Hello, everyone. Thank you for joining us today for Blue Apron's first Investor Day. This summer will be our tenth anniversary, and we are excited to take everyone on a much deeper dive of who we are and where we are going. Before I turn our kitchen over to our CEO, Linda, a few remarks. You can find a slide presentation that accompanies the event, this event today at our investor relations website. I also need to remind everyone of our safe harbor. That is various statements we make today about our future expectations, plans, and prospects constitute forward-looking statements as defined in the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated in these forward-looking statements as a result of risks and other factors, including those described in our earnings release issued yesterday and our SEC filings. In addition, any forward-looking statements represent our views as of today. They should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligation to update these statements except as required by applicable law. Also, during today's presentation, we will be referring to certain non-GAAP financial measures. We encourage you to refer to our earnings release and our SEC filings where we have defined these measures and to review any reconciliation of these measures with the most directly comparable GAAP results. I will point out that many of the comparisons that we are making today will be between the 1st quarter of 2022, the 4th quarter of 2021, and the 1st quarter of 2020. We believe that using the 1st quarter of 2020 is an appropriate way to benchmark our performance of this past quarter. We believe that our financial results patterns and customer behaviors in the 1st quarter of 2020 were not materially impacted by the effects of the pandemic, despite a material increase in demand the last few weeks of the quarter. As such, the quarter reflects a higher correlation to more normalized periods versus the pandemic-impacted periods between the 2nd quarter of 2020 and the 1st quarter of 2021. Lastly, please note that in order to help investors gain a better understanding of our business, we will be providing a substantial amount of color on our current operating metrics and our longer-term targets throughout the day. Please note we do not intend on providing these metrics on a regular or ongoing basis in the future. With that, we're gonna turn to a quick video, and then you will hear from Linda. Thank you. When Blue Apron was founded in 2012, we wanted to change how people thought about food and where their food came from. We made it our mission to spark discovery, connection, and joy through cooking. We sought to connect people with fresh, quality ingredients from farmers, ranchers, fishermen, and producers who care about food as much as we do. We set out to give each meal a little something extra that turns an ordinary recipe into an extraordinary experience. 10 years later, Blue Apron continues to try to enrich customers' lives in better and better ways by saving busy families the stress of meal planning, delivering unique, delicious meals directly to their homes, taking action to limit our carbon footprint, and offering more weekly subscription and e-commerce options than ever before. 10 years later, our business is embarking on its most exciting time yet. With past lessons informing the future and top leaders at the helm, our strategy is laying the groundwork to take us to new heights. With extensive data to inform strategic decisions, product innovations designed to improve our customers' lives every day, world-class partners and collaborators to expand the Blue Apron experience, and a best-in-class team focused on quality, efficiency, and sustainable growth. After 10 years of pioneering the meal kit industry, we're far from finished, and we believe we've never been in a better place to go further, faster. At Blue Apron, we believe in better living through better food, and we've never been better. Good morning. I'm Linda Findley, Blue Apron's President and CEO. Welcome, everyone, to our first ever Investor Day. Throughout the day, the leadership team and I will give you a glimpse into what makes Blue Apron the unique and dynamic business it is today. We plan to offer deep dives into different aspects of our operations and offer insights into strategic initiatives. When Blue Apron was founded in 2012, it was on the premise that building a better food system started at home. It's at our kitchen tables over a meal, maybe a glass of wine, where we often celebrate our milestones, process our day, and appreciate the comfort of each other's company. For the last 10 years, Blue Apron continues to be the perfect solution to help many of us cook confidently and with ease. By creating unique cooking experiences built on original recipes, quality, pre-portioned ingredients, and engaging content, we make incredible home cooking accessible. Along the way, as we introduce new flavors, new ingredients, new techniques, and tried-and-true cooking fundamentals, our customers keep learning. That's why we named our company Blue Apron as an homage to chefs around the world who wear blue aprons when learning to cook. A blue apron symbolizes lifelong learning, a value that permeates everything we do. I was a Blue Apron customer for three years prior to joining the company in 2019. Cooking was always a passion for me, and the second that I tried Blue Apron, I loved the product and what it facilitated. For me, it meant that I wasn't sacrificing a healthy meal because of a busy schedule. I enjoyed the convenience of fresh, pre-portioned ingredients sent to my door and knowing that I was limiting waste in my home. I saw firsthand the amazing value that our boxes bring to customers. When I joined the company as CEO, the company had gone through a significant financial reset after years of inefficient marketing spend and overinvestment in real estate and operations. This left the business capital constrained as we looked towards returning the company to growth. This limitation simply meant that we had to be very efficient with our time and our resources. We built a team with a mix of strengths across technology, the food industry, e-commerce, alongside incredible talent that existed in the company already to bring the right set of skills for the work ahead. I was confident then, and I'm even more confident now that our team can get Blue Apron on a path towards long-term sustainable growth. Today, Blue Apron is over 2,000 full-time employees. To date, we've served more than 5.3 million customers and shipped more than 465 million meals. We're hosting this event from our fulfillment center here in Linden, New Jersey, which is one of two that allows us to deliver thousands of amazing meals to kitchens across the country every week. Our business is better living through better food, and we believe that better food is encompassed in our ability to source quality ingredients, create thoughtful recipes, package a product with limited waste, and deliver it on time to the customer. We want our customers to feel good about the entire journey from farm to table. Through the quality of ingredients in a wide variety of recipes, we're empowering people to make smart and informed decisions that benefit not only their bodies, but also the planet. This vision is behind every decision we make as a company and serves as our true North Star. Blue Apron's mission that helps achieve this vision is about sparking discovery, connection, and joy through cooking. The joy part's really important. We're empowering people to create incredible culinary experiences at home through our meals, wine, and market offerings. Back when the company started, it offered high-quality, high-engagement meals with a very small but impressive menu. Admittedly, as the industry matured and Blue Apron went through its own reset after the IPO, the company was slow to keep pace with a market and a consumer that was changing very rapidly. When I arrived at Blue Apron, it was evident that we needed to make adjustments to the product and to the user experience. We also needed to bolster our marketing initiatives to infuse more data behind our decision-making. We developed a 3 part strategy designed to establish the company on a path towards long-term sustainable growth. Over the last three years, we put significant time and energy into, excuse me, executing this strategy by identifying pathways to improve the engagement and stickiness of our customer base. As a result, we vastly expanded the product portfolio. We introduced new menu options like meal prep, premium, and customization to offer our customers variety, flexibility, and choice to meet their needs. We focused on delivering a greater level of convenience in the kitchen without sacrificing the quality of ingredients or the culinary experience. All of our hard work to date has resulted in 8 straight quarters of average revenue per customer above $300, average order value above $100, and orders per customer around 5 or 20 orders per year. We believe that all three of the metrics are among the highest in the industry. We were able to achieve this level of engagement from our customers during a global pandemic, which truly sharpened our focus and our purpose, allowing us to identify and prioritize necessary versus aspirational improvements. In other words, doing more with less to manage the evolving preferences of our customers. We certainly saw consumer preferences evolve over the last couple of years, which established a new market dynamic and a change in perspective. People started valuing meals prepared at home, prioritizing their health and wellness, and finding new ways to engage with their family and others. The influx of demand challenged our staffing, which meant we needed to pull back on capacity in order to maintain safety. We already had strong safety and sanitation protocols in place, and we were able to make quick enhancements to implement and adhere to COVID protocols. I've long said that the pandemic is not a business model. We focused our efforts on making sure we would emerge as a much stronger company. Rather than just volume and customer acquisition, we drove product innovation to meet customer needs around health, ease of preparation, variety, and flexibility. We launched more products in each of the last 2 years than any year before. We wanted to come off of the pandemic as a more competitive business, and we believe we've been able to achieve that. A constant question we get is: Do people still cook at home? In fact, cooking at home had already been on the rise even prior to the start of the pandemic. According to a report from The Hartman Group a few months ago, 78% of food occasions happened at home in 2021, a slight dip from the COVID peak of 2020, but above the 75% level of 2019. In addition, as more people continued to cook at home, the pandemic clearly created new habits around what cooking meant for consumers. For example, in Mintel's 2021 Cooking in America report, they showed that 79% of consumers are interested in improving their cooking skills, and 84% of consumers associated eating at home with financial savings, even more important now. All of this creates a great dynamic for Blue Apron and the meal kit industry as a whole. When people are asked why they don't cook at home, this is what they say. Meal kits solve almost all of these problems. We are looking to create a better experience so that we're invited into people's homes for even more food occasions. In the current inflationary environment, we think cooking at home and the benefits of meal kits will only increase in the coming years. We believe that meal kits provide a more economically viable solution than going to the grocery store or eating out. Let's take one of the recipes on our weekly menu this week. Crispy skin salmon with salsa verde and farro salad. I know it's morning, but you can already anticipate dinner. This recipe is a great representation of what makes Blue Apron special, sustainably sourced, quality ingredients, easy-to-follow recipes, and bold and complementary flavors. Taking into account all of the elements of the recipe, we calculated that it was more cost-effective to cook with us. This applies when you try to replicate the same experience by buying comparable ingredients at a grocery store in two different markets. These numbers also don't consider the time it takes to go search for a recipe, go to a grocery store, or find multiple ingredients at multiple grocery stores, especially the same quality. Plus the inherent waste that's built into the traditional grocery model. It can also be much more cost-effective than picking up a similar meal at a restaurant. I should add that these restaurant prices do not include taxes, tips, or delivery fees. Of course, consumers have several options when it comes to meal kits. The industry has been and remains quite competitive, but we actually think this is a good and a healthy thing. Food is a critical part of Americans' everyday lives and one of their top priorities, even during recessionary periods. Today, we estimate that the size of the overall food industry is around $950 billion, and within that, groceries alone are around $540 billion. It's obviously an enormous market. Meanwhile, we estimate that the total addressable market for meal kits is more than 55 million households. We base this on the 2020 U.S. Census Bureau data, looking at households with a family size of less than 5 and a household income of above $70,000 a year. Meal kits are still new and growing, and they're just a tiny fraction of the food space so far. Just as there's no single brand in the grocery or restaurant space, we think that there's plenty of room for multiple players, especially when you look at the size of the opportunity. Given that we and the other 2 largest players in the U.S. are now very similar in pricing, we think that the market will start to differentiate more on the quality of the product, target audiences, and we'll all evolve this into the future. In terms of business model, the industry largely operates as a subscription service, but it's actually quite different from your typical subscription. Most subscriptions, like gyms, streaming services, or apps, charge the same price for you no matter how much you consume or don't consume. If you cancel your subscription, it's unlikely that you're coming back. Our business operates very differently. While we are a subscription model at the core, we have the upsell advantages of an e-commerce company. We only charge customers when they order, and we allow them to skip or pause for certain periods of time. For us, the concept of churn isn't nearly the negative driver that it is actually for many other subscription companies. We want to encourage our customers to come and go as they need. Our publicly reported customer number is based on individuals who have paid for at least 1 order that quarter. In other words, it's entirely possible that someone could not be counted as a customer in a quarter but still be a subscriber. I'm gonna spend a bit more on this dynamic as each company reports customers differently, and I wanna provide some context on ours. To give you a bit of color, let's look at the following slide. For us, churn, which we define as anybody who cancels their subscription, is actually quite normal and a part of the customer's journey. However, many of these customers who churn actually come back to reactivate their subscription. Sometimes it's a year later, and sometimes it's just a few months. In fact, lots of customers churn a number of times, and in many cases, well over 10 times. This is interesting because the length of time in between reactivations actually decreases with each reactivation. A customer's level of experience with us, which we define as the number of boxes they've ordered, is a critical variable when it comes to understanding customer behavior. Overall, we have a very loyal customer base. People who have ordered 25 or more lifetime boxes are what we call brand advocates. 75% of our customer base falls into this category, and their churn is only 10%. All of our newer customers have a higher churn that's variable by season. This is why leaning into acquisition now is so incredibly important, but it's also important for us to remain targeted in our approach to keep building a long-term base of higher quality, lower churn customers. For us, reactivating customers is a constant in our business. In any given quarter or year, we're seeing reactivations around 20% of our total conversions of our entire subscription base. Now that we've looked at retention, let's look back at acquisition. We're pleased that other than particularly strong mid-pandemic 1st quarter of 2021, we recently posted our strongest sequential growth in new customers in quite a few years. You can see this flow through our order numbers in dark blue here. While this repeat order rate dropped slightly with the influx of these new customers, we're happy that we were able to keep the number of repeat orders very, very consistent with the prior quarter. We see strong engagement with the new customers that came in during the 1st quarter, and we anticipate that we will continue on our path of growing high-quality customers. This increased engagement is driven by the variety and the choice we provide them at every single turn alongside our high-quality ingredients. Today, we have 57 menu choices compared with just 17 in 2019. Not only can customers choose from a variety of recipes, they can also customize, add-ons. For example, they can turn a dish with a meat into a vegetarian option. They can double the size of select 2-serving recipes, and they can add a side, a salad, or an appetizer, which can be enjoyed at lunch or dinner, or even get a fun dessert. Taking the product variety and flexibility even further, we launched our Heat & Eat offering toward the end of the year. This gives customers the option to buy a pre-made meal that can be made in five minutes or less. The ability to add on, customize, and upgrade recipes is one of the main reasons we've been able to drive such consistent improvements in average order value over the past two years. In addition to greater menu choice, we have also announced several fully integrated strategic partnerships to introduce Blue Apron to new customers. This is one of our tactics to scale the business. Our Chief Marketing Officer, Dani Simpson, will talk more about this later. We've also collaborated with several well-known chefs and influential culinary voices such as Chef Christian Petroni, Chef Amanda Freitag, and Chef Roy Yamaguchi. Partnerships in the chef community allow us to expand menu options and retain and engage existing users. To give you a bit of perspective, we did an analysis a while back on 2 survey customers who opted into a recipe designed by our chef partners. We found that we were able to generate nearly $2 million in incremental revenue in the eight weeks after the partnership. From both an engagement and revenue perspective, we think that these partnerships are clearly beneficial. Now, let's dig into our customer and who they are. In terms of age, we're actually remarkably evenly split. 61% of them cook for themselves and one other person. 26% of customers cook for children under the age of eighteen. They're also evenly spread throughout the country as our product appeals to those in rural and urban areas alike. 