WTRH - Earnings call transcript Q4 2020

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Operator

Good afternoon, everyone. I would like to welcome all of you to the Waitr Holdings Inc. Fourth Quarter 2020 Conference Call. With us today are Waitr's Chief Executive Officer, Carl Grimstad; and Chief Financial Officer, Leo Bogdanov. By now you should have access to our earnings press release, if not, it may be found at sec.gov or on our Investor Relations website at investors.waitrapp.com.

business call at management, projections that call our the to would in turn constitute about you results remind certain future I over I to like this forward-looking Before statements. financial and statements and business based current market expectations. These statements management’s and are on

that statements. our our results actual risks annual from results discussion Form and in forward-looking report XX-Qs actual materially the for risk of projected in from on cause Our see those factors Form to a forward-looking differ these the could our Please may contained in XX-K vary statements.

Grimstad, note turn and today’s for Carl business quarter the would GAAP financial fourth that give CEO, of quarter then Finally will call activities Waitr’s non-GAAP operating full may now over provide the who please Waitr's measures. most comparable an company’s like release developments earnings its overview results. on to will a refer overview company’s of financial to for measure I non-GAAP and to the who XXXX to measure. the reconciliation fourth to Leo the management of He turn the refer Bogdanov, financial to Please will over call of XXXX. call, an financial

We for will Q&A. open call then the Carl?

Carl Grimstad

everyone Hello thank you. and our joining Thank you call today. for

business related pandemic, economics. months our sustainability weather to with the continued adverse profitability along quarter are solidified operating business. we model XXXX during of straight impacts and and another further the marking quarter report of from XX of XXXX We cash in pleased profitability the ongoing unit and of flow early positive Despite fourth our events

could the that several of stabilized initiatives that business future the we foundation for the company of Our it growth. strategic reflects fundamental so position implementation

technology. restaurant such launch and service product of our beyond as Our into tableside XXXX and delivery diversification continued our the expansion grocery offering delivery alcohol of with food the included verticals new efforts during the

hospitality of first and several in the partners continues the these the with completed As our restaurant we the through impact sector, navigate quarter helping steadfast XXXX, we platforms. In pandemic restaurant to third-party integration remain times. challenging

to verticals the of chains and we our live through look the to quarter in major continued virtual the new adapt expansion and focusing our restaurant kitchens also and got ghost pandemic. as virtual our environment continues platform. integrated to of industry partner In refining the from to on our bolster delivery midst footprint We to set kitchens XXXX strategic we the platform. XXXX first success on In further first of XXXX profitable payments national build our delivery growth, while both acquisitions on by other into with organically

a recently have solution partnership We marketplace, to delivery to selling payment Payments cannabis. compliant dispensaries a with Flow agreed pursue create for and

uncharted around venture for this We the cannabis continues to evolve. regulatory the into new framework are excited industry as waters

Leo, I will Financial results. Chief fourth a Now turn it for over Officer our of to quarter recap

Leo Bogdanov

million intangible of XX, share was of a income compared the diluted million fourth asset XXXX the Net impairment $XXX.X year loss XXXX fourth for in $XX.X income increase fourth quarter $X.X diluted XXXX. December loss goodwill Thank for of for Carl. XXXX, revenue to million XXXX XXXX, compared I'd quarter $XXX.X on comment million. of the loss or last year December compared the of million. quarter and to fourth quarter $XX.X $X.XX Adjusted XX, of XX, $X million Revenue $XXX.X annual million of XXXX, now per EBITDA million was the ended of million XXXX for quarter per fourth XXX%. loss financial the service Net charges share or of results. ended to $X.X or Net a diluted per at compared grew $XX.X $X.XX to December XXXX, like loss increase to myriad $XXX.X million was an $XX.X XXXX. quarter a to ended $XXX.X $XX.X or profitability. Adjusted of EBITDA for for XXXX the compared fourth increase million for in implementation of quarter the $X.XX a an a million share an year our change per of compared the million a million. million initiatives loss of was diluted $XX.X of you, of and or of in and for to fourth This was to reflects $XX.X $XX.X share $XX.X million around Annual year.

an financial million. XX, convertible million operating of December quarter XXXX was driven positive cash That long-term debt January Total million loans, was hand million of notes. primarily consisting had on results. from $XX.X the flows. of million $X.X $XX.X cash annual $XX.X as on increase outstanding XXXX, $XX.X term recap September of As hand on fourth primarily of Cash by and million, we of our XXXX, of $XX.X XX, XX, concludes

short will now a into We go session. Q&A

Operator

Kurnos [Operator Please Benchmark Instructions] question first from proceed. The is And with our Dan Company.

