In its first earnings release as a public company, meal-kit delivery service Blue Apron on Thursday reported better-than-expected revenue and adjusted EBITDA but its stock took another blow.
For the second quarter, Blue Apron’s net sales increased 18% year-over-year to $238.1 million, driven by an increase in orders and customers. It posted a net loss of $31.6 million, or 47 cents a share.
Wall Street analysts had estimated a loss of 30 cents per share on $235.8 million. But adjusted EBITDA of $23.9 million, or $0.47 a share, beat expectations for a loss of $24.3 million.
Blue Apron CEO Matt Salzberg pointed to the $20.6 million improvement in net loss between the first and second quarters and the strengthening of the company’s balance sheet due to its initial public offering, convertible note issuance, and the expansion of its revolving credit facility.
“We are beginning a new chapter as a public company, and remain focused on our long-term strategy to build an iconic consumer brand, develop a more diverse product portfolio, and further build out an end-to-end supply chain platform,” he said in a news release.
But in trading Thursday, Blue Apron’s shares fell more than 17% to $5.155. The stock “has been crushed since it started trading in June — down 38% through Wednesday’s close — amid concern that Amazon’s entry into meal delivery would crimp [Blue Apron’s] market share,” Business Insider said.
According to the website, Thursday’s plunge came after Salzberg said on the earnings call that the company’s new facility in Linden, N.J., would be delayed, affecting earnings in the second half of the year.
Blue Apron is now expecting a net loss of $121 million to $128 million in the second half and revenue of between $380 million and $400 million.
As TechCrunch reports, the company’s profitability has been squeezed by heavy spending on marketing to acquire customers. It reducing spending in the second quarter but average revenue per customer fell year-on-year to $251 from $264.