Reasons Why Blue Apron Shares Might Be Cooked

Blue Apron Earnings What to Watch

Blue Apron Earnings What to Watch

Blue Apron forecast that its net loss would be between $121 million and $128 million in the second half. That's better than the $235.8 million that analysts surveyed by FactSet predicted.

The number of customers rose 23% Y/Y, but fell 9% Q/Q on a planned reduction in marketing.

The company said its marketing expense was $34.5 million, or 14.5% as a percentage of net revenue, in the second quarter of 2017, compared to $32 million, or 15.9%, a year earlier.

According to the website, Thursday's plunge came after Salzberg said on the earnings call that the company's new facility in Linden, N.J., would be delayed, affecting earnings in the second half of the year. Management noted the $26.1 million reduction in marketing was to blame for the drop, but that did little to ease investors' concerns that growth may be more hard and more costly than anticipated - bad news for such a young company in a competitive industry.

Customer growth and an increase in orders led to strong second quarter revenue for meal kit seller Blue Apron, which provided its first earnings report since becoming a public company. Equities research analysts expect that Blue Apron Holdings will post ($1.05) earnings per share for the current year. Co-founder Matthew Wadiak, who was chief operating officer, also said in July he would transition into a senior advisory role. A law firm is now investigating claims into whether the meal kit company's board breached its fiduciary duty to investors, according to a press release.

The stock of Blue Apron Holdings Inc (NYSE:APRN) is a huge mover today! This is a decline from its average revenue per customer of $264 from the second quarter of the previous year.

Revenue climbed almost 18 pct to $238.1 million.

"We are beginning a new chapter as a public company, and remain focused on our long-term strategy to build an iconic consumer brand, develop a more diverse product portfolio, and further build out an end-to-end supply chain platform", CEO Matt Salzberg said in a statement Thursday.

The meal kit-delivery company lost more money than Wall Street expected in the latest quarter, as it struggled to grow its customer base amid rising wage and labor costs. The company expected the net revenue to be between $380 million and $400 million, which was lower than analysts' estimates of $525.1 million.

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