APRN - Earnings call transcript Q1 2019 | Blue Apron Holdings, Inc.

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Operator

Ladies and gentlemen, good morning and welcome to the Blue Apron Holdings First Quarter 2019 Earnings Conference Call and Webcast. This call is being recorded.

Following the conclusion of today's remarks, the Blue Apron team will be taking your questions. With that, I'd now like to turn the call over to Louise Ward, Senior Director of Corporate Affairs. Ms. ahead. go please Ward,

Louise Ward

from Officer. Litigation those and plans we Harbor and Reform for the described by Chief have very Apron; purpose for Safe the provisions Chief of everyone, during may and we under release this call prospects differ Private this Executive us. of constitute morning's results of Blue about Financial company's Bensley, our in Tim call, Linda statements materially future and of remarks thank morning, that joining make expectations, Act other you forward-looking company's SEC Securities indicated XXXX. those those result as On Officer filings. Actual the Various the and earnings the factors, a Good Findley including risks statements Kozlowski, forward-looking important

We addition, as only any upon representing our our any views be to of today date. disclaim represent forward-looking of relied In should not update these as specifically views as statements. any obligation statements and subsequent

be we Generally are with which prepared this not call, measures, non-GAAP accordance referencing Accounting to in Principles. Accepted During will

measures are review more most refer encouraged earnings these the and detail, filings, GAAP measures. measures comparable You directly where these described have and to SEC to non-GAAP of the we the reconciliation release financial to in to

With Linda? Investor In over Blue Apron's would addition, I call our at Findley this website, Kozlowski, Relations reconciliations turn & that, on of to certain are located Presentations. forward-looking under non-GAAP Linda during measures referred CEO. now call to to the investors.blueapron.com, like Events

Linda Findley Kozlowski

the enjoying, exploring walk I'm the speaking I'm remarks customer's brand, well its our the CEO our its different a be know the call admired means thrilled in new very spent key products, excited with can three want lives, products, few handing to as understanding will brief have into cooking to performance what through immersed, high good and of Three and today business. XXXX. trusted which I its other all last new and to getting new whether and it's Tim, stakeholders, over be customers, Apron to Louise, new of Apron's I and connecting new morning, I I Blue and the QX identifying and loved occasions, of Thanks, that I'm leadership ways to new you new Blue provide weeks, partners gotten opportunities honored to the Apron's have customers eating to employees, or people. one so last category, long our everyone. Blue as far. before who three Apron. CEO. Blue over the and loyal years. integrate for remainder drive a of observations outlook for channels pioneering quality we of with

the foundation such energizing company's dedication our and today of strong, at Blue important the of organization It's the is work employees. history. join First, the business hard in to thanks Apron's point an to

flow cash our milestones performance positive on adjusted basis. We of an belts, have EBITDA efficient including most to the and critical operational under our date, achievement some profitability

is will more long they there provide expect important made for While and areas by the I I'm the in these do, term. progress foundational work efficiencies to encouraged

weeks the highest foundational and experience, segment my customers. our an the the From and most to critical business in opportunities growth strategy we to channels the this step with behaviors and important them. is focus in pleased narrowing I'm the as impact our valuable has thoroughly of that reach Second, build believe prioritizing coming I months. date our our and needs We're work understanding on deliberately focusing company done affinity to the in highest efficient

coming Convenience the with I'll establish results. employees looking with with for opportunities a element to our the build into in them a to the over Tim the call pave our there and which inspired of of I In strength and the and Fundamentally, growth. on significant distinct place my company twofold, we down by its connection. advantage through brand significant by sense in differentiated many the working brand, now our excited by rooted our double discovery products These our will They in the company authority the priorities We mission. value quality stage forward feel be I we'll growth in culinary turn products, delivers these about the few team is for culture, guided QX portfolio. worthy of capitalize will Apron our including in on our been a growth. to loyal but the off this brand company and a progress quarterly organization proposition, I'm future and Apron, ahead taking untapped to opportunities summary, customer-centric into are Blue experiences coming are to stands that reaffirming of prospects. to and accordance way return is is differentiated taking Like on to came priorities which and these urgency. business for inherent passionate of are product real actions one next now our and forward us need having customers. believe our to a that strategy attractive authority to differentiators space, expand financial experiences. and talk to the optimize are our move the foundation high moving ahead are continuing Third, me, believe are Blue months.

