Resurgent Waitr Recovering From Covid and Hurricanes Posted Strong Profit

Waitr Holdings (Nasdaq: WTRH), an on-demand ordering and delivery platform, that billionaire Tilman Fertitta and Jefferies acquired in 2018 via their first SPAC, Landcadia I, reported Q3 earnings today. Waitr pulled the announcement forward, with earnings initially expected out on 11th Nov.

WAITR

Waitr missed revenue estimates by ~6%, but significantly improved profitability with $0.09 EPS vs. -$0.04 estimate and $0.04 in the same quarter of 2020.

Waitr attracted attention earlier in October when Morgan Stanley disclosed a 10% stake in the company, which saw the stock price increase from sub $1 to ~$1.25.

As mentioned on the earnings call, Waitr was impacted by several hurricanes in Q3, but managed to improve profitability by increasing efficiency across the board (primarily in headcount). The company acquired 3 payment processing companies in Q3 as part of a broader strategy to diversify revenue into payment services.

Earnings highlights

  • Revenue:
    • Q3 ’21: $43.4 million (vs. $52.7 million in Q3 ’20)
      • Estimate: $46 million
    • YTD ’21: $143.5 million (vs. $157.5 million for 9 months ending Sep. ’20)
  • Net income:
    • Q3 ’21: $12.3 million (vs. $4.6 million in Q3 ’20)
    • EPS: $0.09 (vs. $0.04 in Q3 ’20)
      • Estimate: -$0.04
  • Adj. EBITDA:
    • Q3 ’21: $3.1 million (vs. $2.5 million in Q2 ’21 and $13.0 million in Q3 ’20)

Source: Waitr ER

Equity market reaction

WTRH was down ~8% in AH trading at $1.58, after selling off from $1.87 during market hours.

WTRH Chart

 

Is Waitr the Fertitta SPAC thats due to recover after it’s slide in price move to  profitability?

Spac Fertitta

Sources: Forbes

About Waitr

Founded in Lafayette, Louisiana, Waitr operates an online ordering technology platform, providing delivery, carryout and dine-in options. Waitr, along with Bite Squad and Delivery Dudes, connect local restaurants and grocery stores to diners in underserved U.S. markets.

Waitr went public in 2018 when Houston billionaire Tilman Fertitta’s blank-check company — Landcadia Holdings Inc. — purchased Waitr Inc. in a $308 million acquisition. The combined company changed its name to Waitr Holdings Inc. .As of September 30, 2021, Waitr, Bite Squad and Delivery Dudes operate in small and medium sized markets in the United States in over 1,000 cities.

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