BOXD - Boxed misses Q2 estimates cuts FY2022 revenue outlook (update)

Update 6:08pm : Adds CEO comment, adds details on segments.

Boxed press release ( NYSE: BOXD ): Q2 GAAP EPS of -$0.47 misses by $0.09 .

Revenue of $43.67M (+3.1% Y/Y) misses by $6.39M .

FY2022 Outlook : Total Net Revenue of $165M to $180M vs. consensus of $226.2M and prior view of $220M to $245M; Total Adjusted EBITDA loss of $65M to $80M vs. prior view of $70M to $80M.

Although Boxed cut its FY22 revenue outlook, it plans to "meaningfully accelerate" its path to profitability and positive free cash flow and is now targeting to achieve adjusted EBITDA profitability by the end of 2024.

Boxed ( BOXD ) plans to achieve its profitability goals by focusing on its three higher margin businesses, including B2B, Boxed Market (formerly known as MaxDelivery) and software & services (Spresso), CEO Chieh Huang explained in a Zoom interview with Seeking Alpha.

"We are really going to double down on those, focus on those channels," Huang said. "By focusing on higher margin businesses you will see some impact on top line."

The Q2 revenue miss was caused by the lumpiness of booking revenue in its software unit, Huang explained.

Huang also announced that its Boxed Market segment, which express delivers groceries, is expanding into two additional markets and recently signed new leases in Westchester and Brooklyn to establish additional Boxed Market micro-fulfillment centers, which are expected to fully launch later this year.

Boxed ( BOXD ) fell 2% in after hours trading.

Boxed shares surfed 16% on July 13 after a Wells Fargo analyst said the shares could triple .

--with additional reporting by Josh Fineman

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