Blue Apron Rises 11% In Spite Of Wider Loss In Q2

(RTTNews) - Shares of Blue Apron Holdings, Inc. (APRN), an ingredient-and-recipe meal kit service company, are rising more than 11% Wednesday morning following second-quarter results.

Commenting on the results, Linda Findley, Blue Apron's President and Chief Executive Officer said, "Through strong cost management and disciplined operational efficiency, we reduced our year-over-year operating cash burn by over 70%, while significantly reducing our adjusted EBITDA loss to $2.6 million. Our progress also contributed to solid margin expansion with variable margin of 37.9% in the quarter, our strongest margin performance since 2020. We anticipate continued improvement in year-over-year cash burn reduction with normal seasonality, and we expect to achieve adjusted EBITDA profitability in the second quarter of 2024."

For the second quarter, the company reported net loss of $61.9 million or $9.52 per share, wider than $23.3 million or $8.22 per share in the comparable quarter last year. The wider loss was mainly due to a one-time loss on transaction of $48.55 million in the latest quarter.

Net revenue decreased 14% year-over-year to $106.2 million.

The company said that the reduction was primarily driven by a one-time $10 million bulk sale to an enterprise customer in 2Q22, as well as by a decline in customers and orders due to deliberate reduction in marketing expenses as a results of expense management initiatives announced in the fourth quarter of 2022.

Looking forward, Blue Apron expects full-year revenue in the range of $410.0 million to $415.0 million.

APRN is at $6.30 currently. It has traded in the range of $4.70 - $98.64 in the last 1 year.