Accelerating Year-Over-Year Revenue Growth, Sequential Increases in Daily Revenue per
- Revenue growth of 65% year-over-year during the second quarter, accelerating from the 47% year-over-year revenue growth rate reported in Q1 2021.
- Achieved a revenue per mobile store visit exit rate of
$77 globally in Q2 2021, exceeding Enjoy's full-year 2021 projection of$72 per visit. Continuing sequential increases in daily revenue per mobile store provide confidence in Enjoy's continued growth plan and near-term path to profitability. - Commenced strategic partnership expansion with Apple in
July 2021 to five additionalU.S. markets, more than doubling reach with Apple to cover 51 million total addressable consumers. Enjoy intends to provide further updates as the partnership continues to progress. - Launched cross-partner selling of Apple services in August across all
U.S. markets, providing a new revenue source as Enjoy accelerates its growth and profitability over the second half of 2021. - Enjoy continues to scale rapidly to prepare for strong expected demand in the second half of 2021.
- Business combination with Marquee Raine expected to be completed in the late third quarter or early fourth quarter of 2021 ("Closing").
"Our results demonstrate that we are building momentum as we continue to position Enjoy's unique business model to meet strong demand for 'Commerce at Home' among customers and our business partners," said
Financial Update for the Second Quarter Ended
- Generated global revenue of
$20.9 million during the second quarter, an increase of 65% year-over-year, due to growth in demand in existing markets and expansion of a current business partner inNorth America to additional markets. - Added 237 daily mobile stores versus the prior year, building scale in existing markets and supporting Enjoy's expansion with strategic partners.
- Daily revenue per mobile store of
$390 improved on the$371 recorded in Q1 2021. This represented an increase of$79 , or 25%, compared to Q4 2020. Continued quarter-over-quarter improvements in this metric continue to be driven by greater revenue per visit. - Q2 2020 mobile store results are not directly comparable to Q2 2021, as one-time supplemental revenue per visit from several of Enjoy's business partners significantly inflated Q2 2020 daily revenue per mobile store while supporting Enjoy's partners through a period of substantial retail store closures.
- In
North America , revenue sequentially grew 11% in Q2 2021, and mobile store profit margins sequentially improved seven percentage points to (18)% in Q2 2021, compared to (25)% in Q1 2021. - Reported a net loss of
$56.0 million and Adjusted EBITDA of$(35.1) million for the second quarter, attributable to increases in technology investments and operating costs to support Enjoy's increasing mobile store count.
Financial Update for the Six Months Ended
- Generated global revenues of
$40.2 million for the first six months of 2021, an increase of 56% year-over-year. - Daily revenue per mobile store of
$380 , compared to$373 for the year-ago period. Daily revenue per mobile store in the first six months of 2020 was significantly inflated by one-time supplemental revenue per visit intended to support Enjoy's partners through a period of substantial retail store closures. - Added 204 new mobile stores during the first half of 2021 compared to the year-ago period, for a global total of 584 mobile stores.
- In
North America , first half 2021 revenue increased 63% year-over-year and North American mobile stores generated daily revenue of$417 per mobile store, outpacing previous targets. InEurope , 2021 first half revenue increased nearly 32%. - Reported a net loss of
$95.4 million and Adjusted EBITDA of$(69.2) million for the first half of 2021.
Recent Business Highlights
- Commenced strategic partnership expansion with Apple to five additional
U.S. markets inJuly 2021 :Greater Atlanta , Greater D.C./Baltimore ,Greater Chicago ,Greater Miami andGreater New York . Enjoy's partnership with Apple now covers 51 million total addressable customers across theU.S. Enjoy intends to provide further updates as the partnership continues to progress. - Enjoy launched cross-partner selling in all
U.S. markets inAugust 2021 , where Enjoy Experts can offer the services and subscriptions of one partner in customer visits sourced by another partner. This initiative presents potentially significant opportunities to drive incremental revenue for Enjoy and its business partners as Enjoy accelerates its growth and profitability over the second half of 2021. - Announced the nominations of
Denise Young Smith , who previously served as Apple's chief human resources executive, andSalaam Coleman Smith , a senior media industry executive most recently with The Walt Disney Company, to join the post Closing company's board of directors. Upon Closing, Enjoy's board of directors will be diverse and high-qualified, with a range of experience across the retail, technology, entertainment and financial sectors. - Appointed
Tiffany Meriweather as Chief Legal Officer andEttienne Brandt as Chief Commercial Officer to further build Enjoy's legal and compliance function and strengthen global sales and customer experience capabilities. - Held Enjoy's first ever Virtual Analyst Day on
June 24, 2021 , to provide an in-depth overview of Enjoy's strategy and mission to analysts and investors. Highlights of Enjoy's Analyst Day are available at Enjoy.com/investors.
Continued
Marquee Raine and Enjoy expect the business combination to be completed in the late third quarter or early fourth quarter of 2021. Upon completion of the business combination, the combined company will operate as
Additional investor materials are available at Enjoy's website at Enjoy.com/investors.
