Blue Apron Holdings Inc.'s stock (APRN, +0.15%) saw a slight increase early Thursday, following the release of the meal-kit company's third-quarter earnings report. Despite a narrower-than-expected loss, Blue Apron's revenue exceeded estimates.
Financial Highlights
- Net loss of $10.3 million, or $1.34 per share, for the quarter, compared to a loss of $25.9 million, or $8.93 per share, in the same period last year.
- Revenue decreased to $98.8 million from $109.7 million a year ago, but surpassed the FactSet consensus of $97.6 million.
- The company recorded 1.2 million orders during the quarter, down from 1.5 million a year ago and 1.4 million in the previous quarter.
- Blue Apron's customer base decreased to 238,000 from 323,000 a year ago and 267,000 in the previous quarter.
- Average revenue per customer increased to $413 from $340 a year ago and $397 in the previous quarter.
Challenges Ahead
Blue Apron acknowledged its substantial net losses of $89.3 million and $87.9 million in the nine-month period through September 30 and the same period last year, respectively. The company also reported a working capital deficit of $47.7 million and an accumulated deficit of $866 million.
Furthermore, the filing stated that "the company's current operating plan indicates it will continue to incur net losses and generate negative cash flows from operating activities for the next twelve months." As of September 30, 2023, Blue Apron had $27.2 million in cash and cash equivalents.
Given these conditions and events, there is considerable doubt about Blue Apron's ability to sustain as a going concern.
Stock Performance
Over the past year, Blue Apron's stock has declined by 25%, in contrast to the 14% gain of the S&P 500 index (SPX, -0.24%).
