Blue Apron Holdings Inc (APRN) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Blue Apron Holdings Second Quarter 2023 Earnings Conference Call and Webcast. (Operator Instructions) As a reminder, this call is being recorded today, Wednesday, August 9, 2023, for replay purposes. A slide presentation has been created to accompany today's remarks and can be accessed on the Blue Apron Investor Relations website. (Operator Instructions)

早上好，歡迎來到 Blue Apron Holdings 2023 年第二季度收益電話會議和網絡廣播。 （操作員說明）謹此提醒，本次通話將於今天（2023 年 8 月 9 日星期三）錄音，以供重播之用。為配合今天的講話，我們製作了幻燈片演示文稿，可以在 Blue Apron 投資者關係網站上訪問。 （操作員說明）

On this morning's call, we have Linda Findley, President and Chief Executive Officer of Blue Apron; and Mitch Cohen, Interim Chief Financial Officer.

出席今天早上的電話會議的有 Blue Apron 總裁兼首席執行官 Linda Findley；臨時首席財務官米奇·科恩 (Mitch Cohen)。

Before handling the call over to the company, we will review the safe harbor statement. Various statements that the company makes during today's call about its future expectations, plans and prospects constitute forward-looking statements for the purpose of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by those forward-looking statements as a result of risks and other factors, including those described in the company's earnings release issued this morning in the company's SEC filings.

在處理向公司發出的電話之前，我們將審查安全港聲明。該公司在今天的電話會議上就其未來預期、計劃和前景所做的各種陳述均構成前瞻性陳述，旨在遵守1995 年《私人證券訴訟改革法案》中的安全港條款。實際結果可能與這些陳述所表明的結果存在重大差異前瞻性陳述是由於風險和其他因素造成的，包括該公司今天上午在美國證券交易委員會 (SEC) 文件中發布的財報中描述的因素。

In addition, any forward-looking statements represent the company's views only as of today and should not be relied upon as representing its views as of any subsequent date. The company specifically disclaims any obligation to update these statements.

此外，任何前瞻性陳述僅代表公司截至目前的觀點，不應被視為代表其在任何後續日期的觀點。該公司明確聲明不承擔更新這些聲明的義務。

During this call, the company will be referring to non-GAAP measures, which are not prepared in accordance with generally accepted accounting principles. You are encouraged to refer to the earnings release and SEC filings, where it has defined these measures, and to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures.

在這次電話會議中，該公司將提及非公認會計原則措施，這些措施不按照公認會計原則制定。我們鼓勵您參考收益報告和 SEC 文件，其中定義了這些指標，並審查這些非 GAAP 財務指標與最直接可比的 GAAP 指標的調節情況。

With that, I would now like to turn the call over to Linda Findley, Blue Apron's CEO, Linda?

現在，我想將電話轉給 Blue Apron 首席執行官琳達·芬德利 (Linda Findley)，琳達？

Good morning, everyone, and thank you for joining us. On the call with me today is Mitch Cohen, Blue Apron's Interim CFO. We had a very busy second quarter, and I'm excited to walk you through our work and more importantly, what it means for Blue Apron going forward.

大家早上好，感謝您加入我們。今天與我通話的是 Blue Apron 臨時首席財務官米奇·科恩 (Mitch Cohen)。我們度過了非常忙碌的第二季度，我很高興向您介紹我們的工作，更重要的是，這對 Blue Apron 的未來意味著什麼。

Let me open with two important comments. First, profitability. We had established a clear path to achieve adjusted EBITDA profitability, which we expect to reach starting in the second quarter of 2024. This follows several strategic actions taken to reduce costs, increase marketing efficiency and position the business for long-term sustainable growth. Second, liquidity. Our internal model reflects sufficient capital from our operations to achieve our adjusted EBITDA profitability goal and to continue to move the business forward. This is based on aggressive cost reductions and the shift to an asset-light model.

讓我首先提出兩個重要的評論。第一，盈利能力。我們已經制定了實現調整後EBITDA 盈利能力的明確路徑，預計從2024 年第二季度開始實現這一目標。在此之前，我們採取了多項戰略行動來降低成本、提高營銷效率並使業務實現長期可持續增長。第二，流動性。我們的內部模型反映了我們的運營有足夠的資本來實現調整後的 EBITDA 盈利目標並繼續推動業務向前發展。這是基於積極降低成本和向輕資產模式的轉變。

Now let me dive into our second quarter 2023 results. We delivered a strong quarter. To set the stage, while the FreshRealm transaction closed in the last month of the quarter, the improvements I will share were before the benefits of the transaction.

現在讓我深入了解我們 2023 年第二季度的業績。我們交付了一個強勁的季度。為了做好準備，雖然 FreshRealm 交易在本季度最後一個月結束，但我將分享的改進是在交易帶來的好處之前。

Let me start with the cash burn reduction. This quarter, we implemented additional efficiencies continuing the work we accomplished in the first quarter. As of June 30, our quarterly cash burn in operating activities improved by approximately $13.2 million compared to the second quarter of 2022, reflecting a 72% year-over-year improvement. This follows the 67% year-over-year quarterly improvement that we reported as of March 31. The time frame to reduce cash burn is exceptional, and I want to recognize the team's incredible efforts to deliver these impressive results.

讓我從減少現金消耗開始。本季度，我們在第一季度完成的工作的基礎上進一步提高了效率。截至 6 月 30 日，我們經營活動的季度現金消耗比 2022 年第二季度減少了約 1320 萬美元，同比改善了 72%。在此之前，我們報告了截至3 月31 日的季度同比增長67%。減少現金消耗的時間框架非常特殊，我想認可團隊為實現這些令人印象深刻的成果而付出的令人難以置信的努力。

While we plan to continue to aggressively manage our cash burn in the second half of the year, we anticipate it will increase slightly in the third and fourth quarters, in line with typical seasonality. Even with this seasonality, the actions we are taking are expected to get us to adjusted EBITDA profitability in Q2 of next year. We do plan to invest slightly in more marketing now that we are seeing payback periods well below a year and at the lowest level in 8 quarters. I will touch on this more in a bit.

