Revenues down 25%
On August 2, Blue Apron Holdings (APRN) was trading ~7.9% lower at 8:24 AM EDT after reporting its second-quarter earnings. Its net revenues of $179.6 million fell short of the consensus estimate of $188.5 million while declining 25.0% on a YoY (year-over-year) basis. Sequentially, the company’s revenues declined 9.0%.
Blue Apron (APRN) had intentionally slashed its marketing expenses as the company diverted resources to accelerate the operations at its fulfillment center. This move led to a loss of customers, which impacted its top-line growth. To boost its top line, the company is now focusing on improving its product portfolio and has introduced its retail and on-demand offerings.
Blue Apron’s adjusted EPS was -$0.17, which was in line with analysts’ estimates. Its adjusted EPS narrowed YoY from its EPS of -$0.47 reported in the second quarter of 2017. The company has been rationalizing its cost structure to improve efficiency.
Blue Apron achieved 400 basis points of improvement in its cost of goods sold (excluding depreciation and amortization) expense rate. Its total operating costs fell 21.8% to $210.5 million in the second quarter.
Q2 2018 earnings details
In the second quarter, Blue Apron’s (APRN) customer base declined 24.0% YoY to 717,000, and its orders decreased 22.6% to 3.1 million. The average order value was $57.34, down from $58.81 reported in the corresponding quarter last year. The company’s average revenue per customer decreased by $1.00 to $250.00 in the second quarter.
Blue Apron reported adjusted EBITDA of -$17.5 million in the second quarter, versus -$23.9 million reported in the second quarter of 2017. This improvement was driven by operational effectiveness and cost-cutting measures. The company’s operating loss was $31.0 million, which was almost flat on a YoY basis.