Blue Apron's sales plunged as it slashed spending on marketing
- Blue Apron shares jumped early Tuesday after the meal-kit maker reported a smaller-than-expected first-quarter loss.
- The company appointed a new CEO, Linda Findley Kozlowski, earlier this month to replace former chief executive Brad Dickerson.
- Watch Blue Apron trade live.
Blue Apron shares jumped more than 7% to $1.11 a share early Tuesday after the beaten-down meal-kit maker reported a smaller-than-expected first-quarter loss after naming a new chief executive.
Shares of the company have plummeted 90% since going public two years ago amid intense competition in the meal preparation and grocery space. Blue Apron went public at $10 a share, and on Tuesday was trading just above $1.
Here's what Blue Apron reported compared with analysts' expectations:
- Revenue: $141.9 million versus $149.7 million expected.
- Adjusted loss per share: $0.03 versus $0.06 expected.
While its loss for the quarter was narrower than forecast, its revenue fell 28% year-over-year as it "deliberately reduced marketing spend while focusing on marketing efficiency and targeting high affinity consumers." Last year's first-quarter revenue came in at $196.7 million.
To put its marketing cost reductions into context: in the first quarter, marketing expenses totaled $14.2 million, or 10% of net revenue. That compares with $39.3 million, or 20% of revenue during the same time last year.
Blue Apron also significantly narrowed its net loss to $5.3 million. It lost $31.7 million during the same period last year. The meal-kit maker achieved profitability on an EBITDA basis - in line with the company's guidance earlier this month.
Blue Apron shuffled senior leadership earlier this year when it appointed former Etsy chief operating officer Linda Findley Kozlowski as CEO, replacing Brad Dickerson. Cofounder and chief technology officer Ilia Papas also left the company.
Wall Street is generally cautious on the name. Of analysts polled by Bloomberg, 10 say "hold" wile just one says "buy."
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