The RealReal (Nasdaq: REAL)—the world’s largest online marketplace
for authenticated, resale luxury goods—today reported financial
results for its fourth quarter and full year ended December 31,
2023. Fourth quarter 2023 Net Loss was $22 million, compared to $39
million in the fourth quarter of 2022. Fourth quarter 2023 Adjusted
EBITDA was positive $1.4 million, a $22 million improvement
compared to the fourth quarter of 2022. Full year 2023 Net Loss was
$168 million, compared to $196 million for full year 2022. Full
year 2023 Adjusted EBITDA was $(55) million, compared to $(112)
million for full year 2022.
“In the fourth quarter of 2023, The RealReal delivered positive
Adjusted EBITDA and positive free cash flow. These are historic
milestones and firsts for the company since our IPO in 2019. Our
strategic shift to re-focus on the consignment business is
delivering strong progress in our results. We refined our growth
model with a focus on profitable supply and in the process we
significantly improved our margin structure. We intend to carry
forward this improved margin structure as we reaccelerate growth
going forward,” said John Koryl, Chief Executive Officer of The
RealReal.
The RealReal also announced it entered into private, separately
negotiated debt exchange transactions with certain holders of
$145,751,000 in aggregate principal amount of its 3.00% Convertible
Senior Notes due 2025 and $6,480,000 in aggregate principal amount
of its 1.00% Convertible Senior Notes due 2028, pursuant to which
such holders exchanged their existing convertible notes for (a)
$135,000,000 in aggregate principal amount of new 4.25%/8.75%
PIK/Cash Senior Secured Notes due 2029, (b) warrants to purchase up
to 7,894,737 shares (subject to adjustment in accordance with their
terms) of the Company’s common stock, $0.00001 par value per share,
at a strike price equal to $1.71, which was the closing price of
the Company’s common stock on February 28, 2024 and (c) accrued and
unpaid interest. As a result of the debt exchange transactions, the
Company reduced its total indebtedness by more than $17 million and
extended a significant portion of its 2025 maturities.
Moelis & Company LLC served as financial advisor and
Wachtell, Lipton, Rosen & Katz served as legal counsel to The
RealReal in connection with the exchange transactions.
“The exchange transactions completed today are another
significant step forward for The RealReal, creating substantial
runway and capital structure flexibility for us to execute on our
strategic vision,” Koryl continued. “We believe our strong brand
recognition coupled with our growing technology and data
capabilities position us to deliver profitable growth in 2024.”
Fourth Quarter Financial Highlights
- GMV was $451 million, a decrease of 9% compared to the same
period in 2022
- Total Revenue was $143 million, a decrease of 10% compared to
the same period in 2022
- Net Loss was $22 million or (15.1)% of total revenue, compared
to $39 million or (24.2%) of total revenue in the fourth quarter of
2022
- Adjusted EBITDA was $1.4 million or 1.0% of total revenue,
compared to $(20.2) million or (12.6)% of total revenue in the
fourth quarter of 2022
- GAAP basic and diluted net loss per share was $(0.21) compared
to $(0.39) in the prior year period
- Non-GAAP basic and diluted net loss per share was $(0.07)
compared to $(0.29) in the prior year period
- Top-line-related Metrics
- Trailing 12-months active buyers reached 922,000, a decrease of
8% compared to the same period in 2022
- Orders reached 826,000, a decrease of 17% compared to the same
period in 2022
- Average order value (AOV) was $545, an increase of 10% compared
to the same period in 2022
- Higher AOV was driven by a 13% increase in average selling
prices
Full Year 2023 Financial Highlights
- GMV was $1.73 billion, a decrease of 5% compared to full year
2022
- Total Revenue was $549 million, a decrease of 9% compared to
full year 2022
- Net Loss was $168 million or (30.7)% of total revenue, compared
to $196 million or (32.5%) of total revenue for full year 2022
- Adjusted EBITDA was $(55.2) million or (10.0)% of total revenue
compared to $(112.4) million or (18.6)% of total revenue for full
year 2022
- GAAP basic and diluted net loss per share was $(1.65) compared
to $(2.05) in the prior year
- Non-GAAP basic and diluted net loss per share was $(0.87)
compared to $(1.53) in the prior year
- At the end of 2023, cash, cash equivalents and restricted cash
totaled $191 million
Q1 and Full Year 2024 GuidanceBased on market
conditions as of February 29, 2024, we are providing guidance for
GMV, total revenue and Adjusted EBITDA, which is a non-GAAP
financial measure.
