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The RealReal Announces Third Quarter 2024 Results

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The RealReal (REAL) reported strong Q3 2024 financial results with revenue reaching $148 million, up 11% year-over-year. The company's GMV increased 6% to $433 million, while consignment revenue grew 14%. Net loss improved to $(18) million from $(23) million in the prior year. Notable improvements include Adjusted EBITDA of $2.3 million (1.6% of revenue) compared to $(7.0) million last year, and gross margin expansion to 74.9%. Active buyers increased 7% to 389,000, with orders up 4% to 829,000. The company raised its full-year guidance based on strong Q3 performance and positive supply trends.

The RealReal (REAL) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con entrate che hanno raggiunto i 148 milioni di dollari, in aumento dell'11% rispetto all'anno precedente. Il GMV dell'azienda è aumentato del 6% a 433 milioni di dollari, mentre le entrate da consignment sono cresciute del 14%. La perdita netta è migliorata a $(18) milioni rispetto ai $(23) milioni dell'anno scorso. Tra i miglioramenti significativi c'è un EBITDA rettificato di 2,3 milioni di dollari (1,6% delle entrate) rispetto ai $(7,0) milioni dell'anno scorso, e un'espansione del margine lordo al 74,9%. Gli acquirenti attivi sono aumentati del 7% raggiungendo 389.000, con ordini in crescita del 4% a 829.000. L'azienda ha alzato le previsioni per l'intero anno basandosi sulle performance solide del terzo trimestre e sui segnali positivi dell'offerta.

The RealReal (REAL) reportó resultados financieros fuertes para el tercer trimestre de 2024, con ingresos alcanzando los 148 millones de dólares, un aumento del 11% en comparación con el año anterior. El GMV de la compañía creció un 6% hasta los 433 millones de dólares, mientras que los ingresos por consignación aumentaron un 14%. La pérdida neta mejoró a $(18) millones desde $(23) millones en el año anterior. Las mejoras notables incluyen un EBITDA ajustado de 2,3 millones de dólares (1,6% de los ingresos) en comparación con $(7,0) millones el año pasado, y una expansión del margen bruto al 74,9%. Los compradores activos aumentaron un 7% a 389.000, con pedidos en aumento del 4% a 829.000. La compañía elevó su guía para el año completo basándose en un fuerte desempeño del tercer trimestre y tendencias positivas de suministro.

The RealReal (REAL)은 2024년 3분기 강력한 재무 결과를 보고하였으며, 수익이 1억 4,800만 달러에 이르렀습니다, 전년 대비 11% 증가했습니다. 회사의 GMV는 6% 증가하여 4억 3,300만 달러에 이르렀습니다, 그리고 위탁 판매 수익은 14% 증가했습니다. 순손실은 전년도 $(2300만)에서 $(1800만)으로 개선되었습니다. 주목할 만한 개선 사항으로는 조정된 EBITDA가 230만 달러에 달했습니다 (수익의 1.6%) 는 지난해 $(700만)과 비교됩니다, 그리고 총 마진은 74.9%로 확대되었습니다. 활성 구매자는 7% 증가하여 389,000명에 이르렀고, 주문은 4% 증가하여 829,000건에 이르렀습니다. 이 회사는 3분기 실적이 강력하고 공급 트렌드가 긍정적이어서 연간 가이던스를 상향 조정했습니다.

The RealReal (REAL) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des revenus atteignant 148 millions de dollars, en hausse de 11 % par rapport à l'année précédente. Le GMV de l'entreprise a augmenté de 6 % pour atteindre 433 millions de dollars, tandis que les revenus de consignation ont augmenté de 14 %. La perte nette s'est améliorée à $(18) millions contre $(23) millions l'année précédente. Parmi les améliorations notables, un EBITDA ajusté de 2,3 millions de dollars (1,6 % des revenus) par rapport à $(7,0) millions l'année précédente, et une expansion de la marge brute à 74,9 %. Le nombre d'acheteurs actifs a augmenté de 7 % pour atteindre 389 000, avec des commandes en hausse de 4 % à 829 000. L'entreprise a relevé ses prévisions annuelles en raison de la forte performance du troisième trimestre et des tendances d'offre positives.

