Blue Apron Withdraws Revenue Target as It Awaits Funds From Major Shareholder
Blue Apron
APRN -14.25%
Holdings Inc. on Monday cut its target for fiscal 2022 after the online meal kit company posted lower-than-expected revenue for the third quarter and awaits funds from its largest stockholder.
Shares of Blue Apron fell 15% Monday to $1.77 after the company withdrew its revenue growth target of 7% to 13% for the year. The company had forecast revenue growth between $503.3 million and $531.6 million.
It reported $470.4 million in revenue for 2021. Its shares are down 73% year to date.
The New York City-based company said the delayed payment from entrepreneur Joseph Sanberg led to an at-the-market offering—a type of follow-on offering that raises capital over time—which resulted in about $14.1 million of net proceeds to help Blue Apron manage its cash shortfall.
Mr. Sanberg currently owns nearly 50% of Blue Apron’s total stock through his affiliate company, RJB Partners LLC, according to FactSet. He didn’t immediately respond to a request for comment.
On Sunday, Blue Apron entered into a pledge agreement with Mr. Sanberg’s affiliates to secure the remaining $56.5 million owed to the company. The agreement, which awards Blue Apron interest in certain securities of private companies, is expected to generate more than Mr. Sanberg’s intended investment, the company said in a news release.
In April, Blue Apron collected the first $20 million tranche from the purchase agreement signed between the company and Mr. Sanberg’s affiliates. The second tranche was expected to close as early as May 30, according to filings with the U.S. Securities and Exchange Commission. Blue Apron and RJB agreed to an Aug. 31 extension.
Blue Apron said it “will evaluate providing updated targets once the company has more certainty on its liquidity position.”
Blue Apron in October warned investors about missing its third-quarter revenue goal. The company reported a decline in customers and orders in the three-month period.
Overall for the quarter, Blue Apron reported a loss of $25.8 million, or 74 cents a share, compared with a loss of $27.6 million, or $1.17 a share, the prior year.
Sales remained flat at $109.7 million, with a 14% rise in Blue Apron’s average order insufficient to offset fewer customers as the pandemic-inspired boom in at-home cooking cooled off. Analysts polled by FactSet had forecast sales of $114.5 million for the period.
Write to Sabela Ojea at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Blue Apron
APRN -14.25%
Holdings Inc. on Monday cut its target for fiscal 2022 after the online meal kit company posted lower-than-expected revenue for the third quarter and awaits funds from its largest stockholder.
Shares of Blue Apron fell 15% Monday to $1.77 after the company withdrew its revenue growth target of 7% to 13% for the year. The company had forecast revenue growth between $503.3 million and $531.6 million.
It reported $470.4 million in revenue for 2021. Its shares are down 73% year to date.
The New York City-based company said the delayed payment from entrepreneur Joseph Sanberg led to an at-the-market offering—a type of follow-on offering that raises capital over time—which resulted in about $14.1 million of net proceeds to help Blue Apron manage its cash shortfall.
Mr. Sanberg currently owns nearly 50% of Blue Apron’s total stock through his affiliate company, RJB Partners LLC, according to FactSet. He didn’t immediately respond to a request for comment.
On Sunday, Blue Apron entered into a pledge agreement with Mr. Sanberg’s affiliates to secure the remaining $56.5 million owed to the company. The agreement, which awards Blue Apron interest in certain securities of private companies, is expected to generate more than Mr. Sanberg’s intended investment, the company said in a news release.
In April, Blue Apron collected the first $20 million tranche from the purchase agreement signed between the company and Mr. Sanberg’s affiliates. The second tranche was expected to close as early as May 30, according to filings with the U.S. Securities and Exchange Commission. Blue Apron and RJB agreed to an Aug. 31 extension.
Blue Apron said it “will evaluate providing updated targets once the company has more certainty on its liquidity position.”
Blue Apron in October warned investors about missing its third-quarter revenue goal. The company reported a decline in customers and orders in the three-month period.
Overall for the quarter, Blue Apron reported a loss of $25.8 million, or 74 cents a share, compared with a loss of $27.6 million, or $1.17 a share, the prior year.
Sales remained flat at $109.7 million, with a 14% rise in Blue Apron’s average order insufficient to offset fewer customers as the pandemic-inspired boom in at-home cooking cooled off. Analysts polled by FactSet had forecast sales of $114.5 million for the period.
Write to Sabela Ojea at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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