Waitr Holdings Inc.

Good afternoon, everyone. I would like to welcome all of you to the Waiter Holdings Incorporated First Quarter 2022 Conference Call. With us today are Waiter's Chief Executive Officer, Carl Grimstad, and Chief Financial Officer, Leo Roganov. By now, you should have access to the company's earnings press release. If not, it may be found at sec.gov or or their investor relations website at investors.waiterapp.com. Before I turn the call over to management, I would like to remind you that certain statements and projections in this call about future business and financial results constitute forward-looking statements. These statements are based on management's current business and market expectations, and actual results could differ materially from those projected in the forward-looking statements. Please see the risk factors contained in the company's annual report on Form 10-K for a discussion of risks that may cause actual results to vary from these forward-looking statements. Finally, please note that on today's call, management may refer to non-GAAP financial measures. Please refer to WADER's first quarter 2022 earnings release for a full reconciliation of its non-GAAP financial measures to the most comparable GAAP financial measures. I would now like to turn the conference call over to Waiter's CEO, Carl Grimstad, who will give an overview of the company's business activities and developments for the first quarter of 2022. He will then turn the call over to Leo Rugdanov, who will provide an overview of the company's operating and financial results. We will then open the call for Q&A.

Carl? Thank you. Hello, everyone, and welcome to the first quarter 2022 earnings call. In the first quarter, we focused on the continued build-out and optimization of several key integrations with third-party aggregators, such as Google Food Ordering and Ollo Dispatch. We also completed our direct integration with Panera Bread and are in various stages of integrating with several other national QSR and convenience store brands, such as 7-Eleven. We anticipate these integrations will be finalized in the second and third quarters of 2022 and provide access to over 2,000 serviceable QSR locations. These partnerships, along with our existing integrations with point-of-sale systems such as It's a Checkmate, Charlie, Olo Rails, OrderMark, and Otter, have provided access to thousands of new restaurants to the platforms and should bring increased visibility, increased diner access, and increased order flow. The evolution of this company over the last two plus years has shown that we are keenly focused on enhancing and refining our delivery capabilities by leveraging our vast active driver base and offering a wider inventory to consumers. As such, we continue to expand our Deliver Anything initiative with the progression of instituting direct connections with several online ordering platforms to facilitate last-mile delivery services. As consumer demand drives the necessity for faster delivery of a broader range of products, this will expand the total addressable market and open the door for increased revenue potential through various channels. In turn, this will also expand the earnings potential for our active drivers. We are also anticipating commercializing our in-house instant pay technology, which thus far is only being utilized to facilitate payments to our independent contract drivers. Through this service, we currently offer a variety of payment options, including PayPal, Zelle, as well as other forms of payment through our partnerships with FigurePay and PrizeOut. Our drivers appreciate the flexibility of disbursement options, and we hope to expand this to both the restaurant industry and other verticals to provide faster access to earned income. Through our presence in many pronounced college sports markets, we have recognized the need for a better in-stadium dining experience at these events that cuts down on wait times and brings the delivery experience to these venues. We have successfully implemented this technology into our existing application, and this has already resulted in streamlined in-stadium dining experiences in several stadiums across the South, including the University of Alabama, LSU, and the New Orleans Saints home of the Superdome. The convenience of in-stadium ordering capabilities will be a vehicle to expand our presence within our core markets and potentially provide an entrance into new territories. We now provide payment processing services for over 2,300 merchants, and we expect this to continue to grow on a monthly basis. During the first quarter of 2022, we hired two industry veterans in the company's first ever chief information officer and chief technology officer positions. These individuals bring a high caliber of technical abilities and have already begun the process to unify our applications under one umbrella. Once completed, this single platform will provide for cost efficiencies, maximize product build cycles, and feature enhancements and simplify our overall service and support operations. This is an important step as this consolidated technology platform will serve as the foundation of our rebrand strategy under the ASAP name. We believe that this will unify the service offering from our existing brands and better embody the future direction of our company. We continue to experience adverse effects of the current macroeconomic environment, particularly within our core southern markets, most notably due to rising gas prices and inflationary pressures. We believe these factors contribute to our muted order flow in the first quarter of 2022. While we can't control these external factors, we do acknowledge the pronounced impact that this has had on the economy and the downstream effect on our consumers. Consumers have become even more price conscious and thus it is critical to provide further lower cost options. The previous mentioned integrations with major QSR brands will continue to widen the varying price points available on our platforms. With that, I'd like to turn the call over to Leo, our Chief Financial Officer.

Thank you, Carl. I'd like to review our first quarter 2022 financial results. Revenue for the first quarter of 2022 was $35 million compared to $50.9 million in the first quarter of 2021 due in part to the lack of government stimulus payments in the first quarter of 2022 compared to the first quarter of 2021. Adjusted EBITDA for the first quarter of 2022 was a net loss of $1.8 million compared to adjusted EBITDA of $8.3 million in the first quarter of 2021. Net loss for the first quarter of 2022 was $77.2 million, or $0.50 per share, compared to a net loss of $3.7 million, or $0.03 per share, in the first quarter of 2021. Net loss for the first quarter of 2022 included a non-cash $67.2 million goodwill impairment charge. Cash on hand totaled $54.9 million as of March 31, 2022. Total outstanding long-term debt as of March 31, 2022 was $84.5 million, consistent primarily of our $35 million term loans and $49.5 million of convertible notes. As of May 9, 2022, we have amended the terms of our debt agreement and have agreed with our lender to pay down a portion of our outstanding debt balance by $20 million to approximately $65 million. as well as extending the maturity of both debt instruments to May 15, 2024. That concludes the recap of our first quarter 2022 financial results. We will now go into a short Q&A session.