Enjoy Technology Announces Third Quarter 2021 Financial Results | National Business

PALO ALTO, Calif.–(BUSINESS WIRE)–Nov 11, 2021–

Enjoy Technology, Inc. (“Enjoy” or the “Company”) (NASDAQ: ENJY, ENJYW), a technology-powered service platform reinventing “Commerce at Home,” today announced financial results for the third quarter and nine months ended September 30, 2021.

Commenting on the Company’s financial results, Enjoy’s CEO Ron Johnson stated, “I am incredibly proud of our team’s success adding nearly 50% more stores in North America during a challenging labor market as we prepare for significant growth and continue to scale the next disruptive channel in commerce. Revenue was up 13% year-over-year and 39% for the first nine months of 2021, despite inventory shortages during the last month of the quarter. We are building Enjoy for the long term and are excited to meet the growing opportunities presented by our partners. Having now successfully completed the business combination with Marquee Raine Acquisition Corp. (“MRAC”), Enjoy will use its additional resources to scale its business further, while continuing to deliver industry-leading customer engagement and meet the growing demand for ever-faster delivery of products, services and support.”

Mr. Johnson continued, “Our partners have asked us to expand our service footprint to approximately 100 markets in North America as fast as possible during 2022, add new visit types and accelerate rollout of the Smart Last Mile™. We believe these growing commitments demonstrate Enjoy’s groundbreaking opportunity to bring highly valuable ‘Commerce at Home’ experiences to even more customers around the world.”

Third Quarter 2021 Business Highlights

  • Announced Enjoy’s Smart Last Mile™ solution in North America, to provide both in-home retail experiences and to-the-door deliveries
  • Announced plans to expand to a total of approximately 100 markets in North America during 2022
  • Expanded Live Catalog to an additional North American partner following the successful launch of this smart, merchandising platform
  • Expanded strategic partnership with Apple to a total of 14 markets, now making Enjoy’s services available to approximately 67 million consumers
  • Launched cross-partner selling of Apple services across all U.S. markets
  • Added over 130 daily mobile stores year-over-year, building scale and supporting Enjoy’s expansion with strategic partners
  • Completed business combination with MRAC and raised additional capital to help accelerate our growth and retire debt

Year-to-Date and Third Quarter Financial Results

Enjoy generated year-to-date global revenue of $58.8 million for the first nine months of 2021, an increase of 39% year-over-year. Third quarter global revenue was $18.6 million, an increase of 13% year-over-year. Third quarter revenue and mobile store profitability were negatively impacted by approximately $4 million due to product supply constraints.

Third Quarter and First Nine Months 2021 Consolidated Summary

 

(Dollars in thousands except Daily Mobile Stores amounts)

Nine Months Ended
September 30, 2021

Change vs. Nine Months
Ended September 30, 2020

Three Months Ended
September 30, 2021

Change vs. Three Months
Ended September 30, 2020

Total Revenue

$58,798

39.3%

$18,588

13.4%

North America

$48,912

49.4%

$16,235

28.6%

Europe

$9,886

4.2%

$2,353

(37.6)%

 

 

 

 

 

Daily Mobile Stores Added (year-over-year)

181

44.6%

134

29.3%

North America

150

51.0%

150

47.5%

Europe

31

27.7%

(16)

(11.3)%

 

 

 

 

 

Daily Revenue Per Mobile Store*

$367

(3.2)%

$342

(12.1)%

North America

$403

(0.7)%

$379

(12.7)%

Europe

$254

(17.5)%

$203

(29.5)%

 

 

 

 

 

Mobile Store Profit/(Loss)

$(18,251)

(222.2)%

($8,435)

(529.9)%

Mobile Store Margin

(31.0%)

(17.6) pp

(45.4)%

(37.2) pp

 

 

 

 

 

Net Income/(Loss)

$(149,797)

(88.5)%

$(54,372)

(89.3)%

Adjusted EBITDA

$(112,310)

(51.0)%

$(43,152)

(60.8)%

* 2020 mobile store results are not directly comparable to 2021, as interim fee structures from several of Enjoy’s business partners were in place during a period of substantial retail store closures.

A reconciliation of the non-GAAP financial measures to GAAP financial measures is presented in the “Non-GAAP Financial Information” section of this press release.

