Blue Apron Inc. (NYSE: APRN) on Thursday announced second quarter revenue that missed analysts’ estimates, sending its shares down over 19%.
The Meal-kit company said revenue decreased 25% to USD 179.6 Million in the second quarter of 2018 due to a decrease in customers. The Company also struggled to attract new customers. Blue Apron said that the numbers of customers decreased 24% year-over-year and fell 9% quarter-over-quarter.
Net loss was USD 32.8 Million, or 0.17 cents per share, in the quarter ended June 30th, 2018.
The Company said it is in a transitional period, which will impact its revenue and customers growth. It will, however, continue to implement its multi-product, multi-channel strategy
“As we previously articulated, 2018 is a year of transition and building for the future,” said Brad Dickerson, Chief Executive Officer, Blue Apron Holdings Inc. “With fulfillment center operations strengthening, we are increasing focus on the priorities we expect will propel revenue performance and return the business to a growth trajectory, including evolving and expanding our product portfolio, enhancing our overall customer experience, and launching our retail and on-demand offerings.”
Blue Apron shares fell as much as 19% to USD 1.96 per share. The stock lost over 70% of its value since its IPO last year.
The meal kit industry is also seeing more competition after serval companies announced to enter the meal kits industry.