Shares of Blue Apron (NYSE: APRN) promised great things on Tuesday after the company posted smaller-than-expected fourth-quarter loss on the back of operational improvements at its fulfillment center in New Jersey.
The company said its net loss narrowed to $39.1 million, or 20 cents per share, narrower than the loss of $26.07 million, or down 39 cents per share, last year.
Analysts had expected Blue Apron to report a loss of 27 cents per share during the quarter.
Revenue fell 13% in the quarter to $187.7 million, due to a decrease in customers and orders as Blue Apron scaled back its marketing efforts.
Last quarter, then-Chief Financial Officer Brad Dickerson said that the company would continue to shrink its marketing costs in the fourth quarter, which would likely lead to less revenue. Dickerson took over the post of Chief Executive Officer in late November.
The company spent $25.2 million, or 13.4% of revenue, on marketing in the fourth quarter. In the same period last year, Blue Apron spent $37.1 million on marketing, or 17.2% of its revenue.
Blue Apron said that its number of customers fell 15% year-over-year and fell 13% from the prior quarter.
Average revenue per customer increased to $248 from $246 from the same time last year.
Blue Apron has been struggling to overcome several well-publicized operational issues that have dragged its stock down more than 66% since it first started trading in late June. Shares have slipped from $11 to just under $4 during that time frame.
Shares in Blue Apron grew 18 cents, or 5.4%, mid-morning Tuesday to $3.53
