The Marley Spoon AG (ASX: MMM) share price has rocketed 40.4% higher in early trade after a strong market update yesterday evening.
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Why is the Marley Spoon share price surging?
The big catalyst here was Marley Spoon's strong quarterly update yesterday afternoon.
Marley Spoon upgraded its full-year guidance to at least 70% revenue growth in 2020, up from ~30% previously.
That has helped propel the Marley Spoon share price to a new record high of $3.32 per share this morning before edging back slightly to $3.30 at the time of writing.
The company delivered 13.2 million meals in Q2 2020 with more than 90% of revenue coming from repeat customers.
Marley Spoon reported its first positive global operating earnings before interest, tax, depreciation and amortisation (EBITDA) last quarter.
The food delivery service is now active in 8 countries around the world across Australia, Europe and North America.
What were the highlights from the market update?
The Marley Spoon share price is on the charge in early trade after reporting 'very strong performance' across all top line metrics for the June quarter.
Quarterly net revenue rocketed 129% higher compared to Q2 2019, while active customer and total order numbers rose by 104% and 114% respectively.
On top of that, Marley Spoon reported positive operating EBITDA of 4.5 million euros (A$7.4 million) with a global contribution margin (CM) for Q2 at 30.5%.
Marley Spoon is one example of an ASX share that has actually benefitted from the onset of the coronavirus pandemic.
It wasn't just in Australia where the food delivery company saw strong results. Quarterly revenue for Australia rocketed 103% higher to 24 million euros (A$39.4 million).
The United States is the company's fastest-growing segment. Quarterly segment revenue rocketed 171% to 38 million euros (A$62.4 million) while European revenue surged 83% to 11 million euros (A$18.1 million).
It's easy to see why the Marley Spoon share price has surged to a new record high in today's trade. Strong volume numbers and a record contribution margin have propelled quarterly earnings higher.
It also represents the second consecutive quarter of positive operating cash flow for the company. Net cash flow from operations climbed to 7.6 million euros (A$12.5 million) following last quarter's 0.5 million euros (A$0.8 million) result.
Foolish takeaway
These are some strong quarterly growth numbers from the food delivery company. The Marley Spoon share price has rocketed over 40% to a new record high, with investors clearly impressed by the latest figures.
The S&P/ASX 300 Index (ASX: XKO) has started the day strongly with a 0.66% gain so far.
