Marley Spoon share price: recent performance examined
The Marley Spoon share price has performed strongly in the last month, as the company pursues an aggressive growth strategy.
Meal preparation and delivery company – Marley Spoon (ASX: MMM) – has been on a tear recently, with the stock up around 25% in the last month.
This comes as the company notches up strong growth and just today revealed it had secured a funding facility of up to $65 million.
Management said it would use this funding facility to support its aggressive growth strategy.
The $65 million funding facility is made up of two tranches, with the second available once a number of specific conditions have been met.
From the first tranche the company has already drawn $30 million of a total $45 million available.
The second tranche totals $20 million, with management noting that access to this tranche was conditional upon the company being compliant ‘with customary financial covenants’ in addition to meeting revenue and margin-focused performance goals.
The facility would carry an annual interest rate of 8.5% over 3-month LIBOR. 'Additionally, there is a deferred interest rate of 1.25%' per annum, the company said in a market announcement.
In addition, the first 24 months of the facility would be an interest only period. The company noted that this interest only period may be extended should the company hit a number of operational milestones.
Following that period, Marley Spoon would make repayments (principal and interest) on a monthly basis until the term of the facility was over.
Commenting on this latest funding announcement, Marley Spoon CEO, Fabian Siegel said:
'We are pleased to commence this new loan agreement with Runway and look forward to a productive engagement with the team of this leading US debt providers. The facility provides access to debt financing to fund our growth strategy.'
What's your view on Marley Spoon? Whatever you think, you can use CFDs to trade both rising and falling markets, through IG’s world-class trading platform now.
For example, to buy (long) or sell (short) Marley Spoon using CFDs follow these easy steps:
- Create an IG Trading Account or log in to your existing account
- Enter ‘MMM’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
Alternatively, you can invest in shares directly through our share trading service.
Building on a period of growth
Today’s debt facility announcement builds on a period of rapid growth for the young company, with Marley Spoon most recently reporting impressive first quarter revenue growth of 81%.
Looking at those quarterly results on a more granular level, the company reported strong top-line growth, with group revenue of €77.4 million, up 81% and up 83% on a constant currency basis, both year-on-year.
And while operating earnings (EBITDA) came in negative, the meal preparation company notched up a quarter of positive cashflow – at €5.3 million.
Maybe more impressively, management raised full-year revenue expectations during the latest quarterly, saying it expected a year-on-year growth rate of between 30-35%, up on previous expectations of between 25-30%. In FY20 the company delivered total revenues of €254 million.
'User behavior across the regions has mostly normalized to its pre-COVID state. While COVID19 brought forward the structure shift online, the penetration rate of online grocery is still in its infancy,’ said Mr Siegel at the time.
Off the back of all this, investors have piled into the stock, with the Marley Spoon up 25% in the last month and ~74% in the last year.
The stock opened at $3.18 on Thursday, 1 July.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.