NEW YORK (Reuters) – Blue Apron Holdings Inc (APRN.N) reported a smaller-than-expected income drop and quarterly loss on Tuesday after a expensive distribution hub change pressured it to slash advertising.
The meal-kit subscription service had 746,000 clients within the fourth quarter by means of Dec. 31, in comparison with 856,000 within the prior quarter and 879,000 a 12 months earlier. The advertising pullback got here regardless of mounting competitors for patrons from meal-kit rivals and Amazon.com Inc (AMZN.O).
Income was $187.7 million, down 13 % from a 12 months earlier however exceeding analyst estimates for $185.1 million.
New York-based Blue Apron had a web lack of 20 cents per share, beating analysts common estimate for a web lack of 27 cents per share, based on Thomson Reuters I/B/E/S.
Shares surged 9 % in premarket buying and selling.
Reporting by Meredith Mazzilli; Enhancing by Bernadette Baum