92% of them have a household income of over $50,000, and a majority of purchasers are women, but we know that gender is much more evenly split when it comes to who is actually preparing the meal kits at home. Beyond demographics, our customers choose to cook with Blue Apron because we help them learn and be creative with adventurous flavors and techniques no matter what their cooking skill level. They tell us that our unique recipes taste great, and they appreciate the better quality ingredients, and we help them get out of their rut. Here you can see some of the actual customer feedback we have received, starting with customers who have tried other meal kits. Then customers raving about the variety, and more importantly, customers loving the quality of our menu and our ingredients. Customer feedback is a key part of efforts to acquire and retain new customers. Data is also critical to both customer acquisition and product innovation. We're prioritizing the use of data to drive decision-making across the organization. In every conversation you hear today, we'll discuss how data informs our operations and helps bring efficiency to our business. A lot of that data also informs our understanding of a customer's specific needs and what keeps them coming back for more. While we always look at customer demographics, what matters most are their psychographics. Their behaviors and habits allow us to target, understand, serve, and grow these valuable customers. This is at the core of our plan to attain and grow our goal of profitable, sustainable growth. As Dani will elaborate on later, we're targeting four distinct groups of customers. They're cooking enthusiasts, healthy eaters, last-minute planners, and families. We want to provide them with easy solutions for their meal options, ease some of their pain points around cooking. Now, with an understanding of who the Blue Apron customer is, let's spend these last few minutes discussing our long-term strategy. Our goal is for Blue Apron to be the first choice for consumers who seek curated food experiences that meet the needs of their households and enhance their lives. We plan to expand beyond traditional media kits, sorry, meal kits, and subscriptions, including building an ecosystem of partners that creates better living through better food. With customers at the center of everything we do, we're moving beyond the three-pillar strategy we introduced when I first started and shifting to the next phase of our turnaround. This next phase, which we are appropriately calling the Next Course, is focused on achieving long-term sustainable growth and reaching profitability at the adjusted EBITDA level one year from now. Today, we'll talk about how we plan to get there in more detail. Over the next three years, we'll be focused on three key objectives. First, building curated customer experiences. This will drive growth and expand market share in target segments by deepening engagement through an ecosystem of marketing and strategic partnerships and new products. Second, we're gonna create a scalable platform. Here, we'll optimize our tech and operational infrastructure to deliver an agile, scalable, and seamless e-commerce experience with subscription at its core. Third, driving sustainable profit. Our focus here is executing ESG initiatives that meet customer priorities, drive employee engagement, and create shareholder value. We believe that these aren't mutually exclusive, and we plan to work each one simultaneously over the next three years. In fact, we've already started implementing these efforts to start these priorities now. Our first objective focuses on driving market share and growth within our four key customer segments through an ecosystem of marketing, partnerships, and new products. We plan to achieve this objective through the marketing enhancements we've already started, including targeted campaigns and acquisition partnerships. New full-funnel marketing campaigns will speak to our target audiences directly, and new product launches are designed to meet the needs and create a seamless experience. We also know that the number one factor why people haven't tried a meal kit is because they don't wanna be locked into a subscription. To allow more flexibility in our business model, we plan to launch new partnerships that expand distribution and effectively scale our business while maintaining the efficiency of the direct-to-consumer model, an important distinction. A great example of this is the Walmart.com partnership that we announced yesterday. Dani will discuss these and other efforts in her section. In addition, we plan to continue to innovate on our products to meet the specific needs of these segments. This includes introducing the breakfast options that you had this morning, expanding our 4-serving options, and identifying new, convenient cooking methods. Our Head of Culinary, John Adler, will speak a lot more about our product roadmap, including the 24% increase that we saw in revenue per customer over the last 3 years from our product innovation. He'll also explain how we are driving margin expansion through cost controls embedded in our disciplined recipe creation protocols. Our second objective is focused on scaling our technology and operations platform as we continue to expand our e-commerce offering, but staying true to our subscription business. We are combining our technology platforms to support future scale tied to the customer segments that I just mentioned. This work will allow us to cross-sell more effectively within our own products, and also more easily integrate third party products and partners as part of the broader ecosystem. The new platforms are designed to enhance and personalize the customer experience, and our Chief Technology Officer, Irina Krechmer, will dig deeper into those improvements and how they're targeted to expand our flexibility. This will also enhance our speed to market, drive stronger customer engagement, and unlock revenue-enhancing opportunities. A critical part of our platform advantage is how we plan to scale our operations with minimal capital investment. Underpinned by our impressive physical asset base, we are making almost every aspect of operations more flexible, from receiving to kitting to our customer-facing logistics. As we continue to expand our products, maintaining productivity and operating towards our long-term margin, that is actually a key part of our priorities. I will let our Chief Operating Officer, Charlean Gmunder, talk a little bit more about these efforts. The last objective is for us to leverage ESG work to drive not only what is great for the planet, but what's great for the business. We feel strongly that developing a comprehensive ESG program is vital to our business and our long-term strategy. We also know that if done properly, a strong ESG program can help not only drive customer growth, but manage our costs and push through greater efficiencies, all of which should help us achieve greater profitability. Sustainability has always been a part of our business. Our Head of Sustainability and Social Impact, Kelly Burton, will dig deep into these concepts and speak more when she talks about our Better Living Roadmap. She'll also show you how being carbon neutral, on our path to net 0, all while investing in employees, makes a strong business sense over time and is right for the world. It's an exciting time for Blue Apron, and we are looking forward to what we believe is a great future for our company. You'll hear from a few of us on the progress that we've made so far and more details on the future. Of course, we look forward to continuing to share the updates throughout the year. With that overview, I'd like to turn things over to Randy Greben, our CFO, to give you a quick primer on some of our definitions before you hear from the team. Thank you. Thank you, Linda. Thank you, everyone. For those of you joining for the first time, my name is Randy Greben, and I am the CFO of Blue Apron. I joined the business in January 2021 after serving as CFO of ANN INC., the fashion operator of Ann Taylor and LOFT, and previously as the CFO and general manager of Quidsi, a former subsidiary of Amazon, best known for diapers.com and soap.com. I spent the beginning of my career with Tesco and with Taco Bell. I wanna begin by echoing Linda's excitement about today's great event and the great momentum we're building here at Blue Apron. That's why we're here today, to provide you with an understanding of where we are and more importantly, where we're going. I'll be rejoining the proceedings later for a more in-depth look into our financials and then a Q&A session with Linda. Before that, I wanna briefly spend some time framing the content that we will share with you throughout the day. At the end of the event, we hope you will walk away with a clear understanding of the following key points. First, how marketing and product together with the support of data, should drive efficient customer acquisition over the next three years while keeping the quality of our customers high. Second, how the platform works across operations and technology, which allows us to unlock efficiencies as we push for scale and higher margins while supporting our customer growth. Third, how our planned ESG strategy is expected to deliver shareholder value as we drive accountability to the environment and both customer and employee engagement. We believe that our ESG strategy will be an enabler to our long-term ambitions. Each of my colleagues will be discussing various aspects of the business today. Marketing, culinary, technology, operations, and sustainability. While today's topics are intended to cover several of our areas of our business and are broad, embedded within each speaker's remarks are critical markers for the investor community to understand as you watch over time and follow along with the progress that we're making. To do so, my colleagues will use some of the terms that we use in-house, so I'd like to give you a few definitions that will help you follow along through the rest of today. When we talk about cohorts, we mean the group of customers acquired in a given fiscal quarter or in a given fiscal year. For those of you joining us here today, if you had the opportunity to use the coupon that was attached to your invitation and placed your first Blue order, Blue Apron order, you are now in the Q2 2022 quarterly cohort and the 2022 annual cohort. When we refer to users, we mean people who have come to blueapron.com and given us their email addresses. We then work to convert those people to register or get them through our registration process, which means they have entered in their credit card information and their home address, which is the final step to becoming a customer. A customer, as Linda mentioned, is someone who has placed at least one Blue Apron order in a given reporting period. We plan to add a lot of those because we want everyone to experience the Blue Apron plus one. It's a term you'll hear throughout the day today. When we say it's referring to what our culinary team thinks of when they talk about the pursuit of making each recipe special and unique from exceptional flavor combinations to unique cooking techniques. When I return later this morning, I'll take you through more details of our economic model. I'll share the timeline that we are targeting with which to achieve EBITDA, adjusted EBITDA profitability and when we expect to generate positive cash flow. I'll help you understand why we were able to so successfully replace our legacy debt with more efficient capital and how we intend to leverage the capital infusions that we've brought into the business over the last few months. Of course, everything you hear today will be rooted in data. I'll be back a little bit later with a financial overview, and then Linda and I will take your questions. For now, please welcome my colleague, our Chief Marketing Officer, Dani Simpson. What is being a hero? Sometimes it's choosing playtime over prep time or skipping the grocery store to do something you love. Sometimes being a hero is surprising someone just because. Not all heroes wear capes, but we do, just backwards. With Blue Apron, you can be a hero inside and outside the kitchen with delicious, nutritious meals that satisfy everyone at the table. Choose from over 50 weekly options, including meals personalized to your preferences. Visit blueapron.com to get started today. Thank you, Randy, and welcome everyone. I'm Dani Simpson, Blue Apron's Chief Marketing Officer. It's great to be here with you today. The creative you just saw is part of the newest brand campaign launched a month or so ago. This campaign is a significant part of our 2022 marketing strategy, and I look forward to diving into it later today. I joined Blue Apron two and a half years ago with deep experience working in the CPG, retail, tech and healthcare space, along with 15 years agency side experience, including senior roles at Saatchi & Saatchi and WPP. I am Australian, of course. I've been here 15 years. I forget to say that. As Linda mentioned, one of the key objectives of the next phase of our strategy for growth is to deepen our market share by elevating our engagement with our customers. Today, I will focus my remarks on how we plan to deliver on that objective through smart, strategic marketing efforts. Over the past few years, and particularly the last two quarters, we have diligently worked to establish a much stronger foundation in terms of marketing technology and infrastructure. We've been focused on building a modern marketing machine, one that is efficient and nimble, can adapt to the ever-shifting landscape, and that allow us to prepare for the predictable and respond quickly to the unpredictable. As I speak to you today, I can proudly say Blue Apron is standing on a better and stronger marketing foundation than we have ever had in the ten years since our founding. While we still have a lot of work ahead of us, we are excited for the future. As Linda mentioned earlier, our goal is to be the first choice for consumers who seek out curated food experiences to meet the needs of their households and enhance their lives. To deliver on that goal, we are focused on deploying a full funnel media approach, being laser focused on our success metrics and leveraging strategic partnerships to unlock efficiencies. All three efforts are underpinned by our current and future MarTech investments, and I'll discuss these as I walk through each part of our strategy. Before we get into our approach, I wanted to share more about our customer. At a broad level, as Linda mentioned earlier, we believe the total addressable market for us is 55 million U.S. households. These are households with 5 or fewer people and an income of over $70,000 per year. We think we have a big opportunity ahead of us. To get a little more specific, last year, we conducted extensive customer segmentation research to enable us to further drill down on customer demographics and insights. We identified 4 key audiences that best align with our value proposition. The first, we start with cooking enthusiasts, our sweet spot and the bulk of our current customers. These individuals or families are confident in the kitchen and come to Blue Apron to help add more variety and discover new recipes, ingredients, or cooking skills. They regularly order from our premium options and are big fans of our chef partnerships. Based on our research, we believe around 17 million people fit into this category. Second, we look at healthy eaters. This group is looking for healthy options with fresh ingredients without sacrificing taste. They also care about the environment and the impact of the decisions they make. Our wellness and our customizable options, along with our demonstrated commitment to adopting sustainable business practices, are a perfect fit for this group. Based on our research, we believe this is a 49 million-person market. Third, we're talking to last-minute planners. These people are looking for convenient but delicious recipes. They want an option to cook, but maybe nothing that takes too much of their time in the kitchen. They skew younger, and we're looking to introduce them to Blue Apron to be the first in their consideration set. Our Heat & Eat, along with our recipes that are designed to be ready in less than 30 minutes, are a perfect option for this category. Based on our research, we believe there are around 3 million people that fall into this segment. Last, we have families. We see this customer segment, which today only makes up around 25% of our total customers, as our biggest opportunity. This group is looking for flexible dinner solutions that can fit into a busy schedule filled with work, kids' activities, and personal commitments. More importantly, they want healthy, delicious, easy recipes that anyone at their dinner table will enjoy. With easy prep and easy cleanup options, and now our expanded four-serving selections, we know we can meet this group's needs. Based on our research, we conservatively believe the audience size here is around 9 million. As I mentioned at the start, we'll be focusing on engaging in a full funnel marketing approach. Put simply, a marketing funnel describes the customer's journey from initial stages when someone learns about Blue Apron all the way through to the purchase of a meal kit and becoming a customer. There are three areas of focus, awareness or top of funnel, consideration or middle funnel, and acquisition or bottom of funnel. When we talk about awareness or top of funnel, we are referring to activities that drive overall brand awareness. This includes, for example, our new brand TV spot, out-of-home, and radio. While everyone in this room and watching us remotely surely knows what a meal kit is, and has hopefully cooked with us before, our third-party research shows that over 50% of consumers have yet to try one. This gives us a great opportunity to introduce them to the category and highlight how Blue Apron is different. This tends to be the most expensive portion of our spend, since we need to target a wide subset of the population to drive awareness and attention. This is the first step in building a relationship with the consumer. Now, once a consumer has seen a Blue Apron ad on TV or out of home, we move into the consideration phase. At this point, we try to deepen their understanding of our product and highlight more specifically why Blue Apron is for them. We know that different audiences have different purchase criteria and need states, and through targeting tactics like paid social and display, we have the unique opportunity to reach the right audience with the right message and product, encouraging them to learn more on our website. Our objective is to build trust between the potential customer and our brand. We wanna show that we understand them and that our product meets their needs. Finally, we move into acquisition, which is our last click effort to get people to sign up for Blue Apron through a coupon. The key channels at this stage of the funnel tend to be search, affiliate, and email, where people are primed and have high intent to convert. By looking at the customer journey and our marketing strategy more holistically across the full funnel approach, we can ensure we're engaging with the customer through every step of their journey. We started implementing this approach in the second half of 2021 and have been able to accelerate our work following the equity capital raise last fall. Let's look now at funnel performance year-to-date to illustrate this strategy in practice. In Q4 2021, we spent roughly $21 million to drive our marketing strategy forward. In Q1 2022, we spent another $28 million. This increase in spend was deliberate as we meaningfully shifted our funnel mix to focus on brand awareness and consideration initiatives, as well as scaling new channels such as direct mail that we opened up last fall. Shifting our funnel mix in this way allows us to fill the top of our funnel with qualified leads and