We have not reconciled forward-looking Adjusted EBITDA to net
income (loss), the most directly comparable GAAP measure, because
we cannot predict with reasonable certainty the ultimate outcome of
certain components of such reconciliations, including payroll tax
expense on employee stock transactions, that are not within our
control, or other components that may arise, without unreasonable
effort. For these reasons, we are unable to assess the probable
significance of the unavailable information, which could materially
impact the amount of future net income (loss).
|
Q1 2024 |
Full Year
2024 |
GMV |
$415 - $445 million |
$1.80 - $1.88 billion |
Total
Revenue |
$135 - $145 million |
$580 - $605 million |
Adjusted
EBITDA |
$(8) - $(4) million |
$(8) - $8 million |
Webcast and Conference CallThe RealReal will
post a stockholder letter on its investor relations website
at investor.therealreal.com/financial-information/quarterly-results and
host a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern
Time) to answer questions regarding its fourth quarter and full
year 2023 results. Investors and analysts can access the call via
the following link:
https://register.vevent.com/register/BI3644a7479aa04644b48e497e14e46fec.
The call will also be available via live webcast
at investor.therealreal.com along with the stockholder
letter and supporting slides.
An archive of the webcast conference call will be available
shortly after the call ends at investor.therealreal.com.
About The RealReal, Inc.
The RealReal is the world’s largest online marketplace for
authenticated, resale luxury goods, with more than 35 million
members. With a rigorous authentication process overseen by
experts, The RealReal provides a safe and reliable platform for
consumers to buy and sell their luxury items. We have hundreds of
in-house gemologists, horologists and brand authenticators who
inspect thousands of items each day. As a sustainable company, we
give new life to pieces by thousands of brands across numerous
categories—including women's and men's fashion, fine jewelry and
watches, art and home—in support of the circular economy. We make
selling effortless with free virtual appointments, in-home pickup,
drop-off and direct shipping. We handle all of the work for
consignors, including authenticating, using AI and machine learning
to determine optimal pricing, photographing and listing their
items, as well as shipping and customer service.
Investors:Caitlin HoweSenior Vice President,
FinanceIR@therealreal.com
Media:Laura HogyaHead of
Communicationspr@therealreal.com
Forward Looking Statements
This press release contains forward-looking statements relating
to, among other things, the future performance of The RealReal that
are based on the company's current expectations, forecasts and
assumptions and involve risks and uncertainties. In some cases, you
can identify forward-looking statements by terminology such as
“may,” “will,” “should,” “could,” “expect,” “plan,” anticipate,”
“believe,” “estimate,” “predict,” “intend,” “potential,”
“continue,” “ongoing” or the negative of these terms or other
comparable terminology. These statements include, but are not
limited to, statements about future operating and financial
results, including our strategies, plans, commitments, objectives
and goals, in particular in the context of the recent geopolitical
events, including the conflict between Russia and Ukraine and the
Israel-Hamas war, and uncertainty surrounding macroeconomic trends;
the debt exchange; financial guidance, anticipated growth in 2024
and long-range financial projections. Actual results could differ
materially from those predicted or implied and reported results
should not be considered as an indication of future performance.
Other factors that could cause or contribute to such differences
include, but are not limited to, inflation, macroeconomic
uncertainty, geopolitical instability, any failure to generate a
supply of consigned goods, pricing pressure on the consignment
market resulting from discounting in the market for new goods,
failure to efficiently and effectively operate our merchandising
and fulfillment operations, labor shortages and other reasons.