Tim Bensley

Linda. Thanks,

from to business Today, critical board. various back our our the organization refer and behalf rich of her Speaking to been the hit back on to it's CEO. look questions. on entire running for I'd benefitting weeks the January Linda against journey in actions experience update to diverse We three entire delighted We'll discussed and have of In to aspects results as XXXX. She we're continuing January, streamline ground forward on across growth. and have for team, like of we're our our a reinvigorating our our our QX. her on your to delivered new product, these then outlook told you to an technology an summary financial last while costs, going how optimize provide our we rest provide PTG&A I'll of and that in operations. G&A we with and or we that to take priorities

channels will in to We return a the reduced be also honing said high spend. consumers, higher most reach leading customer affinity efficient we acquisition but to on marketing

delivered on base profitability and result strengthening that healthy this business. sustainable steps are conviction for happy net customer achieved as driving term, positive we on our efficient that in building to an lower to improved We're would loss near deliberate our critical report the date, In has adjusted in profitability toward QX, revenue cash most planned. unfolded cash that we operational performance While EBITDA this knew and significantly was flow basis. our focus and operating centered decision a our approach flow, our free

into QX deeper results, laid out the financial first these in dive we our I'd and on achieve highlight to like in these goals. strategic executed how to I Before November initiatives we

stability network of quarter remains the labor, net quarter optimization and well-positioned of in center and in while gain from was confidence a packaging record of our sold, continued planned of initiatives, our first food, revenue driven XXXX. launched operationally and shipping line. especially efficiency fulfillment strength down to of our story center net expansion while network from XX.X% fulfillment the Linden line a we XX.X% result process facility. seamlessly and achieving all from This best transferred the XXXX evident to additional amortization of centers gives quarter also and is improvements three of and Arlington third further revenue best in of we in the fulfillment operational center gains throughout these in date, our over The effectively margin continue fulfillment excluding for volume goods product additional our products costs efficiencies past First, of that WW structure. and as the first six improved us performance our channel depreciation Cost the optimizing enhanced our into our we our cost to quarters, strategies. Launching as positive are

work our direct-to-consumer our focus high we're prioritize affinity on our consumers. Second, business through sharpening to

on a result. as by reach this improvements channels valuable efficient encouraged early the key most to our consumer some segment, focused we're metrics and in we methods we As are seeing

For be noted would call revenue on average example, key indicators we focus. customer base customer last strengthening per our that pursue customer new per this orders the as we of and

both and a improvements on quarter-over-quarter see basis. metrics to pleased of these are year-over-year We and

In new payback average acquisition of expected or less. within well customer improving months costs with our addition customers our goal were XX for

will shift high of to centered As that we is the prioritize this said conviction impact set a our a business. before, on around decision deliberate consumers sustainable positive our affinity narrow have

affinity to an though for partnerships, can vehicle access Another is manner. through engaged base efficient that relatively they important high we in reach a customer strategic consumers us us can onboard to give particularly

pleased We customers. continue Apron seen to the existing and launch since and interest Apron WW offering both menus WW from our Blue strong with have in Blue be new

the WW the of generating Based through and at additional discovering far, healthy, look to it's additional the Apron Apron have We the awareness Blue WW product. the the consumers, new so forward Blue and conscious pipeline marketing Menu for experience. while fresh, favorable and opportunities in cooking who cooking and proposition on are ingredients it's compelling with interest valuable response techniques in in health offering, in clear months that meals interested coming high-quality home,

health continue tap to to growing will demand for solutions. wellness We brand our ways into leverage to explore the and