nurture them through the funnel to conversion. Launched in April, our new national brand campaign is also a great example of how we bring these efforts to life. The goal of the campaign is to drive awareness for the meal kit category and consideration for our brand and product. The new creative spots balance a tailored message to the new customer segments, along with 2 unifying themes that touch on the common attributes across all groups. The first is Being a Hero, which you saw just a few minutes ago. We launched it on TV and connected TV, and it centers around our Blue Apron. It highlights how cooking with Blue Apron brings out the hero in each person in and out of the kitchen. The other theme is Expect the Unexpected, which is an online video series. These spots were more tailored and shine a light on our Blue Apron plus- one philosophy, which is our culinary team's pursuit of making each recipe special and unique from exceptional flavor combinations and new cooking techniques to easy prep and cleanup tricks. These two concepts complement one another but serve two very different purposes. Being a Hero is designed to bring our vision of better living through better food to life, showcasing how food is the catalyst. It was designed to encourage people to think differently about meal kits by demonstrating the incremental value that Blue Apron unlocks outside the kitchen. Expect the unexpected goes a step further, with each spot showcasing specific products and messages that resonate with each of our different audience segments, whether that's uncovering special ingredients that come together in an unexpected way or finding a solution that a picky eater will love. You will see one of these more targeted commercials after I finish speaking, and you'll see another two sprinkled between the remaining speakers today. All of them can be found at cook.ba/blueapronspots. In terms of these top and middle funnel campaigns, we're excited to share that we're already seeing great momentum with an increase of about 45% in unique site visitor traffic compared to weekly Q1 averages. In addition, our cost per site visit has decreased by about 20%. Additionally, our full funnel marketing efforts in Q1 also illustrate that we're making real progress. In the 1st quarter of 2021, we saw a 2.2% year-over-year improvement in conversion with total registrations up 26.8%. Finally, our brand health tracker results showed significant improvements from the second half of 2021. Blue Apron's brand equity improved in Q1 of 2022 relative to Q4 of 2021, while remaining flat for our competitors. Awareness, which is the percentage of respondents who've heard of our brand, remains steady, though we saw significant improvements in mid and lower funnel metrics. In addition, criteria like trial, usage, and likely to recommend have all improved. We also closed the gap on quality among those that are familiar with the brand, and familiar in this case means respondents who know more about our brand than just our name. Lastly, we continue to stand out among consumers in the market as a brand that is both premium and innovative, which are attributes that we, of course, are keen to own. Moving forward, we expect marketing spend to remain elevated this year with Q1 and Q4 spending both likely to be higher than Q2 and Q3. We will continue with a focus on awareness channels and then plan to begin to decline both in spend and funnel split as initiatives take hold and we begin to hit scale. Longer term, we target our marketing spending to average out in the mid-teens% of revenue on a full year basis. At this level, we believe we can continue to responsibly grow the business while achieving greater leverage with our spending. I'd like to spend a minute or 2 addressing paybacks and cost per acquisition or CPA. There are a couple of things I'd like to point out here. First, you can see what happened back in 2018 and 2019 when we cut our marketing budget. Our CPAs came down to their lowest levels ever, but it wasn't good for the long-term health of the business. The second thing is that we had our highest quarter of new acquisition in years. This speaks to all of the work we did starting in Q4 of last year. Overall, we expect CPA to come down meaningfully from its Q1 highs as we see more efficiency from a cost per visit standpoint and reap the benefits from Q4 2021 and year-to-date marketing spend. Here we show a one-year payback chart where the most recent data is from Q1 of last year. While you can't see it in this chart because the data is too recent, I will say we briefly crossed the one-year payback threshold in Q1 of this year due to our increase in marketing spend and the top of funnel nature of that spend. However, going forward, we expect full year payback to be well within the one-year level given our historic conversion rates and expected lower marketing spend. Part of what gives us confidence is that our customer data is strong, is showing strong signs. If we look at both our annual order rate curves and our cumulative net revenue curves, the new customers that we signed up in 2021 are tracking well ahead of pre-pandemic years. Our focus moving forward will be on getting future customers into top of the funnel and building our retargeting pools so we can continue to see meaningful efficiency improvements. This is just a small snapshot of the data that we are tracking here. We are continuously leveraging data and setting KPIs to identify efficiencies at every step of the customer journey. Now to the last part of our strategy. Partnerships. We view strategic partnerships as critical to unlocking efficiencies in a world where the cost of media is rising and the cookieless environment is fast approaching. It reinforces our brand equity, helps us differentiate from our competitors, and is also a great way to align our brand with other like-minded companies where we can mutually elevate our businesses. We are focusing our efforts on four types of partnerships, acquisition partnerships, brand and media integrations, enterprise sales, distribution, and licensing. Acquisition partners are companies with audiences that are a good match with the demographic and psychographic traits of Blue Apron. Some of our recent partnerships in this area include T-Mobile Tuesdays and American Express. In some instances, we have seen our CPAs from partnerships be as low as one-third that of a traditional paid media initiative. With the continued expansion of our coupon capabilities, we plan to scale current programs and add new partnerships in the current months. For us, brand and media integrations are a great opportunity to continue to drive awareness for Blue Apron in a cost-efficient way, of course. Through partnerships and collaborations like WW, Disney Studios Content, and Calm, we are able to make our media dollars work harder with large reach, custom integrations, and retargeting pools that amplify priority messaging for both companies. Typically, we also see much higher quality customers from these initiatives. With our key success metrics being top of funnel at brand awareness and reducing cost per visit. We are also pleased to announce Planet Fitness, one of the largest national fitness clubs with over 2,000 locations as our newest partnership in this bucket, and we'll be kicking this off next month. Now, I want to talk about new additions to our partnership model. Enterprise sales refers to corporate portals, bulk gift card sales, our sweepstakes program, and the curation of custom boxes and experiences. These initiatives are extremely scalable within our current technology roadmap and are an efficient way to fuel customer count and revenue. Some examples of current programs are Snappy, an enterprise gifting platform, and Zola, a leading wedding registry platform. Finally, we have our current and planned distribution and licensing partners. Here we're focused on physical product expansion into adjacent categories and new channels while maintaining the efficiency in our subscription business. We're also looking to identify licensing opportunities to expand reach and awareness. This omni-channel expansion unlocks co-op marketing opportunities as well as revenue and custom metrics, while providing a seamless customer experience. As mentioned by Linda during our earnings call yesterday, our work with Walmart is a great example of this strategy at play. Through partner integrations and an investment in our MarTech stack, we are launching a storefront on Walmart.com in the coming months, where consumers will be able to buy Blue Apron boxes without a subscription. Walmart has millions of monthly active users, and through our storefront, visitors will be able to select curated boxes on a weekly basis. Selections at launch will include customer favorites, quick and easy and wellness options. Our ability to engage even a fraction of these visitors is a fantastic opportunity for us. Additionally, we're currently piloting a selection of our Heat & Eat products with DoorDash in Philadelphia, and we continue to expand our work with Amazon Alexa. These diversification opportunities are just another example of how we're getting our brand and product in front of new untapped audiences. By adding more product flexibility and new ways to trial our product, we address our customers' diverse cooking interests and desires for convenience. Thank you for taking the time to join us today. As I mentioned, I believe that Blue Apron's marketing foundation and strategy today is the strongest in the company's history, and I, along with all of my colleagues, are looking forward to the future ahead. With that, I'll turn it over to our Head of Culinary, John Adler. Your seven-year-old's verdict on vegetables? Yum. Unexpected. At Blue Apron, we love the unexpected. Like a meal kit that gets everyone involved and is full of wholesome quality ingredients, meals that are designed to be ready in under 30 minutes, and easy enough for the whole family to make. Home cooking that works for everyone at the table, that's unexpected. Blue Apron. Visit blueapron.com to get started today. Thank you, Dani. My name is John Adler, and I am the Vice President of Culinary at Blue Apron. I've been with the company for over 6 years. Prior to my current role, I was the executive chef at Franny's in Brooklyn, and before that, I worked in some of the top kitchens in the country, including Blue Hill at Stone Barns and Per Se. Every day, I have the opportunity to work with a team of 16 that have over 5 decades of combined experience in the culinary world, working at some of the top restaurants and magazines. Our focus is to bring a great culinary experience to people all over the country and help them put a delicious and nutritious meal on their tables. Dani spoke to you about who our target customer is and how we plan to attract more of them through efficient marketing. I am going to talk to you about the quality of our ingredients and how we turn those into products that meet the needs of those target customers and keep them coming back for more. The guiding principle of our recipe development is centered around what we call the Blue Apron Plus One philosophy. You heard Randy outline this earlier. This concept comes to life in a variety of ways, from combining unique flavors such as gochujang, chili paste, and honey. We're introducing our customers to new cooking techniques, such as the perfect method to cook scallops. We also are always looking for ways to help make the entire experience in the kitchen easier, which was part of the reason why we developed our easy prep and cleanup recipes and our new Heat & Eat offering. Over the years, our customers have come to expect and trust us to never compromise on ingredient quality. Our carefully curated pantry includes premium dry goods, dairy, and proteins that meet our strong animal welfare standards. With great ingredients, we as chefs, have to do less because quality ingredients stand on their own. The net effect is that we can do more with less. This, in turn, helps manage the complexity of our ingredient pantry and keep costs down, thereby increasing the margins of our products. The quality of ingredients isn't our only differentiator that drives cost down. It's also our direct supply chain, which means around 80% of the ingredients in the box come directly from producers. We are able to control for quality and safety and also bring fresher ingredients in faster, thereby reducing potential waste that is built into a traditional grocery supply chain. What this means is that we can curate quality, more flavorful ingredients than our competitors, including some that are used in Michelin-starred kitchens, all the while consistently driving towards our targeted margins of nearly 40%. This last point is particularly important because our direct sourcing model and our tight relationships with so many suppliers, our food price per box last year only rose about 6.1%. Whereas a representative basket of PPI indices that we believe closely resemble our raw materials rose 9.8%, providing even better value for our customers. Now that we have covered how our ingredient selection and supply chain help maintain our quality standards with strong margins, let's move to how we make sure we are building the right product for the target customers that Dani walked through. As our marketing gets more targeted, we speak directly to the needs of each customer segment, and we then need to deliver on that promise through the product. At Blue Apron, every product idea is based on and informed by customer research. We start every project with our new customer segments in mind and a deep knowledge of what they are looking for from a meal kit. We use both external research and direct customer feedback to plan everything from new products, recipe development, ingredient onboarding, and menu planning. There are two ways we think about meeting the needs of our customer segment. The first is by choosing a distribution of recipes, ingredients, and flavor profiles each week based on the personas we are serving. The second is by mapping the needs of our highest value customers and building new product launches that help create value and drive engagement in the box. We will start with the distribution of recipes in our core offering. Each week, we create a total of 28 signature recipes. 15% of those are fish, 65% are meat and poultry, and 20% are vegetarian. Additionally, 50% of the menu is customizable, meaning a customer can swap or choose to add a protein to better suit their individual preferences and needs. Our research has shown that protein variety is the greatest driver of demand, and by using our pre-planned rotation and our recipe customization feature, we can, of course, serve a variety of tastes. We can also achieve our sustainability and waste reduction goals through smarter sourcing and seasonal pricing. We layer lifestyle choices and merchandising tags with 20% wellness-inspired and on average, a third of the menu each week as customer-favorite recipes. Beyond that, we also take into account the level of effort of all recipes on the menu. We always have at least 85% of the recipes to be designed to be prepared and cooked in about 35 minutes or less. 4 easy prep and cleanup recipes, 1 premium for special occasions, 1 craft for seasonal favorites, and a variety of signature recipes, Heat & Eat offerings, and meal prep bundles to meet different household needs. This variety is important because the number one driver of excitement about signing up for a new meal kit company is the variety of recipes offered to meet a customer's needs. This is key to efficient acquisition. Building on that, let's talk about how we introduce new products to drive growth. As we target our four customer segments, we identify specific pain points and what groups want to see what types of new products. Some launches, like add-ons, overlap all key customer segments, while others might super serve one or two. We can then balance cost, effort, potential demand, and margin to decide how to prioritize them. We've already begun to see the proof points that our new product roadmap is taking hold. As Linda previously noted, average order value, revenue per customer, and orders per customer have markedly increased, including over 24% increase in revenue per customer over the last three years, and stabilized at a higher level since we embarked on this in 2020. A specific example of this expansion is the recent launch of our breakfast options offered as part of our weekly add-ons menu. You got to try some of them this morning. Over 35% of customers who participated in a recent survey told us that they wanted to see breakfast recipes on our menu. This was married with both quantitative and qualitative research that showed us they also want those options to be a quick and easy experience and at an affordable price point. The cooking enthusiasts and healthy eater segments in particular showed high demand. When we began to develop recipes, we realized that we were able to introduce breakfast recipes using only existing ingredients in our pantry. We think this is another example of our pantry's versatility and our Blue Apron plus one philosophy. Now, you can find breakfast options as part of our weekly add-ons menu. The recipes are designed to take less than 15 minutes to make and cost around the same as our other recipes on a per serving basis. Early feedback is extremely positive, and our breakfast options have been our most popular add-ons since we introduced them last month. This approach aligns with our strategy of attracting higher margin, stickier customers. As you can see here, each cohort from 2017 has increased its average annual revenue per customer in every successive year. This is a key facet of our business. We've said this before. Customers tend to be more price sensitive when they are initially choosing a meal kit. As they experience our products and become stickier over time, they become less price sensitive, allowing us to generate increasing revenues. This is also illustrated on this slide, where you can see quarterly average order frequency increases with tenure. As we keep customers engaged and spending with us, we tend to see order frequency increase as average order value increases. We've identified other trends with our newer cohorts that we will continue to address. For example, we believe there is a real opportunity to build off what the technology team is doing to allow us to more effectively upsell and cross-sell to customers. In a recent test on iOS users, we've seen a 9% improvement in weekly add-on purchases since we launched a feature that asks customers to add additional recommended items to their cart. We've only begun to scratch the surface. Additionally, we are the only meal kit in the United States that offers a wine subscription, where our customers can purchase wines to pair perfectly with their meals. We work directly with vineyards and collaborate with acclaimed winemakers to create custom wines that are specifically crafted and come in 500 milliliter bottles, perfectly sized to share over a weeknight meal. We recently hired a renowned winemaker to help us continue to elevate our offering, including a recent expansion into premium sparkling wine. As we move forward, we believe our path to improving retention and driving customer growth is well laid out. By continuing to leverage our immense trove of data, we can continue to drive product innovation and refinement. By using our carefully curated pantry to vigilantly maintain strict cost controls, we can continue to serve the diverse need states of our existing customers, as well as those who have yet to try our meal kits. With that, we're going to take a 10-minute break. There are some