CNBC Exclusive: CNBC Excerpts: Blue Apron CEO Matt Salzberg on CNBC’s “Squawk on the Street” Today
WHEN: TODAY, THURSDAY, June 29, 2017
WHERE: CNBC'S "SQUAWK ON THE STREET"
Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Blue Apron CEO Matt Salzberg today on CNBC's "Squawk on the Street." Salzberg discusses the initial public offering and where he sees opportunities for growth for the meal kit company, among other topics. Following is a link to video of the interview on CNBC.com: http://www.cnbc.com/video/2017/06/29/blue-apron-ceo-matt-salzberg-weve-grown-our-business-10-times-in-past-two-years.html.
All references must be sourced to CNBC.
SALZBERG ON GROWTH
We see the indefinite future as an opportunity for us to continue to invest in growth and that's what we plan to do. We do see opportunities to have very attractive EBITA margins in the future you know if we were ever to take our foot off the gas on things like marketing and the like. We've been profitable on an adjusted EBITA basis in two historical quarters already today we think it is in our control.
SALZBERG ON AMAZON
Amazon has been focused on grocery for a long time obviously and if they can help accelerate bringing online dollars into the offline grocery world and accelerate that transition from offline to online we think that is good for us and good for others players in online grocery.
SALZBERG ON QUALITY
People care about quality that's why quite frankly online grocery as a share of offline grocery has been a challenging thing historically. There have been tons of players trying to bring online grocery penetration up historically that haven't been successful because quality is so important and because we run this vertically integrated supply chain and are involved agriculturally, manage our own FDA regulated food manufacturing centers and distribution network is one of the things that allows us to offer higher quality food at better prices and grow the overall online share of the offline market.
SALZBERG ON THE ONLINE GROCERY BUSINESS
Amazon has been focused on grocery for a long time, obviously. And if they can help accelerate bringing online dollars into the offline grocery world and accelerate that transition from offline to online, we think that is good for us and good for other players in online grocery.
SALZBERG ON ECONOMIC VALUE
We've grown our business ten times over the last two years, so demand for what we do has been incredible. You know, we have really powerful unit economics, in terms of the amount of revenue we generate per customer. And we have incredible engagement around what we do. You know, we are doing things in the food business in terms of creating economic value to deliver to our customers through an integrated end-to-end supply chain that is differentiated and allows us to engage customers in a way that is really exciting.
SALZBERG ON REVENUE GENERATION
We generate between 900 and 1,000 dollars for the average customer over three years. Compared to a very reasonable customer acquisition cost, which if you look at, historically, based on what we disclosed in our S-1 and elsewhere, we return in under six months on our marketing spend on average for every customer we acquire. And one of the big opportunities for Blue Apron, quite frankly going forward, is to even grow that revenue generation per customer by going into new categories.
SALZBERG ON STRATEGY
We wanted to build the kind of company that could be a public company. The kind of caliber of a company that is going after a big enough opportunity with a long enough orientation. And an ambitious enough business plan. And so, that has really been the strategy since the very earliest days.
SALZBERG ON FOCUSING ON THE LONG TERM
We are excited about the big opportunity we are going after. We are tackling a huge market and we are focused on the long term, quite frankly. And the stock price today, whether it is up, down, left or right, is really just the beginning of this new chapter in our company's life that we are really excited about.
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