribution you order push launches ground, gained initial service what low to recent oftentimes new, in to driver revenue they overall markets traction, happens to the And business. don't off so wages and early-stage where get they heavily subsidizing really never doing were that very the fairly is to get which

if was well to and the looked as we one is number we And recognize our And we we're I comment XX, to fully revenue, of much if a endeavor doesn't it markets, markets. markets and realize at we're ourselves business, look markets look ability where of on it sustain places get XX said, overextending geographically those growth out deeper the X still silly when in best we just out concentrate and be can on the can expensive saw somewhat aren't very be as number mean, much. positioned and what one; back top and could those off we really on at penetration that, or our we just this two. getting that And more XX can saw these not go those where we ground are

Alex Fuhrman

well bringing so bit other restaurants sounds year, their Okay. has to adding enabled speak, on ask lots expand often I and a more the little of next That's don't maintaining like top be makes And that thing about a that of core your might they Door with, of good quickly. one wanted That helpful. necessarily over has year bit guys pretty of little which your the in We've past non-partner is so It Grubhub then have restaurants creeping have market. a obviously onto kind portfolio as the seen partnership certainly a done platform. doing in backyard, to that share just that them Dash sense. you or in lot a of over to market job been

in big that the seen partnered have if impact not any or has on intentionally had markets, is competitors' business, platforms restaurants Just or of curious you've some that and your if with on dual-listed if of that you're your any negative? positive been your something

Adam Price

It's agreement. tell. know don't somebody non-partner has hard whether initiated to We specifically versus an

or used in know to to if that's strategy, does I something hard specific an has and have changes is does you, can non-partner what precise it's strategy Squad So that that volumes our not its tell that actually Bite impact. history. or

we've a So really with quite of maintain the number very it's questionable familiarity I'll a that of it. reasons. And is to program out quite one that – few bit we've turned with ones off But a main for we incredibly ROI. – point have a expensive of

you have the when a have operations is happens What into you back a good restaurant of integration don't restaurant. the non-partner

that customer then there's the your because of end restaurant over weak placing customer partnership and delivering app, So can you orders a integration those you don't restaurant. have after experience to the issues cohorts up and uses direct be phone you orders and order poor the of a customers. your to accuracy or those lots end with when up very And

it's even actual we customer help some short-term supply, So though is or acquisition may market Waitr share that operates it strategy alternative or and the markets lead where growth fairly customer of that and of to think in cohorts retention weak. where them implications active generate the

has one done the And of the beginning is from things restaurant penetration. Waitr that on concentrated we've always

So because our restaurant so we have really isn't need there penetration. much non-partner for

penetration Now less we way the make again, agree because restaurant a crucial I to for our non-partner point. it means just path isn't penetration, restaurant non-partner at would have that a this very business but is defensible, that fast

Alex Fuhrman

sense. that Thanks, a of Okay, lot Adam. makes

Operator

The question Thank you. from Our [Operator Dan Instructions] with coming is Benchmark next Company. Kurnos

live. now is line Your

Dan Kurnos

on last just that follow thought. Great, up kind thanks. train of to of Adam,

restaurant you seeing like with kind signing of cost per your the platforms. cohorts evens from markets, mature you frequency? are And given diner? more up? DoorDash's some customer of you becoming or it terms sounds penetration you're that, in their you seeing older of newer you lot will, knock in are kind acquisition are are of What field, your try a And it, in-marketing to willingness terms order diners down put your what other newer just Grubhub what playing As promiscuous, the moat of users seeing to of on effort platforms new from as their that mentioned, of the if

Adam Price

see definitely pace going That at industry. between quickly, anytime change the this and behavior in an their matures in those. space. delivery we're it's happening and seeing try I'll evolves in – definitely newer and a the cohorts food one And to happens third-party your and all users you're All industry remember your older users. – customer right. has The any

our still a stickiness compared them they So retention. initial have factor, lower you very the do to newer have however, cohorts. They wanting older good cohorts have but – more

partnership you supply major – knock about talked there's consistency that say systems. focusing in aspect of the creates or non-partner the is on customer other moats one down using I the Now model, to moat. And is just restaurant the one would that the these experience. experience and really

restaurant the that And what's get repeating after that is attract order, person and may then and is place and a customer, order to first of the over app and that then and open over. placed the good having so while supply getting that to the order first experience consistency critical experience

wanted we path what to faster predicting than in highlight as So mentioned, delivering ever. terms we our that's our of forward. We're orders

models can opposed entirely targeted new support We've years. a acquiring we've the things we're X like be so since after customer last have the we customer to investing those we suboptimal about sophisticated predict And in by to have or on and time may had very customers best around churn delivery as customer. times increased response that experience groups very QX. in an churn tools We go XX% are

customer acquisition. at question hits of And markets seeing terms of your of part are mature you in is that these what last kind in large, the

confident. mature number seeing our things typically large, make in a is we're there's we're markets, One happening is couple one. of that what think I me

with So in brand we very sit a position good recognition.

organic. sales average markets see incremental share we and is months. larger the because is X the the recently, in And getting last increasing thing cost of trends of our some our So of low then lot market you get second gross can the average a in customers is

that our because relative just landscape. So on it front, doesn't good translate to a there's sit necessarily competitors, because competitive these in we positions

not If focusing costs attack retention, – retention after new diner might creating you're necessarily customer our about by decreasing anticipate strategy customer being out in good well and environment. incremental smart the that we getting be going experiences, and rewarded you the and