Selling our additional ahead. continues reach through Third, with a our significant opportunities additional to be Blue we channels. of to pillar key expanding are Apron methodically products strategy channels

wherever Jet launched by the shop, we selection scope. or Knick to adding tools In Blue whenever Jet, Apron spices our platform kits expand as rotating few We're relationship suite In same York and will items about which February, of to to available pleased on we culinary meal the an city. next know available. additional to presence of most new Jet once day be Knacks thinking New continues day product include such they consumers we of seasonings marketplace delivery we next that were through our on available will with need and a occasions. weeks, meal expand launching across and that As in again

day to in announce Area. order to own we our meals digital Bay facility. to Richmond able that weeks, our ship be excited continue same in in platform meals the and piloting experience, Area in noon our the the the on later product by capabilities of we the out on-demand consumers receive will home are at order and were and produce of to couple service day next on-demand a We Through new build Bay

customers on leadership. of past from there a that will under with same learning we able on Apron and company's products to meet become the leaving buzz the While leaner, centers about in agile, the third-party next with delivery that stage team to tested on-demand her have as ways our am forward to day Linda building about offices offerings to Blue positive order fulfillment coming excited ecosystem. the can this be we look day through more come same is I CEO, time in are were year, our that Consistent without their platforms of the Fourth, terms, is the focused. on-demand of that and as on past, and throughout the for is it. pleased offering finding the the customers this flexibility excited employees our better report Blue our history evolve Apron first more focus

our financial outperformance Turning call. and performance to earnings net In as first the significantly by the January of quarter, with the are earlier, performance mentioned bottom our Blue we guidance Apron's pleased on quarter, loss provided $X.X line reduced million, loss for year-ago first and $X.X EBITDA $XX.X and and a adjusted year-over-year net EBITDA $XX.X million of important loss $XX.X an with EBITDA million. compared milestone Quarter-over-quarter, million by of XX% to million profit respectively. improved to adjusted reached we adjusted

costs a fulfillment particularly on and Jersey prior initiatives marketing our Net fourth continued this in quarter in New our in Linden $XXX.X including number line facility. network, the in achieving and strategic sharpened million by year the progress been the our of execution and streamlined was focus $XXX.X directly success efficiencies across compared has revenue million reflecting through PTG&A operational factors our to strategies, million Our a quarter in November. announced first year bottom driven the continued of the $XXX.X

revenue reduction consumer a on the a focus net engaging attracting sharpened and resulted profitable Our marketing higher an quarter. XX% as year spend. of XX% has channels in the previous compared reduction prior a first million, more marketing performance spend a and or $XX.X reduced from to percentage quarter, was XX% In a the

indicates rigor expansion we best a over strong of as and highest and improving focusing and on customer XXX with that quality go five year customers our depreciation customer margin the prioritizing key per the continue to prior to the approach affinity revenue We quarters. improvement levels We base. a amortization for and basis is future financial consumers, a profitable per XXX points basis right the foundation and strengthen strengthening saw basis to excluding points further growth. we metrics Average confident orders COGS, and record on high customer approach, As XX.X%. year-over-year both quarter-over-quarter quarter-over-quarter in of a a remain

driven across front facility the repeatedly quarter-over-quarter, This judiciously pack. managed and the with year-over-year reduced in network all our and direct operational to process reflection enhanced we and quarters, labor, commitment structure. shipping Over fulfillment to our the is of food, a our improvements and were lead entire continuing our XX% progress last our cost categories: costs by evidenced operational highlighted costs of on and teams that accomplishments PTG&A packaging strategies. planning center were our have cross-functional made have XX% optimize through $XX.X primary lower cost to Linden million the several

evidenced of continued free improved flows profile quarter adjusted by to for with expenditures minimal in positive million were capital first cash as needs contributing in by flow management. working flow quarter performance positive at Capital and remainder limiting the expected cash cash to operating Our first driven $X.X EBITDA the CapEx the the strengthen mainly year. our our

