WTRH - Earnings call transcript Q2 2021

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Operator

Good afternoon, everyone. I would like to welcome all of you to the Waitr Holdings Incorporated Second Quarter 2021 Conference Call. Today's call is being recorded. 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. be at sec.gov investors.waitrapp.com. may Investor on it website Relations not, found or at our If

statements this in Before the and our those projected market management, Report in and are to certain forward-looking based risk I turn financial results factors our would projections I the statements. current like and actual differ remind call see contained of risks XX-K XX-Qs materially results from Form constitute on our that could you These Form future may from vary management’s about statements. for expectations Annual these to our call discussion statements. on over forward-looking the to and our cause Please in business results in forward-looking statements actual that a and business

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

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

Carl Grimstad

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

John KFC. Red national brands, by in Silver's, on-demand Long sector, of with our partnering a presence market quarter, Potbelly, Applebee's, number Robin Smoothie King, strengthened the we This and including delivery

we of over chains continued addition now partnered on of and these restaurants popular independent With platform. the our have onboarding XX,XXX our restaurants,

serve continue the hardships not COVID impacts as support restaurant in the recovery a signs whole. recent restaurant in and of to more we for continue result are of variance from communities does COVID-related our that and hopeful that the partners We emergence industry

restaurants, mentioned independent is drivers. As before, of diners, and our our ecosystem I've strategy contract times many to increase

future for technology this introduce customer in include during the our product initiatives, and believe invested with to the and bolstering as all to These plan we which quarter, of company opportunities. for that in partner well markets, our extent, teams, create support we've the products size growth. opportunistic additional continued our services As are capital group methodically which are and we investments are offerings, as anticipated larger To into revenue the earnings that increases, necessary growth additional business. delivery platforms positioning new of core expansion new various

since base at Additionally, drivers in our the we company's contract contractor driver adequate level continue of supply. of This highest approximately strategically active, invest XXXX, independent has quarter XX,XXX drivers. resulted in independent ensuring the in to second inception drivers the

broaden have of We food pro recently merchant continue payment beyond will definitive Cod to very businesses combination to The these capabilities three services companies, processing delivery. merchant flow executed payments. purchase and the party purchase third agreements company's Cape

the in near these term. excited are We transactions to close

private D quarter, chain block an and Figure for the their and made on origination, During technology is in also loan cutting solutions utilizes of Series and financing we equity Technology payment Figure services, edge investment the management, banking payments. round. fund

goal anticipated This contract further our solutions. and with independent and working is diners, restaurant constituent technology of disbursement affiliate payments are of leveraging their transformative to to We facilitate base an figure within our their business to with agreement options. intertwine on the alternative FinTech also underlying drivers with payment partners

company reflects in strategy and corporate better reflects and our The ventures. name into rebranding identify our strategic to continued new We offering delivery innovation, unifies brand a a current business and commitment that and visual verticals also name previously long-term strategy. a other our service comprehensive we ongoing announced, to initiative As our expansion have rebrand. change identity launched look recently to business

in We fundamental to business. our and to recap are and looking investments continue forward that, over focus company for to turn Officer to With the quarter second results. necessary the operational going half as strategic year initiatives of second on Financial grow it to long-term of make the the Chief I'm Leo, we a

Leo Bogdanov

to Thank second of quarter our Revenue quarter you, the the Carl. of second in million I'd in like XXXX first for $XX.X $XX.X million quarter the second financial of of XXXX. to compared results. now $XX.X XXXX million was XXXX, review, quarter

per XX, totalled quarter to $XX.X second of adjusted XXXX as Cash per $XXX.X June the XX, We're Adjusted compared per $X.XX EBITDA our in second ended Q&A and XX, XXXX. the June the quarter loss $X.XX our revenue a compared going the of share second loss share XXXX XXXX, first on was as $XX.X second to was XXXX of compared XXXX diluted short long-term in the million share share for earnings and XXXX. hand quarter million $XX.X compared results. diluted $X.X convertible of for through the XXXX quarter million of XXXX. Adjusted second in XXXX six of June $XXX.X $X.XX million for Loss the XXXX to recap June months of the per primarily of second the for of XXXX concludes diluted and $X.XX of of in million ended $X.X Total million That compared quarter million $XX.X notes. share the to first quarter earnings quarter of term For quarter quarter months to per was for was the the first $X.XX XXXX. XXXX. of session. million second debt financial and of million was $XX quarter six XX, outstanding of $X.XX loans,

Operator

[Operator c And with go please to Benchmark sir. instructions] this the at time Thank you. ahead, we'll And first Company. go

is open. line Your

Dan Kurnos

these of business the the this maybe break rebrand right trajectory, you around sort level us what through I off what help you go you Carl, versus just the of is. kind out maybe setting pieces think through trends of margin at kind short-term as by of investments, make guess We And expectations organic sort if can of and the we core long-term, the as are here? just could flow look start now.

