Shares of Blue Apron plunged more than 15 percent on Thursday after the company said during its earnings call that it was encountering unexpected costs tied to the start up of its new Linden, New Jersey, facility.
Earlier, Blue Apron reported a steep second-quarter loss on Thursday as the meal-kit delivery company spends heavily to recruit new customers.
Although the number of customers rose 23 percent year over year, the company said its client base shrank by 9 percent between the first and second quarter due to a planned $26.1 million reduction in marketing expenses.
Here’s a quick look at the earnings report, Blue Apron’s first since going public in late June.
- EPS: loss of 47 cents per share, versus expected loss of 30 cents per share;
- Revenue: $238.1 million, versus forecast of $235.8 million.
Since Blue Apron’s IPO, analysts have questioned whether the company can cut its marketing spending and work to better retain customers. In 2016, Blue Apron had spent about 18 percent of its $795.4 million revenue on marketing. In the latest quarter, Blue Apron cut it to 14.5 percent.
Meanwhile, the company said its average revenue per customer increased to $251 for the second quarter, up from $236 in the previous quarter, but below $264 in the previous year. This helped boost…