Blue Apron Holdings Inc. (APRN) posted its second-quarter earnings report, revealing increased net losses and lower-than-expected revenue. While the company’s stock remained stagnant in premarket trading, the numbers painted a challenging picture.
Widening Losses and Declining Revenue
The net loss for the quarter ending June 30 was reported at $61.9 million, representing a significant increase from the $23.3 million loss reported during the same period last year. This translated to a loss of $9.52 per share compared to $8.22 per share previously. Furthermore, the number of shares used in per-share calculations jumped by 129% to 6.5 million.
Below Expectations
FactSet had no per-share estimate as there weren’t enough analyst estimates available. Blue Apron’s revenue decreased by 14.5%, totaling $106.2 million—missing the FactSet consensus of $109.6 million.
Customer Base and Orders Decline
The company experienced a decline in both its customer base and total orders. Orders dropped by 17.5% to 1.40 million, while the number of customers declined by 23.5% to 267,000. However, there was a silver lining as orders per customer rose from 4.9 to 5.3, and average revenue per customer increased by 21% to $397.
Future Outlook
Despite current setbacks, Blue Apron is forecasting revenue of $410 million to $415 million for 2023—a slightly lower projection than the FactSet consensus of $414.7 million.
Job Cuts and Workforce Reduction
Blue Apron announced job cuts during the second quarter, leading to a reduction in its workforce by 20%. As a result, the company expects to incur a $1.7 million charge, a quarter of which was reflected in the second-quarter earnings.
Performance Comparison
Blue Apron’s stock has experienced a decline of 43.2% year-to-date, while the S&P 500 has seen a positive gain of 17.2%.
