Boxed Sees Solid Q2, Shares Strategic Vision
Commerce technology company Boxed, Inc., is making strategic investments to grow its most profitable segments amid strong customer growth and a net revenue increase for the second quarter ending June 30. The company shared its long-term vision to deliver high-margin growth and an accelerated path to profitability through resource reprioritization and targeted marketing efforts.
During the quarter, Boxed relaunched its end-to-end software and services business unit, renaming it Spresso. The updated platform uses advanced analytics and machine learning to provide solutions for companies, including retailers, looking to better leverage their customers’ data. The company also expanded its partnership with Aeon, one of the largest retailers in Asia, and plans to launch an end-to-end Spresso platform in Vietnam.
Retail active customers increased by 14,000 during the reporting period compared to the second quarter of 2021, which supported the company’s net revenue growth of $1.3 million over the prior year period. Total net revenue was $43.7 million and retail net revenue was $43.6 million, an increase of $4.4 million.
Business-to-business customer demand remained strong in the second quarter, with gross merchandise value growth exceeding 55% year-over-year, and average B2B order values reaching record highs.
“Through the hard work of the team, we have made so much progress over the last several quarters, and we are excited to reveal our strategic vision to the investment community and our shareholders,” said Chieh Huang, co-founder and CEO of New York-based Boxed. “B2B has grown by over 55% for three straight quarters. Our fresh food offering, Boxed Market, is on the cusp of launching in two additional markets. Also, Spresso, our software and services business has signed several key, market-expanding term sheets in new geographies.
“These businesses are also our highest margin businesses, and by reprioritizing resources and efforts into these areas, we are confident in our ability to deliver strong topline growth, as well as positive adjusted EBITDA as we accelerate our path to profitability by the end of 2024,” Huang continued.
Further, Boxed rebranded the on-demand grocery delivery platform that it acquired late last year as Boxed Market, and recently signed new leases in Westchester and Brooklyn, N.Y., to establish additional Boxed Market micro-fulfillment centers, which will fully launch later this year.
Based on its Q2 results, the company revised its previous full-year guidance to a total net revenue of $165 to $180 million and a total adjusted EBITDA loss of $65 to $80 million.