snacks left in the back. When we return, you'll hear from Irina Krechmer, our Chief Technology Officer. Hi, good morning everyone, and welcome. I'm Irina Krechmer, Blue Apron's Chief Technology Officer. I joined Blue Apron almost three years ago to oversee all aspects of the technology strategy, focusing on enhancing our platform to drive growth. With over 20 years of experience implementing customer-focused technology solutions, primarily at e-commerce, media, and consumer technology companies, I was very excited for the work ahead. As is evident by the presentations you have heard today, technology plays an integral role in every aspect of Blue Apron's operation and is the backbone of our business. Linda mentioned how technology and operations platform will drive agility and scale. Today, I will talk about two main areas of focus on the technology front. First, I will share how we are upgrading our e-commerce platform to streamline customer acquisition and engagement through easier cross-sell, up-sell, and integration with the partners Dani mentioned. Second, we will dive into how technology improvements to our operations platform create efficiency and scale with minimal capital. Jumping in first to e-commerce and specifically to our order management platform, let me offer a little historical context. In our early days as the meal kit pioneer in the US, we built our platform from the ground up for a limited product offering. We have since added a wine subscription and more recently a marketplace, which allows for purchases beyond our core meal subscriptions. Historically, each of these product lines has been hosted on their own platform. While this initially made sense, as we continue to expand our product partnerships and look to other ventures, we need to offer more seamless shopping experience to our customers. Our team is currently working to integrate food, wine, and marketplace offerings onto one centralized platform. We are leveraging open source software, which allows us to cost-effectively integrate core e-commerce functionality and then customize it to suit our unique needs. Our aim is to reduce friction for the customers while increasing AOV and order rate by allowing them to mix and match 2 serving and 4 servings recipes in one order, as well as enabling cross-selling and upselling opportunities. As we continue to expand our product offering and add more optionality and partnerships, we also need to ensure a seamless digital experience for the customers. This means making our web and app interfaces as intuitive as possible and personalizing them to customers' unique preference. As a company, we are constantly working on and evolving ways to make it easy to discover our entire range of products and new offerings, and simplify the process to modify recipes each week or pause orders. This platform transition is already underway. We recently moved our marketplace over to the new platform and plan to move meal kits and wine subscriptions later this year. We expect the full integration to complete by late 2022, early 2023. You have heard from others today that partnerships will unlock customer growth. As we build our consolidated platform, we are also building in the agility for seamless integration with both acquisitions and fulfillment partners to allow for more speed, efficiency, and flexibility in their onboarding. This is expected to give us a faster path to efficient growth. An interesting example of how technology benefits both customers and operational efficiency is recipe assignment. Over 30% of our customers like the recipe that we assign them so much they never change them, which speaks to the accuracy of our algorithm. We have an opportunity to continue optimizing it for margin improvement while still maintaining customer satisfaction. This is a good segue into taking a deeper look into how technology drives growth and efficiencies in operations. In the next few weeks, we plan to unlock unlimited ordering for our customers, which we expect to further increase AOV. Currently, our platform limits the size of a customer order to a single box delivered from a single fulfillment center. Removing the one box limitation will allow customers to order as many weekly recipe offerings as they want for all their meal occasions. We also plan to onboard products from different partners and sell them all in one cart, thus further expanding the convenience of a subscription and the upsell advantages of an e-commerce company. This opens a path to a new wide range of revenue opportunities and even greater customer satisfaction. One of the best examples of technology driving operational efficiency is through our recipe forecasting. We use machine learning to add greater predictability to our ordering cycle using a variety of factors such as previous order history, seasonality, and individual preference. This insight give us a better sense of what types of recipes customers are likely to order several weeks out. In turn, this allows us to offer and order the proper amount of proteins and produce, which directly impacts food costs and variable margin. This is especially important as we expand the number and complexity of our menu options. The impact of this work is tangible. For example, we reduced recipe forecasting error rates from up to 20% in 2022 to the 5%-7% range so far in 2022. Another area where machine learning is driving operational improvement is on our pack line. Efficiency is highest when the pack line continues to move, which in turn reduces labor costs. Working closely with the operations team, we are looking for ways to decrease the downtime between pack line switchovers, which is when we need to replace one set of ingredients needed for specific recipes with a new set. Using machine learning, we are grouping similar recipes together based on specific ingredients, while also optimizing the placement of those ingredients on the line. This helps to decrease overall downtime and lower overall costs. This is one of the many pieces of the puzzle that has allowed us to maintain steady throughput even while we've significantly increased the complexity of our box configuration. As you can see, technology really is at the center of everything we do at Blue Apron with significant ties into both customer experience and operational decisions. With that, I'm going to turn it over to Charlean to discuss procurement and operations. Thank you. Good morning. It still is morning. My name is Charlean Gmunder, and as Chief Operating Officer here at Blue Apron, I am responsible for overseeing our supply chain, our physical operations, and our customer experience. I arrived at Blue Apron in 2020 with over 30 years of operations experience across food manufacturing and fulfillment. Previously, I was the Vice President of Catering Operations for United Airlines, and prior to that, I held a number of executive operating and manufacturing roles with other multinational companies. At Blue Apron, we believe that our operational capability and supply chain sophistication are core competencies and competitive advantages. I'm excited to show you how we plan to use these advantages to deliver on the next phase of our growth strategy by leveraging our world-class facilities and equipment to support scale with minimal capital expense. I'd like to start with our fulfillment centers in Linden, New Jersey, and Richmond, California. We believe Blue Apron has established itself as a model for operational and supply chain excellence. These 2 fulfillment centers are outfitted with automation equipment and the capacity to be able to scale and serve Blue Apron customers for the next several years with minimal investment. As we build out our ecosystem of marketing, strategic partnerships, and new products, we plan to enable and not just scale, but we also plan to enable flexibility and capabilities through our infrastructure. By building this proactively into the system, we can quickly integrate more third-party products and partners, as well as enhance customer experience through opportunities in supply chain, packaging, waste reduction, quality, and logistics. Our facilities are both FDA regulated and certified under Safe Quality Foods, that's SQF. That's a scheme under the Global Food Safety Initiative. This provides us with 2 advantages. First, it means that our products are subject to the most stringent and arduous testing standards in the industry, and that helps us keep our customers safe. Second, and importantly, it's a critical enabler to our partnership strategy, as it's a necessary requirement for many retail partners. Having this status allows us to plug into partnerships with limited additional regulatory approval or oversight. We believe this is key in our ability to be nimble. We're proud of the product we deliver to hundreds of thousands of homes every month. Okay. First, let's talk a bit about our ingredients. Now, John conveyed some of the quality standards and direct sourcing approaches that make us unique, including how we source around 80% of our ingredients directly from producers. I'd like to expand on that point just a bit more. Today, these relationships are governed by longstanding supply agreements. Concurrently, we remain flexible and nimble on price and volume commitments, as our decisions on sourcing and pricing strategies are defined by each commodity category. We continually evaluate and account for global and national supply and demand as well as economic conditions and trends. We make informed price and volume contract decisions based on these dynamics to drive cost value for our business and to mitigate risk in our supply chain. Our technology and analytics teams set up processes designed to help us ensure our suppliers continue to meet our requirements, and that our network has enough supply chain resiliency and risk mitigations in place to help overcome shortages. It also helps us to see where we might have opportunities to bring on additional suppliers to afford us the flexibility of having multiple sources for our ingredients. In fact, over the last 16 months, we have actually onboarded 44 new ingredients that meet our standards without disrupting efficiency. Now, as proud as we are of our ingredients, the strength in our production is what brings some of the customer experience to life. This starts in our kitchen operations. Using the latest technology and high-speed equipment, we can take bulk ingredients from suppliers and break them down into the right size portions, which provides a significant margin advantage at scale. Our kitchen capabilities also allow us to expand the network of suppliers that we can work with, including certain specialty shops and using specific ingredients our competitors don't have access to, all while keeping our costs low. The result is we continue to deliver on our Blue Apron plus- one with unique flavors and unexpected ingredients, something our customers have come to expect from us. Our kitchen also provides additional support for our business, allowing us to leverage the same equipment to help us scale further. As an example, Blue Apron is moving to a kitting process, where all ingredients can be packed into one bag instead of loose or several bags. Kitting allows us to offer a variety of benefits to the customer and to our business. By having all of the ingredients in one package, we're limiting the risk of missing items and making the cooking dynamics in the kitchen simpler, both benefits to our customer. For us, this is going to help us reduce waste, and it's going to increase the space on our pack lines for more new products and all using the same equipment that we already have here. After we create perfectly portioned ingredients in our kitchen, we move to the pack line, where we really see the opportunity for scale. In our facilities, we focus on what we call our perfect quality box, which has three underlying components. While we all understand that the look and feel are certainly important, we want to make sure our product is packed correctly, arrives on time, and is in the right condition. We're able to deliver on perfect boxes through the hard work of our incredible, well-trained, and caring associates, as well as our pick-to-light technology, which helps us reduce errors, and our proprietary technology that allows us to right-size the box to ensure ingredients arrive safely with limited packaging waste. Our pack area has actually evolved significantly over the years. This work includes the introduction of the pick-to-light technology, which I just mentioned, and using multi-pick, which actually allows us to free up more bays for more products. Now, with the progress we've already made, we've been able to rapidly increase efficiency in the facility while we added a significant amount of complexity. As you can see here, our number of configurations has expanded dramatically, but we've been able to reduce our labor per hour. There is even more opportunity ahead because with the introduction of kitting, we are going to be able to increase the capacity of our existing pick lines to accommodate more ingredients for our recipes and new product expansions, like additional Heat & Eat options, for instance. This, combined with the unlimited ordering capabilities that Irina mentioned, will allow customers to get any combination of meals and add-ons that they like. Now, another great area of innovation is within our logistics side of the business. Building on our proprietary sorting technology, we have been diversifying our logistics network that we use to get the boxes to people's homes. It's no secret that the logistics network has been under significant pressure. Given the nature of our business, we're depending on a logistics network that allows us to ensure that our boxes arrive on our customers' doorsteps on time. We've streamlined processes inside the facility to get boxes onto our carrier trucks faster, but we're also leveraging new vendors. We're also leveraging better line haul processes and a network of national and regional carriers to drive on-time delivery. Now, all of this results in a better customer experience. A big part of better experience means we need to give customers more visibility into box arrival. One example includes a new pilot that we're running in Philadelphia, Boston, Baltimore, and the Washington, D.C. areas with our new supplier, Veho. Their platform actually allows for customers to know in real time where their box is and when it will arrive. We're looking to expand this service nationally with other last mile providers over time. While I've talked about technology that drives efficiency and scale, it's our workforce that really sets us apart. It's important that our employees are aligned with our mission and values, and that we create an environment that gives them a feeling of purpose and belonging. At Blue Apron, we believe it's important to invest in employees. They are a vital part of our ongoing success. Over the past several months, we've increased our minimum wage to $18 an hour and introduced multiple employee development programs, recognition, benefits, and the results have been quite positive. We've been very successful with our hiring, attendance has improved, and our reliance on temporary workers is going down. Now, we found that long tenured employees score much higher in terms of accuracy. We believe these initiatives will be highly beneficial for us over the long term, especially as perfectly packed boxes are crucial to customer satisfaction. We also believe that a better motivated workforce leads to a better customer experience. Since enacting these programs, refunds and credits as a% of net revenue have decreased by more than 110 basis points and continue to trend favorably. Finally, we're now working on more flexible and proactive customer engagement. By leveraging data analytics, we track daily customer satisfaction, pain points, and other information that can be appropriately addressed by our teams. We now understand leading indicators around when a customer is potentially disengaging, including behavior patterns, and try to intervene before they churn. Beyond that, we're focusing on several initiatives designed to engage with customers as they come on board with us, making the process more user-friendly and easier to understand. We're also focused on making the digital experience seamless for our current customers while also seeking new ways to create customer delight. You know, in all, we have a comprehensive program of initiatives that we're undertaking to continue to enhance operations and ensure they are as efficient as possible. We really feel confident that we are taking the right steps to position us for success and to achieve our goal of long-term sustainable growth. With that, I'm going to turn it over to Kelly. A carbon neutral meal kit company that even Mother Nature can't get enough of? Unexpected. At Blue Apron, we love the unexpected, like meals that meet your wellness goals without sacrificing flavor. Choose from easy to prep meal options that make your whole routine easier, like 600 calories or less and WW recommended. A meal kit that helps you reach your wellness goals? Now, that's unexpected. Blue Apron. Expect the unexpected. Visit blueapron.com to get started today. Thank you, Charlean. My name is Kelly Burton, and I'm the Head of Sustainability and Social Impact. I joined Blue Apron in January, and I'm excited to be leading such an important and dynamic program. While this pillar includes broader initiatives on talent, people management, and making Blue Apron a great place to work, I'll focus specifically on ESG initiatives today. Prior to joining Blue Apron, I served as the Chief Sustainability Officer at Material Exchange. I've made ESG a driving force of my career, and I look forward to the opportunity to continue building on the great successes Blue Apron has already established. As you heard woven into the many presentations today, sustainability is a part of the company's DNA. At Blue Apron, we believe we play a key role in promoting planetary and dietary wellness for everyone. Since our founding 10 years ago, we've been focused on bringing delicious, responsibly sourced food to customers in a way that is mindful of our environmental impact. A strong ESG program is critical for customer-centric companies like Blue Apron as it helps attract and retain talent, customers, and investors. An ESG strategy also provides employees purpose, inspires loyalty, and creates long-term value. Our approach to sustainability at Blue Apron also allows us to be vigilant about the safety and quality of the food we source and facilitates continuous improvement in minimizing waste. My first focus when I joined Blue Apron was to help us achieve carbon neutrality goal, and I'm proud to share that we met that goal at the end of Q1 2022. We offset Scope 1, 2, and 3, covering estimated upstream and downstream 2021 emissions that derive from sourcing, packaging, and transporting Blue Apron products. While sustainability is core to everything we do, we started our journey towards becoming an ESG company two years ago and recently introduced our Better Living Roadmap. This roadmap outlines our plans to sustain and preserve our ESG commitments and is focused on three specific areas. People, product, and progress. I'll take the next few minutes to walk you through each and highlight the great things that we've done along with our plans for the future. People. They're the most important piece of our business. Everything we do and why we do it centers around people, our employees, our value chain, and our community of customers. Without them, this business cannot succeed. We knew that for us to be successful, we needed to start at home. We really strive to