quarter term obviously some about investment long of This think term? do historically, kind in of XX, you'd how near said, the in we the north it and

Carl Grimstad

Yeah.

about payments businesses I going delivery, to going but last think right? with start past, those attainable, mile to margins we've than are let's I first. that said just as talked going in where So It's it's more the free an free still more of of that our delivery me to be for like can't customer be supplemental a mini that in things right. ultimately base than are to Dan, offering this other door just dash, be now we there. combine we're business long-term and delivery here,

the constituents. the our the be We can't play these have businesses And that And full and of payment payment other of beyond is that step beyond why to only ourselves big the three what not first services, suite in than in into more verticals thinking base, talked have to but installed capability play. We last really that. mile you. that's a delivery, just to always addition game I've our they main about offer the giving

is So purely aggregate term, short not delivery. as quarter mile still just In I from are the that last long-term soft will hit. I think but this as those think EBITDA margins about attainable, EBITDA the

parties. talked business. was that's get big predict I little projecting. RPOs why out with creates third impact of I've has in delivery, the It than rest integrations nightmare of of been great the a is the line impact about in I little the two past in rebound see our of last be year the of it, the the quarter. COVID think rebounds has last of but because been with that it over it quarter second softer. been to And top as validating tricky a where the timing also a mile Historically, But skis to the reticent we've do least year fourth will quarter. bit some At the a of the

Let's we the been, didn't last out effects mid where prior pandemic. essentially it would is of only stimulus, QX's number the bigger year, since it And pandemic today profitable than to the for March QX. but hit example, scrape would have just have been business the if if think wasn't say if in revenue I where

a base strategy. then our where from from and start So that's there, business, from we we with build

Dan Kurnos

of response, it. how Got mean, times the from of it strategic helpful. talk that into to the adjacencies that just, a just and course move can you you top of about through how I the maybe up That's but couple bottom the And brought little sort year? quickly more a that over bit in rationale acquisitions, filters can of you

Carl Grimstad

on Yeah, multi-pronged the XXXX growth represent its it's own. I strategy. a And XX% could in just in think to potentially that business

Payments, Vogue right? SIC of my hanging was So, these types old broad solutions a merchants, many of businesses I are which So companies the company, are all then that we marketing with low They payments right? merchant of our we codes suite in across payment have sure that, offer use to like but that category several of have restaurants strategies what's fruit after, XX,XXX us for captive every today. of you go imagine can

It's it's drive the business going revenue with to and can merchant time an a that already be, give offering some that growth us we really our him to mean of financial I without going base, aspect nice make to will partners product expect even merchant its business in earnings and synergistic that I own, stickiness one having So us. it it's that over sense. on that to additional embedded other deliver packaged doing

Dan Kurnos

one And the I delivery terms kind Maybe the this ancillaries kind I the at And in opportunity. developing is update that's that just are and then Got could longer from remainder. or still be if in it. how all then right. upside payments through included of that tail on a Grocery mile alone? talk plus ancillary more growing just seems the of that core payments no XX% is to is black cannabis. the point adjacencies, sneak of just know Thanks.

Carl Grimstad

today, with a done they there anything component around think attractive Like going you I to are not think tricky, we're do to I profitable what's marries cheeseburger, out regulatory are that's delivery. The are types because So available shown a of do nor with on come we've up be last that seems at it's cannabis else by as the going with, both everyone profitably. thing working sit to All are we're because by And that said, as of money we've right be it is all dynamics there work, state. delivery assured and regulatory and us, be we think cannot is throwing of drain the deliver And, direction, it last are difficult being with. And can I we done all I of players all think methods and different a right? many retailers dynamics we've are here that the services they're goods Yeah, their which to everyone was of onerous, valuable was you level. to state as that the if in And such selling deliver afraid super future. we in going serving product. comply that duopoly, to other a not to like payment cannabis bode of those traditional mile business for the if super and that be state going. year, pricing on. payments business is, a and important step both solution right? number for Because this to and isn't These entities or expanded quite, verticals, it's number it's gray seems them the our to alcohol delivery. and as that is knows, that with own. ability Uber's to competitiveness. same things, that's flexibility be all we going -- have is going could can quite alcohol As well the skill more door going the their And, in that is And There it it's it's to someone payments. solution are left the the a or not more it to dashes that for are state but into to comply a it that's

or industry So industry refreshing whether to I the the restaurant be think we'll the alternative obviously board. but across store convenience it's cannabis,

Dan Kurnos

it. for Carl. really it. Got Thanks the all color, I appreciate

Operator

Riley. And Sinderen we'll Jeff go next to question our from of Van B.

