NASDAQ$REAL

RealReal Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported positive Adjusted EBITDA and positive free cash flow, marking historic milestones since its IPO in 2019. The strategic shift to re-focus on the consignment business delivered strong progress, refining the growth model with a focus on profitable supply and significantly improving the margin structure.

The RealReal announced Q4 2023 results, featuring positive Adjusted EBITDA and free cash flow, a net loss improvement of $17 million year-over-year, and strategic debt exchange transactions.

  • Delivered positive Adjusted EBITDA and positive free cash flow.
  • Net Loss improved year-over-year by $17 million.
  • Refined growth model with a focus on profitable supply.
  • Improved margin structure.

Headline financials

Total Revenue

$143M

Previous: $160M-10.2%
EPS (adj)

-$0.07

Previous: -$0.29+75.9%
Capital Expenditures

-$6.73M

Previous: $6.45M-204.3%
Free Cash Flow

$3.79M

Previous: -$2.76M+237.7%
Net Income

-$22M

Previous: -$39M+43.6%
Operating Income

-$21.1M

Previous: -$37.9M+44.5%
Gross Profit

$106M

Previous: $96.6M+9.8%
R&D Expense

$62.4M

No prior period
Stock-Based Comp

$7.98M

Previous: $9.12M-12.5%

Revenue & EPS history

RealReal · Revenue · Quarterly

$143M

Q4 2023-10.2%vs Q4 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 RealReal provided guidance for Q1 2024 and Full Year 2024, including GMV, total revenue, and Adjusted EBITDA.

Tailwinds

  • GMV Q1 2024: $415 - $445 million
  • GMV Full Year 2024: $1.80 - $1.88 billion
  • Total Revenue Q1 2024: $135 - $145 million
  • Total Revenue Full Year 2024: $580 - $605 million
  • Adjusted EBITDA Full Year 2024: $(8) - $8 million

Headwinds

  • Adjusted EBITDA Q1 2024: $(8) - $(4) million

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 Q4 2023

Historical avgQ4 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro