The Marley Spoon AG (ASX: MMM) share price has tanked 22% in afternoon trade.
Shares in the food company have been on the receiving end of some brutal selling.
The bearish price action follows Marley Spoon's recent trading update.
Let's take a look at what Marley Spoon announced and why investors are jumping ship.
Marley Spoon reports mixed quarterly update.
Marley Spoon released its update for the second quarter of FY21 following the market's close yesterday.
Judging by today's price action, the company's performance was below market consensus.
Overall, for the quarter ending 30th June 2021, Marley Spoon reported further growth, albeit at a slower rate.
The company's report was highlighted by revenue of EUR80.6 million, a 10% improvement on the prior corresponding period.
Marley Spoon's management noted that revenue growth was driven by all regions, in particular Europe.
Overall, Marley Spoon reported a first half revenue growth of 36% year on year.
The company also cited a 37% year on year increase in active users. Marley Spoon reported revenue from customers ordering 6 or more times increased to 71% for the first half.
What is weighing down the Marley Spoon share price?
As noted in a colleague's previous article, Marley Spoon's operating result could be weighing down the Marley Spoon share price.
In its update, the company cited an operating loss of EUR9 million. For the first half, Marley Spoon reported an operating loss of EUR15 million.
However, Marley Spoon has re-affirmed its 2021 net revenue guidance. The company expects net revenue growth between 30% to 35% year on year for 2021.
Marley Spoon also noted operational headwinds in the first half of 2021. As a result, the company revised its Contribution Margin (CM) to be approximately 29% in 2021, in line with CY 2020.
Snapshot of the Marley Spoon share price
Marley Spoon is the second largest subscription-based meal-kit provider in Australia. The company delivers fresh ingredients to customers in Australia, the United States and Europe.
Thanks to today's brutal selling, the Marley Spoon share price is more than 18% lower since the start of 2021.
At the time of writing, shares in Marley Spoon are down 22%, trading at $2.17.
