The RealReal Announces Fourth Quarter and Full Year 2024 Results
The RealReal (REAL) reported strong Q4 and full year 2024 results, with Q4 revenue reaching a record $164 million, up 14% year-over-year. The company's GMV increased 12% to $504 million in Q4. Full year revenue grew 9% to $600 million, while GMV rose 6% to $1.83 billion.
Notable improvements include a reduced net loss of $134 million for 2024, down from $168 million in 2023. The company achieved positive Adjusted EBITDA of $9 million for the full year, a $64 million improvement. Operating Cash Flow turned positive at $27 million, an $88 million increase year-over-year. Free Cash Flow became positive at $1 million, up $104 million from 2023.
Key metrics show growth with trailing 12-months active buyers reaching 972,000 (up 5%) and average order value increasing to $545 (up 4%). The company also completed a strategic debt transaction to strengthen its financial position.
The RealReal (REAL) ha riportato risultati solidi per il quarto trimestre e per l'intero anno 2024, con un fatturato del Q4 che ha raggiunto un record di 164 milioni di dollari, in aumento del 14% rispetto all'anno precedente. Il GMV dell'azienda è aumentato del 12% a 504 milioni di dollari nel Q4. Il fatturato dell'intero anno è cresciuto del 9% a 600 milioni di dollari, mentre il GMV è aumentato del 6% a 1,83 miliardi di dollari.
Tra i miglioramenti significativi si segnala una perdita netta ridotta a 134 milioni di dollari per il 2024, rispetto ai 168 milioni del 2023. L'azienda ha raggiunto un EBITDA rettificato positivo di 9 milioni di dollari per l'intero anno, con un miglioramento di 64 milioni. Il flusso di cassa operativo è diventato positivo a 27 milioni di dollari, con un incremento di 88 milioni rispetto all'anno precedente. Il flusso di cassa libero è risultato positivo a 1 milione di dollari, in aumento di 104 milioni rispetto al 2023.
I principali indicatori mostrano una crescita con 972.000 acquirenti attivi negli ultimi 12 mesi (in aumento del 5%) e un valore medio degli ordini che è aumentato a 545 dollari (in aumento del 4%). L'azienda ha anche completato una transazione strategica di debito per rafforzare la propria posizione finanziaria.
The RealReal (REAL) reportó resultados sólidos para el cuarto trimestre y el año completo 2024, con ingresos del Q4 alcanzando un récord de 164 millones de dólares, un aumento del 14% en comparación con el año anterior. El GMV de la empresa aumentó un 12% a 504 millones de dólares en el Q4. Los ingresos del año completo crecieron un 9% a 600 millones de dólares, mientras que el GMV se elevó un 6% a 1,83 mil millones de dólares.
Las mejoras notables incluyen una pérdida neta reducida de 134 millones de dólares para 2024, por debajo de los 168 millones de 2023. La empresa logró un EBITDA ajustado positivo de 9 millones de dólares para el año completo, mejorando en 64 millones. El flujo de caja operativo se volvió positivo en 27 millones de dólares, un aumento de 88 millones en comparación con el año anterior. El flujo de caja libre se volvió positivo en 1 millón de dólares, un aumento de 104 millones desde 2023.
Los indicadores clave muestran un crecimiento con 972,000 compradores activos en los últimos 12 meses (un aumento del 5%) y un valor promedio de pedido que aumenta a 545 dólares (un aumento del 4%). La empresa también completó una transacción de deuda estratégica para fortalecer su posición financiera.
The RealReal (REAL)는 2024년 4분기 및 연간 실적이 강력하다고 보고했으며, 4분기 매출은 1억 6400만 달러로, 전년 대비 14% 증가했습니다. 회사의 GMV는 4분기에 5억 400만 달러로 12% 증가했습니다. 연간 매출은 6억 달러로 9% 성장했으며, GMV는 18억 3000만 달러로 6% 증가했습니다.
눈에 띄는 개선 사항으로는 2024년 순손실이 1억 3400만 달러로 2023년의 1억 6800만 달러에서 줄어들었습니다. 회사는 연간 조정 EBITDA가 900만 달러로 6400만 달러 개선되었습니다. 운영 현금 흐름은 2700만 달러로 긍정적인 전환을 이루었으며, 전년 대비 8800만 달러 증가했습니다. 자유 현금 흐름은 100만 달러로 긍정적이 되었으며, 2023년 대비 1억 400만 달러 증가했습니다.