The RealReal (REAL) hat starke Finanzresultate für das dritte Quartal 2024 gemeldet, mit Umsätzen von 148 Millionen Dollar, was einem Anstieg von 11% im Vergleich zum Vorjahr entspricht. Der GMV des Unternehmens stieg um 6% auf 433 Millionen Dollar, während die Konsignationsumsätze um 14% zunahmen. Der Nettoverlust verbesserte sich auf $(18) Millionen von $(23) Millionen im Vorjahr. Bemerkenswerte Verbesserungen umfassen ein bereinigtes EBITDA von 2,3 Millionen Dollar (1,6% des Umsatzes) im Vergleich zu $(7,0) Millionen im vergangenen Jahr, und eine Ausweitung der Bruttomarge auf 74,9%. Aktive Käufer stiegen um 7% auf 389.000, während Bestellungen um 4% auf 829.000 zunahmen. Das Unternehmen hob seine vollständige Jahresprognose basierend auf der starken Performance im dritten Quartal und positiven Angebots-Trends an.

Positive
  • Revenue increased 11% YoY to $148 million
  • GMV grew 6% YoY to $433 million
  • Gross margin expanded 430 basis points to 74.9%
  • Net loss improved by $5 million YoY
  • Adjusted EBITDA turned positive to $2.3 million from -$7.0 million YoY
  • Active buyers increased 7% YoY
  • Company raised full-year guidance
Negative
  • Still operating at a net loss of $18 million
  • Orders growth slowed to 4% YoY
  • Average order value only increased 2% YoY

Insights

The RealReal's Q3 results show meaningful progress in its path to profitability. Revenue growth of 11% to $148 million and improved Adjusted EBITDA of $2.3 million mark significant milestones. The 430 basis point expansion in gross margin to 74.9% demonstrates stronger operational efficiency.

Key positives include 14% growth in consignment revenue and 7% increase in active buyers to 389,000. The reduction in net loss from $(23) million to $(18) million shows improved cost management. The 2% increase in average order value to $522 indicates sustained premium positioning in the luxury resale market.

Management's decision to raise full-year guidance suggests confidence in Q4 performance and business momentum. However, the company still needs to demonstrate consistent profitability to justify its valuation.

Q3 2024 Revenue of $148 million, up $15 million or 11% Year-Over-Year
Q3 2024 Net Loss of $(18) million, or (12.1)% of Total Revenue, improved $5 million Year-Over-Year
Q3 2024 Adjusted EBITDA of $2.3 million or 1.6% of Total Revenue, increased $9 million Year-Over-Year

SAN FRANCISCO, Nov. 04, 2024 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today reported financial results for its third quarter ended September 30, 2024. Third quarter 2024 gross merchandise value (GMV) and total revenue increased 6% and 11% respectively, compared to the third quarter of 2023. During the quarter, consignment revenue grew 14% compared to the same period in 2023. Third quarter Adjusted EBITDA improved $9 million compared to the third quarter of 2023.

“I am pleased to report strong results for the third quarter, and I am encouraged by the continued strength in supply trends as we enter the fourth quarter," said Rati Levesque, Chief Executive Officer of The RealReal. “Third quarter GMV, Total Revenue, and Adjusted EBITDA all exceeded our prior expectations, enabling us to raise our full year outlook.”

Levesque continued, “Our team is focused on delivering against our 2024 commitments. I’m encouraged by our results and by how our teams are executing against our vision to change the way people shop for the better, creating a unique circular shopping experience built on technical expertise and high-touch human service.”

Third Quarter Highlights

  • GMV was $433 million, an increase of 6% compared to the same period in 2023
  • Total Revenue was $148 million, an increase of 11% compared to the same period in 2023
  • Gross Profit was $111 million, an increase of $17 million compared to the same period in 2023
  • Gross Margin was 74.9%, an increase of 430 basis points compared to the same period in 2023
  • Net Loss was $(18) million or (12.1)% of total revenue, compared to $(23) million or (17.2)% of total revenue in the same period in 2023
  • Adjusted EBITDA was $2.3 million or 1.6% of total revenue compared to $(7.0) million or (5.2)% of total revenue in the same period in 2023
  • GAAP basic net loss per share was $(0.16) compared to $(0.22) in the prior year period and GAAP diluted net loss per share was $(0.17) compared to $(0.22) in the prior year period
  • Non-GAAP basic and diluted net loss attributable to common shareholders per share was $(0.09) compared to $(0.15) in the prior year period
  • Top-line-related Metrics
    • Trailing three months active buyers was 389,000, an increase of 7% compared to the same period in 2023
    • Orders were 829,000, an increase of 4% compared to the same period in 2023
    • Average order value (AOV) was $522, an increase of 2% versus the same period in 2023

Q4 and Full Year 2024 Guidance
Based on market conditions as of November 4, 2024, we are raising our full year guidance. Additionally, we are providing guidance for fourth quarter 2024 GMV, Total Revenue 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).

