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Boxed Reports Fourth Quarter Results, Sees 2022 Revenue Climb 24% to 38%

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E-commerce business (NYSE: BOXD) released fourth-quarter results, its second earnings as a public company, after completing a divestiture in December.

In a box, which is an e-commerce grocery platform that sells consumables in bulk, fourth-quarter revenue rose 4.2% to $45 million from the year-ago quarter, according to a declaration. The company’s net loss widened to $1.64/share from 82 losses a year earlier.

Revenue forecast between $220 million and $245 million for the year, reflecting a growth range of 24% and 38% year-on-year. The company forecasts a total adjusted EBITDA loss of $70-80 million for 2022.

Average order value (“AOV”), an important metric for the business, increased from $118 to $131 in the fourth quarter of 2020, contributing in part to the mix of B2B orders and the increase in prices due to industry-wide inflation. Gross margin increased to 20.3% from 14.1% in the prior quarter, helped by its higher-margin Software & Services segment.

Boxed’s B2B business struggled during the pandemic as individuals weren’t going to work or school and the business accounted for about a quarter of the company’s overall pre-Covid business, according to the CEO Chieh Huang. This trend is starting to change and its BtoB business grew by 50% in the fourth quarter.

“We’re starting to see these green shoots of recovery” for the B2B business. Huang said in a Zoom interview with Seeking Alpha. “We’re starting to see the reactivation of customers who have expired in the last year. ‘before Covid.’

Huang added that “people who came back started spending like they did before Covid.”

While boxed is primarily known for shipping boxes full of toilet paper and potato chips, the company has branched out into software as a service or SaaS and last January announced a deal with Aeon, a major Asian retailer. which has a turnover of 83 billion dollars. .

“We of course have more regions that we are trading and discussing with Aeon, which was our first and biggest flagship account, but we have also branched out and have other people in the pipeline as well,” Huang said. “We have high hopes for software and services in 2022.”

Also check out the Boxed CEO’s video interview with Seeking Alpha from late June.