Blue Apron Bloodbath - From 'Hero' To 'Mark It Zero'

Tyler Durden's picture

For a few brief minutes this morning, the forelorn investors in recent IPO Blue Apron had hope - the shares were trading up 5% in the pre-market after 'beating' on revenues (but missing drastically on earnings). However, APRN is now down 15%, collapsing after losing 9% of its customers QoQ.

As The Street reports, the company reported an 18% increase in revenue to $238.1 million in the three months ended in June, beating a Factset consensus of $236 million. Blue Apron reported a second-quarter loss of $31.6 million, or 47 cents a share, compared with a year-earlier profit of $5.5 million. Analysts expected Blue Apron to post a second-quarter loss of 27 cents.

"We are beginning a new chapter as a public company, and remain focused on our long-term strategy to build an iconic consumer brand, develop a more diverse product portfolio, and further build out an end-to-end supply chain platform," Blue Apron CEO Matt Salzberg said in a statement.

 

"We recently strengthened our balance sheet as a result of our initial public offering, convertible note issuance and the expansion of our revolving credit facility."

Average revenue per customer was $251 in the second quarter of 2017 compared to $264 in the second quarter of 2016, and an improvement relative to $236 in the first quarter of 2017. Blue Apron also saw a rise in the number of orders by customers to 4.3 in the second quarter compared to 4.1 in the first.

And worse still, after cutting marketing spending (something investors had hoped for), the company saw customers fall 9% in the second quarter from the first three months of the year.

 

Mark it zero!

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Peterman333's picture

But I wasn't over the line.

FrozenGoodz's picture

Who tf is vetting these IPO's?

NoDebt's picture

Pets.com for people.

 

The Cooler King's picture

A company that sells over priced ingredients to a demographic of people that doesn't have time to cook & whereby the packages are too expensive for people that are on a budget and cook their own meals with either discount food, or they 'grow their own' (& oh yeah, locate your corporate HQ in Manhattan)

 

What could possibly go wrong?

 

Oh Wait! Maybe we've stumbled on something

 

CEO: Matthew B. Salzberg (2012–)
  

Founders: Matthew B. Salzberg, Matt Wadiak

 

Shoulda named it 'Blue Dress'

Pool Shark's picture

Indeed. That's about the narrowest of niche markets you could conceive of; so much for "growth" potential...

 

The Cooler King's picture

Age old question

 

What does a jap make for dinner?

 

Answer: Reservations

Pool Shark's picture

Maybe Blue Apron should expand its business into a chain of restaurants where the customers have to cook their own meals and then do the dishes....

 

The Cooler King's picture

That one is called 'Ed Debevic's'

The Cooler King's picture

 

Matt Salzberg: 10 Things You Didn’t Know about Blue Apron’s CEO

(I'll bet most people around here can guess 9 out of the 10 without even clicking the link)

 

http://moneyinc.com/matt-salzberg/

CheapBastard's picture

All the insiders who were in on a bottom floor at IPO have already sold and taken their profits.

The sucker retail investors will remain.

trillion_dollar_deficit's picture

Shorter 10 Things:

This guy is allowed to operate a company that loses $30mm a quarter cuz his daddy is CEO of Deloitte.

runswithscissors's picture

 Why does my food taste like shit? 

The Cooler King's picture

It's a TRAP!!! (don't answer that one)

FoggyWorld's picture

The raw ingredients do have to be cooked.  What this does is save some supermarket time.

2_legs_bahhhhhd's picture

Fraud Street must be desperate for new business models to defraud the sheep . No real investors would subscribe to such a unsustainable business plan, but in the end the banks and executives get rich, and the shareholders get fucked.

Buck Johnson's picture

Ít's the 1998-2000 all  over again.  And guess what it will end the same way also.

 

 

Taffy Lewis's picture

Yes, Buck... All the ads: Blue Apron, Uber, Zip Recruiter, Lifelock, sheets, pillows, blinds, etc... "Become an Uber driver" - really? in Topeka, KS? Flip houses. Create your own dot-com web site.

If the CBs would stop pumping money into this garbage, it would fail spectacularly. And if it does, I'll be partying like it's 1999.

shizzledizzle's picture

Mark it ZERO! This isn't NAM smokey there are rules...