Updated 2021 Outlook

Enjoy is updating its revenue outlook for 2021 to a range of $80 – $90 million due to inventory constraints of recently launched key smartphones and limited visibility on near-term receipts. The low end of the updated revenue outlook assumes no improvement in product availability and the high end assumes improved product availability.

As of the end of Q3, Enjoy remained on track to meet its prior 2021 revenue guidance. Enjoy’s initial smartphone launch quantities were higher than prior year and sold through rapidly. However, starting in October, receipts were significantly below plan due to industry-wide supply disruptions. This has been reducing the Company’s revenue compared to plan by approximately $2 – $2.5 million per week.

Mr. Johnson added, “While disappointed in the inventory constraints, I am pleased that we successfully hired to achieve our mobile store footprint plans, we launched the Smart Last Mile TM and the underlying demand for Enjoy’s services remains strong. We are committed to maintaining our first-mover advantage and remain confident in our ability to achieve our 2022 revenue target.”

Additional investor materials are available on the Investor Relations section of our website at Enjoy.com/investors.

About Enjoy Technology

Enjoy Technology is a technology-powered platform reinventing “Commerce at Home” to bring the best of the store directly to the customer. Enjoy has formed multi-year commercial relationships with the world’s leading consumer brands to bring the products, services and subscriptions their customers love through the door directly in the comfort and convenience of their homes. Co-founded by former Apple executive Ron Johnson, Enjoy has pioneered a new retail experience that can do everything a traditional retail experience offers, but better, through its mobile stores. Enjoy currently operates in the United States, Canada and the United Kingdom. Headquartered in Palo Alto, CA, Enjoy is leading the reinvention of “Commerce at Home.” To learn more about Enjoy, please visit: www.enjoy.com/.

Conference Call

The Company will host a conference call today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss its financial results and current business initiatives. The call will be accessible by dialing +1 (844) 200-6205 toll-free in the U.S. and +1 (833) 950-0062 in Canada, or +1 (929) 526-1599 for all other locations, access code 216449. A live audio webcast will also be available at investors.enjoy.com or by clicking this link.

A replay of the conference call will be available until November 24, 2021 by dialing +1 (866) 813-9403 toll-free in the U.S. and +1 (226) 828-7578 in Canada or +44 204 525 0658 for all other locations, access code: 209538. A replay of the webcast will be available on Enjoy’s investor relations website.

Non-GAAP Financial Measures

The financial information and data contained in this press release is unaudited and does not conform to Regulation S-X. This press release contains information, such as Adjusted EBITDA, which has not been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for or superior to GAAP results. Enjoy’s management believes that Adjusted EBITDA provides relevant and useful information to management and investors to assess its performance to that of prior periods for trend analyses and for budgeting and planning purposes. Adjusted EBITDA is a supplemental measure of Enjoy’s performance that is neither required by nor presented in accordance with GAAP. This measure is limited in its usefulness and should not be considered a substitute for GAAP metrics such as loss from operations, net loss, or any other performance measures derived in accordance with GAAP and may not be comparable to similar measures used by other companies. Adjusted EBITDA is defined as net income (loss), adjusted for income taxes, interest expense, interest income and other income or expense, unrealized loss on long term convertible debt, depreciation and amortization, stock-based compensation and one time transaction related costs. In addition, Adjusted EBITDA is subject to inherent limitations as it reflects the exercise of judgments by Enjoy’s management about which expense and income are excluded or included in determining this non-GAAP financial measure. In order to compensate for these limitations, Enjoy’s management presents non-GAAP financial measures in connection with GAAP results.

For more information regarding the non-GAAP financial measures discussed in this press release, please see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, the demand for our products, services and support, our ability to invest in our platform for future growth, and our ability to deliver on our long-term strategy. All statements other than statements of historical fact contained in this release, including statements regarding Enjoy’s future operating results and financial position, business strategy and plans, objectives of management for future operations are forward-looking statements. These statements are based on Enjoy’s current expectations, assumptions, estimates and projections. These statements involve known and unknown risks, uncertainties and other important factors that may cause Enjoy’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements are based on management’s current expectations and assumptions regarding Enjoy’s business, the economy and other future conditions.

