Blue Apron misses on revenue in 3Q, cuts workforce to reach profitability in 2019

Blue Apron Holdings Inc (NYSE:APRN) missed on revenue in its third-quarter results as the number of orders and subscribers slipped.

In an effort to reach profitability, the meal kit delivery company announced it will lay off 4% of its workforce.

The cuts will cost around $1.6 million in the fourth quarter, but save about $16 million in 2019.

The company reported a net loss of $0.18 per share on revenue of $150.6 million compared with a net loss of $0.47 per share on revenue of $210.64 million in the previous year’s third quarter.

READ: Walmart’s Jet.com to serve up Blue Apron’s meal kits

The New York-based company beat Wall Street estimates of a net loss of $0.22 per share, but fell short of revenue expectations of $157.1 million.

The total number of subscribers to the service slipped 25% to 64,600 while the number of orders fell 27% to 2.65 million.

Blue Apron faces fierce competition from services like HelloFresh and the grocery delivery services provided by Amazon.com Inc (NASDAQ:AMZN).

The company recently inked a deal with Walmart Inc’s (NYSE:WMT) Jet.com to sell its meal kits online.

The e-commerce site will offer Blue Apron’s meal kits through its City Grocery Service, available to customers in New York City, Jersey City and Hoboken.

Shares of Blue Apron fell around 2.4% to $1.22 by Tuesday’s closing bell.

Contact Lenore Fedow at [email protected]

Follow her on Twitter: @LenoreMariee

Story by ProactiveInvestors