Blue Apron sales beat expectations, shares jump
New York-based Blue Apron, which went public in late June, said its revenue rose 2.5% to $210.6 million in the quarter ended Sept. 30.
Analysts on average had expected $191.5 million in revenue, according to Thomson Reuters I/B/E/S.The company's cost of goods sold rose 13% year-on-year to $164.4 million. This expense is key for Blue Apron because estimates show that many customers cancel their subscriptions soon after they sign up.
The number of customers fell 6% year-on-year, totalling 856,000 at the end of the third quarter; Blue Apron cited less spending on marketing for the drop.
Blue Apron shares jumped 7% in pre-market trading. They fell 53% from the June 29 IPO through Wednesday's market close.
(Reuters reporting by Vibhuti Sharma in Bengaluru; Editing by Sai Sachin Ravikumar)