Second Quarter and First Six Months 2021 Consolidated Summary | ||||
(Dollars in thousands | Six Months | Change vs. Six | Three Months | Change vs. Three |
Total Revenue | 55.7% | 64.9% | ||
62.5% | 72.9% | |||
31.8% | 36.0% | |||
Daily Mobile Stores | 204 | 53.7% | 237 | 67.5% |
150 | 53.0% | 164 | 59.9% | |
54 | 55.7% | 73 | 94.8% | |
Q2 2020 mobile store results are not directly comparable to Q2 2021, as one-time supplemental revenue per visit from several of | ||||
Daily Revenue Per | 1.9% | (1.8)% | ||
6.6% | 8.3% | |||
(14.9)% | (30.8)% | |||
| (114.0)% | ( | (230.6)% | |
Mobile Store Margin | (28.3%) | (7.7) pp | (26.6)% | (13.3) pp |
Net Income/(Loss) | (88.0)% | (131.6)% | ||
Adjusted EBITDA | (45.5)% | (55.6)% |
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 Apple retail legend, 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/.
About
Additional Information and Where to Find It
This press release relates to a proposed transaction between Enjoy and MRAC. This press release does not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. MRAC has filed a registration statement on Form S-4 with the
Investors and security holders will be able to obtain free copies of the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the
The documents filed by MRAC with the
Participants in Solicitation
MRAC and its directors and executive officers may, under
Note Regarding Use of 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
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 certain forward-looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 with respect to the proposed transaction between Enjoy and MRAC. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "propose," "forecast," "expect," "seek," "target" "may," "should," "will," "would," "will be," "will continue," "will likely result," or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations of Enjoy's and MRAC's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Enjoy and MRAC. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the risk that the transaction may not be completed in a timely manner or at all, which may adversely affect the price of MRAC's securities, (ii) the risk that the transaction may not be completed by MRAC's business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by MRAC, (iii) the failure to satisfy the conditions to the consummation of the transaction, including the adoption of the Agreement and Plan of Merger (the "Merger Agreement") by the shareholders of MRAC, the satisfaction of the minimum amount following redemptions by MRAC's public shareholders and the receipt of certain governmental and regulatory approvals in MRAC's trust account, (iv) the lack of a third party valuation in determining whether or not to pursue the proposed transaction, (v) the inability to complete the
Condensed Consolidated Statements of Operations and Comprehensive Loss | |||||||||
(Amounts in thousands, except share and per share amounts) | |||||||||
(Unaudited) | |||||||||
Six months ended | |||||||||
2021 | 2020 | ||||||||
Revenue | $ 40,211 | $ 25,825 | |||||||
Operating expenses: | |||||||||
Cost of revenue | 51,587 | 31,141 | |||||||
Operations and technology | 36,337 | 27,538 | |||||||
General and administrative | 25,755 | 16,910 | |||||||
Total operating expenses | 113,679 | 75,589 | |||||||
Loss from operations | (73,468) | (49,764) | |||||||
Unrealized loss on long-term convertible loan | (19,226) | - | |||||||
Interest expense | (2,817) | (643) | |||||||
Interest income | 4 | 238 | |||||||
Other income (expense), net | 294 | (573) | |||||||
Loss before provision for income taxes | (95,213) | (50,742) | |||||||
Provision for income taxes | 212 | 14 | |||||||
Net loss | $ (95,425) | $ (50,756) | |||||||
Other comprehensive loss, net of tax | |||||||||
Cumulative translation adjustment | (104) | (315) | |||||||
Total comprehensive loss | $ (95,529) | $ (51,071) | |||||||
Net loss per share, basic and diluted | $ (1.50) | $ (0.82) | |||||||
Weighted average shares used in computing net loss per share, basic and diluted | 63,616,729 | 61,646,777 |
Condensed Consolidated Balance Sheets | ||||||||
(Amounts in thousands, except share and per share amounts) | ||||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ 58,656 | $ 58,452 | ||||||
Restricted cash | 5,494 | 5,494 | ||||||
Accounts receivable, net | 3,551 | 4,544 | ||||||
Prepaid expenses and other current assets | 3,070 | 2,774 | ||||||
Total current assets | 70,771 | 71,264 | ||||||
Property and equipment, net | 14,342 | 14,074 | ||||||
Intangible assets, net | 917 | 967 | ||||||
Other assets | 12,610 | 4,905 | ||||||
Total assets | $ 98,640 | $ 91,210 | ||||||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ 4,846 | $ 3,222 | ||||||
Accrued expenses and other current liabilities | 20,982 | 17,897 | ||||||
