Blue Apron failed to deliver investors a promising second quarter.
The meal-kit delivery company announced their first earnings announcement since going public and reported $238 million in revenue, passing analysts’ estimates of $235 million (all numbers in US dollars). Blue Apron’s net revenue is up 18 per cent year-over-year, growth the company credits to an increase in orders and customers.
The New York-based company posted a loss of 47 cents per share, a much greater adjusted loss than the anticipated 30 cents per share. Blue Apron reported a quarterly net loss of $31.6 million.
The company’s costs jumped more than 80 per cent from the same period the previous year to $65.7 million, a surge attributed to investing in new talent and increased facilities costs.
“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,” said CEO Matt Salzberg.
The meal-kit delivery service had four million orders from a recorded 943,000 active customers in Q2, down 100,000 from the first quarter. Average revenue per Blue Apron customer also dropped year-over-year to $251 from $264.
After today’s earning report, shares tumbled to $5.12, nearly half of the $10 share price Blue Apron held when the company went public two months ago. This fall in price means a Blue Apron share is now less than the cost of one of its make at home meals.