Shares in Blue Apron Holdings Inc jumped 7.5% in Tuesday premarket trading after it reported fourth-quarter losses that were better than expected.
The meal delivery service reported a loss of $39.1m, or 20 cents per share, compared with a loss of $26.1m, or 39 cents per share for the same period last year. Revenue fell 13% to $187.7m, down from $215.9m last year.
Analysts had expected Blue Apron to report a loss of 27 cents per share during the quarter.
Adjusted EBITDA for the full year 2017 was a loss of $137.9m, compared to a loss of $43.6m for the full year 2016, primarily as a result of increased costs to support business initiatives, including Blue Apron’s new Linden fulfilment centre.
Customers decreased by 15% year-over-year and decreased by 13% quarter-over-quarter, primarily reflecting the company’s planned decrease in marketing spend. Average revenue per customer was $248 in the fourth quarter of 2017 compared to $246 in the fourth quarter of 2016, and $245in the third quarter of 2017.
Brad Dickerson, Chief Executive Officer, said: “We are methodically implementing operational improvements to drive our business and are encouraged by the progress we’ve made since last quarter, particularly in margin which contributed to improvement in our bottom-line performance.
“Our top priority remains continuing to drive operational efficiencies that will propel significant improvement in our net loss and adjusted EBITDA in 2018,” Dickerson continued. “We also believe there are extensive opportunities to diversify and evolve the business in new ways to expand our reach and deepen our engagement with customers and we are sharpening our focus on these windows of opportunity.”