Dan Kurnos

helpful. us you're the not doing frame And you given give savings now, some Got guide including cost market of us the at of near-term of up can you're you've what some other us, sense to for it. you That's food if efficiencies? the super above all look, or of able a including then expect closures original are revenue kind market, is and think reduction least whatever headcount these of efforts, and going growth is, the Or underlying plan kind healthy Do period? that but rates new we but still it or growth to still at relatively a do growth? transition the forgetting while at point? and market take delivery you And base, have XP this here,

Adam Price

that business I energy. It's on a And lot going a a the the are days. lot – the moving closures of bottom next talked question. earlier a the call. like be doing to good several immediate impacts changing without mean about through doubt, happening are those XX on market things takes those have we're of There We are things we're that that line. over

We have made quarter. already been week the have throughout previous this earlier or other impacts that

kind I into would be say realignment next months. of happening business, we restructure drift will the primary of next year. to of beginning relative all that anticipate of over our some have We the that the to and couple

the decent over the X with at share in sales Relative markets looking market growth and markets. in services where this that to increase months in what last out increase some of these we're and we growth we're business, If what anything, neglecting can our experiences in not it's core things. implies concentration terms expect those of in and gross the during momentum – a of our larger-volume

opinion, my like what on that and of growth very focus to on to growth what on dig we I in a a is said, priority controlling X cash show before is business. management sustainable hard people that trajectory have our – we We team's come a to then and and priority. expected comment back that's top into the primary is sustainability. this number it's the now think business. rate I can putting us be because, is And right clear the That sustainable

Dan Kurnos

one, And Yes. last I just That's could. if fair. one

there's Just unfavorable the the any on, obviously, unfortunately, implementation coverage of thoughts MSA. a of media noise, lot around

restaurant any how just been rolled churn the broadly it's more being on either Just update or received out? MSA now is that

Adam Price

Yes.

markets. out level. chains contract a at that So did not markets, affect and Keep rolled Squad our the high in for any mind that did national it of the subset August, restaurants. not Waitr restaurants restaurant was in any affect I'll start in Bite It we

coupled that it I only as coupled with those signed the the remaining it we've week, contract. new that XX% in – pointed a – or new this a been I last restaurants that higher with So think affected I fast sales why count restaurants out affected, the than our at With – call, come the as and contract, the And out active year. restaurants our had, clip. restaurants. of new restaurant of very of signing we've beginning at recently is had up the in velocity efficiency we beginning And our back are

majority the platform. restaurant in recovered, dip been has came the opinion, supply in of those restaurants our short-term any So and to back

Dan Kurnos

the all Great, thanks color, for Adam.

Operator

you. Thank

Madhukar Kunal next Our follow-up Bank. Deutsche is from a from question

live. Your line is now

Kunal Madhukar

follow from to wanted up few MSA for right. One, me. the All Thanks another question. on taking I

impacted? that In And XX%? is terms York has their business particularly the big for the Or in restaurants now regard pay, afford delivery too margins New – of terms that And... the capacity of an issue structure, that been in to such in finding they're pay that now new restaurants to seamless. of with to media getting has are their a rate chunk can the the been

Adam Price

Yes.

Kunal Madhukar

of what you. the terms and about too, something a is frequency. what retention, [indiscernible] loyalty plan talked that growth, you the at loyalty terms follows of and Do subscription that That's and with will like to a having of and there DoorDash sustainability? And that, have something point follow-up, programs you may kind a the you retention follow-up, improve need again, help bring to program or in where think which Okay. retention you're like from in has,

Adam Price

Okay.

with I'll Kunal, the take there on So start rates. one first the

rates. the Waitr arguably still remember, industry you take So have has lowest to

XX% down to volume has If volume, the XX%. at XX% from restaurant. the on go depending of the contracts restaurant they're increasing Our

dependent. relative restaurant delivery It's to dependent structure It's operational on profitable So profitable at make restaurant's time. those a same with the I've very and incredibly both of to the economics of the business restaurant lot a a competitors. what talked low are very third-party work CEOs.

restaurants a XX% is profitable where not doubt, a that there profitable. Without are for plenty are them. XX% restaurants There is other business

So hard take industry rate. certain it's entire a and the group based restaurant-specific, to incredibly on it's

approach. And some our of profitable always one sales we make a team groups. talking it's in So and those work of groups in in we've with we're for I chains, restaurants the partnership think approaches these as our to used how especially there's sure to is approaches is merchant-first the larger variability both

is It's with – And tool because do matured. to a newer has industry to a loyalty. being – the question for have retention. remember, it's matured the Loyalty second or markets you have has used tool the

one-and-dones. more so older cohorts, than Newer have less cohorts you are attractive

increase have and fighting cohorts is retention loyalty. find to we a have everybody trying And So way do deteriorated. arguably as those to

campaign. So lightweight, Squad both loyalty Waitr email-driven have Bite and a

the don't industry. it's is churn though the even to there see lower second, sticky. the and and They tend that decay, which just They ways I early customer retention level, so immediate out – are problem. very think creating the that's indicates to more a retained flatline it's a experience at third permanently to Once consistency first, in customer user flatline your experience lock impact base. cohort the mature hitting focused of of users, park you in However, on really

you experiences in a higher cohort those with as the long that first can get flatline level. to customer on experiences several at platform, really as you focus good So

Kunal Madhukar

thanks. it, Got

Operator

end We conclude ladies session. does the And reached teleconference. that you. gentlemen, and question-and-answer our today's of Thank

You time may participation disconnect today. this your We your lines for at a wonderful you thank have and day.

Waitr (ASAPQ) 9 Nov 192019 Q3 Earnings call transcript