be a place where our colleagues can bring their whole selves, work with intention, and grow their careers. We believe investment in our people drive real value. As Charlean mentioned, we raised our employee minimum wage to $18 an hour a few months ago, and we're already seeing positive impacts of that decision. We also established Aprons For All, which is a social impact initiative to advance diversity, equity, and inclusion. The program is designed to address unconscious bias and promote anti-racism, advance equity throughout our organization from the offices to the fulfillment centers. Beyond investing in our employees, we also wanna ensure that our ESG goals are extended throughout our supply chain and including continued commitment to responsible sourcing. For example, as part of achieving carbon neutrality, we're now engaging our supply chain around emissions and sustainability metrics integrated into our Better Living Roadmap. We've included that into our procurement strategies. We also believe that it's important to support the communities in which we operate. Today, we work with regional food banks under the Feeding America umbrella, donating surplus food. Last year, we donated over 1.3 million meals. We also operate a weekly farmers market at our fulfillment centers, which provides our employees with access to quality ingredients for meals at home at no cost to them. In 2021, through this program, we donated over 500,000 meals to our employees. Shifting to product. As we continue to develop our product offerings, we remain committed to including ingredients with high-quality standards that are responsibly sourced while reducing emissions and impacts in waste and packaging. We also recognize the role of food choice in both planetary and dietary health and expect to continue to advance offerings that align with both. Responsible sourcing gives us the framework to maximize efficiencies, which in turn control costs and mitigate waste. Our efforts in waste avoidance and diversion are tracked, and in 2021, waste represented only 1% of our estimated Scope 3 emissions. On the packaging front, you've heard us speak to some of the efforts we're making to reduce and limit packaging waste. Right now, Blue Apron meal kits are approximately 85% recyclable by weight, and by 2025, we plan for our meal kit packaging to be 100% recyclable, reusable, or compostable. In order to meet our goal, we're prioritizing food safe circular economy principles, specifically packaging, recyclability, post-consumer recycled content, and consumer education. The last part of our roadmap is focused on progress. All of these efforts are helping to make Blue Apron a more efficient and responsible business, and we believe it's crucial for our success to report on our progress with a steady cadence of reporting. Doing so offers transparency to our stakeholders on governance, sustainability, non-financial materiality, and sustainability disclosures. Finally, we plan to publish an annual ESG update on our sustainability commitments and share non-financial disclosures in alignment with the Task Force on Climate-related Financial Disclosures. We have already begun this work and look forward to presenting it to the market as early as next year. As you can see, we're extremely proud of all of the work we've done to date and have quite a roadmap ahead of us. We believe quite strongly that an effective ESG program can deliver real long-term value across our organization. With that, I'll wrap things up and hand the stage back over to Randy. A date who also looks like his picture? Unexpected. At Blue Apron, we love the unexpected, like a bright and zesty lime butter sauce atop perfectly cooked scallops. The kind of unexpected things that lead you to discover something new, like an amazing meal that also lets you show off your skills or two ingredients that come together in a way that changes everything. What's the word for an at-home dinner date that goes incredibly well? Unexpected. Visit blueapron.com to get started today. Thank you, Kelly. Hello again, everybody. I'm Randy Greben, Blue Apron's CFO. Please note that following this section, we'll have another short break and then a Q&A session with myself and with Linda. Thank you to all of my colleagues who have shared their insights and their visions for their respective departments. As we look to close out the day, I hope you now have a better understanding of the great company we are building and how we have positioned ourselves to capitalize on our groundwork. I'd now like to talk about our path forward. When we went public, we had only 12 weekly recipes, a limited selection that did not evolve with our customers' needs. With the entrance of others into our space, we fell behind, and we quickly began to lose market share. We knew then, as we know today, that there is a huge market with untapped potential. Data point after data point show that people want, and more importantly, enjoy cooking at home. Take a look at this chart. You can see there are a number of practical and emotional benefits that people associate with cooking at home. Upon Linda's arrival, we began to mine the extensive data we had on millions of customers who had lapsed temporarily or otherwise. The data told us what they loved about us, and it also told us what we thought we were missing. We discovered that while we could continue to stay true to our meal kit past, there were other avenues and revenue streams that we could unlock. Because not every customer wants a recipe that takes an hour to make. Maybe they still want the at-home cooking experience and that at-home taste, but they want it in a quick 25 minutes or less. Or maybe they wanna swap out or upgrade an ingredient, add a side, splurge on a bottle of wine, or order a meal kit without a subscription. All of this was tied to the second prong of our growth strategy, offering greater menu variety, flexibility, and choice in our products and services. It was a natural progression of our business model. As Linda pointed out earlier, we have a big opportunity to expand in terms of how we engage with our customers through new direct-to-consumer channels. These will allow us to keep the subscription model at our core, but offer the flexibility of an e-commerce model, albeit one rooted firmly in subscription. The model has evolved, and it will continue to evolve with shifting customer preferences. We believe that all the work that we have done over the past few years to improve the product and overall customer experience is clearly working. Now, let me show you through KPIs how we are seeing those trends firsthand. Let's start with revenues. Here you can see our quarterly revenues broken out by quarterly cohort dating back to 2019. There are a few things I'd particularly like to point out here. First, in 2019, you can see how quickly our revenue declined when the company slashed its marketing budget that year. Dani also highlighted that point in her comments on customers and cost per acquisition, or CPA. I'll come back to this point in a few minutes, but our CPAs dropped to their lowest levels ever. We cut our spending at the top of the funnel, and it clearly proved to be damaging to the business because we starved our file of prospects in the medium term. This was never going to be sustainable over the long term. Second, as you can see, we had a big spike in acquisition during peak COVID periods, which are represented in dark blue. I think it's pretty clear that a lot of these customers, many of whom are understandably just looking for a reliable and safe source of food, were unlikely to stay with us. They subscribed to Blue Apron to meet their temporary needs, and we believe they were never the types of customers that were going to exhibit over the long term the sorts of key customer KPIs that we hold so dear. Lastly, this quarter, we've begun to deliver an uptick in customer count and revenues compared with last quarter, and so far, we're continuing to see this momentum moving into the 2nd quarter. You can see how important repeat customers are to our business in terms of their average spend. On average, a repeat customer, which is what we call a customer who has purchased from Blue Apron once before and decides to buy from us again, generates on average over twice as much revenue on a quarterly basis. As John alluded to earlier, and you can see here, longer-tenured customers drive an outsized portion of our revenues at present, and we draw a direct correlation between tenure and revenue growth. It's all about the customer journey and the evolution of their appreciation of the depth of our product assortment and the consistency of our quality. Linda showed these slides earlier, so I'll go over them quickly. You can see again that our product development has been paying off. We've seen eight straight quarters where AOV, average revenue per customer, and orders per customer stayed elevated. This next slide shows more specifically how we've done that. Upsold product revenue grew significantly with the launch of our new product roadmap. As we add more variety, we introduce even more opportunities to upsell. As we continue to innovate, we expect this to climb. Engagement drives revenue. As a customer customizes their basket, we see an almost immediate improvement in AOV and order rates. Importantly, these metrics tend to stay elevated the longer a customer stays with us. Once again, the work we have completed over the last three years continue to demonstrate real strength and sets us up nicely for the next course, which is our go-forward strategy. As you've heard us say many times now, our focus is on customer growth. Dani gave you a lot of good insights around what we're doing on the marketing and partnership side to drive that progression. John highlighted how our product innovation will help, and Irina and Charlean spoke of how we will support this through our technology and our operations. We think there are many areas where we can potentially unlock more potential to scale. To give you just one example, the following chart shows customers who have both a meal kit and a wine subscription. On average, those customers spend two times more with us than a meal kit customer alone. Meal kit and wine customers. Meal kit and wine subscribers' quarterly churn rate has been nearly 40% lower than meal kit customers only since 2021. Now, today, wine is just a small part of our business, but to Irina's point earlier, as we consolidate our meal kit, wine, and marketplace onto one platform, it will give us a greater opportunity and ability to cross-sell and upsell, which in turn should drive enhanced AOV. Very little pairs better with food than wine, and with our culinary authority and our status as a winemaker, in time, we look forward to exploring the ability of adding features, such as making curated and personalized wine recommendations in real time to add to customers' orders based on their recipe selection on our site or in our app. This is another Blue Apron interpretation of e-commerce best practices and completely in line with what Linda shared earlier. We are enhancing our technology and our operational ecosystem. While we continue to concentrate on driving top line, I think now is a good time to highlight how we are able to control input costs and are a responsible option for consumers, especially in this inflationary environment. Linda illustrated how we can be cost competitive on a per-serving basis compared with a grocery store or a restaurant, even before accounting for tax, tip, and delivery fees for the latter. Let me take an opportunity to dive deeper into this subject, which is top of mind for consumers and families across the country. As Charlean mentioned earlier, our unique sourcing model is driven by direct relationships with about 80% of our suppliers. This can also help us give better control over our margins outside of relying solely on price increases. The data is there to back it up. As John showed earlier, our total food cost per box rose 6.1% in the 1st quarter, while a representative basket of PPI indices that we believe closely resembles our raw materials rose 9.8%. As you all know, consumers are clearly impacted with inflation, especially with food, and it's only been getting worse the last few months. As we continue to control our food costs, so far, we have deliberately trailed both CPI and the pricing of our competitors, making us a great option for the consumer. Now, we know that in order to drive the growth we're pursuing, which you've heard a lot about today, we need to have a solid financial foundation from which to work. To create this solid financial foundation, we've made a number of enhancements to our capital structure over the past 6 months to strengthen our balance sheet. We completed a $78 million capital raise last November, added another $5 million in February, and as hopefully most of you saw last week, we completed a refinancing of our debt with Allianz Global Investors and agreed an additional $45 million through private placements, of which half is already closed. The remaining private placement is expected to close at the end of this month, and when it does, we expect to have approximately $80 million in cash and cash equivalents. This should be seen as another very encouraging sign as we continue to position the company for our future ambitions. In terms of the debt, it comes with a significantly lower cost of capital. We expect to reduce our coupon rate by 160 basis points per annum, assuming we meet the specified bond ratings for the debt and our payments are interest only for the next 3 years. In addition, we no longer have to provide our lender with a warrant coverage that was present with our last term loan, and we have pushed our debt maturity to 2027. The senior secured notes come with an ESG covenant that aligns nicely with our brand and values, and we are very pleased to have such a large and reputable financial institution such as Allianz as our lender. On a pro forma basis, when adjusting for the expected lower coupon and the removal of principal payments and warrant coverage, our cost of capital improves by more than 10% for the first three years of this loan. Next, I'd like to talk about where we are going with the next core strategy. Since we just hosted our Q1 call yesterday, I don't want to spend too much time rehashing our current financials, but I do want to reiterate that we have been seeing tangible signs that our investments are working. Our roadmap for the future is quite simple, and it's based on the assumptions set out in our earnings release yesterday. We are targeting to reach adjusted EBITDA profitability in 2023 and generate positive cash flow in 2024. The beauty of our business model is its relative simplicity, and it reveals itself with scale. We are looking to leverage our costs by growing our customer base through all of the initiatives you've heard about today. Our target is to hit 500,000 customers by 2024. To achieve this scale, we began a concerted push on marketing in Q4 2021, which continues today. Once we hit our targeted steady state, we don't even necessarily have to pull back the throttle on marketing spend, but marketing as a percentage of revenue decreases substantially due to anticipated strong top-line growth. Our ability to hit these targets is underpinned by the investments we are making in marketing, but also bolstered by cost savings built into our model and the recently announced pricing changes that we expect to drive significant increases in average order value. At a high level, based on our assumptions, we expect 2022 revenue growth to hit the mid-teens% by year-end. While our updated prices contributed to this targeted growth and drive AOV expansion, we see the majority of this growth coming through a growing customer base, continued product expansion, and a continued shift to a more optimal product mix, including through add-ons, customizations, and non-subscription boxes on our marketplace. We also view enterprise sales and business-to-business offerings as within our scope of reach. Given the 55 million household TAM we've spoken to today, we think there are a number of paths available to sustained revenue growth that are not purely dependent on the core of what we've built. We expect to continue to grow our customer base, driven largely by the expansion of our marketing programs. As I've consistently stated since arriving at the beginning of 2021, the economics of this model are relatively simple. We get there with scale. We see marketing spend similar to an inverse bell curve. It's higher in Q4 as we begin attracting the next cohort and remains high in Q1 due to that being our seasonally busiest quarter, but it levels out in Q2 and Q3. We see this dynamic playing out both this year and next, although overall marketing spend will taper off somewhat in Q4 as we begin to realize strong customer growth. As Dani shared, we expect CPA to come down meaningfully from its Q1 high as we see more efficient from a cost per visit standpoint and as we reap the benefits from the Q4 2021 and year-to-date marketing spend. Our model conservatively does not account for any efficiency gains from a cost per visit standpoint, though we do expect some to materialize. Importantly, our plan also did not envision, nor does it need improved conversion rates over our present trends. We are not relying on our conversions improving from Q1 levels, even though we have a number of optimization efforts in flight. Further, we remain focused on getting future customers into the top of our funnel, and we believe that our investments have put us in a position to start seeing meaningful efficiency improvements. As Dani shared, we continue to expect payback to be well within the 1-year watermark on a go-forward basis. Our long-term target is for this business to have a steady-state variable margin of 40% or greater and PTG&A at 20% or lower. I should point out that these aren't extremely large movements from our historical variable and PTG&A margins. From a profitability standpoint, variable margin is key to our forward-looking outlook. Our variable margin was challenged at the beginning of this year, but it rebounded to normalized levels in March before our price changes, and we plan to build on that growth. Variable margins have long been a source of strength for Blue Apron, and we have every intention of getting back to the levels that we think are towards the very top end of the meal kit space. We know our margins can be significantly better than grocery stores, both online and in brick and mortar, due to the efficiency of our model. The path to our goal of sustained levels above 40% rate is based on continued strong top-line growth driven by AOV, labor efficiency, and our direct sourcing model. I'd like to take a minute here to address inflation once more. While we are certainly not immune to the inflationary environment, as Charlean, John, and others have described, we have natural hedges built into our business model based on the way that we operate. These include offering $18 per hour to entry-level workers, knowing it's the right thing to do, but also understanding it helps us retain talent and drive productivity. As I said on our Q1 call yesterday, it's not just great for our employees, it also makes great business sense. We also have direct long-term relationships with many of our suppliers that enabled us to maintain our quality standards, our restaurant quality chef-written recipes without having to pass an undue portion of inflation to our customers. We believe we are well-positioned to capitalize in this environment. Again, our midterm target is to grow our variable margins to annualized levels in excess of 40%. It may take us a bit of