Short-term debt | 4,436 | 2,105 | ||||||
Short-term convertible loans, at fair value (related party carrying value of | 75,845 | - | ||||||
Total current liabilities | 106,109 | 23,224 | ||||||
Long-term debt, net of discount | 39,887 | 41,578 | ||||||
Long-term convertible loans, at fair value (related party carrying value of | 53,156 | 86,357 | ||||||
Redeemable convertible preferred stock warrant liability | 575 | 806 | ||||||
Total liabilities | 199,727 | 151,965 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 16) | ||||||||
REDEEMABLE CONVERTIBLE PREFERRED STOCK | ||||||||
Redeemable convertible preferred stock, | 368,692 | 353,692 | ||||||
authorized, 153,473,639 and 149,520,445 shares issued and outstanding at June 30, 2021 | ||||||||
and | ||||||||
million and | ||||||||
STOCKHOLDERS' DEFICIT | ||||||||
Common stock, | 1 | 1 | ||||||
65,230,349 and 62,156,512 shares issued and outstanding at | ||||||||
Additional paid-in capital | 46,798 | 6,601 | ||||||
Accumulated other comprehensive income | 780 | 884 | ||||||
Accumulated deficit | (517,358) | (421,933) | ||||||
Total stockholders' deficit | (469,779) | (414,447) | ||||||
Total liabilities, redeemable convertible preferred stock and stockholders' deficit | $ 98,640 | $ 91,210 |
Condensed Consolidated Statements of Cash Flows | |||||||||
(Amounts in thousands) | |||||||||
(Unaudited) | |||||||||
Six months ended | |||||||||
2021 | 2020 | ||||||||
Cash flows from operating activities: | |||||||||
Net loss | $ (95,425) | $ (50,756) | |||||||
Adjustments to reconcile net loss to net cash used in operations: | |||||||||
Depreciation and amortization | 1,882 | 1,341 | |||||||
Stock-based compensation | 1,910 | 874 | |||||||
Net amortization of premium on short-term investments | - | 34 | |||||||
Accretion of debt discount | 639 | 180 | |||||||
Revaluation of warrants | (231) | 314 | |||||||
Foreign currency transaction loss | 103 | 47 | |||||||
Unrealized loss on long-term convertible loan | 19,226 | - | |||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | 1,101 | 7,191 | |||||||
Prepaid expenses and other current assets | (283) | (3) | |||||||
Other assets | (1,241) | (352) | |||||||
Accounts payable | 413 | (57) | |||||||
Accrued expenses and other current liabilities | 62 | 1,000 | |||||||
Net cash used in operating activities | (71,844) | (40,187) | |||||||
Cash flows from investing activities: | |||||||||
Purchases of property and equipment | (1,389) | (2,993) | |||||||
Purchases of short-term investments | - | (3,226) | |||||||
Maturities of short-term investments | - | 7,488 | |||||||
Net cash (used in) provided by investing activities | (1,389) | 1,269 | |||||||
Cash flows from financing activities: | |||||||||
Proceeds from convertible loan | 60,200 | - | |||||||
Proceeds from issuance of redeemable convertible preferred stock | 15,000 | - | |||||||
Proceeds from exercises of stock options | 1,505 | 173 | |||||||
Proceeds from PPP loan | - | 10,000 | |||||||
Payment of TPC loan | - | (1,569) | |||||||
Payment of deferred transaction costs related to merger | (2,947) | - | |||||||
Net cash provided by financing activities | 73,758 | 8,604 | |||||||
Effect of exchange rate on cash, cash equivalents and restricted cash | (320) | 108 | |||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 205 | (30,206) | |||||||
Cash, cash equivalents and restricted cash, beginning of period | 63,946 | 66,014 | |||||||
Cash, cash equivalents and restricted cash, end of period | $ 64,151 | $ 35,808 | |||||||
Supplemental disclosure of cash flow information: | |||||||||
Cash paid during the year for interest | $ 2,153 | $ 622 | |||||||
Supplemental disclosure of non-cash investing and financing activity: | |||||||||
Non-cash interest | $ 664 | $ 21 | |||||||
Fixed assets included in accounts payable | $ 483 | $ - | |||||||
Deferred transaction costs included in accounts payable | $ 580 | $ - | |||||||
Deferred transaction costs included in accrued expenses | $ 2,913 | $ - | |||||||
Gain on extinguishment of convertible loan | $ 36,782 | $ - |
Reconciliation of GAAP To Non-GAAP Financial Measures | |||||
(Amounts in thousands) | |||||
(Unaudited) | |||||
Six Months Ended | |||||
(in thousands) | 2021 | 2020 | |||
Net loss | $ (95,425) | $ (50,756) | |||
Add back: | |||||
Interest expense | 2,817 | 643 | |||
Other (income) expense | (294) | 573 | |||
Provision for income taxes | 212 | 14 | |||
Depreciation and amortization | 1,882 | 1,341 | |||
Stock-based compensation | 1,910 | 874 | |||
Unrealized loss on long-term convertible loan | 19,226 | - | |||
Transaction-related costs (1) | 511 | - | |||
Deduct: | |||||
Interest income | (4) | (238) | |||
Adjusted EBITDA | $ (69,166) | $ (47,549) |
(1) Includes costs associated with the pending Business Combination |
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