: Blue Apron promises adjusted profit, but says more staff cuts are ahead
Blue Apron Inc. APRN on Tuesday said it expected to achieve an adjusted measure of profitability — so-called adjusted EBITDA — in the second quarter of 2024, but the meal-kit provider also said it expects more staff cuts ahead, as it tries to shed costs. The forecast comes after Blue Apron, which has faced questions about funding and post-pandemic declines in customers, said in May that it worked out an arrangement to hand off its operational infrastructure — or the facilities, staff and equipment that handle its meal kits — to FreshRealm. But the company said it wasn’t done trying to become leaner, saying “additional headcount and other cost reductions” would land “over the coming months.” The announcement follows previous layoffs and past profit projections for Blue Apron, at least for adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization. But that profit metric has raised questions about transparency. The company had two quarters of adjusted EBITDA profit in 2019 and one in 2020, but ended both years in the red, according to FactSet. Shares fell 7.7% after hours on Tuesday.
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