time to get there on a sustained annualized basis, but we are working diligently towards that goal. On PTG&A, we are beginning to see the benefits of scale, and this is the area of the P&L that benefits most from scale. The only truly variable component of our PTG&A spend is payment processing. Every other line is either fixed or semi-variable, so absolute spend should remain relatively constant even as we grow top line and customers, and we believe we will see meaningful decreases as a percentage of revenue. We are targeting a sub-30 mark for 2022, and we're driving towards achieving sustained PTG&A rates of 20% of sales or better. We plan to get there via largely top-line growth, but we are also constantly seeking ways to optimize and streamline our cost structure. As we work through the heavy lifting many of my colleagues spoke of today, particularly that mentioned by Irina, we believe that we have the ability to take costs out on our path to better PTG&A margins. Again, the beauty here is the simplicity of our economic model. Scale unlocks a lot. Finally, from a cash perspective, I already walked you through the recent strategic financing moves that helped ease our balance sheet from an equity and debt perspective. Here is an important point that I would like you to take away. Q1 should represent the largest quarter of cash burn for our foreseeable future. It does not make any sense to take our last 6 months of cash burn and assume that that would be a normalized run rate. It will not. We actually expect positive operating cash flow this quarter, and our burn rate for the balance of the year in total should be less than our Q1 usage was. Next year, through the execution of the plans we described today, the business is expected to continue to grow at a healthy clip. We'll leverage this year's momentum. We expect continued strong top-line growth driven by the expansion of our various platforms and volume growth, the continued introduction of better cohorts, stronger retention rates, and the tailwinds of our pricing increase. As I noted, marketing's inverse bell curve dynamic is expected to continue in 2023, and spend is expected to be relatively constant on an absolute basis, but importantly, is expected to come down as a percentage of revenue. It bears repeating, we are targeting to be EBITDA-profitable on an adjusted EBITDA basis on the full year of 2023. We expect to maintain that profitability going forward, and we look forward to generating cash flow beginning with the full year of 2024. As I've mentioned, we see many areas from which we can continue to drive growth across our platform, from more add-ons and more customizations, to building out our marketplace, to exploring new partnership ideas and enterprise sales and beyond. Meal kits will always be at the core of what we do, but we aspire to be so much more than just a direct-to-consumer subscription meal kit company. We're an e-commerce company in the food space with what we believe to be the best quality in the business. As we execute on the Next Course, we see our path clearly to 2024, with set goals of having at least 500,000 customers, generating at least $700 million in revenue, with adjusted EBITDA margins of 2% or greater, and a generation of positive cash flow. We are extremely excited about our prospects in all the different areas of growth that we see available to us. I know we have covered a lot today, but I sincerely hope that we have provided you with the clarity necessary to understand why we are so very excited about what we have built here at Blue Apron and what is going to come. Thank you again for attending today's presentations. We'll take a short break before Linda and I will come back for Q&A. Hi, everyone. Welcome back. Thank you all for participating today. We couldn't be happier to have you all of you here today and everyone logging into our webcast. We will start the Q&A now. My colleague, Muriel, will be walking around the room with a microphone. Please wait for her to ask your question. For those of you tuning in online, please submit your questions online. I will see them on the platform, and I will try to answer them as they come in. Sorry, I should pose them to the management team here. We will all try to answer them as they come in. Thank you very much. Let's start with the room. We go straight to Maria to kick it off. Thank you so much, and thank you so much for the presentation. A lot of interesting, good information here today. I wanted to start by asking you about 2024 projections. Sort of $700 million in revenue, 500k+ in customers. To what extent sort of are you sort of assuming new initiatives like D2C and enterprise sales in these numbers? Sort of what is your core business versus all these new initiatives? Sure. I can go ahead and start on that first and then, Randy, feel free to jump in on anything. We've actually assumed some of the new programs, for example, enterprise sales and these D2C sort of third-party distribution partnerships. We have actually assumed some upside from there, but been fairly conservative. I would say that there is still additional room for upside with some of the loyalty programs, some of the other types of programs that we're putting into place, including enterprise and these D2C partners like Walmart.com. Most of it isn't included, but there is again, innovation opportunity. I would probably say, you know, 50% of those are actually included in there. Thanks for putting together this great day. I have a question on marketing strategy. The new national brand campaign is wonderful. How do you think about segmenting, you know, some of the other segments you talked about, like the healthy eaters? families as you go into some of the paid marketing channels and partnerships, is that a focus? Do you try to customize some of your marketing creatives and things like that for each channel and each segment? How do you think about segments versus that national campaign? Absolutely. This is a huge part of this new strategy on thinking about the next course, is actually how we use those different segments throughout the entire funnel. What you saw today from a marketing perspective, the hero brand campaign is actually the overarching brand campaign. That's the awareness piece. The three subsequent ads that you saw are targeted at specific audiences, and so we use targeting when it comes to either TV programs and/or some of the online video streaming, et cetera, to very clearly know here's where this audience is most likely to be and targeting that message there. The other big change is throughout the entire funnel, you're starting to see a lot more nuanced messages based by the audiences we're going after on those four different segments. For example, the segment around health and the segment around some of our partnerships around, WW, our wellness program, et cetera, are specifically directed at audiences that are most likely to be interested in that messaging. A big difference that's changed from previous campaigns is we are now testing creative throughout the entire funnel from top to bottom, starting with those brand campaigns. The other important thing which Dani brought up in talking about omni-channel and a little bit more about how people process information, people usually need to see more than one marketing campaign before they'll convert. We've specifically designed the funnel to say, hero messaging is the very top that fills in the largest number of people at the top, and then they start to see these other media campaigns throughout their own customer journey, across social, across TV, across out of home, that start to then narrow down the audience a bit more. A lot of that is through segmentation, and one of the biggest things we're working on right now is our own consumer data platform that helps us continue to target those customers even in a cookieless environment. Could you talk a little bit more to the consumer data platform, what the investment looks like? What kind of tools? Is it a big tool shift? Can you mention any vendors, anything like that? I can't give you all the vendor names and everything else right now, but it is actually a fairly big shift for us. We had a portion of a consumer data platform before, as many people did, where, you know, for example, you're managing your email or you're managing some of your preferences. Now what we're doing is we're expanding that consumer data platform to technology that will actually hit every touch point of the digital experience, as well as be able to internalize other third-party lists, et cetera, and be able to start to manage those a little bit more directly. Zero party and first party data are a big priority of the consumer data platform. We'll take a question from online. I will not name names in the interest of data privacy. We will keep the names private, but first question is, how confident is the management team in achieving full year profitability in 2023 after having talked about profitability before? I'll start. The short answer is very. We wouldn't have said it if we weren't. I wanna contextualize the answer. We did say in 2021, at the beginning of 2021, that we expected the current fiscal year, 2022, to be our first year of adjusted EBITDA profitability. That's before we brought in a $78 million capital raise at the end of last year. We shared very directly externally, and we are consistent with this message, is that investment changed our forward-looking trajectory because it allowed us to accelerate so much that was on our roadmap. There's very little that you heard about today that weren't things that we were always planning on doing. What the capital raise allowed us to do was to do it with pace. We were able to significantly accelerate our initiatives, which is why we're so excited about what we had to share with you today. We thought that with the benefit of the investment and the ability to take things off of our roadmap that were important to us, we thought it made sense to delay the push for profitability to allow us to achieve a little bit more scale to make that transition that much more seamless and to enable more sufficient cash generation. It shouldn't be misconstrued that we set guidance and we failed to meet that guidance. We made guidance and then based on a series of events, which were very fortunate for the company, including this very large investment, we made what we thought was the right decision, which is to push profitability to a more medium term goal, and do it with more customers. That's where we are today. We're super excited about it. I'm not sure, Linda, if you have anything that you'd like to add. No. That's pretty much the summary. Hi, you showed some good customer cohort data today. Now you're spending a lot to acquire new customers. How long will it take you to understand the persistency and the characterizations of the new cohorts that you've acquired? Like, how many times they're gonna order, et cetera. It's an interesting question because we look at it at different times. We tend to think of our customer cohorts, both in terms of very newly acquired, so within the first few weeks, and customers that have been with us for more than one quarter, which takes a little bit of time. We're reading the early cues right away. There are decisions that we've made in terms of our marketing spend allocation and our marketing strategy already here in 2022 that have been based on reading the cues that we've seen from customers that we've brought in. On a longer term scale, though, I think both Danielle, myself, our analytics team, like to have 13-26 weeks to really understand repetitive behavior, which is what we're trying to build when we bring customers in. You get a good short-term view within the first few weeks, the first couple of orders, and a more wholesome view 3-6 months out. We'll take another question from online. Can you provide more detail on the Planet Fitness arrangement? I can provide a little bit of detail on the Planet Fitness arrangement, but we'll be announcing it a little bit more directly shortly. The Planet Fitness announcement is essentially an integrated partnership where we're gonna be working with them to provide, think of it as sort of the food pairing to fitness. This is a big part of what we've talked about with the ecosystem of partnerships that we mentioned in the earlier part of the presentation. For us, we don't have to build everything ourselves, but as you think about, for example, those target audiences of wellness enthusiasts, there's a lot of synergies there, and a great way to reach that audience is to partner with someone like Planet Fitness, where the balance of the demographics is very similar to our existing audience. Instead of opening gyms, of course, ourselves, which wouldn't necessarily make a whole lot of financial sense, we're able to build this ecosystem where we can partner with someone like Planet Fitness and do co-branded offers. We can do an offer for Planet Fitness, they will do an offer for Blue Apron, similar to what we've done in the past with Calm and continue to do with Calm, where we're actually able to bring together two very like-minded audiences and provide double the offer or double the benefit by combining a Planet Fitness offer and a Blue Apron offer. On that note, it seems like fitness and meal prep as a segment has become a pretty popular one. We saw HelloFresh acquire Factor not too long ago. Is that a segment that Blue Apron has gone after in the past? Is it a segment that you intend to go after? Is it something that maybe the Heat & Eat meals could attack? Absolutely. When we launched our Wellness 360 program in the beginning of 2021, that encompasses what we consider to be holistic wellness. We're a program that doesn't necessarily believe in the concept of a restrictive diet. Most Americans actually are very cynical of diets, and instead prefer to think about whole ingredients, prefer to think about holistic eating, et cetera. We look at the concepts behind Blue Apron as very important to the broader sense of wellness, creating community, financial wellness, mental wellness, again, our partnership with Calm. Physical wellness is a really, really important part of that, but we never wanna be limited to just the concept of trying to lose weight or dieting or something that's very restrictive because we believe that people will eat healthier if the food tastes incredible. People will want to engage more, and you're already going to be eating healthier if you're cooking at home. We do think that that's actually one of our primary audiences, are people who are in the wellness and fitness space, but we wanna do it as part of a bigger picture where we're providing all the different aspects of wellness, not just one. While Maria gets the microphone here, we'll take a question from online. It's my favorite type of investor who also happens to be a customer. Do you ever think of doing rewards for long-term customers like me? I see Starbucks has special aprons for seasoned staff. What about special high quality distinct reward aprons for dedicated customers? It's funny that you bring up that question because when you've been an employee at Blue Apron for one year, you get a blue apron with your name on it, and it is a very coveted thing in order to get, so that's quite a big deal for us as well. For us, actually, yes. Loyalty is a huge part of what we're working on, and there's a lot of different ways that we can reward loyalty. As we announced actually in December, we've signed an agreement with Aspiration to do a co-marketing Blue Apron credit card, which is a great loyalty program that we're gonna be rolling out as part of a larger loyalty program when we think about both physical ways that we can reward users, but also other sort of experiential ways that we can reward users. Maria. Continuing with the partnership theme here, you talked about enterprise sales, and you highlighted 2 partners there. Can you just talk about are you live with those partners today? When are you launching with them? Maybe broadly, can you talk about the opportunity in the enterprise space? Sure. We talked a little bit, as Dani was mentioning, our enterprise sales tend to fall into a few different categories. One of the most popular are gift cards for Blue Apron boxes that can be deployed to employees or to customers as a benefit there. That's the largest implementation we have so far, which is a significant number of customers even beyond what you saw on the screen, where we're issuing gift cards that they can use to either particularly in this world where people are returning to the office part-time, struggling with balance when it comes to juggling kids, et cetera. These programs actually help them give employees something that makes their life a little bit easier by cooking in the evenings. There's the opportunity to reward customers this way. Speaking of loyalty programs, some people are using this in order to reward their own customers and actually say, "Here's a benefit of being a customer of X and such company." Both of those are actually already currently implemented. Some of the other ones that we've done, integrations where we will send custom boxes to an employee group where they're doing a cook along. Particularly, we see this happening for different themes around different heritage months, et cetera, where they want to experiment with global flavors and create a bonding event even if people are remote. That's another popular opportunity. Then we also think there's opportunities to help support with our Heat & Eat meals when it comes to in-office in the future. That's kind of the next step for us. All of those things together actually provide, we think, a very scalable opportunity, because people really wanna help engage their employees, particularly in transition. Really from a longer term perspective, bringing people healthy options to eat at home or in the office is actually very good for saving costs, for ensuring productivity, all of these other areas. We're actually very excited about the enterprise space. Question from online. If you have such a large database of customers historically, why are you bothering to increase the share of top of funnel marketing? Wouldn't reactivation through coupons be more cost-effective? We actually actively do work with. I'm assuming we're talking about the 5.3 million customers that we've had since the start of the business. We are currently actively reactivating a lot of those customers. We've done significant work on that list to make sure that we're not using outdated email addresses, everything else. We do currently actively look at that list. We obviously see with what we've talked about, the potential growth in the industry, we really wanna make sure that we're also targeting people who are trying meal kits for the first time or maybe have tried a different meal kit and haven't tried Blue Apron yet. For us, it's both directions. We're not satisfied with just one, and they do tend to work together. That is under active management, but for us, it's really about how do we actually think about the broader market share and taking more of those 50% of people that haven't even tried a meal kit yet. What I'd love to add to that is if you think about the way in which we've expanded our products, and Linda and I both mentioned it, our colleagues mentioned it, the product offering has expanded so significantly from the early days of our business to where we are today. Reactivating customers is more complicated because we need to explain to them what has changed about our business. The top of funnel and middle of funnel marketing efforts that we're undergoing are meant to educate all customers, whether they are lapsed or have never been a