Marley Spoon share price: recent performance examined

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.

Facility specifics

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.'

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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.