雖然我們計劃在下半年繼續積極管理現金消耗，但我們預計第三季度和第四季度現金消耗將略有增加，這與典型的季節性相符。即使存在這種季節性，我們正在採取的行動預計將使我們在明年第二季度調整後的 EBITDA 盈利能力。我們確實計劃在營銷方面進行少量投資，因為我們看到投資回收期遠低於一年，並且處於 8 個季度以來的最低水平。我稍後會詳細討論這一點。

Staying with the balance sheet, we are now a debt-free company. With a portion of the proceeds of the transaction, we repaid our remaining senior secured notes in full. This provides us with greater flexibility as we are no longer subject to a minimum liquidity covenant. We now have unrestricted access to all of our cash and have eliminated all the costs associated with the debt.

從資產負債表來看，我們現在是一家無債務公司。我們用交易收益的一部分全額償還了剩餘的高級擔保票據。這為我們提供了更大的靈活性，因為我們不再受最低流動性契約的約束。我們現在可以不受限制地使用所有現金，並消除了與債務相關的所有成本。

Moving to our goal of adjusted EBITDA profitability, we are ahead of plan. This quarter, we significantly reduced our adjusted EBITDA loss by 84% year-over-year and 70% sequentially to a loss of $2.6 million. Our increases in efficiency across the business also drove strong margin improvement. Variable margin was 37.9% in Q2, our strongest margin performance since 2020 and a notable increase from 35.8% in Q1 2023, and 34.7% in Q2 2022. The strong performance was driven by rigorous cost management and productivity improvements implemented prior to the transfer of our operations to FreshRealm. Mitch will discuss how we plan to look at margins moving forward in a bit.

我們已經提前實現了調整後 EBITDA 盈利能力的目標。本季度，我們調整後 EBITDA 損失同比大幅減少 84%，環比減少 70%，虧損 260 萬美元。我們整個業務效率的提高也推動了利潤率的大幅提高。第二季度的可變利潤率為37.9%，這是我們自2020 年以來最強勁的利潤率表現，較2023 年第一季度的35.8% 和2022 年第二季度的34.7% 顯著增長。強勁的業績得益於在轉讓之前實施的嚴格成本管理和生產力改進。我們的業務到 FreshRealm。米奇將討論我們計劃如何看待未來的利潤率。

In parallel with financial and operational management initiatives, we continue to see record customer engagement metrics. Average order value hit another high at over $75, up approximately 8% versus Q1. Average revenue per customer improved significantly to $397, another record high. Key drivers were a price increase that we implemented in May of 2023, optimization of promotional and marketing spend, and more importantly, strong engagement from our repeat and tenured customers. The value we provide our customers is evidenced by consistent orders per customer, which was 5.3 for the quarter. As I've shared before, the longer a customer is with us, the more they tend to spend over their tenure.

在財務和運營管理舉措的同時，我們繼續看到創紀錄的客戶參與度指標。平均訂單價值再創新高，超過 75 美元，較第一季度增長約 8%。每個客戶的平均收入大幅提高至 397 美元，再創歷史新高。關鍵驅動因素是我們於 2023 年 5 月實施的價格上漲、促銷和營銷支出的優化，更重要的是，我們的回頭客和長期客戶的強烈參與。我們為客戶提供的價值通過每個客戶的一致訂單得到了證明，該季度為 5.3 個。正如我之前分享的那樣，客戶與我們合作的時間越長，他們在任期內的支出就越多。

Total customers in the 12 months ended June 30, 2023, was 679,000 compared to 687,000 in the equivalent prior year period. Total customers in the second quarter was 267,000 compared to 326,000 in the first quarter of 2023 and 349,000 in the second quarter of 2022. We anticipated this decline in customers as we've deliberately reduced our overall marketing spend. In the second quarter, marketing spend was $9.4 million, a reduction of 36% sequentially and 57% year-over-year.

截至 2023 年 6 月 30 日的 12 個月內，客戶總數為 679,000 人，而去年同期為 687,000 人。第二季度的客戶總數為 267,000 人，而 2023 年第一季度為 326,000 人，2022 年第二季度為 349,000 人。我們預計客戶數量會減少，因為我們刻意減少了整體營銷支出。第二季度營銷支出為 940 萬美元，環比減少 36%，同比減少 57%。

At the start of the year, under the leadership of our new Chief Revenue Officer, we implemented an improved testing program. The goal is that every marketing dollar we invest delivers on our targeted payback period while also attracting the right customer. With over 6 months of testing under our belt, we have identified what we believe is the right formula to move -- to more effectively target the next dollar.

今年年初，在新任首席營收官的領導下，我們實施了改進的測試計劃。我們的目標是，我們投入的每一筆營銷資金都能實現目標投資回收期，同時吸引合適的客戶。經過 6 個多月的測試，我們已經確定了我們認為正確的行動方案——更有效地瞄準下一美元。

And all of this is paying off. In Q2, we saw significant improvement in payback periods at levels far less than our 1-year target and efficiencies better than Q1. Cost per acquisition also improved by 30%, while conversion rates improved by 25% year-over-year during the second quarter. In addition, our average weekly retention is the strongest it's been in 5 quarters, even with the recently implemented price increase.

所有這一切都得到了回報。在第二季度，我們看到投資回收期顯著改善，遠低於我們的 1 年目標，效率優於第一季度。第二季度每次獲客成本也同比提高了 30%，而轉化率同比提高了 25%。此外，即使最近實施了價格上漲，我們的平均每週留存率仍是 5 個季度以來最高的。

We were able to make consistent and repeatable improvements while continuing to leverage our strong brand. Given our success so far and as we capitalize on our new asset-light model, we are increasing marketing slightly in the second half of the year. We plan to stay within our targeted 1-year payback period and expect our investments to come to fruition in 2024.

