Blue Apron Holdings, Inc. (NYSE:APRN) Q2 2020 Earnings Conference Call - Final Transcript
Jul 29, 2020 • 08:30 am ET
Linda Findley Kozlowski
flexibility to better integrate into our customers' lives, and scale our marketing spend efficiently.
Both the positive impact of recent increased interest in cooking at home, and the progress made against our growth plan, are reflected in the quarterly, sequential and year-over-year improvements in our key customer metrics, including orders per customer, average order value and average revenue per customer, all of which reached levels that we haven't seen since prior to 2015.
Additionally, after increasing customers by approximately 25,000 in the first quarter, we added another 20,000 customers in the second quarter, reaching 396,000 quarterly customers, our highest level since the second quarter of late last year. The customer additions in the second quarter came despite our deliberate decision to scale back marketing and promotional programs early in the quarter, as we focused on building capacity in our fulfillment centers to address increased demand.
We believe our growth strategy, coupled with our focus on cost and cash management discipline, is establishing a foundation for Blue Apron to achieve consistent revenue growth apart from the pandemic-driven increases in demand that we have seen.
Tim will review our outlook for the third quarter in detail shortly. But I want to highlight that while our growth expectations for the current quarter reflect continued higher levels of demand from the same periods in 2019 as a result of COVID-19, built into these expectations is the knowledge that we are doing a better job with regard to customer engagement and customer retention. As such, we're confident in our ability to continue to execute on our previously announced growth plan, even if consumer behavior may shift.
As we continue to see this demand, we plan to continue to leverage our brand. According to the April 2020 third-party brand survey we commission biannually, Blue Apron continues to lead the meal kit category in brand awareness and incent to try. As near-term trends for cooking at home have improved, and the longer-term outlook for cooking at home similarly have been gathering momentum, we believe we have the right strategies in place to capitalize on this growing interest to deliver net revenue growth in future periods. One recent study indicates that nearly a third of those surveyed plan to cook at home, even as -- even more now than they -- excuse me -- even more now than they are once the stay-at-home recommendations have been lifted.
As people spend more time in the kitchen, we believe we are well positioned to offer a product that caters to a range of experience levels and balances customer preferences for both health conscious and more indulgent recipes.
The improvements in our key customer metrics reflect increased demand from existing customers and new demand from new and reactivated customers seeking a variety of quality meal options delivered into their homes. We also continue to see heightened interest in our product innovation, such as our Premium recipes that deliver an elevated restaurant-like experience at home for both our two-person plan and our