In some cases, you can identify forward-looking statements by terms such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” or the negative of these terms or other similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including, without limitation, those factors described in Enjoy’s filings with the Securities and Exchange Commission.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time, and it is not possible for Enjoy’s to predict those events or how they may affect Enjoy. If a change to the events and circumstances reflected in Enjoy’s forward-looking statements occurs, Enjoy’s business, financial condition and operating results may vary materially from those expressed in Enjoy’s forward-looking statements. Except as required by applicable law, Enjoy does not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events or otherwise.

Enjoy Technology, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Amounts in thousands, except share and per share amounts)

(Unaudited)

 

Three months ended September 30,

 

Nine months ended September 30,

2021

 

2020

 

2021

 

2020

Revenue

$ 18,588

 

$ 16,393

 

$ 58,798

 

$ 42,218

 

Operating expenses:
Cost of revenue

27,023

 

17,732

 

77,049

 

47,882

 

Operations and technology

24,179

 

18,549

 

64,934

 

47,173

 

General and administrative

13,480

 

8,359

 

36,378

 

25,174

 

Total operating expenses

64,682

 

44,640

 

178,361

 

120,229

 

Loss from operations

(46,094

)

(28,247

)

(119,563

)

(78,011

)

Loss convertible loans

(7,015

)

 

(26,242

)

 

Interest expense

(1,441

)

(336

)

(4,258

)

(979

)

Interest income

1

 

36

 

5

 

275

 

Other income (expense), net

82

 

(164

)

378

 

(738

)

Loss before provision for income taxes

(54,467

)

(28,711

)

(149,680

)

(79,453

)

Provision for income taxes

(95

)

8

 

117

 

22

 

Net loss

$ (54,372

)

$ (28,719

)

$ (149,797

)

$ (79,475

)

Other comprehensive loss, net of tax
Cumulative translation adjustment

(217

)

369

 

(321

)

54

 

Total comprehensive loss

$ (54,589

)

$ (28,350

)

$ (150,118

)

$ (79,421

)

Net loss per share, basic and diluted

$ (0.83

)

$ (0.46

)

$ (2.33

)

$ (1.29

)

Weighted average shares used in computing net loss per share, basic and diluted

65,880,464

 

61,881,132

 

64,379,599

 

61,716,744

 

 

Enjoy Technology, Inc.

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

September 30, 2021 December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents

$ 28,709

 

$ 58,452

 

Restricted cash

5,494

 

5,494

 

Accounts receivable, net

2,552

 

4,544

 

Prepaid expenses and other current assets

2,526

 

2,774

 

Total current assets

39,281

 

71,264

 

Property and equipment, net

15,292

 

14,074

 

Intangible assets, net

892

 

967

 

Other assets

14,422

 

4,905

 

Total assets

$ 69,887

 

$ 91,210

 

LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK
AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable

$ 7,230

 

$ 3,222

 

Accrued expenses and other current liabilities

20,365

 

17,897

 

Short-term debt

5,686

 

2,105

 

Short-term convertible loans, at fair value (related party carrying value of $0.5 million)

96,302

 

 

Total current liabilities

129,583

 

23,224

 

Long-term debt, net of discount

38,966

 

41,578

 

Long-term convertible loans, at fair value (related party carrying value of $20.0 million)

54,715

 

86,357

 

Redeemable convertible preferred stock warrant liability

359

 

806

 

Total liabilities

223,623

 

151,965

 

COMMITMENTS AND CONTINGENCIES
REDEEMABLE CONVERTIBLE PREFERRED STOCK

368,692

 

353,692

 

STOCKHOLDERS’ DEFICIT
Common stock

1

 

1

 

Additional paid-in capital

48,739

 

6,601

 

Accumulated other comprehensive income

563

 

884

 

Accumulated deficit

(571,731

)

(421,933

)

Total stockholders’ deficit

(522,428

)

(414,447

)

Total liabilities, redeemable convertible preferred stock and stockholders’ deficit

$ 69,887

 

$ 91,210

 

 

Enjoy Technology, Inc.

