Bottom line improves YoY
For the third quarter, Blue Apron Holdings’ (APRN) adjusted EPS came in at -$0.18, which was an improvement compared to the analysts’ estimates of -$0.21 and the Q3 2017 EPS of -$0.47. The company remains focused on cutting costs, and it is also improving the operational efficiency of its Linden fulfillment center.
As a part of making the organization leaner, Blue Apron plans to reduce its workforce by 4%. The reduction is expected to create $16 million in annual savings in 2019. However, this will also lead to $1.6 million in employee severance charges and other exit costs, which will be incurred in the fourth quarter.
Blue Apron witnessed 1,010 basis points of improvement in its cost of goods sold (excluding depreciation and amortization) expense rate to 68.0%, which was mainly due to efficiency achieved in food and labor costs.
The third-quarter marketing expenses fell 32.1% to $23.3 million, and its PTG&A (product, technology, general, and administrative) expenses declined 26.5% to $48.4 million. Its total operating costs fell 34.6% to $182.6 million in the third quarter given its cost structure streamlining.
Blue Apron reported adjusted EBITDA of -$18.8 million in the third quarter versus -$48.0 million reported in the same quarter of 2017. This improvement was driven by operational efficiency and cost-cutting efforts. The company’s operating loss was ~$32.0 million, which was narrower than the loss of $68.5 million YoY. Blue Apron posted a third-quarter net loss of $33.9 million versus a net loss of $87.3 million in the third quarter of 2017.
2018 outlook kept unchanged
For 2018, Blue Apron has forecasted its adjusted EBITDA to be -$65.0 million to -$70.0 million. Its net loss is estimated to be $135.0 million to $140.0 million. The company’s net loss for 2017 was $210.1 million.