The Marley Spoon AG (ASX: MMM) share price has been one of the best performers on the Australian share market over the last 12 months.
During this time, the meal kit delivery company's shares have recorded a staggering gain of 720%.
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Why is the Marley Spoon share price up over 700% in 12 months?
Investors have been fighting to buy the company's shares due to it experiencing a surge in sales during the pandemic.
For example, during the third quarter of FY 2020, Marley Spoon reported very strong growth across all geographic regions. This was driven by demand for its meal kits from both new and existing customers, leading to positive growth momentum and favourable customer acquisition costs.
For the three months ended 30 September, Marley Spoon achieved revenue of 69.3 million euros, which was up 109% on the prior corresponding period.
They key driver of its growth was its US operations, which accounted for almost half of its revenue. The US business recorded revenue of 34.2 million euros, up 163% in constant currency terms. Management noted that this was driven by strong growth from its Martha & Marley Spoon and Dinnerly brands. It achieved third quarter earnings before interest, tax, depreciation and amortisation (EBITDA) of 0.7 million euros.
Similarly strong growth was achieved in Australia, with revenue increasing 84% to 25.3 million euros. These operations were even more profitable, with operating EBITDA coming in at 3.4 million euros for the quarter.
Over in Europe, the company posted an 83% increase in revenue to 9.8 million euros but an EBITDA loss of 0.6 million euros.
At the end of the period, the company had 362,000 active customers across the three markets. This was 86% higher than a year earlier.
What about the fourth quarter and full year?
Also getting investors excited has been the company's guidance for the full year.
Management is expecting its solid growth to continue and has provided FY 2020 revenue guidance in the range of 90% to 100% year on year.
And with the company recently raising $56 million via a fully underwritten placement, Marley Spoon appears well-placed to invest in its growth in FY 2021.
One broker that appears confident in its future is Cannacord Genuity. Late last year it put a buy rating and $4.20 price target on its shares. This compares to the latest Marley Spoon share price of $2.78.
