NASDAQ$REAL

RealReal Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

The RealReal reported an 11% increase in revenue and improved net loss year-over-year.

The RealReal announced its Q2 2024 results, with revenue reaching $145 million, an 11% increase year-over-year. The company's net loss improved by $25 million year-over-year, and adjusted EBITDA also saw a significant improvement of $21 million compared to Q2 2023.

  • GMV increased by 4% compared to the same period in 2023, reaching $441 million.
  • Total revenue increased by 11% compared to the same period in 2023, amounting to $145 million.
  • Gross profit increased by $21 million compared to the same period in 2023, reaching $107 million.
  • Net loss improved to $(17.0) million, compared to $(41.3) million in the same period in 2023.

Headline financials

Total Revenue

$145M

Previous: $131M+10.8%
EPS

-$0.20

Previous: -$0.30+33.3%
Gross Merchandise Value

$441M

Previous: $423M+4.2%
Active Buyers

942.0K

Previous: 985.0K-4.4%
Average Order Value

$538.00

Previous: $537.00+0.2%
Number of Orders

820.0K

Previous: 789.0K+3.9%
Take Rate

38.5%

Previous: 36.7%+4.9%
Gross Margin

74.1%

No prior period
Adjusted EBITDA

-$1.76M

No prior period
Adjusted EBITDA Margin

-1.2%

No prior period
Capital Expenditures

-$5.14M

Previous: -$19.8M+74.0%
Free Cash Flow

-$21.9M

Previous: -$61.1M+64.2%
Net Income

-$16.7M

Previous: -$41.3M+59.6%
Operating Income

-$18.8M

Previous: -$40.9M+54.1%
Gross Profit

$107M

Previous: $86.2M+24.7%
Cash & Equivalents

$151M

Previous: $189M-20.2%
Total Assets

$407M

Previous: $459M-11.2%
R&D Expense

$57.3M

No prior period
Stock-Based Comp

$7.7M

Previous: $8.77M-12.1%

Revenue & EPS history

RealReal · Revenue · Quarterly

$145M

Q2 2024+10.8%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

RealReal · $133M total across 3 segments · Q3 2023

  • Consignment
    $103M+9.6%
  • Direct
    $17.4M-49.0%
  • Shipping Services
    $13M-12.5%

Forward guidance

The RealReal is updating its full year guidance and providing guidance for third quarter 2024 GMV, total revenue and Adjusted EBITDA.

Tailwinds

  • Q3 2024 GMV: $410 - $430 million
  • Q3 2024 Total Revenue: $135 - $142 million
  • Q3 2024 Adjusted EBITDA: $(2) - $1 million
  • Full Year 2024 GMV: $1.79 - $1.82 billion
  • Full Year 2024 Total Revenue: $580 - $595 million

Headwinds

  • Adjusted EBITDA is a Non-GAAP financial measure.
  • The company cannot reconcile forward-looking Adjusted EBITDA to net income (loss).
  • The ultimate outcome of certain components of such reconciliations including payroll tax expense on employee stock transactions that are not within our control.
  • The company is unable to assess the probable significance of the unavailable information.
  • The results are based on market conditions as of August 6, 2024.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-2.0%

Avg return

Earnings day

+2.3%

Avg return

5 days after

-0.3%

Avg return

30 days after

33%

9 / 27 earnings

Positive

+61.4%

Q4 2023

Best reaction

-30.6%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.1%-28.2%-31.8%
Q4 2025-1.5%-2.1%-30.8%
Q3 2025+37.7%+23.6%+27.2%
Q1 2025-30.6%-21.8%-21.7%
Q4 2024-18.8%-0.5%-31.5%
Q3 2024+22.4%+25.8%+105.7%
Q2 2024-23.2%-21.0%-26.5%
Q1 2024-3.1%-1.9%-10.0%
Q4 2023+61.4%+118.1%+128.7%
Q3 2023+25.8%+30.8%+43.4%
Q2 2023+12.1%+17.0%+19.3%
Q1 2023-10.6%-18.2%+24.1%
Q4 2022+11.2%+21.6%-11.9%
Q3 2022-15.8%+18.0%+9.4%
Q2 2022-14.1%-19.4%-40.7%
Q1 2022-25.4%-18.7%-33.4%
Q4 2021-0.9%+11.7%-1.6%
Q3 2021+19.4%+21.1%+3.4%
Q2 2021-18.6%-18.4%-27.5%
Q1 2021-27.9%-36.6%-17.2%
Q4 2020-12.0%-9.5%-25.4%
Q3 2020-9.1%-14.9%-4.5%
Q2 2020+1.9%+12.3%+3.8%
Q1 2020+5.7%+5.7%+19.1%
Q4 2019+0.0%-6.4%-48.8%
Q3 2019-15.5%-23.0%-24.4%
Q2 2019-20.1%-3.6%-5.4%
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018

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