NASDAQ$REAL

RealReal Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

RealReal reported strong fourth quarter and full year 2024 results, exiting the year from a position of strength.

The RealReal announced strong fourth quarter and full year 2024 results, with fourth quarter revenue up 14% year-over-year to a record high of $164 million. The company achieved positive Adjusted EBITDA and positive free cash flow for the full year, demonstrating significant improvements in financial performance.

  • Fourth quarter 2024 revenue reached a record high of $164 million, a 14% increase year-over-year.
  • Full year 2024 Adjusted EBITDA was positive $9 million, a $64 million improvement compared to 2023.
  • Full year 2024 Operating Cash Flow was positive $27 million, an $88 million increase year-over-year.
  • Fourth quarter Adjusted EBITDA was $11 million, or 6.7% of total revenue, improving by $10 million compared to the prior year.

Headline financials

Total Revenue

$164M

Previous: $143M+14.4%
EPS (adj)

-$0.01

Previous: -$0.07+85.7%
Gross Merchandise Value

$504M

No prior period
Active Buyers

972.0K

No prior period
Average Order Value

$579.00

No prior period
Number of Orders

870.0K

No prior period
Take Rate

37.7%

No prior period
Adjusted EBITDA

$11M

No prior period
Adjusted EBITDA Margin

6.7%

No prior period
Capital Expenditures

-$8.83M

Previous: -$6.73M-31.2%
Net Income

-$68.5M

Previous: -$22M-211.2%
Operating Income

-$5.15M

Previous: -$21.1M+75.5%
Gross Profit

$122M

Previous: $106M+15.1%
R&D Expense

$57.5M

Previous: $62.4M-7.8%

Revenue & EPS history

RealReal · Revenue · Quarterly

$164M

Q4 2024+14.4%vs Q4 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

For Q1 2025, The RealReal expects GMV to be between $484 million and $492 million, total revenue between $157 million and $161 million, and Adjusted EBITDA between $3.0 million and $4.5 million. For the full year 2025, GMV is projected to be between $1.96 billion and $1.99 billion, total revenue between $645 million and $660 million, and Adjusted EBITDA between $20 million and $30 million.

Tailwinds

  • Projected positive Adjusted EBITDA for Q1 2025 and full year 2025.
  • Anticipated growth in GMV for both Q1 2025 and full year 2025.
  • Expected increase in total revenue for both Q1 2025 and full year 2025.
  • Continued focus on strategic pillars to unlock supply, drive operational efficiency, and obsess over service.
  • Leveraging AI to improve consignor experience and drive operating leverage.

Headwinds

  • Inability to predict with reasonable certainty the ultimate outcome of certain components of forward-looking Adjusted EBITDA reconciliation.
  • Potential impact of payroll tax expense on employee stock transactions not within company control.
  • Uncertainty regarding other components that may arise without unreasonable effort.
  • Inability to assess the probable significance of unavailable information for future net income (loss).
  • Reliance on market conditions as of February 20, 2025, which may change.

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 2024

Historical avgQ4 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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