customer, around the benefits of the current version of Blue Apron, not the legacy version of Blue Apron, because it's a very, very different product offering. That's why we think it makes sense to continue to aggressively market through the funnel. Reactivations are super important. Linda showed the stat. It's 20%+ of our customers at any given point, so we do work there too. We've got to attack it from both ends. Hi. Thank you for taking my question. You guys mentioned that you think you have kind of the kind of PP&E in order to scale for a number of years. How much would you have to add in, like, variable labor and things like that? Or are you guys already at scale for variable labor? Like, how many more people are you gonna have to get here to get to, like, you know, your revenue targets? Yeah. We haven't actually discussed that number specifically. But what you're seeing, and you heard this from Charlean as well as frankly from Irina, when we think about how we leverage technology, and you'll see when you're about to go on the tour, we have a huge amount of automation already in place in this facility, and in both of our facilities. We don't necessarily need to scale equal on people to the scale of the boxes because of the fact that we have so much of the automation in place. From a people perspective, our goal, as Charlean was talking about it, is to really engage our employee base, train them, go for quality, go for productivity, and go for longer term employees, because that increases the quality of the box, reduces our credits and refunds, and at the same time, lets us scale with paying our people more and relying less on more people, if that makes sense. In our variable margin, when you look at our P&L, a lot of other companies would call it a delivered gross margin. It's effectively all of the costs that are associated with cost of goods sold. While we will require more people as we scale, we don't view it as an impediment to margins. We view it as an enabler because we actually can do more on balance with a bit less. It's not going to be a limiting factor for us, and I think once you have the benefit of going on the tour a little bit later this morning, you'll see the wealth of physical space that we've got, the impressive nature of the automation, and you'll see a lot of people down there also. People are what power the engine here, but we don't need them linearly to grow. We'll take a question from online. How does your target customer compare to Walmart's core customer? It appears your average customer income is higher than the average Walmart customer. How is product offering being adjusted for a newly announced Walmart partnership channel? Sure. I think there's a couple of things to think about here. You probably noticed throughout the presentation that we designated 55 million households in relation to the fact that we were thinking about $70,000 per year and above. You probably also noticed when it came to our customer base, that our customer base starts actually significantly lower. Our customer base starts around $50,000 per year annual household and above. We do actually see people below what we've designated as our external TAM significantly engaging with the products. People have very different feelings about the priority of food in their life, and we see a lot of people who highly value quality food, and look to purchase the Blue Apron subscription. I will also say that on top of that, for those of you who are very familiar with the Walmart ecosystem, the Walmart.com customer base is different from the Walmart in-store customer base. The income levels are actually significantly different when you think about those two different audiences. There is a lot of overlap, but there's actually a significantly different income profile and demographic profile of Walmart.com with millions and millions of users per month. That's how those things work together. We're not changing our product at all, for the Walmart customer. We're very excited. Again, it starts with three boxes, and it's three boxes per week. It's a wellness box. It's our sort of customer favorites box because we always have customer favorites, and then an easy prep, easy cleanup box, which are recipes that are very minimal prep, very little chopping and very few bowls used in the process, which has been extremely popular. Those recipes will change each week depending on the freshness of the ingredients and seasonality. It's gonna be exactly the same product that we will offer our customers as well. Although I will say likely at a different price point. One of the benefits of being, what I'll say in air quotes, a marketplace seller on Walmart.com means we can set our own pricing. We can construct our offer on Walmart to be margin accretive if we choose to. We're still working through a number of the customer-facing dynamics, but it's an exciting opportunity, and folks should not construe it as margin dilutive. We do not expect it to be. I just drank my water. Thank you so much. One interesting data point you shared with us was that your repeat customers generate about twice as much in revenue versus newer customers. Can you just talk about some of the things that you're doing to sort of retain your users, and where do you see an opportunity to take that repeat rate even higher from here? Yeah. We actually have a full retention program going on at the company right now. Sorry for the water. Excuse me. Where not only are we engaging them with these higher value products that are really driving the AOV and the revenue per customer, but we also have a digital program and an operational program, which Charlean can talk a little bit more about later. On the operational side, we're systematically going through all of the customer pain points with the box and making sure that we're addressing those so that we can retain and engage people. For example, we're just introducing now what she was talking about with kitting, where everything's in one bag, and this makes it a lot easier where you can just grab one bag out of the refrigerator, except for the proteins, 'cause you always wanna keep those separate. You can grab one bag out of the refrigerator, and you're not scrambling through to find out what's going on. Also reduces waste in the box and prevents kind of confusion. There was a story earlier today about someone cooking the arugula out of the kit because they didn't know it was part of the overall kit, and so then your arugula salad has no arugula. Some of those actions are really important. Quality of box, we've introduced a new two-piece liner that we're rolling out right now that you'll actually see when you take a tour. That two-piece liner is both curbside recyclable and also more protective of the food, so less of a chance for damage. Those are high pain points for customers when we think about retention of meal kit customers, and we're addressing those directly. On the flip side, you also have on the technical piece, we can very clearly see our customer journey and where they're looking for something, where they need more help. We've got a whole program around the retention that looks at the various points throughout the customer journey where people might drop off for different reasons and addresses those points. Those are two of the biggest ones. Honestly, the reason that we really focus on product innovation is the number one thing that retains people is we have something for them, they see value in the box, they feel like they're getting more than what they're paying for, and that's what we keep trying to increase with some of the things that you've been able to taste today, and also just broader programs around product innovation. Take a quick question from online just to address a misconception that might be out there. Have you made your guidance slightly more conservative, i.e., in Q4 fiscal year 2020. In the 4th quarter, revenue growth was at least in the mid-teens% range, whereas now it's to be in the mid-teens% range. In a world where words matter, I appreciate the question very much. Our guidance is unchanged. We appreciate how people are dissecting our words as closely as Jerome Powell. This may be a question for you, Randy. Have you quantified what the upsell opportunity is on things like wine, dessert, snacks? It strikes me as relatively low today, but possibly a big opportunity. Can you repeat the first part of that question? I just wanna make sure I get it exactly. Yeah. Have you quantified what the opportunity is in some of the add-ons to the typical subscription, things like wine or desserts? For products that exist within our current food ecosystem, the part of our platform that delivers our meal kits, absolutely. When we look at product expansion, when we looked at product category expansion, or new assortment, we constantly work back through historical analysis and look at trends. We're very seldom surprised with how our new product launches do. Breakfast is an interesting one. It surprised us on the upside. It's been even more popular than we expected it to be, but we did a lot of analysis going through in terms of what we thought it would do. For the other parts that are more future-oriented, a bit further out, you know, I talked about this sort of user experience that I covet as a Blue Apron customer, where Blue Apron will serve up a wine recommendation based on what I put in the box. We're not there yet from a technology standpoint, so we can model it theoretically, but we'd much more rather rely on proper A/B testing with real data. When we have the ability to light it up, we'll test it and we'll read it very quickly. We'll be able to quantify it very much at that point, and then we'll know if it makes sense to go hard at an area or to pivot. Anything you'd add, Linda? No, I think, you know, we see a lot of opportunity, and historically, we've treated these as what you saw in the slide presentation of how this enhances the box experience. In other words, you see the value that adding wine to a subscription actually proves from a customer standpoint. But I think there are also standalone opportunities when you think about the ability to scale some of those additional products. Just some breakdown questions here. I'll group a few together. What percent of customers primarily buy kits versus reheated meals? Or what sales are broken up by those two factors? What percent of customers and sales revenue are derived from subscriptions versus à la carte? Sure. For both of those questions, the answer is somewhat similar. We are still predominantly subscription meal kit driven. Our subscription meal kit is still our most popular. What we saw early on and part of the early development of our product when we did Heat & Eat, was our customers wanted it as a supplement to their box. They were looking for both the meal kit and for the Heat & Eat products because they actually wanted to have something for a quick meal. Kids are going to soccer or something like that, and so you need to split up the meal time. Rather than cooking multiple meals, one of those might be Heat & Eat and one of them might be a kit. That was actually figured into the AOV process. However, we did build it from the start, where you can have a box that is only Heat & Eat right from the launch. Now it's really about expanding that variety to add the ability for people who really just wanna focus on Heat & Eat, to be able to do that. Still a majority of people tend to purchase both. For Wine, for Marketplace, and for Heat & Eat products right now, vast majority is in the meal kit space, with those being supplemental, but they are rapidly growing, and there is a lot of opportunity there. Alex. Okay. I think with healthcare moving more towards value-based or PAT dependent than transactional, on a preventative basis, have you seen interest from insurance companies, senior living facilities, Medicaid, Medicare, to kind of incorporate these foods into people's preventative cycles? Absolutely. Yeah. I think that's a great question, because where you're seeing a lot of direction in healthcare companies now, particularly insurance companies, is recognizing that preventative care, including dietary changes, can save a huge amount of money, can actually prevent certain issues from happening when it comes to health issues, and particularly some of the most prevalent. It's a great opportunity for us, and we've had lots of interesting conversations across the entire wellness spectrum, whether it's insurance companies or general, again, health and wellness types of businesses, where looking at a much more preventative as opposed to a reactive approach to health is a great fit for us. For sure. Go back to the online audience. Please keep sending your questions in. We love to see them. How do you see the competitive landscape evolving, especially against that other company? Can you gain back market share when smaller players struggle in the current environment? Yeah. Honestly, probably the saddest moment for me this morning was how quickly we had to go through the customer comments that were on the screen, because the first screen included a lot of customers that have come back from either they tried Blue Apron early, went to a competitor and came back, or tried other competitors and came to us. We hear this constantly about the quality of our recipes, the quality of our food, quality of our ingredients, the things that we're unwilling to compromise on, and how, what a difference that makes in the box. There's also that, frankly, just feel-good factor when you get an email from somebody whose kid saw an actual entire squash for the first time and didn't know what it actually looked like in its like real form. Getting that type of feedback from customers is really powerful for us. We see a lot of people either coming back from what Randy was talking about before. We shortened our cooking time. We've made it easier. We haven't sacrificed on quality. We haven't sacrificed on flavor, and people are noticing that. Also adding the variety. People are coming back for that. From an overall standpoint, though, there are really still three large players in this space, and then one sort of one step down when it comes to the U.S. We are one of those three. We're still one of the three largest in the space and have the advantage of this facility that you're about to see, to be able to scale that pretty effectively. Again, when you look at our past and you look at some of the margin profiles that we've talked about, we have hit 40% margins even without using this entire space before. Everything is really upside when it comes to scale. For me, I see that you're always gonna have several large players in this space because again, there's not one grocery store chain, there's not one restaurant, there's always gonna be a variety out there, and there's a huge room, amount of room for additional players. When you see a lot of the smaller players in the space, you tend to see players that are much more niche-focused, maybe specific diet, maybe a specific lifestyle, and they tend to be quite small and tend to be quite subscale. This is not a barrier to entry, this is a barrier to scale. A big part of where we're trying to play is leveraging the assets you see here to be able to bring that to bear on our margins and on our customers going forward. The only other thing that I'll say is I do think you will see more and more differentiation amongst the players, especially the three large players, as you start targeting different audiences. That's why segmentation is so important for what we're doing, because there's a lot of people out there, and everybody has specific needs, and that's how we're attacking this with our higher quality and higher, sort of uniqueness of flavors and recipes. That ties into another question that came in online, and we'll shift it back over to Randy to talk about a very similar concept here. Could you talk a bit more about variable margin of the new products, add-ons, breakfasts, and so on? Is variable margin higher than meal kits alone? Variable margin is complicated in our business because of the way in which we think about it, and I've talked about this a lot. We consider ourselves an e-commerce company because we follow many of the fundamental principles of e-commerce, which is an incremental paid unit in a box is a good thing. The box that we ship to our customers is effectively a fixed cost, and the more products that we can get into that box, the better it is for our margins, full stop. If you think about add-ons in particular, they're add-ons. They come as a benefit of being a subscription product. You're going to have the core meal kit product, which means it's an AOV expander and margin accretive in the box. It's a very different dynamic when we talk about doing marketplace or non-subscription sales, and that's an area whereas that part of our business grows, we're going to have to be careful to protect our margins. We'll price things accordingly, and while I never say never, I don't think that it's likely that at least in the short term, that we're gonna offer one-off add-ons on a marketplace. It's likely prohibitively expensive to do that in the short term. Over time, who knows? At present, those products are designed to be margin accretive because they're incremental units, they don't go alone. There's also an important aspect to the sourcing these as well. You heard John talk about in the launch of breakfast items, we were able to create all of our breakfast items out of things we already have in our pantry. The more that we can scale our ingredient pantry, the more we can actually gain the ability to extend revenue, and also extend our purchasing power. Again, we've talked a lot about the direct sourcing model, which is really, really unique to us. The more that we can extend that and be able to drive quantity, then we're able to provide a better quality product to customers for lower than what they can actually pay for it themselves. Hi. I wanted to ask a question. There was a chart with a CPI with regards- Yeah. due to inflation, and I wasn't sure, and forgive me because I was a little late. Yeah. Got into some traffic. The price of food, have you had to increase the subscription pricing? As we've seen with Netflix and all these other subscription models, the prices have gone up. Yeah. Is that something that you guys struggle with? Are you trying to not increase it 'cause you're trying to gain more market share? Like, how does that work? Actually, it's a great question and probably worth breaking down even for people who were seeing it earlier. Because of our direct sourcing model, what we were showing is that we are able to get our raw ingredients at a lower percentage increase than what a consumer might see in the grocery store. When you look at the Consumer Price Index or the Producer Price Index, we're really looking at what are people having to pay in the store versus what can we provide. We have, of course, seen inflation, everybody's seen inflation, but because of the direct sourcing model, we're able to mitigate it somewhat. Our goal has always been to only pass along enough to the customer that it covers those costs. We did just launch a new price increase that was based on food inflation specifically, and we made sure to manage that cost increase in a way to only pass along the right level of value to the customer, where we can still provide a better value than them going to the grocery store or in a restaurant, and those were some of the other charts that we showed as well. As part of that, though, we are actually now basically even with our competitors. Our price was lower per serving before, and so what we have done is we have actually matched competitors in that