주요 지표는 지난 12개월간 활성 구매자가 97만 2000명에 도달하여 5% 증가했으며, 평균 주문 가치는 545달러로 4% 증가했음을 보여줍니다. 회사는 또한 재무 상태를 강화하기 위해 전략적 부채 거래를 완료했습니다.
The RealReal (REAL) a annoncé de solides résultats pour le quatrième trimestre et l'année complète 2024, avec un chiffre d'affaires du Q4 atteignant un record de 164 millions de dollars, en hausse de 14% par rapport à l'année précédente. Le GMV de l'entreprise a augmenté de 12% pour atteindre 504 millions de dollars au Q4. Le chiffre d'affaires annuel a augmenté de 9% pour atteindre 600 millions de dollars, tandis que le GMV a augmenté de 6% pour atteindre 1,83 milliard de dollars.
Les améliorations notables comprennent une perte nette réduite à 134 millions de dollars pour 2024, contre 168 millions de dollars en 2023. L'entreprise a réalisé un EBITDA ajusté positif de 9 millions de dollars pour l'année entière, soit une amélioration de 64 millions de dollars. Le flux de trésorerie opérationnel est devenu positif à 27 millions de dollars, soit une augmentation de 88 millions de dollars par rapport à l'année précédente. Le flux de trésorerie libre est devenu positif à 1 million de dollars, en hausse de 104 millions de dollars par rapport à 2023.
Les indicateurs clés montrent une croissance avec 972 000 acheteurs actifs au cours des 12 derniers mois (en hausse de 5%) et une valeur moyenne des commandes augmentant à 545 dollars (en hausse de 4%). L'entreprise a également complété une transaction de dette stratégique pour renforcer sa position financière.
The RealReal (REAL) berichtete über starke Ergebnisse im vierten Quartal und für das gesamte Jahr 2024, mit einem Umsatz im Q4 von 164 Millionen Dollar, was einem Anstieg von 14% im Vergleich zum Vorjahr entspricht. Der GMV des Unternehmens stieg im Q4 um 12% auf 504 Millionen Dollar. Der Jahresumsatz wuchs um 9% auf 600 Millionen Dollar, während der GMV um 6% auf 1,83 Milliarden Dollar stieg.
Bemerkenswerte Verbesserungen umfassen einen verringerten Nettoverlust von 134 Millionen Dollar für 2024, gegenüber 168 Millionen Dollar im Jahr 2023. Das Unternehmen erzielte ein positives bereinigtes EBITDA von 9 Millionen Dollar für das gesamte Jahr, was einer Verbesserung um 64 Millionen Dollar entspricht. Der operative Cashflow wurde positiv und belief sich auf 27 Millionen Dollar, was einem Anstieg von 88 Millionen Dollar im Jahresvergleich entspricht. Der freie Cashflow wurde positiv und lag bei 1 Million Dollar, was einem Anstieg von 104 Millionen Dollar im Vergleich zu 2023 entspricht.
Wichtige Kennzahlen zeigen ein Wachstum mit 972.000 aktiven Käufern in den letzten 12 Monaten (ein Anstieg von 5%) und einem durchschnittlichen Bestellwert, der auf 545 Dollar gestiegen ist (ein Anstieg von 4%). Das Unternehmen hat auch eine strategische Schulden-Transaktion abgeschlossen, um seine finanzielle Position zu stärken.
