Blue Apron Revenue Drops by 25% in Q2, but the CEO isn’t Worried

Blue Apron earnings report

The Blue Apron earnings report is out, and things aren’t looking good. After announcing a nearly 30% revenue drop, the Blue Apron Holdings stock plunged nearly 10% in pre-market trade. And the stock is continuing to fall.

Blue Apron Earnings Report: August 2nd, 2018

On Thursday, Blue Apron Holdings posted a wider than expected loss for Q2. Not to mention revenue plunged, falling extremely short of estimates.

In the second quarter, Blue Apron revenue dropped by 25%. It came in at $179.9 million, while analysts were expecting revenue of around $188 million.

Meanwhile, Blue Apron said Thursday that it experienced a net loss of $32.8 million in the quarter. This is compared to a loss of $31.6 million in the same period in 2017.

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More Numbers:

  • The number of people buying Blue Apron significant food boxes: 717,000. This is a drop of 9% from Q1.

What Happened?

According to Brad Dickerson, CEO of the New York-based company, which provides meal-kits, revenue was impacted solely by Blue Apron’s decision to prioritize “operational stability.” Apparently, in Q2, the company was more focused on building “a foundation of growth.”

How Do Investors Feel?

Dickerson may have brushed off the Q2 revenue loss (he said that now that their operations are strengthening, they expect revenue performance to propel), but the market didn’t. Which is understandable; it’s difficult to think about the possibility of revenue performance bettering, when the revenue in question plunged significantly.

The Blue Apron stock (NYSE:APRN) is a trending ticker of the day, but for all the wrong reasons.

According to Yahoo Finance, as of 2:5o p.m. EDT, Blue Apron is trading at $1.87, which puts the stock down 22.93%.

Earlier in the trading day, the APRN stock dropped as much as 24%. This was the company’s biggest drop since June of last year.

The Takeaway

How do you feel about the Blue Apron earnings report? While I agree that it is disappointing, it will be interesting to see the direction the company takes moving forward, especially next year considering Dickerson said 2018 has acted as “a year of transition” for the company.

>> Red Robin Shares Tank After Q2 Earnings Surface

Featured Image: Twitter