$77 million loss reported as Waitr faces possible elimination from NASDAQ in July
Lafayette-based food delivery company Waitr reported a loss of $77 million during the first quarter of 2022, citing "goodwill impairment" and a lack of stimulus payments as factors in the loss, the company said in a release.
The company's revenue was around $35 million in the first quarter, down from around $38.6 million in the fourth quarter of 2021 and $50.9 million in the first quarter of 2021, according to its filings to the U.S. Securities Exchange Commission.
“Now, with respect to our performance in the first quarter, we continue to experience negative macroeconomic factors that weighed on our markets in the first quarter of 2022, headlined by inflation and high gas prices," Waitr CEO Carl Grimstad said in a release. "As a result, orders were lighter than expected."
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The first quarter results were reported as Waitr faces potentially being dumped from the NASDAQ in July if its share price does not get back above $1. The company is currently looking at doing a reverse stock split, which would combine existing shares and raise face value.
The company said the lack of stimulus payments also contributed to the loss of revenue. Waitr said that much of the net loss — around $67.2 million — stemmed from "goodwill impairment" caused by the decline in stock price and market capitalization efforts in March.
Companies may cite goodwill impairments if an asset they purchased declined in value after the sale. Waitr has been involved with several acquisitions recently, including Delivery Dudes in March 2021.
Grimstad said he is optimistic about the company's future as it continues to expand its delivery options. Waitr, which is moving forward with a plan to rebrand as ASAP, is still looking to move into the cannabis industry, and has started offering concession delivery within some Louisiana sport venues.
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The rollout of the ASAP rebrand is expected to begin in the third and fourth quarters of this year. The rebrand is the result of a settlement with the West Coast delivery company Waiter.com, and Grimstad has said the new name better reflects the company's new direction.
"Our vision is to be able to deliver 'anything' to consumers, same day, from any type of business," Grimstad said. "We believe that coupled with our solid driver base, our 'deliver anything' capability should allow us to increase revenue potential for the company, as well as the earnings potential for our drivers.
"Moreover, we believe that we will be able to continue to facilitate merchant access to third-party payment solution providers to grow that revenue stream, whether organically or through acquisition.”