Marley Spoon CEO Fabian Siegel said the company was pleased with results, with revenue more than doubling and Q3 reporting a 118 per cent increase on the prior corresponding period (PCP), as the company seeks to raise $56 million for global growth.
Snapshot:
- continued strong demand for Marley Spoon’s meal-kits from new and existing customers contributes to Marley Spoon’s growth momentum with favourable customer acquisition costs;
- Q3 2020 revenue at €69.3m, +109% versus the prior corresponding period (PCP), +118% on a constant currency basis US growth strongest with +163% on a constant currency basis;
- global Contribution Margin (CM) in Q3 at 28%, up 5 points YOY;
- positive Operating EBITDA of €0.4m;
- operating cash flow of -€1.3m in Q3 2020, €6.7m year-to-date . . . cash balance at 16.5m; and
- Marley Spoon now expects FY20 revenue to increase by between 90% - 100% YOY (previous guidance range 80% - 100%).
Australia:
- Q3FY20 revenue up 84% compared to PCP, or 86% excluding FX impacts;
- CM at 36%, operating CM reached 43%, up 6 points YOY; and
- operating EBITDA 13 per cent of revenue in Q3 or €3.4 million.
Siegel said good demand was seen across all regions as COVID-19 drove increased adoption of online grocery shopping. Combined with favourable customer acquisition environment the company generated better than usual unit economics.
Siegel said: “We expect to continue to build scale and maintain our high levels of customer retention as the channel as the channel switch from offline to online shopping continues.
“We now expect to grow full year 2020 revenue by 90-100 per cent year on year.”
The company also announced the launch of a fully underwritten $56 million institutional placement. The offer price was $3.22 per CHESS depository interests (CDIs).
The proceeds from the raise will be invested in growth and balance sheet flexibility.
The company said: “Given the continued traction in online meal kit adoption and strong recent business performance, Marley Spoon considers it appropriate to improve its balance sheet and access additional growth capital.”
It is looking to accelerate international growth and expansion in its core markets.