Condensed Consolidated Statements of Cash Flows

(Amounts in thousands)

(Unaudited)

Nine Months Ended September 31,

2021

 

2020

Cash flows from operating activities:
Net loss

$ (149,797

)

$ (79,475

)

Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization

2,938

 

2,270

 

Stock-based compensation

3,560

 

1,340

 

Net amortization of premium on short-term investments

 

36

 

Accretion of debt discount

969

 

260

 

Revaluation of warrants

(447

)

392

 

Foreign currency transaction loss

89

 

94

 

Loss on convertible loans

26,242

 

 

Changes in operating assets and liabilities:
Accounts receivable

1,986

 

8,404

 

Prepaid expenses and other current assets

238

 

(24

)

Other assets

(1,402

)

(382

)

Accounts payable

687

 

(295

)

Accrued expenses and other current liabilities

886

 

3,208

 

Net cash used in operating activities

(114,051

)

(64,172

)

Cash flows from investing activities:
Purchases of property and equipment

(2,330

)

(5,820

)

Purchases of short-term investments

 

(3,226

)

Maturities of short-term investments

 

25,700

 

Net cash (used in) provided by investing activities

(2,330

)

16,654

 

Cash flows from financing activities:
Proceeds from convertible loan

75,200

 

 

Proceeds from issuance of redeemable convertible preferred stock

15,000

 

 

Proceeds from the exercise of stock options

1,796

 

204

 

Proceeds from issuance of PPP loan

 

10,000

 

Payment of TPC loan `

(3,174

)

Payment of deferred transaction costs related to merger

(4,973

)

 

Net cash provided by financing activities

87,023

 

7,030

 

 
Effect of exchange rate on cash, cash equivalents and restricted cash

(385

)

22

 

 
Net decrease in cash, cash equivalents and restricted cash

(29,743

)

(40,466

)

Cash, cash equivalents and restricted cash, beginning of year

63,946

 

66,014

 

Cash, cash equivalents and restricted cash, end of year

$ 34,203

 

$ 25,548

 

 
Supplemental disclosure of cash flow information:
Cash paid during the year for interest

$ 3,239

 

$ 933

 

Supplemental disclosure of non-cash investing and financing activity:
Non-cash interest

$ 1,019

 

$ 46

 

Property and equipment included in accounts payable

$ 937

 

$ 206

 

Deferred transaction costs included in accounts payable

$ 1,514

 

 

Deferred transaction costs included in accrued expenses

$ 1,432

 

 

Gain on extinguishment of convertible debt

$ 36,782

 

 

 

Enjoy Technology, Inc.

Reconciliation of GAAP To Non-GAAP Financial Measures

(Amounts in thousands)

(Unaudited)

Three Months Ended September 30,

 

Nine Months Ended September 30,

2021

 

2020

 

2021

 

2020

Net loss

$ (54,372

)

$ (28,719

)

$ (149,797

)

$ (79,475

)

Add back:
Interest expense

1,441

 

336

 

4,258

 

979

 

Other (income) expense

(82

)

164

 

(378

)

738

 

Provision for income taxes

(95

)

8

 

117

 

22

 

Depreciation and amortization

1,056

 

939

 

2,945

 

2,272

 

Stock-based compensation

1,650

 

466

 

3,560

 

1,340

 

Loss on convertible loans

7,015

 

 

26,242

 

 

Transaction-related costs

236

 

 

748

 

 

Deduct:
Interest income

(1

)

(36

)

(5

)

(275

)

Adjusted EBITDA

$ (43,152

)

$ (26,842

)

$ (112,310

)

$ (74,399

)

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211111006057/en/

CONTACT: Investors

Scott L. Anderson

Vice President of Investor Relations

[email protected]

858-229-7063Media

Abernathy MacGregor

Tom Johnson and Dan Scorpio

[email protected]/[email protected]

917-747-6990 / 646-899-8118

KEYWORD: CALIFORNIA IRELAND UNITED STATES UNITED KINGDOM CANADA NORTH AMERICA EUROPE

INDUSTRY KEYWORD: TECHNOLOGY MOBILE/WIRELESS OTHER RETAIL OTHER TECHNOLOGY SPECIALTY HARDWARE RETAIL CONSUMER ELECTRONICS ONLINE RETAIL

SOURCE: Enjoy Technology, Inc.

Copyright Business Wire 2021.

PUB: 11/11/2021 04:30 PM/DISC: 11/11/2021 04:30 PM

http://www.businesswire.com/news/home/20211111006057/en

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