- Record Q4 revenue of $164M, up 14% YoY
- Q4 GMV increased 12% to $504M
- Full year net loss improved by $34M
- Positive Adjusted EBITDA of $9M for 2024
- Positive Operating Cash Flow of $27M
- Active buyers increased 5% to 972,000
- Average order value up 4% to $545
- Net loss of $134M in 2024
- Q4 net loss increased to $68M from $22M YoY
- $59M negative adjustment from warrant liability in Q4
Insights
The RealReal's Q4 and FY2024 results mark a pivotal transformation in the company's financial trajectory, highlighted by three important achievements: positive Adjusted EBITDA, free cash flow generation, and record quarterly revenue. The transition to positive free cash flow of
The
Two key metrics warrant attention: the
The recent strategic debt restructuring strengthens the balance sheet and provides operational flexibility. With
However, the
Fourth quarter revenue of
2024 Net Loss of
2024 Operating Cash Flow of positive
SAN FRANCISCO, Feb. 20, 2025 (GLOBE NEWSWIRE) -- The RealReal, Inc. (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, 2024. Fourth quarter 2024 gross merchandise value (GMV) and total revenue increased
Fourth quarter Adjusted EBITDA was
“We achieved strong fourth quarter and full year 2024 results, exiting the year from a position of strength," said Rati Levesque, President and Chief Executive Officer of The RealReal. “We delivered on key milestones in 2024 including positive Adjusted EBITDA and positive free cash flow for the full year, and we are just getting started. Progress continues on our strategic pillars: execute our growth playbook to unlock supply, drive operational efficiency, and obsess over service. We see significant opportunity to drive operating leverage and improve the consignor experience through enhanced use of AI. Our teams are executing well against the company’s vision to change the way people shop for the better.”
Ajay Gopal, Chief Financial Officer of The RealReal, said, “The strategic debt transaction announced last week strengthened our financial position by reducing our overall indebtedness, rebalancing our debt maturity cycle, and creating more flexibility as we continue to evolve our capital structure. We look forward to continuing our momentum in 2025, as we work to expand our Adjusted EBITDA margin through the combination of accelerating full year growth and delivering operating leverage.”
Fourth Quarter Financial Highlights
- GMV was
$504 million , an increase of12% compared to the same period in 2023 - Total Revenue was
$164 million , an increase of14% compared to the same period in 2023 - Gross Profit was
$122 million , an increase of$16 million compared to the same period in 2023 - Gross Margin was
74.4% , an increase of 40 basis points compared to the same period in 2023 - Net Loss was
$68 million or (41.7)% of total revenue, compared to$22 million in the fourth quarter of 2023. Fourth Quarter 2024 Net Loss includes a$59 million adjustment as a result of the change in fair value of warrant liability - Adjusted EBITDA was
$11 million or6.7% of total revenue, compared to$1 million or1.0% of total revenue in the fourth quarter of 2023 - GAAP basic and diluted net loss per share was
$(0.62) compared to$(0.21) in the prior year period - Non-GAAP basic and diluted net loss per share was
$(0.01) compared to$(0.07) in the prior year period - Operating Cash Flow was positive
$28 million , which increased$17 million compared to the fourth quarter of 2023 - Free Cash Flow was positive
$19 million , which increased$15 million compared to the fourth quarter of 2023 - Top-line-related Metrics
- Trailing three months active buyers was 408,000, an increase of
7% compared to the same period in 2023 - Average order value (AOV) was
$579 , an increase of6% compared to the same period in 2023
- Trailing three months active buyers was 408,000, an increase of
Full Year 2024 Financial Highlights
- GMV was
$1.83 billion , an increase of6% compared to full year 2023 - Total Revenue was
$600 million , an increase of9% compared to full year 2023 - Net Loss was
$134 million or (22.3)% of total revenue, compared to$168 million or (30.7)% of total revenue for full year 2023, an improvement of$34 million . Full Year 2024 Net Loss includes a$68 million adjustment as a result of the change in fair value of warrant liability - Adjusted EBITDA was
$9 million or1.6% of total revenue compared to$(55) million or (10.0)% of total revenue for full year 2023 - GAAP basic and diluted net loss per share was
$(1.24) compared to$(1.65) in the prior year - Non-GAAP basic and diluted net loss per share was
$(0.35) compared to$(0.87) in the prior year - At the end of 2024, cash, cash equivalents and restricted cash totaled
$187 million - Operating Cash Flow was positive
$27 million , which increased$88 million compared to full year 2023 - Free Cash Flow of positive
$1 million increased$104 million compared to full year 2023 - Top-line-related Metrics
- Trailing 12-months active buyers reached 972,000, an increase of
5% compared to the same period in 2023 - Average order value (AOV) was
$545 , an increase of4% compared to the same period in 2023
- Trailing 12-months active buyers reached 972,000, an increase of
Q1 and Full Year 2025 Guidance
Based on market conditions as of February 20, 2025, we are providing guidance for GMV, total revenue, capital expenditures 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 2025 | Full Year 2025 | |
| GMV | ||
| Total Revenue | ||
| Adjusted EBITDA | ||
Webcast and Conference Call
The RealReal will host a conference call to review the company’s fourth quarter and full year 2024 results beginning at approximately 2:00 p.m. Pacific Time today (5:00 p.m. Eastern Time). A live webcast of the conference call and accompanying materials will be available online at investor.therealreal.com. A replay of the webcast will be available at the same location. To access the conference call by phone, participants will need to register to obtain a dial-in phone number and an access code. Please register using this link: https://register.vevent.com/register/BI329118498c4c488a973590b5249a541c.
