Buoyed by a double-digit gain in the second quarter, online bulk retailer Boxed Inc. ended its first fiscal half of 2022 with retail sales up more than 11%.
For the quarter ended June 30, consolidated net revenue – including retail and software and services divisions – increased 3.1% to $43.7 million from $42.4 million. million a year earlier, New York-based Boxed reported this week.
Retail sales totaled $43.6 million in the second quarter, up 11.2% from $39.2 million a year ago, driven by higher merchandise sales and growth in the number of active customers, according to Boxed. Net software and services was $0.1 million, compared to nearly $3.2 million in the same period a year earlier. Boxed noted that the company did not recognize any implementation services or upfront license fee revenue during the quarter, and Software and Services segment revenue will vary quarter over quarter in the short term. and in the medium term, as revenue recognition reflects the timing of enterprise software deployments and ongoing implementation work.
Boxed reported a 14.1% increase in net revenue for the first quarter of fiscal 2022, including increases of 11.3% in retail and 127.1% in software and services.
In the second quarter, gross merchandise value (GMV) jumped 19.4% year-over-year to $52.7 million amid increased demand from business-to-business (B2B) customers , while B2B customer GMV grew 55.6%, the third consecutive quarter of B2B GMV growth of more than 55%, Boxed said. The company also saw increases in its fast delivery MaxDelivery and software and services businesses.
Average retail order value (AOV) soared 7.1%, or $9, to a record high of $132 in the second quarter, which Boxed attributed to increased B2B orders, continued efforts price optimization and price inflation. Meanwhile, net retail revenue per active customer was $261, up 1.7%, or $4, from a year earlier. The quarter also saw the number of active retail customers increase by approximately 14,000 from a year ago and by approximately 6,000 from the first quarter, reflecting investments in customer acquisition and driving growth. net revenue growth, according to the company.
For the first half of 2022, total net sales increased 8.5% to $90.3 million, including an 11.3% gain to nearly $88 million in the retail segment. retail and a decline of 43.8% to $2.3 million in the Software and Services segment, due to revenue timing. recognition at T2.
Boxed also made key strategic moves during the second quarter. The company rebranded MaxDelivery, acquired in late 2021, as Boxed Market, further integrating the fast-delivery grocer into the broader Boxed ecosystem. Recently, Boxed also signed new leases in Westchester and Brooklyn, NY, for more Boxed Market micro fulfillment centers, which are expected to launch later this year.
Additionally, Boxed last month rebranded its Software & Services business as Spresso. Boxed went public in December and, as part of that strategy, launched a new revenue stream by licensing its end-to-end e-commerce platform as a software-as-a-service (SaaS) offering. The technology includes front-end and back-end operational software for customers, as well as in-house automation robotics for execution. In announcing Spresso, Boxed also said animal health supply company Jeffers Pet would become the first US-based Spresso customer. Also in July, canned and Asian retail partner AEON Co. Ltd. unveiled plans to launch an end-to-end Spresso platform in Vietnam.
“Thanks to the hard work of the team, we have made so much progress over the past few quarters, and we are excited to reveal our strategic vision to the investment community and our shareholders,” said the CEO and co-founder. of Boxed, Chieh Huang. statement.
This vision includes capitalizing on the return-to-office trend through increased sales and marketing efforts to B2B customers, rolling out Boxed Market to two new markets by the end of the year, and signing over Spresso customers, including expanding the AEON partnership into additional regions and adding new customers around the world. To that end, Boxed said it aims to refocus resource investments and drive profitability and positive free cash flow.
“B2B has grown by more than 55% for three consecutive quarters. Our fresh produce offering, Boxed Market, is about to be launched in two additional markets. Additionally, Spresso, our Software and Services business, signed several key termsheets expanding the market into new geographies,” Huang explained. “These businesses are also our highest-margin businesses, and by redefining resources and efforts in these areas, we are confident in our ability to deliver strong top line growth, as well as positive Adjusted EBITDA. as we accelerate our path to profitability by the end of 2024.”
Ultimately, Boxed reported a net loss of $31.8 million, or 47 cents per share, in the second quarter of 2022, compared to a net loss of $10.2 million, or 89 cents per share, there. one year old. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) recorded a loss of $22.5 million compared to a loss of $8.2 million in the 2021 quarter. higher investments related to growth and public enterprises, including advertising, personnel, insurance and IT costs.
Analysts, on average, had expected Boxed’s second-quarter adjusted earnings per share to be a net loss of 30 cents, with estimates ranging from net losses of 44 cents to 21 cents, according to Refinitiv. Boxed’s second-quarter revenue of $43.7 million was lower than analysts’ forecast of $46.58 million at $52.4 million.
For the first half of 2022, Boxed reported a net loss of just over $68 million, or $1.01 per share, compared to a net loss of $24.4, or $2.44 per share, it a year ago.