Subscription-based meal kit company Marley Spoon has released in its Q4 2019 results, revealing a 50 per cent revenue growth in its Australian operations, as well as a 41 per cent growth year on year globally.
The company’s Q4 performance saw its revenue for the full year of 2019 exceed guidance to €129.6 million ($212.65 million AUD), delivering 22 million meals to its customers around the world.
Marley Spoon’s Australian business delivered a record result in Q4, with revenue in the region amounting to €13.8 million ($22.65 million AUD), up 50 per cent compared to the prior corresponding period (PCP).
In June, Marley Spoon announced its partnership with Woolworths Group, as well as receiving a combined $8 million boost from the supermarket giant and Union Square Ventures in September.
CEO Fabian Siegel said he was pleased to deliver a strong Q4 2019, will all businesses making a positive contribution.
“Our Australian business continues to progress with 50 per cent revenue growth in Q4 and a further rise in the CM [Global Contribution Margin] to 36 per cent,” said Siegel.
“Following the appointment of a new CEO to lead our US business and operational improvements implemented in both our US and EU segments, we expect to build scale as well as continue to expand margins in these large markets.”
“With a structural switch to online grocery sales very much still in its infancy, we expect to deliver continue revenue growth and positive operating EBITDA at the end of 2020.”
Marley Spoon further noted the growth in Q4 was achieved due to lower acquisition costs, improved marketing efficiency and an operating EBITDA loss decreased to €2.4 million ($3.93 million AUD), compared to a loss of €8.6 million ($14.11 million AUD) in Q4 2018.
The company ended 2019 with 182,000 active customers, generating 4.4 orders in the quarter, up from 3.9 orders per customer in the PCP.
Marley Spoon said it “expects to turn operating EBITDA positive by the end of FY2020,” and aims to achieve this by monitoring the rate and timing of expected improvements in the Contribution Margin, marketing investments, as well as its “anticipated growth and synergy benefits from the strategic partnership with Woolworths Group”.