Dan Kurnos

you first impact have way looks in events, to size looking you are the how expected then and into and underlying Carl the just what to QX weather just QX we're the trends relative in think and maybe follow-up? QX underlying kind QX organic of QX maybe then as between on is out any know a QX. I And QX parse and there and you can do

Carl Grimstad

Yes.

from effects the vary So QX market-to-market. QX both and into in Dan,

in of and next order and and have that ultimately flow, I Restaurants think had markets, around trends, There the because around deliver very challenges right, can't hope are it we're is question quarter but I the most seasonal anomalies rebound. and see - was hurricane when do You along recently daily and affects it know in electricity prepare - periods. markets And can't these not capacity would that with is in it's don't know just service. The back ultimately impact full some organic to fourth still it? and you difficult we you season at or the food people our it. supply in you since holiday we water saw of follow-up

Dan Kurnos

Yes. terms if underlying you're I'm equation the second you out weather sense the around us of KPIs give give of what health in of ex-weather? a you that seeing take if underlying penetration kind could just any of the just frequency you the for curious sort of business normally of kind a of order just

Carl Grimstad

Yes.

the we an quarter continued second to I if benefits. related dynamic. So unemployment Fourth about ex-weather XXXX subsidies third signs was fairly from - I quarter quarter anomaly, and think think first think quarter, was benefit weather normal

lot first a given again probably the quarter like fourth looks challenges. quarter weather unforeseen think related I

look healthy, half forward us think diner this subsidy fairly I this that in think probably wind to year. constant, into with the stayed will of the of the the at along business continue the package the we enhanced probably - give new sales rest that to universe going extended some unemployment benefits is I first unemployment can least

Dan Kurnos

that obviously of - contribute how be the on really kind unit would of equation. announcement of economics this huge think And kind how rolls that the much sense do quickly the side cannabis get you around it scales, announcement Love much helpful. on how could Perfect. just then anything your how out to just

Carl Grimstad

Right.

a at federal navigating So to state on you and time laws this payments challenge. obviously and the has dispensaries right side obviously the for a regulations payments opportunity state been the say biggest point and and long payment both or the accepting challenges around what least at big in for

big is in of it last being second cannabis another a it call delivery this The challenge mile let's just part for retailer.

process payments. there great, the come and and a a delivery going really days. So of I putting it, industry. to is We give lot a than I platform. And in in think all margin think a is how challenges I of think us it's great Alcohol super a a flow company. in great the vertical I is it blueprint we're really early great. small company regulatory for from things forth established cannabis around grocery And the to partnered about will growth talk diversifying our the of often better We're here. with operate. we're - expectation because don’t

very think I we can nimble. be

in which various all with different a potentially the companies be have with that run their ton regulations compliant payment experience solution to. as adhere also, help partnered of many software they it We could creating that and dispensaries actually businesses, stay side well this of state have as to

across probably it's it think one be focus we've I the us. of will for exciting things that a most run and

Dan Kurnos

way down, that from perspective you pin or know think about initiative? to not you top to this year we should kind from bottom line expect line any what but a So of

Carl Grimstad

Too early.

Operator

Co. & Van And our Sinderen next Riley is with question Jeff from B.

Jeff Van Sinderen

delivery both thinking you're just some Carl, talk how a forth? and I lot just bit the lot been in there's little about industry. paused, of restaurants change, your more how you've wondered Obviously, so POS new restaurant you a business for you a and about wondering re-opening could for of dine of given think of ramped that about systems if and your that

Carl Grimstad

of in Well, times or than the enjoying, operate of our Jeff, a you York, lot our have that I'm we've said open. environment year our you Southeast lot Florida right it's we New a markets line been course Texas, Chicago, some gigantic the know a about this predominantly when LA, have of over And world. different number like where competitors top know we've footprint of times most almost last a asked know been been you of growth different national

the out know because and back you so challenged to during revert pandemic". I think, the been I my more "reopening being or unemployed people of dynamic of having work than failed of the they've restaurants challenge -

more kind know us of big for you subsidy for least out people at and six with left package. of that's think months I challenge the work of without a

COVID of not dynamic in us. the is I cities will scenario as for open think the much the up mitigating So of big that restaurants a

getting it's from are a a by a that think lot work. we where package - balanced to because hopefully people is be subsidy and it neutral more it’ll probably back I

Jeff Van Sinderen

Okay.

incremental of point, dine-in out? about you have about apps we neutral a missed is know that that from at this the So you think we think sort some contribution

Carl Grimstad

our are have horizon, we roll if not out the you service things placement to been XXX%. that on revenues companies Each out take allow bring I constantly will the of markets, that markets delivery - from I into in scenarios initial new think also us both the potentially market you the us other of were dine-in things had that other bigger contribution rolling of ability advantage verticals, cover just order are acquisition that other are some position top technically to more at other our bring in just and which side some to the solidify think pretty haven't mainstream stuff the strategic some evolve flow, able like paid of looking we

is with Another about thing faster our This months provide built that out is funds. the six will as additional another as that we're with driver excited revenue. we've network ability our help both driver well last retention over that to generating service thing

