Blue Apron Shares Business Update Following Its Recent Shift to an Asset-Light Model

Today, Blue Apron (NYSE: APRN) shared a business update following the previously announced closing of the transaction with FreshRealm on June 9, 2023.

With the closing of the FreshRealm transaction, together with additional planned streamlining efforts that the Company previously identified and will continue to implement in the third quarter of 2023, the Company expects to achieve Adjusted EBITDA profitability in the second quarter of 2024.

Linda Findley, Blue Apron’s President and Chief Executive Officer, commented:

“We believe the closing of the transaction with FreshRealm and the payoff of our debt opened up a clearer path to long-term Adjusted EBITDA profitability. In parallel, with the shift to an asset-light model, we continue to reduce year-over-year cash burn, as disclosed on our first quarter earnings call, and we expect to continue to see year-over-year reduced cash burn following the closing of the FreshRealm transaction.

“In 2022, we shared our plan for achieving long-term, sustainable growth and reaching profitability through ‘The Next Course.’ Part of this three-year strategy included targeting Adjusted EBITDA profitability, by, among other things, building an ecosystem of partners and relationships that furthers our vision of Better Living Through Better Food. We believe that moving to an asset-light model via the FreshRealm transaction was the right next step to help us execute this strategy.

“As we move forward, we remain focused on managing our cost base and liquidity position to support profitable growth. We will continue to manage PTG&A in the retained Blue Apron business through additional headcount and other cost reductions in connection with the shift to the asset-light model, and expect to implement these cost reductions over the coming months. We are committed to open and transparent communication with our shareholders, and plan to continue to provide the market with additional updates as appropriate.”

In addition to updates on its path to Adjusted EBITDA profitability, Blue Apron plans to provide a detailed look at its second quarter 2023 financial performance and updated business outlook on its upcoming quarterly earnings call. The Company will release its results on August 9, 2023, which will be followed by a conference call and live webcast at 8:30 a.m. Eastern Time, hosted by Linda Findley, President and Chief Executive Officer, and Mitch Cohen, Interim Chief Financial Officer.