- Marley Spoon (MMM) has seen a surge in its first-quarter revenue as the COVID-19 pandemic drives customers to its subscription food delivery service
- The company’s March quarter revenue was up 46 per cent, compared to the same quarter in 2019
- Despite this significant boost uptake, the company reported a quarterly loss of A$10.68 million (€6.4 million)
- This was, however, roughly half of 2019’s first-quarter loss and the company expects to post positive operating earnings before interest, tax, depreciation and amortisation (EBITDA) in the June quarter
- Despite the news, Marley Spoon shares have shed 15.5 per cent in early trade, selling for $1.10 per share
Marley Spoon (MMM) has seen a surge in its first-quarter revenue as the COVID-19 pandemic drives customers to its subscription food delivery service.
The company provides catered meal kits, which it delivers to subscribers in Australia, The U.S. and Europe.
During the COVID-19 pandemic, traditional food outlets have struggled to keep up with public demand. As a result, Marely Spoon has seen a surge in interest as people source their food via alternate means.
As a result, revenue in the first quarter is up 46 per cent, compared to the same quarter in 2019.
The surge in interest came late in the quarter. In the three weeks following mid-March, the company saw its revenue soar to approximately A$36.7 million (€22 million), more than double the previous corresponding period.
Despite this significant boost in revenue, the company reported a quarterly loss of A$10.68 million (€6.4 million). This was, however, roughly half of 2019’s first-quarter loss and the company stated the revenue bump is accelerating its path to profitability.
Consequently, the company now expects to hit a positive operating earnings before interest, tax, depreciation and amortisation (EBITDA) in the June quarter, ahead of its previous predictions.
Marley Spoon CEO, Fabian Siegel, said the company was performing well, even before the pandemic’s onset later in the quarter.
“Since the start of the COVID-19 pandemic, we have seen a surge in demand as customers are staying home and are looking for reliable and safe ways to cook for their families.
Having been able to operate as an essential service the team at Marley Spoon has risen to the occasion, creating additional capacity in order to serve our customers during these difficult times,” he said.
While the company expects the increased revenue to positively impact its previous 2020 guidance, it has chosen to withhold any specific earnings outlook, due to ongoing volatility in the market.
Despite the news, Marley Spoon shares have shed 15.5 per cent in early trade, selling for $1.10 per share at 10:44 am AEST.