我們能夠做出一致且可重複的改進，同時繼續利用我們強大的品牌。鑑於我們迄今為止所取得的成功，並且隨著我們利用新的輕資產模式，我們將在下半年略微增加營銷力度。我們計劃保持在一年的目標投資回收期內，並預計我們的投資將於 2024 年取得成果。

To summarize the second quarter, we now have a stronger balance sheet, no debt and significantly lower cash burn that positions us to meet our goal of adjusted EBITDA profitability in the second quarter of 2024.

總結第二季度，我們現在擁有更強勁的資產負債表、無債務且現金消耗顯著降低，這使我們能夠在 2024 年第二季度實現調整後 EBITDA 盈利能力的目標。

Now I want to take a moment to discuss our strategic path forward. During our 2022 Investor Day, we laid out our 3-year the Next Core Strategy aimed at achieving long-term sustainable growth and reaching profitability. A key component of this strategy focuses on building an ecosystem of partners and relationships that furthers our vision of better living through better food, which now includes FreshRealm as our fulfillment partner. Transferring our operational infrastructure to execute our asset-light strategy allows for efficiency to enhance shareholder value while balancing growth.

現在我想花點時間討論我們前進的戰略道路。在 2022 年投資者日期間，我們制定了為期 3 年的“下一個核心戰略”，旨在實現長期可持續增長並實現盈利。該戰略的一個關鍵組成部分側重於建立一個由合作夥伴和關係組成的生態系統，以進一步推進我們通過更好的食品實現更美好生活的願景，其中FreshRealm現已成為我們的履行合作夥伴。轉移我們的運營基礎設施來執行我們的輕資產戰略，可以提高效率，提高股東價值，同時平衡增長。

We retained our full direct-to-consumer business, including all aspects of creating and marketing our delicious recipes along with the data and technology to support that work. Under our asset-light model, we removed our direct role and fulfillment of our meal kit, allowing us to be more agile and focused on new product innovation. The benefits of this shift are clear.

我們保留了完整的直接面向消費者的業務，包括創建和營銷我們的美味食譜的各個方面以及支持這項工作的數據和技術。在我們的輕資產模式下，我們取消了餐包的直接角色和履行，使我們能夠更加敏捷並專注於新產品創新。這種轉變的好處是顯而易見的。

First, this model has a significant impact on both fixed and variable costs to drive further efficiency. In selling our production and fulfillment infrastructure, we unburden our fixed cost base within PTG&A. Under the new partnership, we are taking on a fixed PTG&A fee. This fee is lower than our current run rate costs and will decrease further at the beginning of 2024. As we continue to scale our business, we expect to see this structure be more efficient, especially with the removal of a large portion of direct fulfillment overhead costs, such as personnel costs or depreciation and amortization associated with growth.

首先，該模型對固定成本和可變成本都有重大影響，可進一步提高效率。通過銷售我們的生產和履行基礎設施，我們減輕了 PTG&A 內固定成本基礎的負擔。根據新的合作夥伴關係，我們將收取固定的 PTG&A 費用。該費用低於我們當前的運行費率成本，並將在 2024 年初進一步下降。隨著我們繼續擴大業務規模，我們預計這種結構會更加高效，特別是在消除大部分直接履行費用的情況下成本，例如人員成本或與增長相關的折舊和攤銷。

Last month, we also executed our previously announced reductions in corporate head count to streamline our business to match our asset-light model, resulting in an approximately 20% reduction in positions. These actions will drive approximately $7 million in additional annualized savings.

上個月，我們還執行了之前宣布的裁員計劃，以精簡業務以匹配輕資產模式，導致職位減少約 20%。這些行動將每年額外節省約 700 萬美元。

In addition to the other transaction work we've done, we believe that we are on track to achieve the financial and cost savings milestones to receive an additional $4 million in funding from FreshRealm, payable to us starting in the fourth quarter.

除了我們已經完成的其他交易工作之外，我們相信我們有望實現財務和成本節約里程碑，從 FreshRealm 獲得額外的 400 萬美元資金，從第四季度開始支付給我們。

Looking at variable costs, we anticipate improvements as a result of the asset-light model. While Blue Apron retains control of the quality and supplier standards, we believe we can leverage FreshRealm scale in labor, food, packaging and logistics. This should drive variable cost efficiencies in the longer term.

考慮到可變成本，我們預計輕資產模式會帶來改善。雖然 Blue Apron 保留了對質量和供應商標準的控制，但我們相信我們可以利用 FreshRealm 在勞動力、食品、包裝和物流方面的規模。從長遠來看，這應該會提高可變成本效率。

Second, through this partnership, we have the ability to introduce new products quickly and efficiently without compromising on quality. Blue Apron was previously limited to the capabilities of its own fulfillment centers. Now we are able to leverage FreshRealm's expertise and scale to grow our own product portfolio.

其次，通過這種合作關係，我們有能力在不影響質量的情況下快速有效地推出新產品。 Blue Apron 之前僅限於其自己的履行中心的功能。現在，我們能夠利用 FreshRealm 的專業知識和規模來發展我們自己的產品組合。

Starting in the first half of 2024. We are introducing even more convenient meals on the menu. These new, no prep options will enhance our current offerings while also allowing us to target a new set of time-starved health-conscious consumers. Third, as we continue to focus on our products, we now have the capacity to identify new revenue-enhancing opportunities. We plan to do so by leveraging the strength of our brand, our culinary authority, while taking advantage of their economies of scale. We will share more details as the work progresses.

從 2024 年上半年開始，我們將在菜單上推出更加方便的餐點。這些新的、無需準備的選項將增強我們當前的產品，同時也使我們能夠瞄準一批新的缺乏時間且注重健康的消費者。第三，隨著我們繼續專注於我們的產品，我們現在有能力發現新的增加收入的機會。我們計劃利用我們的品牌優勢、烹飪權威，同時利用規模經濟來實現這一目標。隨著工作的進展，我們將分享更多細節。

In summary, the team's ability to realize significant cost savings, improving marketing efficiency and close a complex and strategic deal to transition Blue Apron to an asset-light business model is poised for the future, in my view, remarkable. As I've stated before, it is my belief that the industry is fragmented and is right for consolidation. And as an asset-light business, we can be more opportunistic. As such, we plan to continue to look at strategic opportunities that make sense for the company and its shareholders.

