Online food delivery company Waitr Holdings Inc. is projecting its first profitable quarter since the company went public in 2018 from a surge in demand caused by the coronavirus pandemic.
Waitr estimates its second-quarter profit at $8 million compared to a $24.6 million loss for the same period a year ago. The company’s full balance sheet has not yet been released to investors and is expected to be disclosed in early August.
The profit is being attributed to a surge in food delivery demand after dining restrictions were imposed on restaurants during the coronavirus pandemic and expanded delivery services. The company also laid off thousands of delivery driver employees, using independent contractors instead since April.
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Waitr’s revenue grew to $60 million during the second quarter compared to $51.3 million one year ago.
“Over the course of the last six months, we have reinforced our presence in our most important markets by increasing delivery areas, adding grocery and alcohol delivery services, and expanding our customer service and dispatch teams,” Carl Grimstad, CEO of Waitr, said in a news release. “All these growth initiatives are being supported by a leaner cost structure.”
The business also converted $12.5 million of convertible notes, which are equity stakes in the company, into common stock. It also paid down $12.5 million on a senior secured term loan.
Waitr also had $66 million in cash as of June 30, according to the company.
The company recently touted hiring employees in Louisiana despite several rounds of layoffs in previous months.
Waitr’s stock was trading around $3.55 per share on Monday morning, down from its 52-week peak of $6.33 per share in July 2019.