About The RealReal, Inc.
The RealReal is the world’s largest online marketplace for authenticated, resale luxury goods, with more than 38 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 Howe
IR@therealreal.com
Media:
Mallory Johnston
pr@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,” "target," "contemplate,” “project,” “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, the debt exchange, financial guidance, anticipated growth in 2025, the anticipated impact of generative AI, and long-range financial targets and 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, 2023 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, provision (benefit) for income taxes, and depreciation and amortization, further adjusted to exclude stock-based compensation, payroll tax on employee stock transactions, restructuring, CEO separation benefit and transition costs, gain on extinguishment of debt, change in fair value of warrant liability 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, 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, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue: | |||||||||||||||
| Consignment revenue | $ | 128,126 | $ | 113,500 | $ | 473,396 | $ | 415,572 | |||||||
| Direct revenue | 19,524 | 15,964 | 64,580 | 79,160 | |||||||||||
| Shipping services revenue | 16,345 | 13,909 | 62,508 | 54,572 | |||||||||||
| Total revenue | 163,995 | 143,373 | 600,484 | 549,304 | |||||||||||
| Cost of revenue: | |||||||||||||||
| Cost of consignment revenue | 14,087 | 14,439 | 53,801 | 58,120 | |||||||||||
| Cost of direct revenue | 16,839 | 13,181 | 55,809 | 74,343 | |||||||||||
| Cost of shipping services revenue | 11,006 | 9,704 | 43,353 | 40,563 | |||||||||||
| Total cost of revenue | 41,932 | 37,324 | 152,963 | 173,026 | |||||||||||
| Gross profit | 122,063 | 106,049 | 447,521 | 376,278 | |||||||||||
| Operating expenses: | |||||||||||||||
| Marketing | 14,610 | 13,815 | 55,256 | 58,275 | |||||||||||
| Operations and technology | 66,234 | 62,396 | 260,827 | 257,041 | |||||||||||
| Selling, general and administrative | 46,373 | 44,834 | 187,737 | 183,793 | |||||||||||
| Restructuring | — | 6,066 | 196 | 43,462 | |||||||||||
| Total operating expenses (1) | 127,217 | 127,111 | 504,016 | 542,571 | |||||||||||
| Loss from operations | (5,154 | ) | (21,062 | ) | (56,495 | ) | (166,293 | ) | |||||||
| Change in fair value of warrant liability | (58,958 | ) | — | (68,167 | ) | — | |||||||||
| Gain on extinguishment of debt | — | — | 4,177 | — | |||||||||||
| Interest income | 1,671 | 2,088 | 7,943 | 8,805 | |||||||||||
| Interest expense | (5,916 | ) | (2,683 | ) | (21,384 | ) | (10,701 | ) | |||||||
| Loss before provision for income taxes | (68,357 | ) | (21,657 | ) | (133,926 | ) | (168,189 | ) | |||||||
| Provision for income taxes | 98 | 36 | 276 | 283 | |||||||||||
| Net loss attributable to common stockholders | $ | (68,455 | ) | $ | (21,693 | ) | $ | (134,202 | ) | $ | (168,472 | ) | |||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.62 | ) | $ | (0.21 | ) | $ | (1.24 | ) | $ | (1.65 | ) | |||
| Weighted average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 110,363,487 | 103,937,199 | 107,878,366 | 101,806,000 | |||||||||||
| (1) Includes stock-based compensation as follows: | |||||||||||||||
| Marketing | $ | 225 | $ | 370 | $ | 932 | $ | 1,550 | |||||||
| Operations and technology | 2,403 | 2,426 | 9,930 | 12,534 | |||||||||||
| Selling, general and administrative | 3,874 | 5,184 | 18,220 | 20,189 | |||||||||||
| Total | $ | 6,502 | $ | 7,980 | $ | 29,082 | $ | 34,273 | |||||||