總而言之，在我看來，該團隊能夠實現顯著的成本節約、提高營銷效率並完成一項複雜的戰略交易，將 Blue Apron 轉變為輕資產業務模式，這對未來來說是非常出色的。正如我之前所說，我相信這個行業是分散的，適合整合。作為輕資產企業，我們可以更加投機。因此，我們計劃繼續尋找對公司及其股東有意義的戰略機會。

I am energized and optimistic. The work we have done over the past 2 quarters to stabilize the business, including the FreshRealm transaction and position it for growth, allows us to reissue guidance for the first time since the second quarter of 2022, which Mitch will touch on shortly. We look forward to speaking with many of you at upcoming conferences this fall.

我充滿活力且樂觀。我們在過去兩個季度為穩定業務所做的工作，包括 FreshRealm 交易並為其增長定位，使我們能夠自 2022 年第二季度以來首次重新發布指導意見，米奇將很快談到這一點。我們期待在今年秋天即將舉行的會議上與你們中的許多人交談。

With that, let me turn things over to Mitch to run through our financials.

接下來，讓我把事情交給米奇來處理我們的財務狀況。

Thank you, Linda, and good morning, everyone. I'll first begin with an update on our balance sheet and liquidity position before diving into the quarter's performance.

謝謝你，琳達，大家早上好。在深入了解本季度的業績之前，我將首先介紹我們的資產負債表和流動性狀況的最新情況。

Our cash balance at the end of the second quarter was approximately $30 million as compared to $31.6 million at the end of Q1 2023. And we are now a debt-free company. This reflects a number of factors. First, it's inclusive of the approximate -- of approximately $23.6 million upfront net cash proceeds as received from part of the transaction. Second, it reflects the repayment of our remaining senior secured notes inflow, $22.5 million of which were postpaid in the second quarter.

我們第二季度末的現金餘額約為 3000 萬美元，而 2023 年第一季度末為 3160 萬美元。我們現在是一家無債務公司。這反映了許多因素。首先，它包括從部分交易中收到的約 2360 萬美元的預付淨現金收益。其次，它反映了我們剩餘的高級擔保票據流入的償還情況，其中 2250 萬美元是在第二季度後付的。

This is beneficial for two reasons. One, it removes the restricted covenants previously in place, which allows us to be more flexible with our cash balance moving forward; and two, it eliminates the over $2.5 million of annual interest expense. Our cash balance was not materially impacted by the aftermarket offering launched in February of 2023. We sold a minimal number of shares at the beginning of Q2 with almost $66 million of the $70 million still available as of June 30. However, as Linda noted, our plan is reaching adjusted EBITDA profitability in Q2 2024 without the need to access the ATM.

這有兩個好處。第一，它取消了之前的限制性契約，這使我們能夠更加靈活地處理我們的現金餘額；第二，它消除了超過 250 萬美元的年度利息支出。我們的現金餘額並未受到2023 年2 月推出的售後市場發行的重大影響。我們在第二季度初出售了極少量的股票，截至6 月30 日，7000 萬美元中的近6600 萬美元仍然可用。然而，正如Linda 指出的那樣，我們的計劃是在 2024 年第二季度實現調整後的 EBITDA 盈利能力，而無需使用 ATM。

In addition to the cash proceeds from the transaction and the accelerated debt pay down, you'll notice the following changes to our balance sheet as a part of the transaction. First, at the closing of the transaction, we sold and transferred to FreshRealm all inventory related to our meal kits. The remaining $2.3 million in inventories reflect (inaudible) wine and marketplace items. Second, we have a $3.5 million sellers note receivable net of discounts, issued to us by FreshRealm.

除了交易帶來的現金收益和加速償還債務之外，作為交易的一部分，您還會注意到我們的資產負債表發生了以下變化。首先，在交易結束時，我們出售並轉移到 FreshRealm 與我們的餐包相關的所有庫存。剩餘 230 萬美元的庫存反映了（聽不清）葡萄酒和市場商品。其次，我們有一筆 350 萬美元的賣方應收票據（扣除折扣後）由 FreshRealm 簽發給我們。

Not reflected in our balance sheet is the up to $4 million in cash consideration payable to us by FreshRealm starting in the fourth quarter if we achieved the cost savings and financial milestones. As Linda mentioned, we have made significant progress towards meeting these financial goals to reach the milestones, also not reflected in the second quarter balance sheet are the expected annualized cost savings of approximately $7 million, resulting from the July corporate workforce reduction.

如果我們實現成本節約和財務里程碑，FreshRealm 從第四季度開始將向我們支付高達 400 萬美元的現金對價，這一點沒有反映在我們的資產負債表中。正如 Linda 提到的，我們在實現這些里程碑的財務目標方面取得了重大進展，第二季度資產負債表中也沒有反映出由於 7 月份企業裁員而預計實現的年化成本節省約 700 萬美元。

Our plan reflects significant capital from operations to sufficient capital from operations to achieve our adjusted EBITDA profitability goal and can continue to move forward with its business. However, we also believe it's important to maintain optionality in our access to capital at all times.

我們的計劃反映了來自運營的大量資本，以及來自運營的充足資本，以實現我們調整後的 EBITDA 盈利目標，並可以繼續推進其業務。然而，我們也認為始終保持獲得資本的選擇性非常重要。

In reference to Mr. Sanberg and his obligation, with the removal of our debt and the closing of the FreshRealm transaction now behind us, we are able to operate the business independent of those funds to achieve our near-term plans. However, Mr. Sanberg remains obligated to fund the $68.2 million, and we are refocused on monetizing some or all of the pledged collateral in an intentional manner to optimize value. We continue to pursue all options available to us to receive the amount owed. Recall that these are private company shares, and therefore, the time line to monetize them might take longer than it would with similar public company shares.