pricing. Again, but focusing from our side on making sure we're providing a higher quality of ingredient and a higher value in the box as much as humanly possible for the consumer side. We're trying to leverage it in a way where, yes, we have to do a price increase, but we're gonna keep that as low as possible in the process. Yeah. It's, you know, it's nothing that we would ever do without giving it a lot of thought. Passing pricing onto our consumers is always a last resort, and we'll do it in a way that's responsible, not in a way that's gougy. You know, the fact that we are at parity with our largest competitors makes a lot of sense because we do believe hand over heart that our product is superior from a quality perspective. The value that you get for your money from Blue Apron, even with higher prices, is still, we believe, best in the industry. We had a question earlier about whether we need to add people to hit our scale targets. There's a question here from a few different people. Do you believe you have the capacity to serve 500,000 customers without adding a new facility? Yes. Why don't you need to open a new facility to reach the medium-term target guidance? Because we have enough capacity. Again, the important part about that is part of what Charlean talked about. Everything else is we are doing everything we can, both from a margin standpoint and productivity standpoint, but also frankly from an environmental standpoint, to use what we have. We have an incredible facility. We have a lot of equipment. Things like kitting free up space on the pack line where we can actually put more products and ingredients on each pack line and not have to expand. Every time we go down to the floor, I feel like thanking everybody on the floor because we've added so much menu variety, so much additional complexity, and we've not put incremental money into the facility. We're able to do more with the same, consistently and continually. I think it's a real credit to the team that Charlean has built and that's been at Blue Apron for some time. You know, it's going downstairs, which we're about to do after this Q&A, is the most fun thing that we get to do as a company 'cause it is, it's where the product happens. Well, eat. Oh, eat. Wine. Yeah. Although not today for us. Plenty of capacity. I will say everyone internally is quite happy to see John Adler put together the food today. We internally are very excited about this day. We'll go over here. Yes. Yeah. Thanks for taking my question, and thank you all for putting on this really informative analyst day. It's been terrific. Just a few questions regarding ESG. Number one, can you disclose how much was spent in this recent quarter purchasing carbon credits? Number two, can you discuss broadly the board and the company's perspective on ESG? I mean, certainly as a shareholder, we can certainly understand how important it is to have a diverse and inclusive workforce. We've heard you discuss and attempt to quantify how the recent wage increases have led to increased- productivity, et cetera. Just wondering, you know, with all the data that you've collected, how important is it from your customer standpoint that the company have this incredibly deep ESG focus? I mean, does this actually help contribute to increasing the bottom line of the business going forward? Or is this? You know, we understand, again, it's important to be a, you know, a good corporate citizen. Yeah. To what extent does this actually help drive the bottom line? We are doing it because we believe it's good business. I'll answer the first question directly, and then I'll hand it over to Linda. We spent $3 million in March to retire a year's worth of carbon offsets. $3 million. We did not buy the most affordable credits on the market. That's not what we're all about. We bought credits that align with our values as a business that we think makes sense for what we do and makes sense for our customers, and that's the point where I'll hand it off to Linda. Yeah. For us, and this is a big part of why we designed that last pillar of the strategy to talk about profitability and sustainability in one, because we do think that they go hand in hand. We feel it's extremely important to start with our employee base, to engage from within, and also to make sure that we are taking full accountability for the fact that we are a food business. Food companies and food businesses have this unique intersection of labor, influence, environmental influence, frankly, cultural intersections. Again, one of the things I say over and over again, and also I said it today, if you think back on probably the best memories you have, the most important conversations, they probably happened over food. It's how we learn about each other. It's how we connect. All of those come together to be incredibly important. One of the things that I didn't get into when we talked about the customer segmentation, when you look across those segments, a big part of what we've done is we've matched a lot of the things they care about the most, and there's a very high propensity to be concerned about ESG issues, sustainability, particularly with social issues being just behind that. They care to support companies that they feel have a brand alignment to that. We see a customer upside opportunity in the ability to engage those audiences. We've also mapped the other brands that they care about because they tend to be other sustainable brands. They tend to be companies that have similar ethos, and this is a great opportunity when you think about future expansion and partnerships and being able to really speak to some of those issues. We also recognize that we are a business, we're also a turnaround business. We are a business that continues to evolve, and we have to use our money in the smartest way possible. We dedicate that money and our focus to things that we know the customers are gonna care about, but are also eventually gonna add to our bottom line, and I think the $18 an hour is exactly the example we use when we talk about that. You asked also about an alignment perspective. Our board is extremely aligned on the importance of ESG for the business, the importance of doing the right thing, but also the importance of making sure that that is proven out in both the top line when it comes to customer sentiment and in the bottom line when it comes to saving on productivity, reducing waste, et cetera. But- Sorry, just one more thing. Sorry, I get excited about this. Me too. One of the things that is important to really note, though, and we haven't talked about quite as much today, the direct-to-consumer model really removes a lot of food waste from the supply chain. 40% of food in the U.S. is thrown out. A big part of where we focused our sustainability from the early stages, but also what's good for the business, is the direct-to-consumer model lets us really minimize that loss throughout the entire process and in the customer's home. It's also part of the reason we're so excited about, like, the Walmart.com partnership, because this partnership allows us to sell our boxes as we do now, but produce them here so we can continue to manage that waste. that fourth pillar of distribution and licensing is so critical because being able to scale in a way that also has the same margin profile and the same lower waste profile as what we already do is actually kind of, I think, a huge unlock for us. Sorry. I was just gonna add, it's an interesting virtuous circle, and our expert in ESG happens to be sitting to your left, so when I get this wrong, Kelly will hopefully get it right. You know, we like our product, we take our customer cues, and our customers have told us that the perception of the lack of recyclable content in our boxes bothers them. One of the reasons that we're going to this two-piece liner is because our customers told us they wanted more recyclability. It's great for the business because customers will appreciate it. It will keep our food colder and safer. The fact that we're moving to something that is curbside recyclable also lowers our carbon footprint, which means the cost of these offsets in future years are lower. Again, it's this sort of flywheel effect that we think is good for customers, but in the long term makes real economic sense. The one that you see clearest is the $18. That was a smart investment that we made that we're already seeing return on. I view all of our ESG moves in a similar light. I mentioned earlier that my favorite person is an investor who's also a customer. My second favorite thing is an institutional investor who's a foodie. Yes. This question is, how important is social media followership to Blue Apron? As a food lover, the content generated by the Instagram handle FOODb ible- small print here, I'm sorry, generated such compelling content. Do you think upping Blue Apron's game in this arena is a good strategy? One of the things that, the word that you heard throughout multiple parts of my presentation and Dani's presentation is content. This is another area where a long time ago, Blue Apron had a lot more content, both in the box and online, and as the company went through transition, some of that shifted. We're starting to reintroduce a lot of that content, and particularly from a community perspective. Something you'll notice when you follow our social media accounts or look at anything that we do, is we don't just limit to what's in the box. We wanna be inspiring to people in various aspects of their life, whether it's social aspects, whether it's recipes that are even beyond, you know, we do a lot of cocktail recipes, which tend to be very popular. I do think there's a larger opportunity on the social side, and we've just brought a lot of our social media engagement in-house, and so we're doing a lot more of that ourselves to be a little bit more true to the brand and a lot more nimble when we think about that engagement. More to come. Take another question here. Can you provide a general idea of the breakout of cost of goods sold? Percentage-wise, drivers. Can I? Are we allowed to? I certainly am able to. Look, the lion's share of the cost is food. If you think about, you know, we'll take our target margin of 40%. If you think about 60% of your cost of goods is consumed through either food, packaging, logistics, or labor. Food is the biggest one. I'd say it's on, you know, and I'll do this, I'll check this number, but my gut says it would be about half of our cost, and the balance would be split between the other related pieces, which are logistics, handling, external internal packaging. About 50% food and about 50% the balance on average. Max, our Vice President of FP&A is in the front row and will correct the record if I got that at all wrong. Nailed it. Thank you. Next question. Can you quantify the impact of your recent and future price increases on customer churn and revenue development? Are price increases enhancing revenue because price outweighs additional churn, or is it short-term churn higher than the original revenue? Um, what I can- Additional revenue, I'm sorry. Yeah. What I can say is, it is revenue accretive. We probably wouldn't do it if it wasn't. We always look at revenue upside when it comes to these things, but we also look at churn because again, our focus right now is customer growth and getting to profitability. Both of those things are very important. We do measure and very carefully look at and test for how we're gonna think about churn, and have always optimized both the transparency of our communications around our price increases, as well as the way we roll our price increases out, in order to minimize churn as much as possible. What we've publicly revealed in the past is that in the fall when we did our price increase then, we saw less than expected churn. This one is still very early, but we are on track for good things. Thanks. Where do you see Heat & Eat going in the future, and will you be able to sell that through Walmart or other partners? Heat & Eat, again, we launched it primarily because our customers were saying they wanted it in addition to their meal kits, and we've seen a lot of that buying behavior. We do have the capability of being able to add more Heat & Eat to just to be able to have your own box of Heat & Eat. We've been rolling that product out with new recipes over time, so that's been something where we've rolled and added more and more, including we've started adding wellness recipes that have done extremely well. You pointed out, you know, other companies where they have a health focus for Heat & Eat. The wellness recipes are something that is extremely popular that tends to be an audience that likes to have the ability to have Heat & Eat meal at times, particularly for lunch, that's wellness focused, and then maybe a meal kit for dinner. We do think there's lots of opportunity for expansion, and we're continuing to do that now. We actually have varying degrees of complexity and or ease throughout our entire product line. Our premium recipes, for example, tend to be more unique techniques, a little bit longer cook time, call it a Saturday night date night type of, you know, a duck type of dish or scallops, et cetera, that might take a little more work. We have our signature recipes that tend to be, you know, around 30-40 minutes, but usually closer to 30 minutes, that are fairly standard cooking prep. We have what's called the easy prep and easy cleanup, which the time of the recipe might be longer, but it might be in the oven just for most of that time, so you're doing very little work. We have our Heat & Eat. We're gonna be introducing another level in there as well later this year. Really what we're trying to maximize for are different people looking for different flavor profiles. That being said, I think Heat & Eat still has a huge amount of room to grow and to expand. We also wanna make sure it really tastes good because that's what we're known for. We don't wanna sacrifice that, so we're very thoughtful about how we roll out those recipes. I'm so glad Linda mentioned that because that has been one of the factors in determining the pace of our Heat & Eat rollout. We will not put something out to market if it doesn't meet our quality bar from a taste perspective, from a flavor profile perspective. John Adler, who you heard from today, earlier today, would not let us. You know, the recipe quality has to be there, and as we find more of those recipes, we will roll more out. Oh, um, so- Yes. It's what we're being told. It's potential there, but also the other thing, if you heard Dani talk about, we are also piloting with DoorDash, Heat & Eat delivery. That's currently in pilot mode right now. As the business scaled up, there was a really nice chart in the presentation that basically talked about the distribution between new and repeat orders. Do you see pretty much through the entire time that chart was presented, it was, you know, a high of 90% and a low of 80%. Do you see even with kind of the expanded marketing funnel, that ratio staying roughly similar- Yeah As it scales? It's a good question. As you saw for Q1, where we were accelerating new customer acquisition pretty aggressively, the number of repeat orders actually shrunk a bit as a percentage because we had this big push. That's also Q1 tends to be also a higher new customer acquisition. Turns out us and gyms are very similar. People make New Year's resolutions, and they're looking to improve their lives, and so you see a lot of push there. I do see a lot of that percentage roughly staying the same because we are focusing on growing our customer base, but our ideal is growing customer base that looks like our current highly engaged, high AOV, high revenue per customer base. We are already over time. We'll take just a couple more questions. We have one question from one of our investors who is. I'm gonna put Linda on the spot now. Please explain why you bought stock at $12 a share. Because I believe strongly in the future of this business. I happen to have a front row seat to what's happening here. I also firmly believe that as we look at what's happening in the macro environment right now, food is still such a huge priority for customers. As people think about combining experiences, community, and something that they need to do every day, which is eat, at least last time I checked, you know, that is just a massive opportunity. I'm really excited about what we have ahead, and I wanted to make sure that I continue to bring on more of that into my own personal portfolio. Thank you. As an employee, thank you. This just skipped on me. Question for Randy. Why did AOV decline quarter-over-quarter from the 4th quarter, given you did a price increase in the second half of last year? When we report our AOV externally, that's, it's our net AOV. Obviously, what comes before net is gross. If you start with our gross revenue, you then back out credits and refunds, which we've seen have come down nicely on the heels of our investment in people, but also promotional incentives, coupons, acquisition incentives. We put more of those out into the world in Q4 and in Q1 than we have in our past. If we were reporting gross AOV, you would've seen Q1 as our highest gross AOV in the history of the company. We also invested in promotional incentives, so that took a little bit of the air out of the balloon between gross and net. It's a smart investment because as we've shown, repeat customers is a core of delivering this business, and we know that. We believe, I should say, that bringing in more customers, even if we bring them in with acquisition incentives, with a short-term small divot, and the movement from Q1 or from Q4 to Q1 in AOV was pretty small, and both of those were in line with our new pricing, by the way. It wasn't necessarily a pricing move that impacted it, but it was really about the business's desire to bring on more customers through acquisition incentives. Yeah. I will say it's important to note that we didn't necessarily increase the amount of each acquisition incentive. It was actually more customers taking the acquisition incentive in a period of growth. That's what caused that delta. Should we make this our last one? You guys have emphasized how you're a very, you know, customer data-centric company. Are there opportunities for you to kind of further monetize that customer data in the future? You know, it's a good question. We've talked about the fact that we have a very highly engaged customer base, that's very loyal and provides strong revenue. We'd wanna think very carefully about any action we took with those customers. That being said, we've already been leveraging a few things on our own, as we look at this. For example, for those of you who are customers, you might have noticed that last year we started putting coupons and offers for other companies into the box. Also, some of the partnerships we do, are joint, but we do those in such a way that we were protecting the privacy of our customers. There is potential in the future, but right now, we're very, very specific about making sure that we're not revealing any customer information or doing anything that might disengage these very high-value customers. Doesn't mean there's not an opportunity. We're using a lot of it on our own platform right now when it comes to expanding offers to our customers, of our like-minded partners. We had a super engaged audience online asking a number of questions. We couldn't get to them all. We will do our best to get back to you offline in the days to come. With that, on behalf of the management team here, I would like to thank everyone who showed up in person and everyone who tuned in online. We appreciate everyone taking the time today. Thank you very much.