More information about factors that could affect the company's
operating results is included under the captions “Risk Factors” and
“Management's Discussion and Analysis of Financial Condition and
Results of Operations” in the company's most recent Annual Report
on Form 10-K for the year ended December 31, 2022 and subsequent
Quarterly Reports on Form 10-Q, copies of which may be obtained by
visiting the company's Investor Relations website at
https://investor.therealreal.com or the SEC's website at
www.sec.gov. Undue reliance should not be placed on the
forward-looking statements in this press release, which are based
on information available to the company on the date hereof. The
company assumes no obligation to update such statements.
Non-GAAP Financial Measures
To supplement our unaudited and condensed financial statements
presented in accordance with generally accepted accounting
principles ("GAAP"), this earnings release and the accompanying
tables and the related earnings conference call contain certain
non-GAAP financial measures, including Adjusted EBITDA, Adjusted
EBITDA as a percentage of total revenue ("Adjusted EBITDA Margin"),
free cash flow, non-GAAP net loss attributable to common
stockholders, and non-GAAP net loss per share attributable to
common stockholders, basic and diluted. We have provided a
reconciliation of these non-GAAP financial measures to the most
directly comparable GAAP financial measures in this earnings
release.
We do not, nor do we suggest that investors should, consider
such non-GAAP financial measures in isolation from, or as a
substitute for, financial information prepared in accordance with
GAAP. Investors should also note that non-GAAP financial measures
we use may not be the same non-GAAP financial measures, and may not
be calculated in the same manner, as that of other companies,
including other companies in our industry.
Adjusted EBITDA is a key performance
measure that our management uses to assess our operating
performance. Because Adjusted EBITDA facilitates internal
comparisons of our historical operating performance on a more
consistent basis, we use this measure as an overall assessment of
our performance, to evaluate the effectiveness of our business
strategies and for business planning purposes. Adjusted EBITDA may
not be comparable to similarly titled metrics of other
companies.
We calculate Adjusted EBITDA as net
loss before interest income, interest expense, other (income)
expense net, provision (benefit) for income taxes, depreciation and
amortization, further adjusted to exclude stock-based compensation,
employer payroll tax on employee stock transactions, and certain
one-time expenses. The employer payroll tax expense related to
employee stock transactions are tied to the vesting or exercise of
underlying equity awards and the price of our common stock at the
time of vesting, which may vary from period to period independent
of the operating performance of our business. Adjusted EBITDA
has certain limitations as the measure excludes the impact of
certain expenses that are included in our statements of operations
that are necessary to run our business and should not be considered
as an alternative to net loss or any other measure of financial
performance calculated and presented in accordance with GAAP.
In particular, the exclusion of certain expenses in calculating
Adjusted EBITDA and Adjusted EBITDA Margin facilitates operating
performance comparisons on a period-to-period basis and, in the
case of exclusion of the impact of stock-based compensation and the
related employer payroll tax on employee stock transactions,
excludes an item that we do not consider to be indicative of our
core operating performance. Investors should, however, understand
that stock-based compensation and the related employer payroll tax
will be a significant recurring expense in our business and an
important part of the compensation provided to our employees.
Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA
Margin provide useful information to investors and others in
understanding and evaluating our operating results in the same
manner as our management and board of directors.
Free cash flow is a non-GAAP financial
measure that is calculated as net cash (used in) provided by
operating activities less net cash used to purchase property and
equipment and capitalized proprietary software development costs.
We believe free cash flow is an important indicator of our business
performance, as it measures the amount of cash we generate.
Accordingly, we believe that free cash flow provides useful
information to investors and others in understanding and evaluating
our operating results in the same manner as our management.
Non-GAAP net loss per share attributable to common
stockholders, basic and diluted is a non-GAAP
financial measure that is calculated as GAAP net loss plus
stock-based compensation expense, provision (benefit) for income
taxes, employer payroll tax on employee stock transactions and
non-recurring items divided by weighted average shares outstanding.