關於桑伯格先生和他的義務，隨著我們債務的消除和 FreshRealm 交易的結束，我們能夠獨立於這些資金來運營業務，以實現我們的近期計劃。然而，桑伯格先生仍有義務提供 6820 萬美元的資金，我們將重新集中精力，有意將部分或全部質押抵押品貨幣化，以優化價值。我們將繼續尋求所有可用的選擇來收回欠款。回想一下，這些是私人公司股票，因此，將其貨幣化的時間可能比類似的上市公司股票更長。

Turning to the second quarter results. Net revenue was $106.2 million, a decline of 6.1% sequentially and 14.5% year-over-year. The sequential and year-over-year decline was driven primarily by the onetime $10 million bulk sale we fulfilled in the second quarter of 2022, as well as the deliberate reduction in marketing spend that led to reduction in customer count and order volume.

轉向第二季度業績。淨收入為 1.062 億美元，環比下降 6.1%，同比下降 14.5%。環比和同比下降的主要原因是我們在 2022 年第二季度實現了一次性 1000 萬美元的大宗銷售，以及故意減少營銷支出，導致客戶數量和訂單量減少。

Our customer engagement metrics continue to strengthen an average order value, reached a historic high of $75.66, up 7.7% sequentially and 12.7% year-over-year due in part to a price increase along with a meaningful reduction in credits and promotional spend. Average revenue per customer climbed to $397 while orders per customer was 5.3, our highest level since Q2 2021.

我們的客戶參與度指標繼續增強平均訂單價值，達到 75.66 美元的歷史新高，環比增長 7.7%，同比增長 12.7%，部分原因是價格上漲以及積分和促銷支出的大幅減少。每個客戶的平均收入攀升至 397 美元，而每個客戶的訂單量為 5.3，這是我們自 2021 年第二季度以來的最高水平。

Turning to expenses. Variable margin was 37.9% in the second quarter, a 210 basis sequential increase over Q1 and a year-over-year increase of 320 basis points. The improvement in variable margin was driven by our ongoing efforts to drive operational efficiencies through continued cost management and productivity improvements.

轉向開支。第二季度可變利潤率為37.9%，比第一季度環比增長210個基點，同比增長320個基點。可變利潤率的改善是由於我們不斷努力通過持續的成本管理和生產力提高來提高運營效率。

In the second quarter, PTG&A costs were $34.4 million, a 3.6% decrease sequentially and 12.1% decrease over the prior period. As part of the recent corporate workforce reduction, we recorded $400,000 in onetime employee-related expenses, primarily consisting of severance payments in the second quarter. We expect to incur $1.3 million in similar onetime expenses in the third quarter of 2023. Substantially, all of these expenses will result in cash expenditures. As a result, we expect these head count reductions to result in additional annualized cost savings of approximately $7 million.

第二季度，PTG&A 成本為 3440 萬美元，環比下降 3.6%，環比下降 12.1%。作為最近企業裁員的一部分，我們記錄了 40 萬美元的一次性員工相關費用，主要包括第二季度的遣散費。我們預計 2023 年第三季度將產生 130 萬美元的類似一次性費用。基本上，所有這些費用都將導致現金支出。因此，我們預計人員減少將帶來每年約 700 萬美元的額外成本節省。

Free cash flow was a negative $6.1 million, an improvement of 69% year-over-year. Factoring the funds received from the transaction and the repayment of the -- our outstanding senior secured notes, our sequential net balance decreased approximately $1.5 million in the second quarter.

自由現金流為負 610 萬美元，同比增長 69%。考慮到從交易中收到的資金以及我們未償還的高級擔保票據的償還，​​我們第二季度的連續淨餘額減少了約 150 萬美元。

Looking to the bottom line, we reported a net loss of $61.9 million for the second quarter compared to $23.3 million in Q2 2022, and $17 million in Q1 of 2023. Excluding the onetime impact of the transaction's noncash loss of $48.6 million, net loss for the quarter was $13.3 million. In the second quarter, adjusted EBITDA was a loss of $2.6 million compared to $16.2 million loss in the second quarter of 2022, and $8.7 million loss in the first quarter of 2023.

就利潤而言，我們報告第二季度淨虧損為6190 萬美元，而2022 年第二季度為2330 萬美元，2023 年第一季度為1700 萬美元。不包括交易非現金損失4860 萬美元的一次性影響，淨虧損為該季度營收為 1,330 萬美元。第二季度調整後 EBITDA 虧損 260 萬美元，而 2022 年第二季度虧損 1620 萬美元，2023 年第一季度虧損 870 萬美元。

Our continued focus on driving operational efficiencies through streamlining the cost structure has helped drive 3 consecutive quarters of reductions in adjusted EBITDA loss. The move to an asset-light model will help decrease in cost and improve our overall margin profile from a variety -- from a variable and fixed cost perspective. Let me briefly touch on some of the changes to our P&L that you will see going forward.

我們持續關注通過簡化成本結構來提高運營效率，幫助推動調整後 EBITDA 損失連續三個季度減少。轉向輕資產模式將有助於降低成本，並從各個方面改善我們的整體利潤狀況——從可變成本和固定成本的角度來看。讓我簡要談談您將看到的損益表的一些變化。

For variable costs, with FreshRealm assuming production and fulfillment of majority of our products and cost of goods sold will include the following components: recipe ingredients costs which would be a per meal cost charge to us by FreshRealm based on the inputs and contents of an -- inclusive of labor. New product initiative product costs. Fulfillment costs, which will include fulfillment packaging and shipping costs and inclusive of fulfillment labor, a margin fee charged by FreshRealm and other which will include some of the production and fulfillment items we retain such as wine and market items.