| THE REALREAL, INC. Balance Sheets (In thousands, except share and per share data) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 172,212 | $ | 175,709 | |||
| Accounts receivable | 13,961 | 17,226 | |||||
| Inventory, net | 23,583 | 22,246 | |||||
| Prepaid expenses and other current assets | 22,913 | 20,766 | |||||
| Total current assets | 232,669 | 235,947 | |||||
| Property and equipment, net | 94,443 | 104,087 | |||||
| Operating lease right-of-use assets | 75,714 | 86,348 | |||||
| Restricted cash | 14,911 | 14,914 | |||||
| Other assets | 5,358 | 5,627 | |||||
| Total assets | $ | 423,095 | $ | 446,923 | |||
| Liabilities and Stockholders’ Deficit | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 11,004 | $ | 8,961 | |||
| Accrued consignor payable | 89,718 | 77,122 | |||||
| Operating lease liabilities, current portion | 22,835 | 20,094 | |||||
| Convertible senior notes, net, current portion | 26,653 | — | |||||
| Other accrued and current liabilities | 98,466 | 82,685 | |||||
| Total current liabilities | 248,676 | 188,862 | |||||
| Operating lease liabilities, net of current portion | 85,790 | 104,856 | |||||
| Convertible senior notes, net | 276,807 | 452,421 | |||||
| Non-convertible notes, net | 134,470 | — | |||||
| Warrant liability | 78,584 | — | |||||
| Other noncurrent liabilities | 6,144 | 4,083 | |||||
| Total liabilities | 830,471 | 750,222 | |||||
| Stockholders’ deficit: | |||||||
| Common stock, | 1 | 1 | |||||
| Additional paid-in capital | 846,450 | 816,325 | |||||
| Accumulated deficit | (1,253,827 | ) | (1,119,625 | ) | |||
| Total stockholders’ deficit | (407,376 | ) | (303,299 | ) | |||
| Total liabilities and stockholders’ deficit | $ | 423,095 | $ | 446,923 | |||
| THE REALREAL, INC. Statements of Cash Flows (In thousands) | |||||||
| Year Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (134,202 | ) | $ | (168,472 | ) | |
| Adjustments to reconcile net loss to cash used in operating activities: | |||||||
| Depreciation and amortization | 33,100 | 31,695 | |||||
| Stock-based compensation expense | 29,082 | 34,273 | |||||
| Reduction of operating lease right-of-use assets | 15,192 | 16,746 | |||||
| Bad debt expense | 2,498 | 1,962 | |||||
| Non-cash interest expense | 8,684 | — | |||||
| Issuance costs allocated to liability classified warrants | 374 | — | |||||
| Accretion of debt discounts and issuance costs | 2,127 | 2,573 | |||||
| Property, plant, equipment and right-of-use asset impairments | — | 39,739 | |||||
| Provision for inventory write-downs and shrinkage | 2,590 | 9,783 | |||||
| Gain on debt extinguishment | (4,177 | ) | — | ||||
| Change in fair value of warrant liability | 68,167 | — | |||||
| Loss related to warehouse fire, net | 740 | — | |||||
| Other adjustments | (165 | ) | (515 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | 767 | (6,981 | ) | ||||
| Inventory, net | (3,677 | ) | 10,938 | ||||
| Prepaid expenses and other current assets | 701 | 2,001 | |||||
| Other assets | 76 | (3,050 | ) | ||||
| Operating lease liability | (20,883 | ) | (26,478 | ) | |||
| Accounts payable | 910 | (425 | ) | ||||
| Accrued consignor payable | 11,470 | (4,421 | ) | ||||
| Other accrued and current liabilities | 13,090 | (464 | ) | ||||
| Other noncurrent liabilities | 382 | (172 | ) | ||||
| Net cash provided by (used in) operating activities | 26,846 | (61,268 | ) | ||||
| Cash flow from investing activities: | |||||||
| Insurance proceeds related to warehouse fire | 461 | — | |||||
| Capitalized proprietary software development costs | (11,800 | ) | (12,951 | ) | |||