We believe that adding back stock-based compensation expense,
employer payroll tax on employee stock transactions, provision
(benefit) for income taxes, and non-recurring items as adjustments
to our GAAP net loss, before calculating per share amounts for all
periods presented provides a more meaningful comparison between our
operating results from period to period.
THE REALREAL,
INC.Statements of Operations(In
thousands, except share and per share data)
|
(Unaudited) |
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
Consignment revenue |
$ |
113,500 |
|
|
$ |
110,199 |
|
|
$ |
415,572 |
|
|
$ |
384,979 |
|
Direct revenue |
|
15,964 |
|
|
|
33,252 |
|
|
|
79,160 |
|
|
|
158,726 |
|
Shipping services revenue |
|
13,909 |
|
|
|
16,204 |
|
|
|
54,572 |
|
|
|
59,788 |
|
Total revenue |
|
143,373 |
|
|
|
159,655 |
|
|
|
549,304 |
|
|
|
603,493 |
|
Cost of revenue: |
|
|
|
|
|
|
|
Cost of consignment revenue |
|
14,439 |
|
|
|
13,770 |
|
|
|
58,120 |
|
|
|
56,963 |
|
Cost of direct revenue |
|
13,181 |
|
|
|
36,246 |
|
|
|
74,343 |
|
|
|
141,661 |
|
Cost of shipping services revenue |
|
9,704 |
|
|
|
13,029 |
|
|
|
40,563 |
|
|
|
56,178 |
|
Total cost of revenue |
|
37,324 |
|
|
|
63,045 |
|
|
|
173,026 |
|
|
|
254,802 |
|
Gross profit |
|
106,049 |
|
|
|
96,610 |
|
|
|
376,278 |
|
|
|
348,691 |
|
Operating expenses: |
|
|
|
|
|
|
|
Marketing |
|
13,815 |
|
|
|
14,533 |
|
|
|
58,275 |
|
|
|
62,988 |
|
Operations and technology |
|
62,396 |
|
|
|
71,469 |
|
|
|
257,041 |
|
|
|
278,628 |
|
Selling, general and administrative |
|
44,594 |
|
|
|
47,932 |
|
|
|
182,453 |
|
|
|
194,886 |
|
Restructuring charges |
|
6,066 |
|
|
|
621 |
|
|
|
43,462 |
|
|
|
896 |
|
Legal settlement |
|
240 |
|
|
|
— |
|
|
|
1,340 |
|
|
|
456 |
|
Total operating expenses(1) |
|
127,111 |
|
|
|
134,555 |
|
|
|
542,571 |
|
|
|
537,854 |
|
Loss from operations |
|
(21,062 |
) |
|
|
(37,945 |
) |
|
|
(166,293 |
) |
|
|
(189,163 |
) |
Interest income |
|
2,088 |
|
|
|
1,831 |
|
|
|
8,805 |
|
|
|
3,191 |
|
Interest expense |
|
(2,683 |
) |
|
|
(2,458 |
) |
|
|
(10,701 |
) |
|
|
(10,472 |
) |
Other income (expense), net |
|
— |
|
|
|
38 |
|
|
|
— |
|
|
|
171 |
|
Loss before provision for income
taxes |
|
(21,657 |
) |
|
|
(38,534 |
) |
|
|
(168,189 |
) |
|
|
(196,273 |
) |
Provision for income taxes |
|
36 |
|
|
|
76 |
|
|
|
283 |
|
|
|
172 |
|
Net loss attributable to common
stockholders |
$ |
(21,693 |
) |
|
$ |
(38,610 |
) |
|
$ |
(168,472 |
) |
|
$ |
(196,445 |
) |
Net loss per share attributable
to common stockholders, basic and diluted |
$ |
(0.21 |
) |
|
$ |
(0.39 |
) |
|
$ |
(1.65 |
) |
|
$ |
(2.05 |
) |
Weighted average shares used to compute net loss per share
attributable to common stockholders, basic and diluted |
|
103,937,199 |
|
|
|
98,546,282 |
|
|
|
101,806,000 |
|
|
|
95,921,246 |
|
|
|
|
|
|
|
|
|
(1) Includes stock-based
compensation as follows: |
|
|
|
|
|
|
|
Marketing |
$ |
370 |
|
|
$ |
435 |
|
|
$ |
1,550 |
|
|
$ |
2,209 |
|
Operations and technology |
|
2,426 |
|
|
|
3,919 |
|
|
|
12,534 |
|
|
|
19,822 |
|
Selling, general and administrative |
|
5,184 |
|
|
|
4,764 |
|
|
|
20,189 |
|
|
|
24,107 |
|
Total |
$ |
7,980 |
|
|
$ |
9,118 |
|
|
$ |