Now for XXXX. outlook turning to our financial

profitability. year, our full the For confidence loss improving we and are EBITDA achieving net reaffirming significantly adjusted and

the seasonal net second million quarter, summer of expect of of to typical for loss the into $X months trend million, the million $XX reflecting $X EBITDA half heading Specifically back positive and the to and $XX year. we adjusted

deliberately we follow for our in year. the and not result productive comparison on to strategy year which As our will continue in on revenue discussed the of QX net will overall last call, revenue, we to full pursuing lower in prior XXXX both

product improve and reflecting anticipate forward customer We to business. We strengthening under believe trends you customer on customer that platform Linda's revenue to indicators base orders continue during per accelerate of our in also our leading and partnership seasonal year, We to opportunities and per typical the the look innovations this strategic progress. updating average growth. while new leadership could anticipated

closing, easy on our we loss to For business. establish foundation continue as far have from a posted chart year investor we reference, a so net website. overall Apron's Blue reconciliation to pleased with adjusted for In healthy the outlook progress relations we're this EBITDA

to Linda forward with unlock We are strategies for growth. profitable and looking advance sustainable working our opportunities additional to

Thank I will and take you. your Linda questions. Okay. now

We Guggenheim. session. question-and-answer today will of Our Instructions] question now begin DiFrisco the Matt first come Please [Operator ahead. from go will

Matthew DiFrisco

the or revenue side, lower that as to reference clarify as year-over-year far in Thank sequential? if could on just XQ is you. you I wondered, Tim, just also the

Tim Bensley

of Matt, quarter-over-quarter. historical thanks Yes, sure. went it's for I script, call. all, I certainly our throughout first of say fair use you to a indication think year for just kind be as of as to our then can good probably going lower Yeah, seasonal it's well, And year-over-year that in trajectory through the revenue hey, - the will the

Matthew DiFrisco

Okay.

XQ So XQ quarter is seasonal a obviously, than historically? lower

Tim Bensley

highest continue Yeah, revenue typically and QX quarter expect that our would has forward. going been to we

Matthew DiFrisco

lighter XQ been fourth skewed just more marketing in bit that to quarter? then, also, going somewhat of of a And Is around the lumpy how first we expense, Understood. that far and as also be and guess, XQ? I as and should think the that's little

Tim Bensley

levers move return to go quarters marketing second is into. of of as the we execute have just we Right how to lean go-forward the spend. to pull that One the marketing but higher through want into marketing we much we're strategy continuing quarter, we the on lower as now,

expect to lower would I and on a on So revenue. basis, percent year-over-year in be of absolute as dollars both net a to a it continue

be Of the And Linda them as lean coming those driving to through more into coming and course, forward, start more growth develop new we'll move specific start making decisions as we strategies. the really organization as will to into revenue whether months, leaning few we heavily. try strategies

on little any QX. to bit guidance the showed actual marketing I'm be for So, what a hesitant to specific would the we you trend expect spend. give in But it being, I to time similar

Linda Findley Kozlowski

really doing directly. able on also just that prudent - segment customers and see this is in Matt, I that But making pretty in opportunities staying little more that, year just inefficient our not pursuing in the really spend, will big think Yeah, of engage approximately evaluating we're at that that, threshold any being of to within jump And high important. we there bit short-term to lot be opportunities, a within quarter-by-quarter really, ROIs But sure the do overall we are the is opportunities returns. payback, so be spend go. X going is because to initiatives we be still of expense that we'll we a at affinity as look revenue

Matthew DiFrisco

model? website, model products it your to market putting Excellent. on big I compared much Thank a - size you Welcome you're sort opportunity, to subscription subscription the you, how here. have on-demand of of product? studies Do your your sort to Linda. for aboard last you could would on-demand of us the especially tell the now compared - since question, that How any give up size you just picture the the guess, also. you

