Boxed, Inc.

Retail net revenue was $41.6 million, up 8.9% year over year. Total enterprise net revenue was $41.7 million, down 15% year over year. Retail gross profit increased 88.8% year over year and retail gross margin was 11.9%, up 503 basis points. Total gross profit was $4.7 million, total gross margin was 11.3%, net loss was $26.4 million, and adjusted EBITDA loss was $16.4 million. Cash and marketable securities were $39.4 million at quarter-end, including $3.3 million of restricted cash, and cash burn averaged $3.4 million per month. For 2022, Boxed reaffirmed guidance for net revenue of $165 million to $180 million and adjusted EBITDA loss of $65 million to $80 million.

Chieh Huang framed the quarter as validation of the company’s narrowed strategy, saying Boxed is concentrating on high-margin areas: B2B, Boxed Market, and Spresso. He emphasized that the team is already seeing the benefit of pricing optimization, shipping and packaging improvements, and mix shift toward higher-value customers. His tone was upbeat and confident, but he repeatedly stressed that more work remains to meaningfully improve profitability.

Mark Zimowski highlighted that retail drove the operational improvement, with gross profit up 88.8% year over year and gross margin expanding to 11.9%. He said total gross profit was $4.7 million, adjusted EBITDA loss improved by $6.1 million sequentially to $16.4 million, and cash burn fell to $3.4 million per month. He also pointed to $39.4 million of cash and marketable securities at quarter-end, $4.1 million of net proceeds from the unwound Adelia transaction in Q3, another roughly $500,000 expected in Q4, and said management is actively exploring additional capital raises before year-end.

Analysts pressed on whether B2B is back to pre-COVID levels, customer adds, Boxed Market’s Westchester launch, and Spresso’s pipeline and sales cycles. Management said B2B still has room to run, is not yet back to its 2019 high-water mark, and should benefit from a marketing shift toward B2B acquisition. On liquidity, Mark said the company wants to improve near-term liquidity with an additional capital raise prior to year-end, while on Spresso he said the Vietnam contract is a long-cycle, 9-year, 8-figure deal and that the broader pipeline, including with EON, looks good.