34,273 |
|
|
$ |
46,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE REALREAL,
INC.Balance Sheets(In thousands, except
share and per share data)
|
December 31, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
175,709 |
|
|
$ |
293,793 |
|
Accounts receivable |
|
17,226 |
|
|
|
12,207 |
|
Inventory, net |
|
22,246 |
|
|
|
42,967 |
|
Prepaid expenses and other current assets |
|
20,766 |
|
|
|
23,291 |
|
Total current assets |
|
235,947 |
|
|
|
372,258 |
|
Property and equipment, net |
|
104,087 |
|
|
|
112,679 |
|
Operating lease right-of-use
assets |
|
86,348 |
|
|
|
127,955 |
|
Restricted cash |
|
14,914 |
|
|
|
— |
|
Other assets |
|
5,627 |
|
|
|
2,749 |
|
Total assets |
$ |
446,923 |
|
|
$ |
615,641 |
|
Liabilities and
Stockholders’ Equity (Deficit) |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
8,961 |
|
|
$ |
11,902 |
|
Accrued consignor payable |
|
77,122 |
|
|
|
81,543 |
|
Operating lease liabilities, current portion |
|
20,094 |
|
|
|
20,776 |
|
Other accrued and current liabilities |
|
82,685 |
|
|
|
93,292 |
|
Total current liabilities |
|
188,862 |
|
|
|
207,513 |
|
Operating lease liabilities, net
of current portion |
|
104,856 |
|
|
|
125,118 |
|
Convertible senior notes,
net |
|
452,421 |
|
|
|
449,848 |
|
Other noncurrent liabilities |
|
4,083 |
|
|
|
3,254 |
|
Total liabilities |
|
750,222 |
|
|
|
785,733 |
|
Stockholders’ deficit: |
|
|
|
Common stock, $0.00001 par value; 500,000,000 shares authorized as
of December 31, 2023 and December 31, 2022; 104,670,500 and
99,088,172 shares issued and outstanding as of December 31, 2023
and December 31, 2022, respectively |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
816,325 |
|
|
|
781,060 |
|
Accumulated deficit |
|
(1,119,625 |
) |
|
|
(951,153 |
) |
Total stockholders’ deficit |
|
(303,299 |
) |
|
|
(170,092 |
) |
Total liabilities and stockholders’ deficit |
$ |
446,923 |
|
|
$ |
615,641 |
|
|
|
|
|
|
|
|
|
THE REALREAL,
INC.Statements of Cash Flows(In
thousands)
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(168,472 |
) |
|
$ |
(196,445 |
) |
Adjustments to reconcile net loss to cash used in operating
activities: |
|
|
|
Depreciation and amortization |
|
31,695 |
|
|
|
27,669 |
|
Stock-based compensation expense |
|
34,273 |
|
|
|
46,138 |
|
Reduction of operating lease right-of-use assets |
|
16,746 |
|
|
|
19,602 |
|
Bad debt expense |
|
1,962 |
|
|
|
1,680 |
|
Loss on disposal of property and equipment and impairment of
capitalized proprietary software |
|
223 |
|
|
|
702 |
|
Accretion of debt discounts and issuance costs |
|
2,573 |
|
|
|
2,368 |
|
Property, plant, equipment and right-of-use asset impairments |
|
39,739 |
|
|
|
— |
|
Provision for inventory write-downs and shrinkage |
|
9,783 |
|
|
|
4,077 |
|
Gain on lease termination |
|
(738 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
(6,981 |
) |
|
|
(6,120 |
) |
Inventory, net |
|
10,938 |
|
|
|
23,971 |
|
Prepaid expenses and other current assets |
|
2,001 |
|
|
|
(2,952 |
) |
Other assets |
|
(3,050 |
) |
|
|
(409 |
) |
Operating lease liability |
|
(26,478 |
) |
|
|
(17,764 |
) |
Accounts payable |
|
(425 |
) |
|
|
4,947 |
|
Accrued consignor payable |
|
(4,421 |
