The coronavirus pandemic and the associated lockdowns have brought certain sectors that have been in sharp focus. One of those is the food delivery space since more and more people are now ordering online due to the lockdowns. Waitr Holdings Inc (NASDAQ:WTRH) is one of the several operators in the food delivery space, and last Thursday, the company announced its financial results for the first quarter.
While the company posted a loss of $2.1 million or $0.03 a share for the quarter, Waitr managed to have the first profitable month in its history. That is a significant development in the company’s history and shows that it had done brisk business following the lockdown.
The month happened to be in February. The Chief Executive Officer of the company Carl Grimstad stated that Waitr had made key strategic changes that are aimed at raising revenue per order, cash flow, and, eventually, profitability. The first-quarter performance was also greeted with great optimism by the market, and the stock climbed right after. Since the beginning of this month, WTRH’s stock has recorded gains of 175% so far, and it remains to be seen if it can add to those gains for the rest of the week.
Waitr announced that its revenues for the first quarter came in at $44.2 million, which actually reflected a year on year decline of as much as 8%. In the prior-year period, the revenues had stood at $48 million. Waitr blamed the drop in revenue to the coronavirus pandemic, due to which the company had to close its operations in some of the markets.
However, those closures did not have such a big effect that the company was able to offset the loss of revenues by raising its revenue per order. The company put in a new fee in place from January this year, and that made it possible for Waitr to make $12.94 for each order. That represents a rise of 28% year on year. Sign up below for breaking news on $WTRH and other fast-moving plays.