 Q4 2024Full Year 2024 
GMV$484 - $500 million$1.810 - $1.826 billion 
Total Revenue$158 - $165 million$595 - $602 million 
Adjusted EBITDA$6.5 - $9.5 million$4.7 - $7.7 million 

Webcast and Conference Call
The RealReal will host a conference call to review the company’s third quarter 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.

About The RealReal, Inc.
The RealReal is the world’s largest online marketplace for authenticated, resale luxury goods, with 37 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.

Investor Relations Contact:
Caitlin Howe
IR@therealreal.com

Press Contact:
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, in particular in the context of the impacts of recent geopolitical events, including the conflict between Russia and Ukraine and the Israel-Hamas war, and uncertainty surrounding macro-economic trends, the debt exchange, financial guidance, anticipated growth in 2024, 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, other (income) expense net, provision (benefit) for income taxes, depreciation and amortization, further adjusted to exclude stock-based compensation, employer payroll tax expense on employee stock transactions, legal settlement charges, restructuring, warehouse fire costs (net), gain on extinguishment of debt, change in fair value of warrant liabilities 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 expense 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 expense 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 expenses on employee stock transactions, legal settlement charges, restructuring charges, gain on extinguishment of debt, change in fair value of warrant liabilities and certain one-time expenses divided by weighted average shares outstanding. We exclude the effect of our liability classified warrants to arrive at the weighted average common shares outstanding when their effect is anti-dilutive. We believe that making these adjustments 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 September 30, Nine Months Ended September 30,
  2024   2023   2024   2023 
Revenue:       
Consignment revenue$116,908  $102,852  $345,270  $302,072 
Direct revenue 15,623   17,356   45,056   63,196 
Shipping services revenue 15,224   12,964   46,163   40,663 
Total revenue 147,755   133,172   436,489   405,931 
Cost of revenue:       
Cost of consignment revenue 13,326   13,577   39,714   43,681 
Cost of direct revenue 12,925   15,686   38,970   61,162 
Cost of shipping services revenue 10,791   9,837   32,347   30,859 
Total cost of revenue 37,042   39,100   111,031   135,702 
Gross profit 110,713   94,072   325,458   270,229 
Operating expenses:       
Marketing 11,604   11,591   40,646   44,460 
Operations and technology 66,199   61,038   194,593   194,645 
Selling, general and administrative 47,512   44,788   141,364   138,959 
Restructuring    (856)  196   37,396 
Total operating expenses (1) 125,315   116,561   376,799   415,460 
Loss from operations (14,602)  (22,489)  (51,341)  (145,231)
Change in fair value of warrant liability 744      (9,209)   
Gain on extinguishment of debt       4,177    
Interest income 1,940   2,260   6,272   6,717 
Interest expense (5,948)  (2,673)  (15,468)  (8,018)
Loss before provision for income taxes (17,866)  (22,902)  (65,569)  (146,532)
Provision for income taxes 72   47   178   247 
Net loss attributable to common stockholders$(17,938) $(22,949) $(65,747) $(146,779)
Net loss per share attributable to common stockholders       
Basic$(0.16) $(0.22) $(0.61) $(1.45)
Diluted$(0.17) $(0.22) $(0.61) $(1.45)
Weighted average shares used to compute net loss per share attributable to common stockholders       
Basic 109,016,060   102,648,790   107,043,946   101,087,793 
Diluted 112,418,751   102,648,790   107,043,946   101,087,793 
        
(1) Includes stock-based compensation as follows:       
Marketing$225  $382  $707  $1,181 
Operations and technology 2,533   3,115   7,527   10,107 
Selling, general and administrative 5,000   5,039   14,346   15,005 
Total$7,758  $8,536  $22,580  $26,293 
                


THE REALREAL, INC.
Condensed Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
 