) |
|
|
10,501 |
|
Other accrued and current liabilities |
|
(464 |
) |
|
|
(9,823 |
) |
Other noncurrent liabilities |
|
(172 |
) |
|
|
301 |
|
Net cash used in operating
activities |
|
(61,268 |
) |
|
|
(91,557 |
) |
Cash flow from investing
activities: |
|
|
|
Capitalized proprietary software development costs |
|
(12,951 |
) |
|
|
(14,061 |
) |
Purchases of property and equipment |
|
(29,177 |
) |
|
|
(22,861 |
) |
Net cash used in investing activities |
|
(42,128 |
) |
|
|
(36,922 |
) |
Cash flow from financing
activities: |
|
|
|
Proceeds from exercise of stock options |
|
19 |
|
|
|
2,906 |
|
Proceeds from issuance of stock in connection with the Employee
Stock Purchase Program |
|
886 |
|
|
|
1,400 |
|
Taxes paid related to restricted stock vesting |
|
(679 |
) |
|
|
(205 |
) |
Net cash provided by financing activities |
|
226 |
|
|
|
4,101 |
|
Net decrease in cash, cash equivalents, and restricted cash |
|
(103,170 |
) |
|
|
(124,378 |
) |
Cash, cash equivalents,
and restricted cash |
|
|
|
Beginning of period |
|
293,793 |
|
|
|
418,171 |
|
End of period |
$ |
190,623 |
|
|
$ |
293,793 |
|
|
|
|
|
|
|
|
|
The following table reflects the reconciliation of net loss to
Adjusted EBITDA for each of the periods indicated (in
thousands):
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Adjusted EBITDA
Reconciliation: |
|
|
|
|
|
|
|
Net loss |
$ |
(21,693 |
) |
|
$ |
(38,610 |
) |
|
$ |
(168,472 |
) |
|
$ |
(196,445 |
) |
Net loss (% of revenue) |
|
15.1 |
% |
|
|
24.2 |
% |
|
|
30.7 |
% |
|
|
32.6 |
% |
Depreciation and amortization |
|
8,165 |
|
|
|
7,414 |
|
|
|
31,695 |
|
|
|
27,669 |
|
Interest income |
|
(2,088 |
) |
|
|
(1,831 |
) |
|
|
(8,805 |
) |
|
|
(3,191 |
) |
Interest expense |
|
2,683 |
|
|
|
2,458 |
|
|
|
10,701 |
|
|
|
10,472 |
|
Provision (benefit) for income taxes |
|
36 |
|
|
|
76 |
|
|
|
283 |
|
|
|
172 |
|
EBITDA |
|
(12,897 |
) |
|
|
(30,493 |
) |
|
|
(134,598 |
) |
|
|
(161,323 |
) |
Stock-based compensation (1) |
|
7,980 |
|
|
|
9,118 |
|
|
|
34,273 |
|
|
|
46,138 |
|
CEO separation benefits (2) |
|
— |
|
|
|
46 |
|
|
|
— |
|
|
|
948 |
|
CEO transition costs (3) |
|
— |
|
|
|
533 |
|
|
|
159 |
|
|
|
1,551 |
|
Payroll tax expense on employee stock transactions |
|
53 |
|
|
|
39 |
|
|
|
195 |
|
|
|
451 |
|
Legal fees reimbursement benefit (4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,400 |
) |
Legal settlements (5) |
|
240 |
|
|
|
— |
|
|
|
1,340 |
|
|
|
456 |
|
Restructuring charges (6) |
|
6,066 |
|
|
|
621 |
|
|
|
43,462 |
|
|
|
896 |
|
Other (income) expense, net |
|
— |
|
|
|
(38 |
) |
|
|
— |
|
|
|
(171 |
) |
Adjusted
EBITDA |
$ |
1,442 |
|
|
$ |
(20,174 |
) |
|
$ |
(55,169 |
) |
|
$ |
(112,454 |
) |
Adjusted EBITDA (% of
revenue) |
|
1.0 |
% |
|
|
12.6 |
% |
|
|
10.0 |
% |
|
|
18.6 |
% |
(1) The stock-based compensation expense for the year ended
December 31, 2022 includes a one-time charge of $1.0 million
related to the modification of certain equity awards pursuant to
the terms of the transition and separation agreement entered into
with our founder, Julie Wainwright, in connection with her
resignation as Chief Executive Officer ("CEO") on June 6, 2022 (the
"Separation Agreement").
