Is Blue Apron Seeing Some Signs of Improvement?
Blue Apron’s earnings miss estimates, but revenues top expectations
Meal-kit delivery company Blue Apron (APRN) announced its 2Q17 results on August 10. The company continues to see heavy losses as it recorded a net loss of $31.6 million, or $0.47 per share, missing Wall Street expectations of a net loss of $0.30 per share.
Blue Apron posted revenues of $238.1 million, topping Wall Street estimates of $235.8 million. Its revenues increased 18% from 2Q16.
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In 2Q17, Blue Apron saw a 23% increase in its customer base year-over-year (or YoY). However, its customer base shrank 9% from 1Q17. The company has been spending a lot of money on marketing in order to retain its customers. The planned reduction in its marketing costs in 2Q17 caused its customer base to shrink from 1Q17.
Blue Apron stock has fallen ~35% since its IPO
Blue Apron saw an increase in its average revenue per customer from $236 per customer in 1Q17 to $251 per customer in 2Q17. However, it declined from $264 per customer in 2Q16. Within three years, Blue Apron has exposed the meal-kit delivery market. In 2016, the company posted revenues of ~$800 million.