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Boxed Reports Higher Q1 Net Revenue, Gross Profit and General Merchandise Value

E-commerce platform for bulk consumables maintains guidance for rest of fiscal 2022
Lynn Petrak, Progressive Grocer
Inflation-wary consumers turning to bulk products helped propel bulk e-commerce business Boxed to a solid first quarter.

E-commerce grocery platform Boxed, Inc. is finding its place in a price-centric marketplace. The company, which offers bulk pantry consumables to households and businesses and licenses its e-commerce software to enterprise retailers, shared some positive first quarter financial results this week.

The balance sheet on the whole looks good for the New York City-based Boxed, which boosted its net revenue by 14.1% compared to a year ago to reach $46.6 million. The platform’s retail net revenue rose 11.3% on a year-over-year basis and net revenue from its software and services arm surged 127.1% in that same period.

While net revenue, gross profits and retail average order value were up for the quarter, Boxed reported a net loss of $36.2 million and an adjusted EBITDA loss of $22.2 million, both higher than the prior-year period. Growth-related investments cut into gross profits a bit, including costs related to advertising, labor and professional services. The company spent $6 million more in advertising in the first quarter of 2022 compared to 2021 in an effort to bolster active customer growth and retention in the retail sector.

“We are reporting strong results to start 2022, with growth re-accelerating and a host of exciting developments underway across both our retail and software and services segments,” summed up Chieh Huang, Boxed’s co-founder and CEO. “B2B demand continued to strengthen in the quarter as offices reopen across America. Also, in this inflationary environment, we are proud to deliver bulk-sized cost-savings and convenience to our end-customers who may be struggling during this time. Finally, we remain focused on investing in the advancement of our technology, which will support growth of our Software and Services business across the globe.”

In addition to sharing its balance sheet, Boxed recapped some of its business moves during the first part of its fiscal year. Among other initiatives, the company recently expanded its leadership team and broadened its partnership with FedEx to enhance delivery capability. 

As for the rest of the fiscal year, Boxed maintained its previous guidance, expecting a range of 24% to 38% YOY growth in total net revenue and an anticipated total adjusted EBITDA loss of $70 to $80 million. In late 2021, the wholesale e-retailer became a public company.

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