Blue Apron Holdings Inc. (NYSE: APRN) shares surged by 11 percent on Tuesday after the company had beat fourth quarter estimates, marking the first time since its initial public offering launch to beat both earnings and revenue estimates.
For the fourth quarter, Blue Apron reported revenue of $187.65 million, falling 13 percent year over year, and beating analysts’ estimates of $185.09 million. The company reported a net loss of $39.1 million or $0.20 per share, but beat analysts’ estimates of $0.27 per share.
Blue Apron said the revenue decline was driven by decrease in customers and orders as the company substantially cut back on marketing efforts to divert its focus towards operational improvements.
Customers decreased by 15 percent year over year and 13 percent quarter over quarter. Average revenue per customer was $248 in the fourth quarter compared to $246 year over year.
Marketing expenses were $25.2 million or 13.4 percent of net revenue lower than the previous year’s expense of $37.1 million or 17.2 percent of net revenue.
Blue Apron cut its net loss by 55 percent quarter over quarter and improved its adjusted EBITDA by 59 percent quarter over quarter. The company says the stronger growth was driven by strong focus on expense management and operational improvements, such as its fulfillment center in New Jersey.
“We are methodically implementing operational improvements to drive our business and are encouraged by the progress we’ve made since last quarter, particularly in margin which contributed to improvement in our bottom-line performance,” stated Brad Dickerson, Chief Executive Officer, Blue Apron Holdings, Inc.
For the full year, Blue Apron reported net revenue of $881.2 million, increasing 11 percent year over year and a diluted EPS loss of $1.64.
Going into 2018, Dickerson says the main priority for Blue Apron is to drive operational efficiencies to improve upon the company’s net loss and adjusted EBITDA. Dickerson also wants to expand its each towards customers to regain back the declining customer rate.