ASAP, the Lafayette-based delivery company, posted a $73.5 million net loss in the third quarter, its fourth straight quarter with a loss and its second massive quarterly deficit this year.
Just like the first quarter of this year, ASAP attributed the hefty third quarter loss to a $53.9 million goodwill impairment due to the company’s sagging stock price. A $67 million goodwill impairment led to a $77 million shortfall for ASAP in the first quarter of 2022.
ASAP also posted an $11.7 million loss in the second quarter.
ASAP last posted a profit in the third quarter of 2021, when it hauled in $43.4 million in revenue and had $12.3 million in net income. Meanwhile, the company’s revenue was $25.1 million in the third quarter of 2022.
The delivery company hauled in $91.4 million for the first nine months of the year, compared to $143.5 million for the same period last year.
ASAP blamed its declining revenue on lower order volumes “driven by the highly competitive environment of the delivery business,” as well as inflation and high gas prices, according to a company news release. It said the fall was partially offset by revenue from its third-party payment processing referral services.
Goodwill is an intangible asset that appears on a company’s balance sheet that is typically associated with the purchase of another company. A goodwill impairment occurs when the current value of the goodwill drops below its value at the time of the acquisition. ASAP bought a competitor, Delivery Dudes, in March 2021 and a host of payment processing platforms in August 2021.
ASAP has pulled out every tool imaginable this year to improve its financial performance. It has changed its business model to deliver more than food, including auto parts, apparel and more, and it has reduced outstanding debt. It has also entered into a partnership with FoodBoss, an online food delivery search engine, to expand its audience.
In October, ASAP shareholders — on their third try — approved a reverse stock split that will consolidate the company’s available shares and, in theory, raise the price of those shares. ASAP has until January to raise its share price above Nasdaq’s $1 minimum to avoid being delisted from the index.
Shares for Waitr Holdings, ASAP’s parent company, were trading at 14 cents as of Thursday morning.
The company, formerly known as Waitr, rebranded as ASAP earlier this year because of a trademark dispute.