Blue Apron Holdings Inc. (NYSE: APRN) shares rose by 9.7 percent on Friday after it had announced to appoint current Chief Financial Officer as the new Chief Executive Officer.
Matt Salzberg, co-Founder of Blue Apron, stepped down from his position as President and CEO, but will still continue to serve as a chairman on the board. Brad Dickerson will succeed Salzberg as the new CEO of the company. The company will now begin a search for a new CFO.
“It has been a tremendous honor to serve as the CEO of Blue Apron since founding the company and I am incredibly proud of everything our team has accomplished together in just five years,” said Salzberg.
Dickerson joined Blue Apron as CFO in February 2016 after being the CFO of Under Armor.
Blue Apron has struggled since going public back in June. Shares have fallen 67 percent since its initial public offering launch, marking it one of the worst performing IPOs of 2017. Blue Apron’s market cap has fallen from approximately $2 billion at IPO launch to Friday’s market cap of 622.4 million.
“We remain confident in our previously stated financial guidance for the second half of 2017, and I believe we are taking the right steps to move the business forward,” said Dickerson.
Blue Apron estimated revenue to be in the range of $380 million to $400 million and projecting a net loss of $131 million to $138 million for the second half of fiscal year 2017.
“The Board and I are confident that Brad is the right person to build on this momentum. He is a seasoned leader with significant experience working with the public markets, operating efficiently at scale, and delivering value to shareholders. We are lucky to have him as our next CEO,” said Salzberg.