NASDAQ$REAL

RealReal Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Revenue and Adjusted EBITDA exceeded guidance, and GMV exceeded the midpoint of guidance.

The RealReal reported Q3 2023 results with revenue decreasing by 7% year-over-year to $133 million and a net loss of $(22.9) million. However, the company saw improvements in gross margin and Adjusted EBITDA, driven by a strategic shift towards higher-margin consignment business.

  • GMV decreased by 8% compared to the same period in 2022, reaching $408 million.
  • Total revenue decreased by 7% compared to the same period in 2022, totaling $133 million.
  • Gross margin increased by 1053 basis points compared to the same period in 2022, reaching 70.6%.
  • Net loss was $(22.9) million, an improvement compared to $(47.3) million in the same period in 2022.

Headline financials

Total Revenue

$133M

Previous: $143M-6.7%
EPS (adj)

-$0.15

Previous: -$0.38+60.5%
Gross Merchandise Value

$408M

Previous: $441M-7.5%
Active Buyers

954.0K

Previous: 950.0K+0.4%
Average Order Value

$513.00

Previous: $463.00+10.8%
Number of Orders

794.0K

Previous: 952.0K-16.6%
Take Rate

38.1%

Previous: 36.0%+5.8%
Capital Expenditures

-$25.5M

Previous: -$16.4M-55.6%
Free Cash Flow

-$48.5M

Previous: -$63.7M+23.9%
Net Income

-$22.9M

Previous: -$47.3M+51.4%
Operating Income

-$22.5M

Previous: -$45.5M+50.6%
Gross Profit

$94.1M

Previous: $85.8M+9.7%
Cash & Equivalents

$171M

Previous: $300M-43.1%
Total Assets

$453M

Previous: $634M-28.6%
R&D Expense

$53.3M

No prior period
Stock-Based Comp

$8.54M

Previous: $10.8M-21.3%

Revenue & EPS history

RealReal · Revenue · Quarterly

$133M

Q3 2023-6.7%vs Q3 2022
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 company provided guidance for Q4 2023 and updated full year 2023 guidance for GMV, total revenue, and Adjusted EBITDA.

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 Q3 2023

Historical avgQ3 2023

-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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