Categories AlphaGraphs, Earnings, Retail

Blue Apron posts narrower-than-expected Q1 loss

Meal-kit company Blue Apron Holdings (NYSE: APRN) reported a narrower loss in the first quarter of 2019 helped by lower costs and expenses, despite a 28% dip in revenue. The bottom line came narrower than the analysts’ expectations while the top line missed consensus estimates.

Investors will be looking forward to any hopes from the new executive chief Linda Findley Kozlowski, who will preside her first earnings conference call. The company remained beneficial from the ongoing cost control measures and improving efficiencies across the board.

Net loss for the quarter was $5.3 million or $0.03 per share, narrower than the previous year quarter’s loss of $31.7 million or $0.17 per share. Revenue dropped by 28% year-over-year to $141.9 million, as the company deliberately reduced marketing spend while focusing on marketing efficiency and targeting high-affinity consumers.

Blue Apron Holdings (NYSE: APRN) reported a narrower loss in the first quarter of 2019.

The results have been hurt by the continued diminish of customer base due to the slow transformation of the meal-kit industry after Blue Apron helped to popularize it.

Blue Apron continues to struggle on bringing in more customers to its platform. At the end of Q1, it had 550,000 customers compared to 786,000 last year. In the fourth quarter, the company has 557,000 customers. Orders plunged by 29% to 2.48 million while average order value rose by 1% to $57.15. The average revenue per customer increased by 3.2% to $258.

Also read: Adobe stock soars to 33-year high

For the first quarter, cost of goods sold, excluding depreciation and amortization (COGS), as a percentage of net revenue, improved 750 basis points year-over-year from 65.8% to 58.3%. These improvements, led by the company’s Linden facility, were primarily driven by efficiencies gained in labor, food, shipping and fulfillment packaging costs as a result of improved planning and process-driven strategies.

Marketing expense decreased by 64% to $14.2 million. This decrease is consistent with the company’s strategy to focus on marketing channels it believes to be the most efficient and consumers with high affinity and retention within its direct-to-consumer platform.

Shares of Blue Apron ended Monday’s regular session down 0.95% at $1.04 on the NYSE. The stock has fallen over 50% in the past year and over 30% in the past three months.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “Blue Apron posts narrower-than-expected Q1 loss

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top