Waitr Holdings Inc. (WTRH), a company that operates an online ordering technology platform together with its subsidiaries, has gained a monumental increase of 27.26% in the premarket trading session. Consequently, WTRH stock is trading at $1.02 at the time of this writing. The surge has come after Morgan Stanley, a giant in the American banking industry, reported a 10.3% passive stake in Waitr Holdings. On Tuesday, WTRH stock declined 3.83% in regular trading session and closed the day at $0.80.
WTRH acquisition of payment processing companies
On 26th August, WTRH announced that it had completed the asset acquisition of payment processing companies namely ProMerchant, Flow Payments, and Cape Code Merchant Services. The three companies are known to have stature in the merchant processing solution space. Commenting on the development, Carl Grimstad, CEO, and Chairman of the Board of Waitr said that the acquisitions are part of the company’s growth strategy to offer a range of payment processing services to its current base of restaurants. He further reiterated that the main goal of the company is to provide a number of payment options to customers, including gift cards, loyalty programs, merchant lending, etc. He said that the acquisitions would pave the way for the company’s growth in the future.
Q2 2021financial highlights
On 9th August, WTRH reported financial results for the second quarter of the fiscal year 2021 which ended on 30th June 2021. The company generated $49.16 million in terms of revenue during the quarter against $60.50 million during the same period of 2020. The total costs and expenses bore by the company during the three-month period were $52.25 million against $46.65 million for the same period of 2020. The loss from operations for the period was $3.09 million against an income of $13.85 million for the same period of 2020. The net loss from continuing operations was $5.64 million for the quarter against a net income of $10.65 million for the same quarter of 2020. The net loss per basic and diluted share for the period was $0.05 against the net income per basic and diluted share of $0.11 and $0.10 respectively. The company had cash and cash assets of $60.54 million on 30th June. The total assets in possession of the company were $241.87 million while total liabilities were $148.92 million.
What’s next for WTRH?
Statistics reveal that WTRH stock has declined by more than 48% during the quarter, the prime reason being the poor quarterly performance of the company. But analysts believe that the rennet report of Morgan Stanley’s stake in the company could prove to be a fresh and positive impetus for WTRH performance in near future.