APRN - Blue Apron stock surges over 10% on lighter losses debt repayment

2023-03-16 06:42:13 ET

Blue Apron ( NYSE: APRN ) shares rocketed 13% higher in premarket action on Thursday after topping Q4 expectations.

The meal prep company posted a $0.49 per share loss on $107M in revenue, both of which were notably better than the Street consensus. Additionally, EBITDA losses were lightened to $13.5M from $17.9M in the prior year quarter.

“2022 was a challenging year for our business. Our team was tasked with managing through macroeconomic headwinds, continued inflation, funding delays and higher marketing costs as we simultaneously looked for the best pathways to preserve capital,” CEO Linda Findley commented. “At times, we were not as nimble as we needed to be, but 2022 is not indicative of what we are seeing so far in 2023. We adjusted late last year by adding new talent to our leadership and dramatically reducing costs. These actions are already resulting in a positive impact in 2023.”

She explained that cost per acquisition has fallen by about 50% to start fiscal 2023, with conversion rates improving by about 25%. Findley also highlighted cost-saving efforts that she believes can reduce cash burn by more than 50% in fiscal 2023 as compared to 2022.

“We also amended our debt agreement to fully pay down our debt on an accelerated schedule,” FIndley added. “This reduces our liquidity covenant and we believe it can give us more flexibility as we continue to evaluate and potentially execute other financing opportunities, a business combination or other strategic transactions.”

Full-year guidance for 2023 was not provided, keeping with comments from the company in Q3. However, the company did update investors on investment agreements with key shareholder Joseph Sanberg.

“While Blue Apron continues to be in collaborative discussions with Mr. Sanberg, if the Sanberg funding continues to be delayed or if the at-the-market offering does not provide sufficient capital, the company plans to seek additional financing before the end of 2Q23 in order to meet its working capital needs,” the earnings release stated .

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