WTRH - Earnings call transcript Q1 2022

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Operator

Good afternoon, everyone. I would like to welcome all of you to the Waitr Holdings, Inc.

First Quarter 2022 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 the company's earnings press release. be investors.waitrapp.com. sec.gov may Relations their it at website not, found or at Investor If

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

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

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

Carl Grimstad

In the dispatch. with Google of we as everyone, welcome optimization third-party and quarter quarter, and earnings to first Hello, ordering Olo such you. call. on first food aggregators Thank integrations build-out the the focused key several and continued XXXX

bring point-of-sale over finalized in with quarters partnerships, our CheckMate. along access third with and XXXX years increased of such to serviceable to Otter other QSR existing to access company of visibility, evolution integrations such Bread Charlie, increased increased the We Olo and of be Rails, We Ordermark this and new access these vast as with integrations and and by convenience also base X-plus The a have systems consumers. has driver as refining restaurants provided diner integrating that completed and are of various and Panera integration our wider capabilities leveraging locations. provide our and the keenly QSR over brands, stages focused X,XXX national delivery These active flow. direct X-Eleven. thousands inventory should last will anticipate offering store are It's and the several with platforms on our shown in we to enhancing second order

with progression we connections As services. such, initiative the our direct platforms facilitate of to with anything several instituting online continue deliver ordering delivery to expand last-mile

As this consumer necessity addressable various of In a door faster for products, market demand open will range the also this active will potential earnings expand turn, potential explain for drives broader our for and channels. the of delivery increased revenue the total drivers. through the

other Pay forms are drivers. We far options, which currently as payments service, well with technology, through PayPal, of of pay also payment contract this to Out. and a instant variety as Through offer independent including thus facilitate we anticipating utilized being is our Prize in-house partnerships to commercializing Zelle our Figure our payment only

faster Our expand in-stadium Through to the other experience better on delivery hope the have both times options, and restaurant of cuts events we markets, sports wait college recognized these drivers need venues. flexibility income. that dining these experience pronounced down to to at verticals presence in the many for industry a and appreciate our to brings the this disbursement provide and to we access earned

vehicle in-stadium Dome. including dining stadiums experiences X,XXX Orleans presence a territories. and processing markets of be home and within for We have will basis. has Super Alabama, of provide potentially we grow our over the new an our across payment implemented in expand this of We and technology this South, services entrance merchants, now University continue several New in-stadium our the core ordering into the monthly already a resulted existing LSU, into successfully Saints expect provide application, the to capabilities and to in on The streamlined to convenience this

umbrella. first the an foundation and XXXX, of serve ASAP high our the is important abilities bring service operations. veterans our strategy hired efficiencies, platform positions. we maximize X and this our first-ever will to our brands step company's the During service the industry cost and feature Once of unify from of Chief simplify future process and consolidated Officer These begun support and Chief offering single embody enhancements that overall platform this name. this individuals under believe will product rebrand under We our technical of as already This in better company. technology Information Officer applications will unify cycles have and the existing as for quarter provide a the Technology one completed, caliber build direction the

experience particularly of to current macroeconomic the within effects We factors inflationary first of quarter We order gas to our continue pressures. these notably believe to in prices flow contribute environment, most XXXX. markets, Southern muted and adverse core rising the due our

platforms. we more critical While the further pronounced major the mentioned is I'd like factors, have thus, the Consumers the effect lower-cost Officer. price-conscious, previous brands consumers. and we even to on and turn can't points over call our become it acknowledge these impact on this integrations to on to do economy to that price Chief with varying QSR will continue has our With external our control options. Financial the The that, available downstream Leo, widen had provide

Leonid Bogdanov

to to goodwill million $X.X share in million XXXX quarter $XX.X million to for $X.X EBITDA Net the XXXX. of included XXXX noncash of $X.XX was XXXX. compared to the impairment first our a first the loss of quarter in first $XX.X the term million first loss first totaled $XX.X the Cash million in on the primarily $XX.X to per adjusted charge. hand as compared to compared $XX.X XXXX of of Total of million, Net our compared of XXXX financial XXXX as I'd of quarter share XXXX. $X.X first or first Thank per net XXXX. million was government you, of EBITDA notes. quarter was loss first stimulus million for March for debt of quarter XXXX million of of million in Revenue XXXX, $XX in first $X.XX long-term or first the quarter the due review consistent and quarter loss results. the $XX outstanding loans XXXX million of a statements net convertible lack Carl. quarter XX, like Adjusted of for XX, quarter March of of quarter was $XX.X of the part

the balance of million million our approximately amended our quarter agreed and That outstanding to by as have lender the of we first XX, of to XXXX, X, May our instruments with concludes debt to $XX pay May as down $XX recap have maturity of of debt terms results. agreement the debt extending a XXXX As XXXX. well portion both financial