對於可變成本，FreshRealm 假設我們大部分產品的生產和履行，銷售成本將包括以下組成部分： 配方成分成本，這是 FreshRealm 根據輸入和內容向我們收取的每餐成本 - - 包括勞動力。新產品主動產品成本。履行成本，其中包括履行包裝和運輸成本，包括履行勞動力、FreshRealm 收取的保證金費用以及其他費用，其中包括我們保留的一些生產和履行物品，例如葡萄酒和市場物品。

We believe we will directly benefit from FreshRealm's economies of scale and sourcing and labor costs to drive improved variable margin going forward. As part of the transaction, Blue Apron is eligible to receive up to $17.5 million of volume-based rebates from FreshRealm in 2024 and 2025 based on future meal kit volumes. Certain new product initiatives and achievements of financial targets by us, if earned, these rebates could contribute to a reduction in COGS and an improvement in variable margin beginning in 2024.

我們相信，我們將直接受益於 FreshRealm 的規模經濟以及採購和勞動力成本，從而推動未來可變利潤率的提高。作為交易的一部分，Blue Apron 有資格根據未來餐包數量在 2024 年和 2025 年從 FreshRealm 獲得高達 1750 萬美元的基於數量的折扣。我們的某些新產品計劃和財務目標的實現，如果獲得的話，這些回扣可能有助於從 2024 年開始降低銷貨成本並提高可變利潤率。

Moving to our fixed cost. We will maintain our -- most of our previous line items with material changes in two specific areas. One, we were incurring annual baseline PTG&A fees subject to adjustments, representing the operating overhead costs passed out to us from FreshRealm. Starting in 2024, the fixed fee will be approximately $10 million sizable reduction to previous run rates of -- by operating our own facilities. Two, depreciation and amortization will be minimal going forward as we will no longer own heavy assets and instead would be primarily expensed to internally develop software.

轉向我們的固定成本。我們將維持我們之前的大部分項目，並在兩個特定領域進行重大更改。第一，我們產生的年度基線 PTG&A 費用可能會進行調整，這代表了 FreshRealm 轉嫁給我們的運營管理費用。從 2024 年開始，通過運營我們自己的設施，固定費用將約為 1000 萬美元，較之前的運行費率大幅降低。第二，折舊和攤銷將是最小的，因為我們將不再擁有重資產，而是主要用於內部開發軟件。

Blue Apron now has a lean fixed cost that can support foreseeable growth and allow us to drive operating leverage. Our plan assumes minimal capital investments going forward. We believe that our shift to an asset-light model will yield significant benefits to our business, and we'll continue to focus on optimizing our cost structure. The sale of our product -- production and fulfillment center, operational infrastructure to FreshRealm will positively impact the PTG&A line. And as Linda mentioned, we executed a planned corporate workforce reduction to accommodate our new model.

Blue Apron 現在擁有精簡的固定成本，可以支持可預見的增長，並使我們能夠提高運營槓桿。我們的計劃假設未來的資本投資最少。我們相信，向輕資產模式的轉變將為我們的業務帶來顯著的效益，我們將繼續專注於優化成本結構。將我們的產品（生產和履行中心、運營基礎設施）出售給 FreshRealm 將對 PTG&A 系列產生積極影響。正如琳達提到的，我們執行了計劃中的企業裁員計劃，以適應我們的新模式。

With the closing of the transaction, together with an additional plan streamlining and efforts, we previously identified and will continue to implement, we are now in a position to provide financial guidance for the first time since the second quarter of 2022.

隨著交易的完成，加上我們之前確定並將繼續實施的額外計劃精簡和努力，我們現在能夠自 2022 年第二季度以來首次提供財務指導。

Our guidance and targets reflect assumptions about our business, including the anticipated benefit of the shift to an asset-light model as well as the expected benefits of our expense management initiatives, our ability to create new product initiatives, the ability to generate the volume needed to earn the $17.5 million in rebates, the achievement of certain financial and cost saving milestones to earn up to $4 million of additional cash consideration from FreshRealm and realizing of benefit of the $3.5 million seller note.

我們的指導和目標反映了對我們業務的假設，包括轉向輕資產模式的預期收益以及我們的費用管理計劃的預期收益、我們創建新產品計劃的能力、產生所需數量的能力賺取1750 萬美元的回扣，實現某些財務和成本節約里程碑，從FreshRealm 賺取高達400 萬美元的額外現金對價，並實現350 萬美元的賣方票據的收益。

FreshRealm's ability to cost effectively price the production and fulfillment of our meal kits and other products and that we will not experience any unforeseen impacts -- increased impact from macroeconomic trends. By year-end 2023, we expect our net revenue and customer count to be lower year-over-year due to the deliberate acts we have taken to manage marketing spend and efficiency. Specifically, we expect net revenue for the year to be in the range of $410 million to $415 million, adjusted EBITDA loss in the range of $27 million to $23 million.

FreshRealm 能夠以成本有效的方式對我們的餐包和其他產品的生產和履行進行定價，並且我們不會遇到任何不可預見的影響——宏觀經濟趨勢帶來的影響增加。到 2023 年底，由於我們採取了刻意的措施來管理營銷支出和效率，我們預計我們的淨收入和客戶數量將同比下降。具體來說，我們預計今年的淨收入將在 4.1 億美元至 4.15 億美元之間，調整後的 EBITDA 虧損將在 2700 萬美元至 2300 萬美元之間。

Looking ahead, as we announced in June, Blue Apron expects adjusted EBITDA profitability in the second quarter of 2024. We expect at year-end 2024 to be adjusted EBITDA profitable and to achieve year-over-year revenue growth. We look forward to sharing more with you on our next earnings call.

展望未來，正如我們在 6 月份宣布的那樣，Blue Apron 預計在 2024 年第二季度實現調整後 EBITDA 盈利。我們預計到 2024 年年底將實現調整後 EBITDA 盈利，並實現收入同比增長。我們期待在下一次財報電話會議上與您分享更多信息。

And with that, I'll turn things over to the operator to open up the call for questions.

然後，我會將事情轉交給接線員以打開提問電話。

(Operator Instructions) Our first question comes from Dan Kurnos with Benchmark.