| Purchases of property and equipment | (14,248 | ) | (29,177 | ) | |||
| Net cash used in investing activities | (25,587 | ) | (42,128 | ) | |||
| Cash flow from financing activities: | |||||||
| Proceeds from exercise of stock options | 376 | 19 | |||||
| Proceeds from issuance of stock in connection with the Employee Stock Purchase Program | 1,413 | 886 | |||||
| Taxes paid related to restricted stock vesting | (1,646 | ) | (679 | ) | |||
| Cash received from settlement of capped calls in conjunction with the Note Exchange | 396 | — | |||||
| Issuance costs paid related to the Note Exchange | (5,298 | ) | — | ||||
| Net cash provided by (used in) financing activities | (4,759 | ) | 226 | ||||
| Net decrease in cash, cash equivalents, and restricted cash | (3,500 | ) | (103,170 | ) | |||
| Cash, cash equivalents, and restricted cash | |||||||
| Beginning of period | 190,623 | 293,793 | |||||
| End of period | $ | 187,123 | $ | 190,623 | |||
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, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Adjusted EBITDA Reconciliation: | |||||||||||||||
| Net loss | $ | (68,455 | ) | $ | (21,693 | ) | $ | (134,202 | ) | $ | (168,472 | ) | |||
| Net loss (% of revenue) | 41.7 | % | 15.1 | % | 22.3 | % | 30.7 | % | |||||||
| Depreciation and amortization | 8,294 | 8,165 | 33,100 | 31,695 | |||||||||||
| Interest income | (1,671 | ) | (2,088 | ) | (7,943 | ) | (8,805 | ) | |||||||
| Interest expense (1) | 5,916 | 2,683 | 21,384 | 10,701 | |||||||||||
| Provision for income taxes | 98 | 36 | 276 | 283 | |||||||||||
| EBITDA | (55,818 | ) | (12,897 | ) | (87,385 | ) | (134,598 | ) | |||||||
| Stock-based compensation | 6,502 | 7,980 | 29,082 | 34,273 | |||||||||||
| CEO separation benefit and transition costs (2) | 782 | — | 782 | 159 | |||||||||||
| Payroll tax expense on employee stock transactions | 121 | 53 | 371 | 195 | |||||||||||
| Legal settlements (3) | — | 240 | 600 | 1,340 | |||||||||||
| Restructuring (4) | — | 6,066 | 196 | 43,462 | |||||||||||
| Gain on extinguishment of debt (5) | — | — | (4,177 | ) | — | ||||||||||
| Change in fair value of warrant liability (6) | 58,958 | — | 68,167 | — | |||||||||||
| One time expenses (7) | 462 | — | 1,672 | — | |||||||||||
| Adjusted EBITDA | $ | 11,007 | $ | 1,442 | $ | 9,308 | $ | (55,169 | ) | ||||||
| Adjusted EBITDA (% of revenue) | 6.7 | % | 1.0 | % | 1.6 | % | (10.0 | )% | |||||||
(1) As of December 31, 2024, interest expense includes
(2) The CEO separation benefits and transition costs for the year ended December 31, 2024 consist of severance and benefits payable to John Koryl pursuant to his separation agreement. The CEO separation benefits and transition costs for the year ended December 31, 2023 consists of retention bonuses for certain executives incurred in connection with our founder's resignation in 2022.
(3) 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.
(4) 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.
(5) The gain on extinguishment of debt for the year ended December 31, 2024 reflects the difference between the carrying value of the Exchanged Notes and the fair value of the 2029 Notes.
(6) The change in fair value of warrant liability for the year ended December 31, 2024 reflects the remeasurement of the warrants issued by the Company in connection with the Note Exchange in February 2024.
(7) One time expenses for the year ended December 31, 2024 consists of vendor services settlement and estimated losses, net of estimated insurance recoveries related to the fire at one of our New Jersey authentication centers.