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

Operator

Instructions]. [Operator

Company. Kurnos Our first from comes The question from Benchmark today Dan

Daniel Kurnos

food high just a Carl, sort of bunch sense. of equation, the adding the level makes side on the of QSR on

the Can about your from months. already. X, see you online You brought platforms for talk is implementation through just XX timing of took AOV ordering that kind creeping lot you on can when that inflation of a

So to might these and order impact what restaurant just mean you the through can onboard flow? timing for think other to us options help that

Carl Grimstad

a just, side. to Well, yes, It's of markets in price lot because not good AOV from continued the our that And It our point a increases cost on growth driven up. costs by lower going just food we've is pick generally really of up have that's these rise. the -- to options. seen speaking,

decision-making third than be their and Dan, we've restaurant-focused most even if is restaurant fact financially, process. operational. independent And And will argue QSR. that expensive integrations in of consumer hard it more independent that quarter, back it's COVID will at business, said, traditionally I've an period these hurting the an our of think I been by with to the it's time, long impact

should and quarter. balancing direct third platforms with think in results So or the companies organizations, the embedded a some we integrations are to see least I lot the that these start QSR the of between that in POS at ordering really

Daniel Kurnos

trajectory That's about $XX just talked million of there? scanned running Q. $X.X the through payment That like fees then run talked The sort year. a about And helpful. you at are of like I rate it. know that's a before. just You it's you've quickly talk about the Can merchants. million. X,XXX Got I seems I mean growing. it

rapidly -- to a think the just margin the us business. sense that's would overall of profile growing. obviously, Just give of accretive be would maybe I that how And

Carl Grimstad

Yes.

businesses. these decades, payments the you As we X.X build was in quite know, continue and to out business I viable. for It's

internal monthly accounts right. of our growing around that. now, We're to of signing maybe sales the XXX The that's end underneath right per XXX the And north bit all is goal is merchants You're types. right It basis. month year. little a a on by of have

merchants our processing. SIC codes but signing we're portfolio, credit attacking of also traditional other we're card So to restaurant

will that as revenue it's the if the run -- you still full-service base by it's $XX adding problem as rate, on grow. at combination million So will, more to we one of still continue within that That The the have to a a $X.X business. restaurant merchant. continue. grows ISO, of just embedded out to well even build base Waitr continuing overall will the attacking And is million the small

at actively needs increase very focused growth That's just that strategy. take get on mass just the time. We're payments we're it It within looking sheer But assets the completely the will business. So up bigger. the other will low-risk, speed high-return of and space payment to that. a

Daniel Kurnos

at the out you ways that don't maintaining cash use near agreement volatility drastically at I friendly I obviously, would the operations next the we of And The say, lender it. cost trajectory assume here. that overall given point. baseline, down has I this discuss that's been that's assume question really this down the pushing to to because between I of clear issue just makes kind to the frustrate want also not side, paying now And a of now you what there's one XX at you. lender rightsize your portion of of major is that been, the but won't going things to assume months. primary have probably that at Got term. a and, debt, debt. The paid crazy, the fit point the kind be unless that change sense, with Yes, EV on has how moment, Carl, the in is

Carl Grimstad

Yes.

not And was a the project, on business it's the controlling started this strong lot that right? balance the lender. balance had quickly that ignore forget negative think on shape, $XXX EBITDA business the We a to sheet relationship because strengthening never I that's that day, of us. we great people And of but have. only with focus has over that in I debt at always the of And end sheet, a be easy to kill our can have million financial when the that thing had and

you We continue to the not debt other pay other have things, by have balance reduced We're one the XX% of that we is is constituents. some business. But lose important to quite talking important that here inherited these a because that that maturities and super delivery to about sheet, might extended we've down into exciting fact It we that mile is areas. we're thing we it last be viable the of track aggressively that of. the and as expanding super fact proud all can't about but stay. and

Daniel Kurnos

That's helpful. it. super Got

you'd actually you slightly do came For Carl, in I I whatever results, in this so think, pretty actually thought of in ahead QX, worth, it's good what environment.

So it. I appreciate

Carl Grimstad

you. Thank

Operator

remarks. we'll Ladies for conclude turn back and Grimstad over floor session. with like closing question-and-answer to I'd gentlemen, that, the Carl to today's any

Carl Grimstad

Thanks everyone's interest. continued again for

the dividends, future. We working -- the just forth dividends to projects put necessarily that should there's of we've future. in lot we've as release, higher it not revenue but in on It's to that profitability the continue earnings and lead in pay been a will

talk you to thanks and again, next So we'll quarter.

Operator

today's gentlemen, that, conference and call presentation. and we'll thank Ladies conclude for joining. do you with We

You lines. your may now disconnect

Waitr (ASAPQ) 10 May 222022 Q1 Earnings call transcript