（操作員說明）我們的第一個問題來自 Benchmark 的 Dan Kurnos。

Great. Nice to hear the progress. Linda, can we just talk a little bit in the -- first just in the shorter term on your comments around marketing spend. I know we've talked about kind of the toggle between sort of AOV and promotional spend versus customer acquisition. And I'm assuming there's probably some noise in the second quarter just due to all of the things that you had going on, the strategic changes that you were making.

偉大的。很高興聽到進展。琳達，我們可以先談談您對營銷支出的評論嗎？我知道我們已經討論過 AOV 和促銷支出與客戶獲取之間的切換。我假設第二季度可能會出現一些噪音，這只是由於您正在進行的所有事情以及您正在進行的戰略變化。

But you've talked about kind of leaning in a little bit into Q3. So I just want to understand, are we trying to target, again, sort of a smaller core base that spends more or at least for now until some of the new initiatives get ramped? Or just how should we think about kind of that balance with AOV versus kind of adding new customer?

但你談到了稍微傾向於第三季度的情況。所以我只是想了解，我們是否再次嘗試以較小的核心基礎為目標，或者至少目前花費更多，直到一些新舉措得到推廣？或者我們應該如何考慮 AOV 與添加新客戶之間的平衡？

Yes. Thanks so much Dan, for the question. So you're absolutely right. We are planning on continuing to focus on profitability, and that means focusing on the customers who are going to be the best customers for us going forward, making sure that we're creating value for those customers and driving the right balance of promotion versus marketing spend.

是的。非常感謝丹提出的問題。所以你是完全正確的。我們計劃繼續關注盈利能力，這意味著關注未來將成為我們最佳客戶的客戶，確保我們為這些客戶創造價值，並推動促銷與營銷的適當平衡花費。

We are encouraged by the fact that we continue to see those improvements in our marketing spend, which is why we feel confident in a slight lean in, in marketing at the end of the year to basically prepare us for 2024.

我們繼續看到營銷支出的改善，這讓我們感到鼓舞，這就是為什麼我們有信心在年底的營銷方面稍稍傾斜，為 2024 年做好基本準備。

As you know, it takes a while for some of those to come to fruition. But we've actually evened out on a pretty reasonable promotional level. So that's been positive while still being able to drive return on the business from a customer perspective. So we are -- that's part of the reason we wanted to make sure that we guided going forward because as we've said all along, we're going to be focused on customers -- or we're going to be focused on profitability. And making sure that we do that through the highest-value customers, not necessarily focusing on large acquisition pushes but we can lean in with significant efficiency in our marketing based on the testing and learning that we've done over the last 6 months.

如您所知，其中一些需要一段時間才能取得成果。但我們實際上已經達到了相當合理的促銷水平。因此，這是積極的，同時仍然能夠從客戶的角度推動業務回報。所以我們——這就是我們想要確保我們指導前進的部分原因，因為正如我們一直以來所說的，我們將專注於客戶——或者我們將專注於盈利能力。確保我們通過最高價值的客戶來做到這一點，不一定要專注於大規模的收購推動，但我們可以根據過去 6 個月所做的測試和學習，以顯著的效率進行營銷。

And just -- got it. That's helpful. And just to kind of piggyback off of the way that Mitch just [closed kind of] for next year. I mean just revenue growth -- like you've got new initiatives, how do we think about kind of the balance of the growth trajectory from here? Like what's kind of the base -- do we bottom in '23 in terms of customer count and it grows from here? Does AOV grow? Is it new revenue lines? Like can you just kind of talk through the puts and takes as we think about the setup for 2024.

就——明白了。這很有幫助。這只是為了順應米奇明年[關閉]的方式。我的意思只是收入增長——就像你有新的舉措一樣，我們如何考慮從這裡開始的增長軌蹟的平衡？就像基礎是什麼樣的——就客戶數量而言，我們是否在 23 年觸底並從這裡開始增長？ AOV 會增長嗎？這是新的收入線嗎？就像我們思考 2024 年的安排一樣，您能談談看跌期權和看跌期權嗎？

Yes, you are correct. It does bottom out in 2023, and that is -- that's the intent, and that's what we're planning to do all along to make sure that we drive towards profitability as we think that is the most important goal, is to reach adjusted EBITDA profitability starting in Q2 and full year adjusted EBITDA profitability and revenue growth in 2024. So that is really our primary focus. So you'll see it kind of, again, continue to stay muted this year as our guidance indicates while we gear up for new product launches next year that will combine with our existing product strength and marketing efficiency that we've actually gained to be able to lean into profitable growth in 2024.

是的，你是對的。它確實會在 2023 年觸底，這就是我們的意圖，這就是我們一直計劃做的事情，以確保我們實現盈利，因為我們認為最重要的目標是達到調整後的 EBITDA從第二季度開始的盈利能力以及2024 年全年調整後的EBITDA 盈利能力和收入增長。所以這確實是我們的首要關注點。因此，正如我們的指導所示，今年你會再次看到它繼續保持沉默，同時我們為明年的新產品發布做好準備，這將與我們實際上已經獲得的現有產品實力和營銷效率相結合。能夠在 2024 年實現盈利增長。

And just maybe a housekeeping point on that. Like as you launch new product initiatives, given that you can leverage FreshRealm capabilities, like how do we think about either the margin profile or your ability to kind of lean in and support new product launches next year.

也許這只是一個內務管理點。就像您推出新產品計劃時一樣，考慮到您可以利用 FreshRealm 功能，例如我們如何考慮利潤狀況或您明年投入和支持新產品發布的能力。

Absolutely. I mean as you can tell from the comments that we've made and the progress we've made when you look at last year compared to this year, the reduction in cash burn and the significant improvement year-over-year in adjusted EBITDA profitability, you can tell that we are laser-focused on margin, and that will include the new products that we've launched, making sure that those -- that they meet our margin profile. And continue to drive the ability to leverage the FreshRealm infrastructure that is significant and has the ability to produce more types of products than we were able to produce on our own.