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, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss | $ | (68,455 | ) | $ | (21,693 | ) | $ | (134,202 | ) | $ | (168,472 | ) | |||
| Stock-based compensation | 6,502 | 7,980 | 29,082 | 34,273 | |||||||||||
| CEO separation benefit and transition costs | 782 | — | 782 | 159 | |||||||||||
| Payroll tax expense on employee stock transactions | 121 | 53 | 371 | 195 | |||||||||||
| Legal settlements | — | 240 | 600 | 1,340 | |||||||||||
| Restructuring | — | 6,066 | 196 | 43,462 | |||||||||||
| Provision for income taxes | 98 | 36 | 276 | 283 | |||||||||||
| Gain on extinguishment of debt | — | — | (4,177 | ) | — | ||||||||||
| Change in fair value of warrant liability | 58,958 | — | 68,167 | — | |||||||||||
| One time expenses | 462 | — | 1,672 | — | |||||||||||
| Non-GAAP net loss attributable to common stockholders | $ | (1,532 | ) | $ | (7,318 | ) | $ | (37,233 | ) | $ | (88,760 | ) | |||
| Weighted-average common shares outstanding used to calculate Non-GAAP net loss attributable to common stockholders per share, basic and diluted | 110,363,487 | 103,937,199 | 107,878,366 | 101,806,000 | |||||||||||
| Non-GAAP net loss attributable to common stockholders per share, basic and diluted | $ | (0.01 | ) | $ | (0.07 | ) | $ | (0.35 | ) | $ | (0.87 | ) | |||
The following table presents a reconciliation of net cash used in operating activities to free (negative) cash flow for each of the periods indicated (in thousands):
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash provided by (used in) operating activities | $ | 27,994 | $ | 10,523 | $ | 26,846 | $ | (61,268 | ) | ||||||
| Purchase of property and equipment and capitalized proprietary software development costs | (8,829 | ) | (6,730 | ) | (26,048 | ) | (42,128 | ) | |||||||
| Free (negative) cash flow | $ | 19,165 | $ | 3,793 | $ | 798 | $ | (103,396 | ) | ||||||
Key Financial and Operating Metrics:
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 30, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | |||||||||||||||||||||||||||
| (In thousands, except AOV and percentages) | |||||||||||||||||||||||||||||||||||
| GMV | $ | 492,955 | $ | 444,366 | $ | 423,341 | $ | 407,608 | $ | 450,668 | $ | 451,941 | $ | 440,914 | $ | 433,074 | $ | 503,534 | |||||||||||||||||
| NMV | $ | 367,382 | $ | 327,805 | $ | 303,918 | $ | 302,912 | $ | 335,245 | $ | 334,815 | $ | 329,422 | $ | 335,191 | $ | 383,447 | |||||||||||||||||
| Consignment Revenue | $ | 110,199 | $ | 102,643 | $ | 96,577 | $ | 102,852 | $ | 113,500 | $ | 115,648 | $ | 112,714 | $ | 116,908 | $ | 128,126 | |||||||||||||||||
| Direct Revenue | $ | 33,252 | $ | 24,953 | $ | 20,887 | $ | 17,356 | $ | 15,964 | $ | 12,709 | $ | 16,724 | $ | 15,623 | $ | 19,524 | |||||||||||||||||
| Shipping Services Revenue | $ | 16,204 | $ | 14,308 | $ | 13,391 | $ | 12,964 | $ | 13,909 | $ | 15,443 | $ | 15,496 | $ | 15,224 | $ | 16,345 | |||||||||||||||||
| Number of Orders | 993 | 891 | 789 | 794 | 826 | 840 | 820 | 829 | 870 | ||||||||||||||||||||||||||
| Take Rate | 35.7 | % | 37.4 | % | 36.7 | % | 38.1 | % | 37.7 | % | 38.4 | % | 38.5 | % | 38.6 | % | 37.7 | % | |||||||||||||||||
| Active Buyers (1) | 430 | 388 | 351 | 364 | 381 | 384 | 381 | 389 | 408 | ||||||||||||||||||||||||||
| AOV | $ | 496 | $ | 499 | $ | 537 | $ | 513 | $ | 545 | $ | 538 | $ | 538 | $ | 522 | $ | 579 | |||||||||||||||||
(1) During the three months ended June 30, 2024, we updated active buyers to be buyers who purchased goods through our online marketplace during the 3 months ended on the last day of the period presented. Previously we had measured buyers who purchased goods during the 12 months ended on the last day of the period presented. The prior periods have been updated to active buyers during the 3 months ended on the last day of the period presented.
FAQ
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