Waitr Holdings Inc. (NASDAQ:WTRH) fell 23% after the company missed Q2 estimates. The company announced revenue of $49.2 million in Q2 2021 comp-pared to $60.5 million a year ago.
For the six months ending June 30, 2021, the company generated revenue of $100.1 million. Waitr reported an increase of average daily orders to 38,583 with active diners at the end of the quarter, consistent with the numbers reported in Q1 2021. At the end of the quarter, the company had the highest number of active drivers as Waitr continued its investment in driver supply. As a result, this led to increased driver costs in Q1 and Q2, but the driver costs started to decline inQ2 2021.
B. Riley Securities has lowered WTRH rating to “Hold” from “Buy.” The research firm’s analyst Jeff Van Sinderen stated that with the company’s foray into blockchain and fintech applications, there is no reasonable visibility regarding the direction Waitr’s business model is going. Nevertheless, in the wake of business model change WTRH is worth watching.
Market Reaction:
On Tuesday, WTRH stock slumped 23.27% at $1.22 with more than 12.96 million shares, compared to its average volume of 2.74 million shares. The stock has moved within a range of $1.2000 – 1.3500 after opening the trade at $1.26.
