Read more: How much is Snap worth in its IPO? It depends It had 1 million customers as of the first quarter of 2017. “For e-commerce, the most important metric is your true lifetime value to ratio,” Kim said.īlue Apron recorded a net loss of $54.9 million in 2016 on top of revenue of $795.4 million. This is the metric investors will be looking at in the IPO and in Blue Apron’s first earnings report, he said. ![]() See also: The food-delivery startup that could have a recipe for success But with a higher cost per customer, it takes longer to reach that “payback period,” which Eric Kim, managing partner at Goodwater, notes lengthens Blue Apron’s timeline to profitability. If the customer-acquisition cost stayed around $94 and with a 33% gross margin in 2016, gaining that customer is worth it, because he or she would bring in a lifetime value of $135 over six months. But as the company has increased its marketing - with marketing expenses soaring 182% between 20 - Goodwater Capital, a consumer-tech venture capital firm, estimates the actual cost is now higher. In Blue Apron’s prospectus, the company listed an average customer-acquisition cost of $94, which is an average from 2014 to the first quarter of 2017. It raised $300 million by selling 30 million shares. ![]() ![]() The company priced at $10 a share and opened and closed at $10, giving it a public market capitalization of $1.9 billion. ![]() The meal-kit company was valued at $2 billion in its last private funding round.
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