Meal-kit company Blue Apron Holdings (APRN) reported a narrower loss in the third quarter helped by expense management and operational efficiencies. Revenue plunged 28% due to a decline in customers. Following this, the stock inched down over 9% in the early trade on Wednesday.
Net loss narrowed to $33.9 million or $0.19 per share from $87.2 million or $0.47 per share in the previous year quarter.
Net revenue dropped 28% year-over-year to $150.6 million in the third quarter. This was primarily due to a decline in customers as the company remains deliberate in its marketing spend while methodically implementing its multi-product, multi-channel strategy.
Orders for the third quarter dropped 27% to 2.65 million and customers dipped 25% to 646,000. Average order value declined 2.4% to $56.79. Average revenue per customer decreased 4.9% to $233.
The efficiencies gained in food and labor costs as a result of improved planning and process-driven strategies and more favorable pricing with suppliers drove the cost of goods sold, excluding depreciation and amortization, as a percentage of net revenue, lower to 68% from 78.1%.
Marketing expense as a percentage of revenue fell to 15.4% from 16.3% last year as the company remains deliberate in its marketing investments with a focus on its most efficient acquisition channels. Product, technology, general, and administrative costs decreased by 26% year-over-year as the company focused on expense management and optimization of its cost structure.
Subsequent to the third quarter, Blue Apron amended and refinanced its existing revolving credit facility to extend the final maturity date from August 2019 to February 2021, reduce the aggregate lender commitments to $85 million, and lift the applicable interest rate spread currently paid by the company by 200 basis points. In connection with the refinancing, the company repaid $41.4 million of debt.
Shares of Blue Apron ended Tuesday’s regular session down 2.40% at $1.22 on the NYSE. The stock has fallen over 69% in the year so far and over 60% in the past year.