(2) The CEO separation benefit charges for the year ended
December 31, 2022 consist of base salary, bonus and benefits for
the 2022 fiscal year, as well as an additional twelve months of
base salary and benefits payable to Julie Wainwright pursuant to
the Separation Agreement.
(3) The CEO transition charges for the year ended December 31,
2022 consist of general and administrative fees, including legal
and recruiting expenses, as well as retention bonuses for certain
executives incurred in connection with our founder's resignation on
June 6, 2022. The CEO transition charges for the year ended
December 31, 2023 consists of retention bonuses for certain
executives incurred in connection with our founder's resignation in
2022.
(4) During the year ended December 31, 2022, we received
insurance reimbursement of $1.4 million related to a legal
settlement expense.
(5) The legal settlement charges for the year ended December 31,
2023 reflect legal settlement expenses arising from the settlement
of two former employees’ individual claims and California Private
Attorney General Actions initiated against the Company on behalf of
such former employees and those similarly situated.
(6) Restructuring for the year ended December 31, 2023 consists
of impairment of right-of-use assets and property and equipment,
employee severance charges, gain on lease terminations, and other
charges, including legal and transportation expenses. Restructuring
for the year ended December 31, 2022 consists of employee severance
payments and benefits.
A reconciliation of GAAP net loss to non-GAAP net loss
attributable to common stockholders, the most directly comparable
GAAP financial measure, in order to calculate non-GAAP net loss
attributable to common stockholders per share, basic and diluted,
is as follows (in thousands, except share and per share data):
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(21,693 |
) |
|
$ |
(38,610 |
) |
|
$ |
(168,472 |
) |
|
$ |
(196,445 |
) |
Stock-based compensation |
|
7,980 |
|
|
|
9,118 |
|
|
|
34,273 |
|
|
|
46,138 |
|
CEO separation benefits |
|
— |
|
|
|
46 |
|
|
|
— |
|
|
|
948 |
|
CEO transition costs |
|
— |
|
|
|
533 |
|
|
|
159 |
|
|
|
1,551 |
|
Payroll tax expense on employee stock transactions |
|
53 |
|
|
|
39 |
|
|
|
195 |
|
|
|
451 |
|
Legal fees reimbursement benefit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,400 |
) |
Legal settlement |
|
240 |
|
|
|
— |
|
|
|
1,340 |
|
|
|
456 |
|
Restructuring charges |
|
6,066 |
|
|
|
621 |
|
|
|
43,462 |
|
|
|
896 |
|
Provision for income taxes |
|
36 |
|
|
|
76 |
|
|
|
283 |
|
|
|
172 |
|
Non-GAAP net loss attributable to common stockholders |
$ |
(7,318 |
) |
|
$ |
(28,177 |
) |
|
$ |
(88,760 |
) |
|
$ |
(147,233 |
) |
Weighted-average common shares outstanding used to calculate
