Shares of Blue Apron Holdings (NYSE: APRN) hurtled toward a 52-week low in pre-market trading on Monday as the company offering fresh meals designed by chefs reported disappointing Q3 results.
The company posted revenues of $109.7 million in Q3, falling short of analysts’ estimates by $0.24 million and flat year-over-year. Sequentially, revenues were down 11.7% in the third quarter.
Blue Apron’s third-quarter losses narrowed to $0.74 per share versus a loss of $1.17 in the same period last year. Analysts were expecting a loss of $0.53 per share.
However, the company’s President and CEO, Linda Findley stated that there has been a delay in funding from one of the company’s early investors, Joseph Sanberg.
Elaborating further, Findley stated, “We remain in active discussions with Mr. Sanberg and on November 6, 2022, we entered into a pledge agreement with one of his affiliates which granted us a security interest in certain securities of private companies, with a value estimated to be significantly in excess of the $56.5 million of outstanding private placement funding owed to the company. “
As a result, APRN withdrew its “previously announced revenue growth target of 7% to 13% for full year 2022. “
At the end of the third quarter, APRN executed an at-the-market offering resulting in net proceeds of approximately $14.1 million to enhance short-term liquidity.
