Waitr reports drop in revenue for second straight quarter, rise in labor cost

Waitr had a slight drop in revenue in the second quarter compared to a year as the company continues its expansion into new markets and hire drivers.

Revenue in the second quarter was $49.2 million, down form the $50.9 million in the first quarter and $60.5 million in the second quarter 2020, company officials reported this week. It reported a net loss of $5.6 million, up from the $3.7 million net loss in the first quarter.

Waitr expanded the score of its delivery in the second quarter, CEO Carl Grimstad said, by adding several national brands to the company’s platform as exclusive delivery partners. It also entered new markets and now has 25,000 restaurants on the platform while expanding into underserved markets.

The number of drivers the company employs is at the highest since the company’s inception, he noted.

“(It’s) a reflection of our ongoing recruiting efforts and focus on providing quality service to our diners and restaurant partners,” he wrote. “Our driver labor cost during the first two quarters was higher than normal due to the overall national tight market during this period.”

Waitr’s stock price dipped following the earnings announcement, dropping Friday morning to $1.06 per share, the lowest since near the beginning of the COVID-19 pandemic.

The company is continuing its rebranding efforts, which will include changing its name and visual identity, Grimstad noted.

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