Non-GAAP net loss attributable to common stockholders per share,
basic and diluted |
|
103,937,199 |
|
|
|
98,546,282 |
|
|
|
101,806,000 |
|
|
|
95,921,246 |
|
Non-GAAP net loss attributable to common stockholders per share,
basic and diluted |
$ |
(0.07 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.87 |
) |
|
$ |
(1.53 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents a reconciliation of net cash used
in operating activities to free cash flow for each of the periods
indicated (in thousands):
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by (used in)
operating activities |
$ |
10,523 |
|
|
$ |
3,698 |
|
|
$ |
(61,268 |
) |
|
$ |
(91,557 |
) |
Purchase of property and equipment and capitalized proprietary
software development costs |
|
(6,730 |
) |
|
|
(10,667 |
) |
|
|
(42,128 |
) |
|
|
(36,922 |
) |
Free cash flow |
$ |
3,793 |
|
|
$ |
(6,969 |
) |
|
$ |
(103,396 |
) |
|
$ |
(128,479 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Financial and Operating Metrics:
|
Three Months Ended |
|
December 31,2021 |
|
March 31,2022 |
|
June 30,2022 |
|
September 30,2022 |
|
December 31,2022 |
|
March 31,2023 |
|
June 30,2023 |
|
September 30,2023 |
|
December 31,2023 |
|
(In thousands, except AOV and percentages) |
GMV |
$ |
437,179 |
|
|
$ |
428,206 |
|
|
$ |
454,163 |
|
|
$ |
440,659 |
|
|
$ |
492,955 |
|
|
$ |
444,366 |
|
|
$ |
423,341 |
|
|
$ |
407,608 |
|
|
$ |
450,668 |
|
NMV |
$ |
318,265 |
|
|
$ |
310,511 |
|
|
$ |
332,508 |
|
|
$ |
325,105 |
|
|
$ |
367,382 |
|
|
$ |
327,805 |
|
|
$ |
303,918 |
|
|
$ |
302,912 |
|
|
$ |
335,245 |
|
Consignment Revenue |
$ |
86,508 |
|
|
$ |
83,989 |
|
|
$ |
96,917 |
|
|
$ |
93,874 |
|
|
$ |
110,199 |
|
|
$ |
102,643 |
|
|
$ |
96,577 |
|
|
$ |
102,852 |
|
|
$ |
113,500 |
|
Direct Revenue |
$ |
45,262 |
|
|
$ |
48,823 |
|
|
$ |
42,646 |
|
|
$ |
34,005 |
|
|
$ |
33,252 |
|
|
$ |
24,953 |
|
|
$ |
20,887 |
|
|
$ |
17,356 |
|
|
$ |
15,964 |
|
Shipping Services Revenue |
$ |
13,355 |
|
|
$ |
13,888 |
|
|
$ |
14,872 |
|
|
$ |
14,824 |
|
|
$ |
16,204 |
|
|
$ |
14,308 |
|
|
$ |
13,391 |
|
|
$ |
12,964 |
|
|
$ |
13,909 |
|
Number of Orders |
|
861 |
|
|
|
878 |
|
|
|
934 |
|
|
|
952 |
|
|
|
993 |
|
|
|
891 |
|
|
|
789 |
|
|
|
794 |
|
|
|
826 |
|
Take Rate |
|
35.0 |
% |
|
|
35.7 |
% |
|
|
36.1 |
% |
|
|
36.0 |
% |
|
|
35.7 |
% |
|
|
37.4 |
% |
|
|
36.7 |
% |
|
|
38.1 |
% |
|
|
37.7 |
% |
Active Buyers |
|
797 |
|
|
|
828 |
|
|
|
889 |
|
|
|
950 |
|
|
|
998 |
|
|
|
1,014 |
|
|
|
985 |
|
|
|
954 |
|
|
|
922 |
|
AOV |
$ |
508 |
|
|
$ |
487 |
|
|
$ |
486 |
|
|
$ |
463 |
|
|
$ |
496 |
|
|
$ |
499 |
|
|
$ |
537 |
|
|
$ |
513 |
|
|
$ |
545 |
|
RealReal (NASDAQ:REAL)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
RealReal (NASDAQ:REAL)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024