 September 30,
2024
 December 31,
2023
Assets   
Current assets   
Cash and cash equivalents$153,179  $175,709 
Accounts receivable, net 15,953   17,226 
Inventory, net 19,921   22,246 
Prepaid expenses and other current assets 22,677   20,766 
Total current assets 211,730   235,947 
Property and equipment, net 95,218   104,087 
Operating lease right-of-use assets 79,142   86,348 
Restricted cash 14,911   14,914 
Other assets 5,251   5,627 
Total assets$406,252  $446,923 
Liabilities and Stockholders’ Deficit   
Current liabilities   
Accounts payable$10,795  $8,961 
Accrued consignor payable 73,242   77,122 
Operating lease liabilities, current portion 22,487   20,094 
Convertible senior notes, net, current portion 26,600    
Other accrued and current liabilities 92,573   82,685 
Total current liabilities 225,697   188,862 
Operating lease liabilities, net of current portion 91,274   104,856 
Convertible senior notes, net 276,483   452,421 
Non-convertible notes, net 131,427    
Warrant liability 19,626    
Other noncurrent liabilities 7,158   4,083 
Total liabilities 751,665   750,222 
Stockholders’ deficit:   
Common stock, $0.00001 par value; 500,000,000 shares authorized as of September 30, 2024, and December 31, 2023; 109,689,946 and 104,670,500 shares issued and outstanding as of September 30, 2024, and December 31, 2023, respectively 1   1 
Additional paid-in capital 839,958   816,325 
Accumulated deficit (1,185,372)  (1,119,625)
Total stockholders’ deficit (345,413)  (303,299)
Total liabilities and stockholders’ deficit$406,252  $446,923 
        


THE REALREAL, INC.
Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
 
 Nine Months Ended September 30,
  2024   2023 
Cash flows from operating activities:   
Net loss$(65,747) $(146,779)
Adjustments to reconcile net loss to cash used in operating activities:   
Depreciation and amortization 24,806   23,530 
Stock-based compensation expense 22,580   26,293 
Reduction of operating lease right-of-use assets 11,280   12,999 
Bad debt expense 1,844   1,565 
Non-cash interest expense 3,761   575 
Issuance costs allocated to liability classified warrants 374    
Accretion of debt discounts and issuance costs 1,607   1,920 
Property, plant, equipment, and right-of-use asset impairments    33,817 
Provision for inventory write-downs and shrinkage 2,479   8,836 
Gain on debt extinguishment (4,177)   
Change in fair value of warrant liability 9,209    
Loss related to warehouse fire, net 279    
Other adjustments (628)  (556)
Changes in operating assets and liabilities:   
Accounts receivable, net (571)  (2,922)
Inventory, net 96   9,474 
Prepaid expenses and other current assets 990   1,897 
Other assets 229   (2,856)
Operating lease liability (15,263)  (21,399)
Accounts payable 837   (1,550)
Accrued consignor payable (5,006)  (15,018)
Other accrued and current liabilities 10,036   (1,499)
Other noncurrent liabilities (163)  (118)
Net cash used in operating activities (1,148)  (71,791)
Cash flow from investing activities:   
Insurance proceeds related to warehouse fire 461    
Capitalized proprietary software development costs (8,051)  (9,870)
Purchases of property and equipment (9,168)  (25,528)
Net cash used in investing activities (16,758)  (35,398)
Cash flow from financing activities:   
Proceeds from exercise of stock options 118   19 
Taxes paid related to restricted stock vesting (467)  (501)
Proceeds from issuance of stock in connection with the Employee Stock Purchase Program 624   446 
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 used in financing activities (4,627)  (36)
Net decrease in cash, cash equivalents and restricted cash (22,533)  (107,225)
Cash, cash equivalents and restricted cash   
Beginning of period 190,623   293,793 
End of period$168,090  $186,568 
        

The following table reflects the reconciliation of net loss to Adjusted EBITDA for each of the periods indicated (in thousands):

 Three Months Ended September 30, Nine Months Ended September 30,
  2024   2023   2024   2023 
Adjusted EBITDA Reconciliation:       
Net loss$(17,938) $(22,949) $(65,747) $(146,779)
Depreciation and amortization 8,270   7,744   24,806   23,530 
Interest income (1,940)  (2,260)  (6,272)  (6,717)
Interest expense 5,948   2,673   15,468   8,018 
Provision for income taxes 72   47   178   247 
EBITDA (5,588)  (14,745)  (31,567)  (121,701)
Stock-based compensation 7,758   8,536   22,580   26,293 
Payroll taxes expense on employee stock transactions 76   74   250   142 
Legal settlement       600   1,100 
Restructuring charges (1)    (856)  196   37,396 
Gain on extinguishment of debt (2)       (4,177)   
Change in fair value of warrant liability (3) (744)     9,209    
One time expenses (4) 822      1,211   159 
Adjusted EBITDA$2,324  $(6,991) $(1,698) $(56,611)
                

(1) Restructuring charges for the three and nine months ended September 30, 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.

