- Blue Apron
- Blue Apron‘s third-quarter sales topped analysts’ forecasts as the company earned more revenue per customer. The meal-kit delivery company spent less on marketing, leading to a drop in the total number of customers compared to the same quarter last year. Blue Apron shares fell 53% from their late-June debut through Wednesday’s market close. They gained 7% premarket after the earnings results.
Meal-kit delivery company Blue Apron‘s sales beat Wall Street expectations, as it earned more revenue per customer in the third quarter.
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. It lost $0.47 per share, more than the estimate for -$0.42.
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, totaling 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)