GUS100CORRINA's picture

Blue Apron Bloodbath - From 'Hero' To 'Mark It Zero'

My response; I don't really know anything about this company, but it has become way too easy to make money in this market because of the FED, GREED and CORRUPTION. EVERYONE THINKS THEY ARE A GENIUS and nothing can ever go wrong.

Sorry to make this point, BUT WE NEED A FEW MORE OF THESE SLAUGHTERS and the FAANG+M stocks need too be taken DOWN A PEG, especially GOOLAG!!!!

It is good to remember, ABSOLUTE POWER CORRUPTS ABSOLUTELY and the FAANG+M stocks are way to powerful and prosperous for the nation and their own good. The CONCENTRATION OF WEALTH with the FAANG+M stocks is OFF THE CHARTS ladies and gentlemen.

Clock Crasher's picture

Derivatives infusion -Stat!

Clock Crasher's picture

This is somehow bullish. You'll see. You'll all see!

Two Theives and a Liar's picture

Blue Bloodbath - Bezos buys

FoggyWorld's picture

Bezos said several weeks ago that Amazon was going to start a competitive product.  That's the problem from which Blue Apron probably cannot recover.

agstacks's picture

Are we sure that isn't a silver chart?  

Two Theives and a Liar's picture

If it was it would be stackin' time!

Greenspazm's picture

WTF is Blue apron? A porn flick joint?

NoBillsOfCredit's picture

We strengthened our balance sheet by going into debt... What's wrong with that picture?

FrozenGoodz's picture

But boss ... if it works for TSLA ...

Tebow's picture

My Lord, a spike down on a 3 minute chart! Panic!

FreeNewEnergy's picture

Buy the dip, dipshits!

Channeling Citizen Kane and Rick Perry at the same time:

"If we lose 9% of our customers every quarter, we'll be bankrupt by Christmas 2019. Oops."

#BlueApronStain

Rainman's picture

If APRN's buisness model depends on the exponential growth in lazy azz Muricans ... then, strong buy !!

zipit's picture

For every $1 of revenue, they are paying how many dollars in marketing, $1.50? 2?? More??? And the churn, oh the churn. This pig is going to slaughter. Lawsuits to follow.

Max Cynical's picture

How much did VC's make after cashing out of the IPO?

Series A only made a 12,170% return.

https://equityzen.com/path-to-ipo/blueapron/

I hope these VC's get sued into oblivion.

DEMIZEN's picture

just before the bell, the PPT will push it back to  -0.46 %

Gold Fingers's picture

Screw this thing....

Forex Kong now heavily investing in Canadian Marijuana Companies. This guy nails it - often.

 

https://forexkong.com/canadian-marijuana-stocks-investing-in-marijuana/

 

Haitian Snackout's picture

Should have had your money on Blue Note.

youngman's picture

But didnt they have pro forma income to the moon....yeah thats it

Schmuck Raker's picture

Just last night a waitress at my favorite restaurant tipped me that APRN was heading back up. :)

At least she's cute, and a good waitress.

I don't even own any stocks. XD

TheSilentMajority's picture

SNB not interested in this pig?

Somebody at Blue Assprom needs to get on a flight and do some "favors" over in Switzerland asap.

aliens is here's picture

I know how they can get their stock price up. They can do it by sending food to rapefugees to EU.

SillyWabbits's picture

Looks like the market is eating Blue Aprons lunch.

CheapBastard's picture

I have no appetite for these flakey companies.

Not My Real Name's picture

I don't either; their numbers are hard to digest.

Grandad Grumps's picture

Maybe Apron forgot that the secret to making internet money is giving your product away for free, getting more and mnore customers, refi, refi, refi and then selling your data to the now so called "deep state" (which, since it has now become a public meme means that it is actually a distraction from the truth).

Analog Kid's picture

Quite a drag. Mrs. Analog Kid and I dig on the Blue Apron. We both work (me with longer hours) and we have a 5 month old in the family compound. I get dinner going at 5.30, we eat at 6.15. The foods are very tasty. The only downside is  there are never any leftovers for lunch the next day. We get the three-meals-a-week kit, which is plenty.

I hope they get it together.

Angry White Guy's picture

They can't.  They are upside down with their cost structure.