ATRenew Inc Reports Third Quarter 2024 Financial Results
Intellectia.AI2024-11-21
ATRenew Inc. Reports Third Quarter 2024 Financial Results
ATRenew Inc. (NYSE: RERE), a leading platform for pre-owned consumer electronics in China, announced its unaudited financial results for the third quarter of 2024, ending September 30.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $577.3 million | $464.0 million | +24.4% |
| Earnings from Operations (GAAP) | $3.5 million | -$4.0 million | N/A |
| Adjusted Earnings from Operations | $14.8 million | $10.5 million | +42.7% |
| Net Income (GAAP) | $2.6 million | -$6.3 million | N/A |
| Adjusted Net Income | $12.8 million | $6.8 million | +88.2% |
ATRenew recorded total revenue of $577.3 million, marking a robust year-over-year increase of 24.4%. The company swung to a positive net income of $2.6 million from a loss in the prior year, reflecting successful initiatives to optimize expenses and capitalize on revenue growth.
Revenue Performance by Segment
| Segment | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Net Product Revenue | $523.3 M | $416.8 M | +25.6% |
| Net Service Revenue | $54.0 M | $47.5 M | +13.9% |
The product segment benefitted from increased sales through online and offline channels, while service revenue growth was supported by the PJT Marketplace and multi-category recycling business.
Key Developments & Operational Highlights
- Improvement in ESG score assessed by S&P Global, placing ATRenew in the 93rd percentile globally among RTS retailing industry peers.
- Repurchasing over 4.9 million ADSs for $12.1 million, indicating a strong commitment to shareholder returns.
Executive Commentary
Kerry Xuefeng Chen, CEO, highlighted the company’s impressive revenue growth and the strong adoption of trade-in services. CFO Rex Chen pointed to enhanced profitability due to optimized expenses and decreased amortization impacts, emphasizing the company’s focus on operational efficiency and value delivery.
Share Repurchase Program
During the third quarter, ATRenew repurchased approximately 4.9 million ADSs for $12.1 million, with the program continuing to authorize up to $50 million in repurchases through June 2025.
Forward Guidance
The company projects Q4 2024 revenue to range between RMB4,740.0 million and RMB4,840.0 million, indicating a potential year-over-year increase of 22.4% to 24.9%.
Stock Price Movement
Post-earnings release, ATRenew’s stock appreciated by approximately 13.82%, reflecting positive investor sentiment following the financial results announcement.
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