Blue Apron Holdings, Inc. (NYSE:APRN) Q2 2020 Earnings Conference Call - Final Transcript
Jul 29, 2020 • 08:30 am ET
Good morning, and welcome to the Blue Apron Holdings Second Quarter 2020 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this call is being recorded today, Wednesday, July 29, 2020 for replay purposes. A slide presentation has been created to accompany today's remarks and can be accessed on the Blue Apron Investor Relations website. [Operator Instructions]
On this morning's call, we have Linda Kozlowski, Chief Executive Officer of Blue Apron; and Tim Bensley, Chief Financial Officer. Before handing the call over to the company, we will review the safe harbor statement. Various statements that the company makes during today's call about its future expectations, plans and prospects constitute forward-looking statements for the purpose of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by those forward-looking statements as a result of risks and other factors, including those described in the company's earnings release and SEC filings.
In addition, any forward-looking statements represent the company's views only as of today and should not be relied upon as representing its views as of any subsequent date. The company specifically disclaims any obligation to update these statements.
During this call, the company will be referring to non-GAAP measures, which are not prepared in accordance to generally accepted accounting principles. You are encouraged to refer to the earnings release and SEC filings where it has defined these measures, and to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures.
In addition, reconciliations of certain forward-looking non-GAAP measures referred to during this call is included in our earnings release, which is available on the company's Investor Relations website located at investors.blueapron.com under Events and Presentations.
With that, I would now like to turn the call over to Linda Kozlowski, Blue Apron's CEO.
Linda Findley Kozlowski
Thank you, Jamie. Good morning, everyone, and thank you for joining us today. Blue Apron's second quarter 2020 operating results reflect quarterly, sequential and year-over-year double-digit net revenue growth, and also mark our return to top line growth sooner than expected.
Net revenue was up 10% year-over-year and by 29% from the first quarter. This strong top line growth, in concert with our cost and cash management discipline put in place over the last two years, resulted in positive adjusted EBITDA and net income profitability as well as positive operating and free cash flow.
I'm also extremely proud of our team for delivering variable margin results of 40.6%, improved from both Q1 2020 and the second quarter of 2019, even with the operational complexities and wage increases for our fulfillment center workforce created as a result of the COVID-19 pandemic.
Beyond the increase in net revenue, as a result of changes in consumer behavior from the COVID-19 pandemic, our second quarter performance also reflects continued progress on our three-part return-to-growth plan announced last August. This plan is focused on three key priorities: engaging more consumers that have our best customer characteristics, increased choice and