Tim Bensley

been you a as testing. at of there little know, we've bit done and Matt,

offering going ecosystem. we're So model to first same is that. some about be ideas that actually have this on-demand our there out day we the the time to But

the to Bay geography to pretty we're with going big of more about learn so all Area, we're going a that. pretty Now, much

now a to that I and few to is Hopefully, say how jump back I'm quickly be little big So it. months. one we'll going key could in more, to expand hesitant the initiatives you over how on? be. will to that that able of But successful we're be coming right want how get able think to you our with to Linda, be

Linda Findley Kozlowski

in customers think this is of the things know offering. A to that's Yeah, that supplementary not something either exciting ability is complementary to actually lot the data seen subscription existing an we our It's that on-demand. I for do subscription that we have of or. one necessarily have asked though

it we drive split business entire necessarily forward, in actually the not directions. different helps So think it two

Matthew DiFrisco

point? But price it a would premium be

Tim Bensley

We're going through the Right pricing a is are out. lot now, components our that subscription to offering. scenarios our right a it slight roll as anticipation we we'll be at now to overall it. premium of There different

Matthew DiFrisco

Thank you.

Operator

come question next ahead. from go will Please of The SunTrust. Youssef Squali

Youssef Squali

of very on congratulations Thank Linda, Great. A you much. the assignment. couple new questions.

major On day the maybe else really particularly logistical of there, help you strategy Thanks. profitability? the, launched you terms delivery, or gauge us overall in because the strategy, that see us managing it the cost balance I guess, But unit understand I haven't of details, the your understand does can to How you the us and speak anything predecessor? can't share. economics then, help you a differences to that yet. of delivery, And maybe expand who any and the the return just in announcement, the can of you growth some know how sort you're planning same the bit. - you versus necessarily maybe business just help on and do way it just

Linda Findley Kozlowski

Apron position to jump it been to Obviously, weeks. about strategy the talk over on-demand. three I've Blue in in then Tim So for some I'll and turn just for

product see, been about three to adjusted quite customer us, and So affinity information on what I based foundation can and that that specific with engage are areas actually But really affinity of talk through the Is it's change company. bit the at of I know that's our is work And that build in do the set any the use customers with to sort want. really of really looking we for more high do different a profitability of portfolio, some already and operations already right what to particularly a done. see fundamental that. there's deeply how differences. that's aspects little opportunity off want One people - so high we of too EBITDA, development early been to

experience a then Second gauge effectively of and lot tools, of deeper really third things improve engage opportunity. customers. and of ingredient sourcing physical opportunities sort people is the how looking are a to a of product from perspective, And at both there want and with marketing the strategy like there's our those the digital and more all areas user into flow even understanding still to getting

are months for we quickly are - in within to growth about moving really where thinking deeply coming the back and talk but few from there I'll taking. be more So a the might strategy, the opportunities we

Now, Tim. it over I'll to turn

Tim Bensley

Hey, on-demand your test on Youssef, the Or… about I'm that about specifically unit question assuming is economics West Coast? the

Youssef Squali

Yes. Exactly. Yes.

Tim Bensley

Yeah.

Okay.

So you we're of a couple it. I'll pretty give reasons. about excited

I'd find all, to we're the tiny able part, talk on [ph]. of first involving Apron bit about to give about is be order I'll of overall this into how site, which the this terms. actually ways And basically you the within and to get their time Blue completely try all. new it's Blue most First a the clearly, works, ecosystem, third-party do so then it that do our right unit going a is at in to consumers, to economics] go without just you Apron wheelhouse you'll to to [favors exciting strategy it

on important entire consumers the able X will it So for Area subscription the at either that to right the our have to to so from to thing start, eventually think, If so least going between we meals margin a X a own that opportunity signature pm, same order offering, to select margin they home neutral be and away two again Probably they're your noon, their dinner by from order get is to pricing have the essentially and to actually and us. to I are the and the up be of for going the expected opportunity on-demand two-person to available them true that basis. depending much pretty the question back evening be most two-person platform, question, same menus purpose delivered it's Bay entire day. accretive

this a big out the expand So then we're geography the that can one that right box basis, extend of offering box pilot and unlike to and that on done, depending positive we of can what be we've starting it and in in pretty we're the how positive to in on some we is quickly the the Bay delivering geography. Richmond, EBITDA on other learn Again, how be Area shift. see expand going working we plan going generating adjusted to both we the we're to profitability each tests shift EBITDA we're and

