Blue Apron's loss narrows more than expected but still has 'substantial doubt' it can continue as going concer

Dow Jones2023-11-09

MW Blue Apron's loss narrows more than expected but still has 'substantial doubt' it can continue as going concer

Blue Apron Holdings Inc.'s stock (APRN) was slightly higher early Thursday, after the meal-kit company's reported a third-quarter loss that was narrower than expected, while revenue inched ahead of estimates. The company, which disclosed earnings in a regulatory filing, had a net loss of $10.3 million, or $1.34 a share, for the quarter, narrower than the loss of $25.9 million, or $8.93 a share, posted in the year-earlier period. Revenue fell to $98.8 million from $109.7 million a year ago, ahead of the $97.6 million FactSet consensus. The company said it had 1.2 million orders in the period, down from 1.5 million a year ago and 1.4 million in the second quarter. It counted 238,000 customers, down from 323,000 a year ago and 267,000 in the second quarter. Average revenue per customer rose to $413 from $340 s year ago and $397 in the second quarter. The company acknowledged its long history of significant net losses, which came to $89.3 million in the nine months through Sept. 30 and $87.9 million in the year-earlier period. As of Sept. 30, it had a working capital deficit of $47.7 million and an accumulated deficit of $866 million. "The company's current operating plan indicates it will continue to incur net losses and generate negative cash flows from operating activities for the next twelve months, and as of September 30, 2023, the company had cash and cash equivalents of $27.2 million," said the filing. "These conditions and events in the aggregate raise substantial doubt regarding the company's ability to continue as a going concern." The stock is down 25% in the last 12 months, while the S&P 500 has gained 14%.

-Bill Peters

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November 09, 2023 10:28 ET (15:28 GMT)

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