Meal-kit company Blue Apron tanks over 20% after quarterly report
Shares of meal-kit company Blue Apron (APRN) are falling after reporting a 25% drop in revenue from last year as fewer customers joined the service. REVENUE FALLS: The company reported first quarter revenue of $179.6M, widely missing analysts' consensus estimates of $188.47M. Marketing expense was $34.6M, or 19.3% as a percentage of net revenue, in the second quarter, compared to $34.5M, or 14.5% as a percentage of net revenue, in the second quarter of 2017, with an emphasis on online advertising and brand activation investments. Sequentially, net loss increased $1.2M quarter-over-quarter from a net loss of $31.7M in the first quarter of 2018, with EPS of (17c) against analysts' estimates of (18c). Customers decreased by 24% since last year's Q2, added Blue Apron in a statement. Looking ahead, Blue Apron forecast third quarter revenue of $150M-$160M, well below the $204.86M consensus, and said it expects to achieve double digit revenue growth in 2019.. CEO SAYS 2018 TRANSITION YEAR. "As we previously articulated, 2018 is a year of transition and building for the future," said Blue Apron Chief Executive Officer Brad Dickerson. "With fulfillment center operations strengthening, we are increasing focus on the priorities we expect will propel revenue performance and return the business to a growth trajectory, including evolving and expanding our product portfolio, enhancing our overall customer experience, and launching our retail and on-demand offerings," he added. On the company's earnings conference call, Blue Apron announced plans to test on-demand delivery. PRICE ACTION: Blue Apron is down 21.28% in afternoon trading to $1.90 per share.