So for it's overall, pretty us. exciting

Youssef Squali

be doing to on actual going physical is the Who that? delivery

Tim Bensley

Yeah.

a boxes familiar the local delivery. now our of third-party the it's have They're We third-party so we're core Area, delivering someone delivery logistics in also local with. Bay that's - some doing that company

Youssef Squali

All in since confidence sequential come QX this actually it QX? Okay. lastly, at that XXXX kind your relatively you pretty XXXX And even year? flat what show and P&L low-single-digit they the - growth you? QX the way you can How revenues of a have Or QX are on to confident helpful. easy have potentially even basis by like revenues troughed some do into the That's right. XXXX look - cost become seems as I down like throughout the looks the I guess,

Tim Bensley

Yes.

the revenue going stick overall in down We guide going account. to - or to still customer year, We're expect for revenue are to this point. QX at full - QX with be and the to QX not we

is the the Linda key working going growth strategies your coming that I up think points specific months. to we the with be one question with of to answer come over few

to those point we soon inflection and how more able that to see actually be basically about we're have to invest come we'll back against about and As growth. what idea talk a going what we'll them, point back at specifics are solid as

Youssef Squali

Okay.

Thank good. so you Sounds much.

Operator

next from Capital RBC will The ahead. come question go of Markets. Khajuria Shweta Please

Shweta Khajuria

little on could the And please? Great. as to on get affinity Meaning, Thanks on customer want today? is for question. of you meal do give Jet taking you you. the an you stabilize? high focusing you bit on grow as thinking update start customer a do at it Knick kits Knacks, that the into can't partnership more my then point second How with Thank customers what your visibility well about base after base

Tim Bensley

spend really focusing customers the in marketing there affinity that's avoiding or to our Absolutely. be best customers Yeah. as we've that the for customers out doing. high then first And are about what have strategy take on been talk and and the purposefully we that we've Maybe to of Yeah, about putting of going. is high part I'll to mean, to Linda it I'll I that, attract affinity that's and part customer. how second to pass that basic Jet not is us talked going

how as customers. refined there the the continue team out put additional to and strategies specific Linda referring that about. now think strategies well crux on because of That's doubling existing of on I the we base, initiatives really really think actually strategies customer downturn the been to revenue just of we that's at count. high So as both which to product in is starting last growth our place, have - churn have was customer we all we retract both on down and lower affinity that initiatives to of can part our the question the and point about some The in of that

couple positive, have count at - per of watch numbers the as you be before the will turn they in customer said you coming stabilize point as and is that that back customer that we the customer of orders customer So in one in to of to the continue few to those calls, will quarters and months. which last also actual base and grow, start I'll we'll turn think actually will the to things to start to last per say couple the watch revenue starts positive.

are we starting least at we're already in those see of metrics. encouraged to So both improvement an that, happening and that's

Linda Findley Kozlowski

Yeah. I that. on just said Tim to echo what want

customers I early already acquisition for think, efficiency new of impressed growth quality those the strong based building impacting for looking at. strategy - some are seeing how increased we that and and we've is what and I'm better in, what potential really that's metrics been with of foundation the a indicate off potential from coming really

been Where rotation performance really Knick We're Jet's been site, partner we're going so about the offerings a positive. actually we're expand On X of and pleased now a to for view a opening weeks to City. next and Apron Knacks. same looking available great us performer across day actually the really Jet meal few date. with the more gives York kits of shop X that's in day and holistic on through all front, is New a to great had actually their the Blue We that extremely be we're

that's branded of what's can our much complete a sort experience drive available. where of see step view next of So little more more a bit to people a

future. and develop that us, of strategic we important we about and can and brand thinking methodical the it's And partners. culinary channel expansion in about part about our with for we think strategy part that how really broadening our So to an build is on sort learn align as this continue offerings of

Shweta Khajuria

Thank you.