(2) The gain on extinguishment of debt for the nine months ended September 30, 2024 reflects the difference between the carrying value of the Exchanged Notes and the fair value of the 2029 Notes.

(3) The change in fair value of warrant liability for the three and nine months ended September 30, 2024 reflects the remeasurement of the warrants issued by the Company in connection with the Note Exchange in February 2024.

(4) One time expenses for the three and nine months ended September 30, 2024 consists of vendor services settlements and estimated losses, net of estimated insurance recoveries related to the fire at one of our New Jersey authentication centers. One time expenses for the nine months ended September 30, 2023 consists of retention bonuses for certain executives incurred in connection with our founder's resignation on June 6, 2022.

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 September 30, Nine Months Ended September 30,
  2024   2023   2024   2023 
Net loss$(17,938) $(22,949) $(65,747) $(146,779)
Stock-based compensation 7,758   8,536   22,580   26,293 
Payroll tax expense on employee stock transactions 76   74   250   142 
Legal settlement       600   1,100 
Restructuring charges    (856)  196   37,396 
Provision for income taxes 72   47   178   247 
Gain on extinguishment of debt       (4,177)   
Change in fair value of warrant liability (744)     9,209    
One time expenses 822      1,211   159 
Non-GAAP net loss attributable to common stockholders$(9,954) $(15,148) $(35,700) $(81,442)
Weighted-average common shares outstanding to calculate Non-GAAP net loss attributable to common stockholders per share, basic and diluted 109,016,060   102,648,790   107,043,946   101,087,793 
Non-GAAP net loss attributable to common stockholders per share, basic and diluted$(0.09) $(0.15) $(0.33) $(0.81)
                

The following table presents a reconciliation of net cash provided for (used in) operating activities to free (negative) cash flow for each of the periods indicated (in thousands):

 Three Months Ended September 30, Nine Months Ended September 30,
  2024   2023   2024   2023 
Net cash provided for (used in) operating activities$9,073  $(10,933) $(1,148) $(71,791)
Purchase of property and equipment and capitalized proprietary software development costs (6,939)  (8,120)  (17,219)  (35,398)
Free (negative) cash flow$2,134  $(19,053) $(18,367) $(107,189)
                

Key Financial and Operating Metrics:

 September 30,
2022
 December 31,
2022
 March 31,
2023
 June 30,
2023
 September 30,
2023
 December 31,
2023
 March 31, 2024 June 30,
2024
 September 30,
2024
  
GMV$440,659  $492,955  $444,366  $423,341  $407,608  $450,668  $451,941  $440,914  $433,074 
NMV$325,105  $367,382  $327,805  $303,918  $302,912  $335,245  $334,815  $329,422  $335,191 
Consignment Revenue$93,874  $110,199  $102,643  $96,577  $102,852  $113,500  $115,648  $112,714  $116,908 
Direct Revenue$34,005  $33,252  $24,953  $20,887  $17,356  $15,964  $12,709  $16,724  $15,623 
Shipping Services Revenue$14,824  $16,204  $14,308  $13,391  $12,964  $13,909  $15,443  $15,496  $15,224 
Number of Orders 952   993   891   789   794   826   840   820   829 
Take Rate 36.0%  35.7%  37.4%  36.7%  38.1%  37.7%  38.4%  38.5%  38.6%
Active Buyers (1) 404   430   388   351   364   381   384   381   389 
AOV$463  $496  $499  $537  $513  $545  $538  $538  $522 
                                    

(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

What was The RealReal's (REAL) revenue in Q3 2024?

The RealReal reported revenue of $148 million in Q3 2024, representing an 11% increase year-over-year.

How much was The RealReal's (REAL) GMV in Q3 2024?

The RealReal's Gross Merchandise Value (GMV) was $433 million in Q3 2024, up 6% compared to Q3 2023.

What was The RealReal's (REAL) Adjusted EBITDA in Q3 2024?

The RealReal's Adjusted EBITDA was $2.3 million or 1.6% of total revenue in Q3 2024, improving from -$7.0 million in Q3 2023.

How many active buyers did The RealReal (REAL) have in Q3 2024?

The RealReal had 389,000 active buyers in the trailing three months of Q3 2024, a 7% increase compared to the same period in 2023.

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