Louisiana-based Waitr Holdings, which also owns Bite Squad, is the latest publicly traded national delivery provider to post a significant loss in recent weeks, bleeding a total of $220.1 million during Q3 2019.
Diving into the numbers, Waitr’s quarterly revenue increased 153 percent to $49.2 million, compared to $19.4 million during the third quarter of 2018. Revenue related to the Bite Squad merger totaled $24 million during the period. Those numbers equate to a significant, $220.1 million net loss, which compares with a loss of $6.5 million during the third quarter of 2018.
CEO Adam Price said the company is continuing to make improvements focused on creating a better customer and restaurant partner experience, while also working to reduce current and future expenses.
As part of the results, Waitr announced that its board of directors completed a “strategic alternative review process” that was first announced in August. The board concluded that the company will continue to be independent and public, but that it “remains open to potential value-creating opportunities.”
“During the quarter, we started implementing changes that are expected to result in an incremental $25 (million) to $30 million of annual savings in FY 2020,” Price added. “We remain dedicated to stabilizing the business in terms of cash flow and charting a clear path towards profitability.”
Gross food sales increased to $161.4 million, compared to $77.7 million during the third quarter of 2018. In addition, its active diners increased to 2.4 million, up from 843,000 during the third quarter last year.
Days after the announcement, WTRH shares were trading at $0.24, which is approximately half of their price before its quarterly results were released. The company has $52 million in cash on hand, which is down from $209 million at the end of 2018.