Published: Thu, August 10, 2017
Economy | By Annette Adams

Slowing Growth and Wide Bottom-Line Loss Send Blue Apron Shares 15% Lower

Slowing Growth and Wide Bottom-Line Loss Send Blue Apron Shares 15% Lower

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. It reported a net loss of $31.6 million, or a loss of 47 cents per share, after net income of $5.5 million in the year-earlier period. It also comes in above analysts' revenue estimate of $235.81 million for the second quarter of the year. Since going public in June, Blue Apron's stock has plummeted almost 50%, and if the company can not rectify its largest challenges, its future may become even bleaker. Also, acquires Airgas-Refrigerants from parent company Airgas (ARG) for $220 mln. The company made improvements on this front, with marketing expenses of $34.5 million in the second quarter of 2017, compared to $32.0 million a year earlier, but well below the $60.6 million incurred in the first quarter of this year as the company geared up for its IPO. However, APRN had 177 more customers this quarter than it did then. Its customer base increased by 23% from the same quarter a year ago but fell from the first quarter after the planned reduction in marketing spending.

Total revenue for the period ended June 30 rose to $238.1 million from $201.9 million.

NEW YORK (AP) - Blue Apron posted strong revenue growth in its second quarter, but the meal-kit seller says it's having unexpected delays at a new plant and it gave a weak revenue forecast for the second half of the year.

"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", CEO Matt Salzberg said in a statement Thursday.

Last week, Blue Apron said that it would shut the doors of its Jersey City, N.J. facility as it ramps up development of Linden. Analysts polled by FactSet had expected revenue of about $525.1 million, when combining their estimates for the third and fourth quarters.

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