Jeff Van Sinderen

grocery give results were us wondered any then mentioned I know encouraging. relatively delivery, to And and still on how know for going? I but think can the more I if early you, it's you there's you early are but early just color alcohol those very

any wondering just is there those more to there. So add on if

Carl Grimstad

there with think universe. if demand we because basket margins that larger to our toe in water go sizes top diner were stuck and to away. realized going we you of the don't great, stay mind quickly wanted that Yeah to our grocery remember were is vertical there initially was I We the

well. facing a with is easy in still technical We've you So to product and do general to app of than restaurant menu. on more grocery you have had not do from obviously a create as revenue material. lot utilize. mean customer local enhancements store I a perspective lot It's SKUs a that in a have focus a we regional your a to

we're on it. focused So

across a have is challenges here adhering alcohol and the unit state-by-state run regulations just strategy it. is again We biggest around we rules favorable. all in are to but the as to around And and them. is the very stay Alcohol economics well as

of verticals. those we're on focused So both

Jeff Van Sinderen

addressed bit. little a And I then on just know follow-up that you a cannabis

in? going region where Just on regionally? about start? but think, get I of you really Florida start wondering then - think ones where with may how can the regions kind you we sort of your don't would the be maybe to just that should is maybe try to where footprint? first one start you color can You that have other of you you’re into [indiscernible] stick you any also And general one

Carl Grimstad

you websites lot think Yes. there No, at I and you it. of if can are - look a

of map the a said you, you have or any cannabis a pivoted and dine-in we can Right. way it's business, you footprint before, this through be where look the can can The beauty where do our can’t. whether I’ve You at product have things we and with of market. in what garnering

presents So a not the very if and up spin in that to essentially of we’re logistics itself if when in state will our opportunity currently platform market. period we short a that time in in, be

Operator

Alex is Fuhrman question with Capital from next Group. our And Craig-Hallum

Alex Fuhrman

taking your falling I of industry you're wanted number in there that of you so XX%, wanted to core things ask to start it you thanks mean in Carl, active throughout here. about for those look to just file so I strong how the bit, EBITDA here little money the where marketing Well, really curious marketing question. XXXX kind just my bit unit of and spending a a grow little highest very diners unit strong, at north on year. Great. reinvest how at it's just point back as up given balance business looks to is little I you so ask a margin economics are in move here, been the about the like economics

Carl Grimstad

Right.

we to does have we is us You guess invest. there that get - healthy It I give asked about latitude to margins. is way about it first a lot. to know the the able be a such think

often, restaurant that that be spend if have considered nothing we're some are in other responsible. where very to on from strategies on success with. our grocery hard providing in that's on sold focus that a said this major And strategy not dispensary that would some we and It's store. sit - we entity of I And right. service latitude to of me and you. liquor do That I a I what Conversely year and some said, promotions diners believe that I've and for around meaning that or the on was diners, to seen attract larger being strategy it good works. have how you it's endorsements for payback or to first is whether matter a focusing know of the we the a store think good think the marketing or to have the that future I'm fiscally that proven think sale by I solely probably else the guess trying platform companies giveaways there

from providing merchant from comes background think to payment restaurant evolve a focuses I perspective and services merchant continue Our we'll the business that first.

to that to dollars. see us that's that you does going have I in return in pointed think continue can what a marketing lot margins shareholders. would to you healthy given for But a I of yields it areas. confident - you'll latitude are that us a we're invest And invest where those do feel you it our manner think give out is

Operator

Deutsche And Kunal with our Madhukar next is from question Bank.

Unidentified Analyst

for the on line Kunal. is Rod This

lot partnerships were the a completed the integrations and management - you order and systems announced like of we so one Nextbite in and on the just question. recently discussed you So and previous partnerships

need still you you particular feel think the core that then the And what for most So there comments dining of that especially these in where have of all to focused. that kind you building vision to how investors light restaurant want towards, you're you. pieces that Thank where you more want of be about your gaps you with to vision to think in do or you of being are about and place? given and related be, close should now

Carl Grimstad

nationwide have on it Waitr's you. they of even have number we've held focused POS hadn't a brands. think integrators, company there many or this but and And they been before, about from that might providers with life regional back reasons some Well essentially did in past I why what talked the also brands opportunities

in just have as does with at what many it opportunities do of footprint team continue come is many I integrations you’ll our as that hundreds possible to three restaurant time. because units one, it a think players for So them to online us that out not sales what see but opens two, up build is with a

mark is that number I I for us Charlie, what Checkmate So a opportunity order mean rollout. further of others beyond it's think there a there still we've are announced to

Operator

session. Ladies and of have question-and-answer gentlemen, end we the reached the

to the Now for I'd over like turn call to back management closing remarks.

Carl Grimstad

with In then storms to exciting with have lot and summary, had everyone to and this for this issues, deal and just XXXX both a was the you. past the but you again micro that company us year also internally, macro that issues challenging thank supported of year the or a what pandemic year we

done in created of one able the profitable sustainable phase job future. think the multiple I attack to opportunities project, that's a into a company we've going good we've growing

again time forward I everyone and we for to your in So talking to a look today, thank months. again you few

Operator

conference. concludes This today's you. Thank

You you may this time. disconnect great your for your lines participation a and evening. Thank have at

Waitr (ASAPQ) 9 Mar 212020 Q4 Earnings call transcript