絕對地。我的意思是，正如您從我們所做的評論和我們取得的進展中看到的那樣，當您查看去年與今年相比時，現金消耗的減少以及調整後 EBITDA 盈利能力同比的顯著改善，你可以看出我們非常關注利潤，這將包括我們推出的新產品，確保這些產品符合我們的利潤狀況。並繼續提高利用 FreshRealm 基礎設施的能力，該基礎設施非常重要，並且能夠生產比我們自己生產的更多類型的產品。

(Operator Instructions) Our next question comes from Maria Ripps with Canaccord.

（操作員說明）我們的下一個問題來自 Canaccord 的 Maria Ripps。

This is Matt on for Maria. So Q2 revenue was understandably soft given the heavier quarter for travel activity, lower marketing spend and the onetime bulk comp. But could you maybe just provide some color on what you're seeing in terms of the macro impact on consumer demand for meal kits. And then I just have a quick follow-up.

這是瑪麗亞的馬特。因此，考慮到本季度旅遊活動較多、營銷支出較低以及一次性的批量補償，第二季度收入疲軟是可以理解的。但您能否就您所看到的消費者對餐包需求的宏觀影響提供一些信息？然後我就進行快速跟進。

Yes. So I mean we are still seeing some cautiousness in the macro environment, but it's interesting is -- if we look at our business and the progress we've made in our marketing efficiencies, we're actually seeing very strong repeat purchases. So that 5.3 orders per customer per quarter is quite strong, particularly for Q2, where you start to normally see a bit of a seasonal dip. And especially in concert with the pricing change. So we're really actually happy with the fact that even though you are seeing overall still a little bit of muted acquisition when it comes to consumer spending, at least what we're seeing in our business based on some of the changes we've made is very high average order -- orders per customer per quarter, which is at 5.3, great AOV, so willingness to purchase and seeing the value within the business.

是的。所以我的意思是，我們在宏觀環境中仍然看到了一些謹慎態度，但有趣的是——如果我們看看我們的業務以及我們在營銷效率方面取得的進展，我們實際上看到了非常強勁的重複購買。因此，每個客戶每季度 5.3 個訂單相當強勁，特別是在第二季度，通常會看到季節性下降。尤其是與定價變化相一致。因此，我們真的很高興這樣一個事實：儘管在消費者支出方面總體上仍然有一些溫和的收購，但至少我們在我們的業務中看到了基於我們已經發生的一些變化的情況。平均訂單量非常高——每個客戶每季度的訂單量為5.3，AOV 很高，因此願意購買並看到業務價值。

And we are seeing increased retention. So those are all really positive for us, and we see those as positive indicators of the future even though we are still seeing a little bit of a macro muting when it comes to overall acquisition. All that being said, we did also comment that we are seeing conversions improved by 25% year-over-year. So that is also quite positive for us as well.

我們看到保留率有所提高。因此，這些對我們來說都是非常積極的，我們將這些視為未來的積極指標，儘管在整體收購方面我們仍然看到宏觀上的一些放緩。話雖如此，我們確實還表示，我們看到轉化率同比提高了 25%。所以這對我們來說也是非常積極的。

Got it. That's very helpful and kind of answered my second question, which was, I was just curious about the customer reaction to recent price increases, but it sounds like it wasn't -- you didn't see a major uptick in churn or anything. But -- could you maybe just also just talk about your capacity for future price increases and how you feel the offering is priced relative to the industry at this point?

知道了。這非常有幫助，有點回答了我的第二個問題，即，我只是好奇客戶對最近價格上漲的反應，但聽起來並非如此——你沒有看到客戶流失率或其他任何情況的大幅上升。但是，您是否也可以談談您未來價格上漲的能力以及您認為目前該產品相對於行業的定價如何？

So absolutely, we're still priced the same or lower than our competitors in the industry with extremely high-quality products. We've maintained our stance on quality, food quality and also recipe quality. So we're very happy with that. What we did see with the pricing change is better-than-expected retention after the pricing change. And again, we are still seeing a little bit of softness in acquisition, but we did see that 25% increase in conversion year-over-year. So that is a positive indicator.

因此，絕對地，我們的價格仍然與行業內的競爭對手相同或更低，並且提供極高品質的產品。我們一直堅持我們對質量、食品質量和配方質量的立場。所以我們對此非常滿意。我們在定價變化中看到的是，定價變化後的保留率好於預期。同樣，我們仍然看到收購方面有些疲軟，但我們確實看到轉化率同比增長了 25%。所以這是一個積極的指標。

We tend to think about future price increases in terms of value. We want to make sure that we're always staying priced within the correct point for value for the customer. We want to make sure that they feel valued from that product going forward. And so we'll keep an eye on any sort of pricing changes that might make sense either based on inflationary pressures or not. But our biggest focus is making sure we drive value for customers. And given the fact that we are priced in line or lower than our competitors, we feel that we do that quite well.

我們傾向於從價值的角度來考慮未來的價格上漲。我們希望確保我們的價格始終保持在正確的範圍內，為客戶帶來價值。我們希望確保他們在未來的產品中感到受到重視。因此，我們將密切關注任何可能基於通脹壓力而有意義的定價變化。但我們最關注的是確保為客戶創造價值。考慮到我們的定價與競爭對手一致或更低，我們覺得我們做得很好。

As we have no further questions, ladies and gentlemen, this will conclude today's question-and-answer session. I'd like to turn the conference call back over to Linda for any closing comments.

女士們先生們，由於我們沒有其他問題了，今天的問答環節就到此結束。我想將電話會議轉回琳達以徵求結束意見。

Thank you, everyone, for your time today. We really look forward to providing an update on all of our efforts soon. And in the meantime, if you have any additional questions, please don't hesitate to reach out to us directly. Thank you.

謝謝大家今天抽出時間。我們真誠地期待盡快提供我們所有努力的最新信息。同時，如果您有任何其他問題，請隨時直接與我們聯繫。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may all now disconnect.

會議現已結束。感謝您參加今天的演講。你們現在可以斷開連接了。