Operator

[Operator Instructions] come of The next ahead. Please Canaccord. from will Graham question Michael go

Michael Graham

Thank you.

to you or define you of talk can of is a how how Just level high of some the Is a at just you measure? of roughly frequency that core customer, it about it on many have about other you kind like would could you maybe now, right internally? be consider the just that tenure; those core? talk XXX,XXX And

Linda Findley Kozlowski

Sure.

And customer get best done qualitative this. bit looks of like. into research bit and actually quantitative about first, on we've quite the a So what's little I'll a

and of So a areas. is it defined Apron well different Blue behavior it's psychographics is sites. on their lot a actual within really, it really in the products of based combination a of and demographics, lot But

the from engage there, and will group some to more psychographic of participating us. habits what customers, of is exciting they really that much other how properties be term. done which as longer profiles look with to, align XX% us them we the we particular segments for and for it's identify that our So they're and we've those about help them based things bring them more us, highest we to base. really at on cleanly that's can start can we've been what how represents in, preferences customer at actually When break retain our about a as And particularly and in, engage understand they look able then target the to consider well we because quality of and easily, into other think them actually that

quality improvement psychographics. we're evidence are So paying seeing efficiency of off significant base and customers. But this XX% in seeing is acquisition again, and of our demographics and we in also already of about that it

Tim Bensley

of - two went to Yeah, call last and customers then to our had detail. XX% or through to back just our of one the customers. in tendencies calls quite actually thing bit acquired newly the ago have every tend some - go and best cohort our this a in of

are in category is base retained once people and our higher in a XX% in of of the XXXX that customers. much before, retained percentage cohorts, course, previous Of

our had we customers XX% to that a be over think you I time. couple shouldn't of of time. questions I high are that current we not affinity good on So last be this expect would customers shedding clear that want

high But best acting be those in been to in that are plus what more XX%, customers. of year, customers consider each affinity. percentage, our Something XX% like high XX% about have current like we coming those cohort very, of customers each very would

Now, that in spend the we're the brought quality than higher excited in focused this more we XXXX, marketing cohort previous customers cohorts. been year on those of that about has really actually already in this new

of best by very think reasons I that's one And has that. the encouraged up. of mix the why customers we're So picked

You obviously, per see, even those from metrics core QX the quarter-over-quarter sequential And absolute in and orders improvement in of per orders increase to revenue customer QX. customer. customer

Michael Graham

how just product differently about helpful. follow-up. company's messages importance convenience. the like like talk the a little about spectrum that's that - And in a Okay, Just convenience those proposition like bit can past? customers, of your Thank you you think you quick just feel talk feel right maybe going that experience, you the to about forward? need do through had like Do like the to you. then, you of versus culinary When value think

Linda Findley Kozlowski

Yeah.

then So us, premium know recipes and driven new culinary customers are choose we aspect, cooking another high do learning as quality care that about our ingredients because skills. as big they well

offer cook you're we you're really, whether a can really and they home. unique with our whether they you that's or learn things on something new horizons So ones of And where loved the that really their before. boxes, ingredients the not expand. the an important And are expand existing cite may to like and cook, ability in that you new at and they we cooked other cook to can also have share able families sort is thing then, that's

important to they it's part looking of culinary the look Convenience and at So experience is a it them. with of really of certainly that's on forward base us, sort of they that. something are what but authority that the on that's top that

Michael Graham

you. Thank Okay.

Operator

this call. conclude we the turn now conclusion I Kozlowski. gentlemen, it Ms. will of back and our Ladies will our approach session over as question-and-answer to

Linda Findley Kozlowski

very your looking you Have everybody, forward thank We're future you, good dialogs. day. on Thank updating a for strategies you and time today. and our to much,

Operator

The today's you thank presentation. now We conference for attending all concluded. is

lines. your You may now disconnect

Blue Apron (APRN) 30 Apr 192019 Q1 Earnings call transcript