Jeff Van Sinderen

can you more the bit picture. I little a us the Maybe just wanted driver of there. cost to that up kind speak to give on follow outlook and

Carl Grimstad

Yeah.

color think was time, quote we've a around drivers market Uber in labor investor, As a and pretty I period had we investment their from subsidies. for and, coincides of in that the unquote got tight with lot a well-documented of usually it

So we whatever if investment we I a right. impacted think lot and an line. QX the EBITDA consider QX, notably probably being in of in that said, success, did it resulted it That

have we ever count that We high, driver a highest had.

We had at I see we've times that starting here. are those do least lower ever I've have delivery we're think trending our costs lowest that July. to and since elevated that in been

think don't worse. any get that to I that continues So

think that I peaked. has

Jeff Van Sinderen

QX. little G&A thinking in for higher I if lines look QX Okay. just can then half, were we marketing second a And than and the guess you're at expected for we and kind or of bit around sales those

those So just where directionally head? wondering might

Carl Grimstad

Yeah.

the So right? your waiter that which You mind, well, about selection to couple in that, platform into wants for don't restaurant necessary is month that's the the things level business, a need once because, on a want market. in oh, a my his customer QSR, long-term that, push Mac not remember of big you of strategy

some term to to as still have order I additional quarter. impacted the in healthy your per down not did though least Super revenue short line it's because some top try revenue independent slightly So go margin, to that at in even it's a diners We margin we've as competitor. come seen important restaurant. higher coupons reactivate the dormant to as

bode will do contractually. opened some time opened over markets. do we these smaller into start And some maybe new when lower markets, this then, that we I -- markets, And we've well. year, go increase rates with think that XXX we

I well So thought were those out. think

I were think they smart.

you think more think smaller of don't, get this heavy them on see I things quarter. I markets. than in these these that we'll saw this opening, But strategy continue you handed

Jeff Van Sinderen

profitability And to would then of just Okay. profile, expect kind when the looking operating profitability? you at operating

Carl Grimstad

I I'm Yeah. understand operating. question. not the The sure.

Jeff Van Sinderen

margin operating margin Operating line.

Carl Grimstad

Leo, to? understand. seem don't don't what because Why line I pointing is actually he explain you to

Leo Bogdanov

that positive, sorry. Yeah, wondering would income which little at operations expected. that, than I'm, you bit from see just line when if I'm was line, lower getting we to looking the just a back

Carl Grimstad

So at? what looking we number are Jeff?

Jeff Van Sinderen

believe I X.XX,XXX, negative.

Carl Grimstad

Leo. Leo, me help you out here? can

Leo Bogdanov

Yeah.

at think I stage. probably XXXX that rebound and that's a there expect we expectation sometime in

Jeff Van Sinderen

So it, XXXX, got helpful.

anything investment help curious I the can just us in more, with then Okay. just one And had there? was on the application, blockchain you

Carl Grimstad

Yeah.

familiar Figure you Technologies? with are So

Jeff Van Sinderen

especially? Not

Carl Grimstad

All right.

figure the a on was So franchise is founded to called disengage that and that a Mike of They is a Figure they named have And the product cost been industry. has guy the that by reduce essentially they're enabled who Cagney interchange. also they Founder so Pay banks aim focused mortgage company member far. also blockchain

maintaining called from credit that Well for right member interchange, what to the Pay merchant and the you. Figure and networks an loan non-collateralized goods. having and pay a if in ability their these know, there that you revenue a defy that something different is number In sit as all and of banks or earn of aims essentially will cases they MasterCard for the streams to that popped So have in say up some are their transact risk challenger short-term between -- have consumer world established banks Visa attacking like are marketing, the banks. to Afterpay, you to offer

you think to. every think is day. So, about, again, and to super we interesting, innovative our if product you offering related a merchants, This drivers about constituents payment consumers, pay offer

valuable our system another then right? It's like X We've payments there's have Figure you downloaded active app. company super a but find XX,XXX other And have people or drivers. network, echo million million a valuable. that company XX,XXX got on Just six remember super merchants that diners

the addition ability market solution, product processing. So, credit with additional payment of purchased offering one we Pay besides and our is that Figure to these card innovative businesses it's, that traditional their

Jeff Van Sinderen

of Okay. luck. Fair and best questions taking enough. Thanks my for

Operator

question-and-answer back session. today's does any comments. Grimstad Carl for will the closing that turn so or now And conclude additional to I call

Carl Grimstad

No other interest. comments thanks your closing than for

of continue and and a Thank the We year of you. about future nice rest to have excited the this business our be night.

Operator

concludes This call. Thank participation. your you for today's

You disconnect. now may

Waitr (ASAPQ) 10 Aug 212021 Q2 Earnings call transcript