Loading...
01/09 22:04
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with revenue, gross profit, and adjusted EBITDA growth, alongside optimistic guidance for the next quarter and year. Although macroeconomic risks and competitive pressures are acknowledged, the company has demonstrated resilience and strategic initiatives like the Real Partners program. The absence of a share repurchase program is a minor negative, but overall, the positive financials and guidance outweigh potential risks, suggesting a positive stock price movement.
GMV $490 million, increased 9% year-over-year.
Revenue $160 million, increased 11% year-over-year. Consignment revenue increased 7% and direct revenue increased 61% year-over-year.
Gross Profit $120 million, increased 12% year-over-year, resulting in a gross margin of 75%, an increase of 40 basis points.
Operating Expenses $133 million, increased 6% year-over-year, but improved as a percentage of total revenue by 410 basis points.
Adjusted EBITDA $4.1 million, increased $6.4 million year-over-year, with adjusted EBITDA margins increasing over 400 basis points.
Operating Cash Flow Negative $28 million, impacted by timing of incentive payments and working capital seasonality.
Cash Position $154 million in cash, cash equivalents, and restricted cash.
Get Paid Now program: An offering for consignors on select high-end brands in watches, handbags, and fine jewelry, allowing the company to purchase inventory directly, significantly increasing profitability.
Drop Ship Expansion: Expanded drop ship capabilities into handbags, building on previous success in watches.
Active Buyers Growth: Active buyers increased by 7% on a trailing 12-month basis, reaching 985,000.
New Consignors Growth: Achieved the highest number of new consignors in over two years, with stores contributing a quarter of all new consignors.
AI-Enabled Product Intake (Athena): Launched Athena, processing over 10% of items, reducing processing times by an estimated 20%.
Operational Efficiency Improvements: Gross margin improved by 40 basis points year-over-year, driven by efficiencies in fulfillment and customer support.
Growth Playbook: Implemented a growth playbook focusing on sales, marketing, and retail stores to drive supply and profitability.
Direct Revenue Strategy: Reimagined direct revenue model, achieving a gross margin of 25.5%, up from 3.3% year-over-year.
Economic Factors: The company acknowledges potential challenges arising from a more uncertain macroeconomic environment, which could impact consumer behavior and overall business performance.
Regulatory Issues: Uncertainties from tariffs are mentioned as a factor that could affect the company's operations and supply chain.
Supply Chain Challenges: The company sources its supply primarily from domestic closets, which may provide some insulation from external supply chain disruptions, but the overall unpredictability of the environment remains a concern.
Competitive Pressures: The company operates in a competitive luxury resale market, and while they are currently performing well, they must continuously adapt to maintain their market position.
Growth Playbook: The RealReal is focused on unlocking supply through a growth playbook that includes sales, marketing, and retail stores. This strategy has driven strong consignor growth and improved brand awareness.
AI and Automation: The company is leveraging AI and automation, particularly through the Athena program, to enhance operational efficiency and reduce processing times.
Get Paid Now Program: This initiative allows consignors to receive immediate payment for select high-demand brands, significantly improving the profitability of direct revenue.
Drop Ship Expansion: The company is expanding its drop ship capabilities into new categories, which is expected to unlock additional supply.
Real Partners Program: This referral program is aimed at building relationships with key partners to expand the supply network.
Full Year GMV Guidance: The RealReal expects full year GMV in the range of $1.96 billion to $1.99 billion, reflecting an 8% year-over-year increase at the midpoint.
Full Year Revenue Guidance: Revenue is expected to be in the range of $645 million to $660 million, representing a 9% year-over-year increase at the midpoint.
Adjusted EBITDA Guidance: The company anticipates adjusted EBITDA in the range of $20 million to $30 million for the full year.
Q2 GMV Guidance: For Q2, GMV is expected to be between $476 million and $486 million, indicating 9% growth year-over-year.
Q2 Revenue Guidance: Revenue for Q2 is projected to be in the range of $157 million to $161 million, reflecting a 10% year-over-year increase.
Q2 Adjusted EBITDA Guidance: Adjusted EBITDA for Q2 is expected to be between $3 million and $4 million, representing margin expansion year-over-year.
Share Repurchase Program: None
The earnings call summary reflects strong financial performance, with significant growth in GMV and revenue projections, and positive EBITDA outlook. The company is making strategic investments in AI, automation, and marketing, which are expected to drive efficiency and growth. The Q&A section highlights management's confidence in their strategies and market position, despite some uncertainties. The announcement of new initiatives and partnerships, along with positive cash flow projections, further supports a positive sentiment. Overall, these factors suggest a likely stock price increase of 2% to 8% over the next two weeks.
The earnings call shows strong financial performance with improved operating expenses and cash flow. The Q&A indicates confidence in growth momentum, scalability, and margin stability, supported by strategic initiatives like AI and drop ship expansion. Despite some uncertainties in revenue guidance, the overall sentiment is positive, driven by double-digit new seller growth and effective reinvestments. The company's strategic focus and optimistic outlook for margin expansion suggest a positive stock price movement in the short term.
The earnings call highlights strong financial performance with revenue, gross profit, and adjusted EBITDA growth, alongside optimistic guidance for the next quarter and year. Although macroeconomic risks and competitive pressures are acknowledged, the company has demonstrated resilience and strategic initiatives like the Real Partners program. The absence of a share repurchase program is a minor negative, but overall, the positive financials and guidance outweigh potential risks, suggesting a positive stock price movement.
The earnings call summary reveals strong financial performance with increased revenue, improved adjusted EBITDA, and positive cash flow. Additionally, the company has provided optimistic guidance for Q4 2024 and the full year, indicating potential profitability. The Q&A section supports this sentiment, highlighting healthy supply trends, strong demand, and effective operational strategies. Despite some vague responses, the overall outlook is positive, especially with the company's focus on growth and efficiency. The absence of a market cap suggests a neutral-to-positive reaction, leading to a positive stock price movement prediction of 2% to 8%.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
