The RealReal Reports Strong Preliminary Fourth Quarter and Full Year 2024 Results; Projects Profitable Growth for 2025; Completes Strategic Debt Exchange Strengthening its Financial Position
The RealReal (REAL) reported preliminary Q4 and FY 2024 results exceeding guidance. Q4 GMV reached $503.5M vs guidance of $484-500M, with Adjusted EBITDA of $10.7-11.2M vs guidance of $6.5-9.5M. FY 2024 GMV was $1.829B with Adjusted EBITDA of $9.0-9.5M.
The company provided strong 2025 guidance, projecting FY GMV of $1.96-1.99B and Adjusted EBITDA of $20-30M, demonstrating significant growth. Additionally, REAL completed strategic debt exchange transactions, reducing total indebtedness by $37M and extending maturities from 2028 to 2031 for approximately $147M of new convertible notes.
The company achieved positive Adjusted EBITDA for 2024, marking an important inflection point, despite preliminary net losses of $(68.3)-$(68.8)M for Q4 and $(134.0)-$(134.5)M for FY 2024.
The RealReal (REAL) ha riportato risultati preliminari per il Q4 e l'anno fiscale 2024 superiori alle aspettative. Il GMV del Q4 ha raggiunto i $503.5M contro una previsione di $484-500M, con un EBITDA aggiustato di $10.7-11.2M rispetto a una guida di $6.5-9.5M. Il GMV per l'anno fiscale 2024 è stato di $1.829B con un EBITDA aggiustato di $9.0-9.5M.
L'azienda ha fornito una guida robusta per il 2025, prevedendo un GMV annuale di $1.96-1.99B e un EBITDA aggiustato di $20-30M, dimostrando una crescita significativa. Inoltre, REAL ha completato transazioni strategiche di scambio del debito, riducendo l'indebitamento totale di $37M ed estendendo le scadenze dal 2028 al 2031 per circa $147M di nuove notes convertibili.
L'azienda ha raggiunto un EBITDA aggiustato positivo per il 2024, segnando un punto di svolta importante, nonostante le perdite nette preliminari di $(68.3)-$(68.8)M per il Q4 e $(134.0)-$(134.5)M per l'anno fiscale 2024.
The RealReal (REAL) reportó resultados preliminares para el cuarto trimestre y el año fiscal 2024 que superaron las expectativas. El GMV del cuarto trimestre alcanzó los $503.5M frente a una guía de $484-500M, con un EBITDA ajustado de $10.7-11.2M en comparación con la guía de $6.5-9.5M. El GMV para el año fiscal 2024 fue de $1.829B con un EBITDA ajustado de $9.0-9.5M.
La compañía proporcionó una guía sólida para 2025, proyectando un GMV anual de $1.96-1.99B y un EBITDA ajustado de $20-30M, lo que demuestra un crecimiento significativo. Además, REAL completó transacciones estratégicas de intercambio de deuda, reduciendo la deuda total en $37M y extendiendo los vencimientos de 2028 a 2031 para aproximadamente $147M en nuevas notas convertibles.
La compañía logró un EBITDA ajustado positivo para 2024, marcando un punto de inflexión importante, a pesar de las pérdidas netas preliminares de $(68.3)-$(68.8)M para el cuarto trimestre y $(134.0)-$(134.5)M para el año fiscal 2024.
The RealReal (REAL)은 2024년 4분기 및 전체 회계 연도 예비 결과가 가이드를 초과했다고 보고했습니다. 4분기 GMV는 $503.5M에 도달했으며, 가이드는 $484-500M이었고, 조정된 EBITDA는 $10.7-11.2M로, 가이드는 $6.5-9.5M이었습니다. 2024년 전체 회계 연도 GMV는 $1.829B였으며 조정된 EBITDA는 $9.0-9.5M이었습니다.
회사는 2025년 강력한 가이드를 제공하며 연간 GMV가 $1.96-1.99B에 이를 것으로 예상하고 조정된 EBITDA는 $20-30M에 이를 것이라고 전망하여 상당한 성장을 보여주었습니다. 또한, REAL은 총 부채를 $37M 줄이고 신규 전환사채 약 $147M에 대한 만기를 2028년에서 2031년으로 연장하는 전략적 부채 교환 거래를 완료했습니다.
회사는 2024년 긍정적인 조정 EBITDA를 달성하여 중요한 전환점을 기록했지만, 4분기 및 2024회계연도에 대해 각각 $(68.3)-$(68.8)M 및 $(134.0)-$(134.5)M의 예비 순손실이 있었습니다.
The RealReal (REAL) a rapporté des résultats préliminaires pour le quatrième trimestre et l'année fiscale 2024 qui dépassent les prévisions. Le GMV du quatrième trimestre a atteint 503,5 millions de dollars contre des prévisions de 484 à 500 millions de dollars, avec un EBITDA ajusté de 10,7 à 11,2 millions de dollars par rapport à des prévisions de 6,5 à 9,5 millions de dollars. Le GMV pour l'année fiscale 2024 était de 1,829 milliard de dollars avec un EBITDA ajusté de 9,0 à 9,5 millions de dollars.
L'entreprise a fourni une solide prévision pour 2025, prévoyant un GMV annuel de 1,96 à 1,99 milliard de dollars et un EBITDA ajusté de 20 à 30 millions de dollars, démontrant une croissance significative. De plus, REAL a complété des transactions stratégiques d'échange de dettes, réduisant la dette totale de 37 millions de dollars et prolongeant les échéances de 2028 à 2031 pour environ 147 millions de dollars de nouvelles obligations convertibles.
L'entreprise a atteint un EBITDA ajusté positif pour 2024, marquant un tournant important, malgré des pertes nettes préliminaires de $(68,3)-$(68,8) millions de dollars pour le quatrième trimestre et de $(134,0)-$(134,5) millions de dollars pour l'année fiscale 2024.
The RealReal (REAL) berichtete über vorläufige Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024, die die Erwartungen übertrafen. Der GMV des vierten Quartals erreichte $503,5M im Vergleich zu einer Prognose von $484-500M, mit einem bereinigten EBITDA von $10,7-11,2M im Vergleich zu einer Prognose von $6,5-9,5M. Der GMV für das Geschäftsjahr 2024 betrug $1,829B bei einem bereinigten EBITDA von $9,0-9,5M.
Das Unternehmen gab eine starke Prognose für 2025 ab, die einen jährlichen GMV von $1,96-1,99B und ein bereinigtes EBITDA von $20-30M vorhersagt, was ein signifikantes Wachstum zeigt. Außerdem hat REAL strategische Transaktionen zum Schuldenumtausch abgeschlossen, wodurch die Gesamtschulden um $37M reduziert und die Fälligkeit von 2028 auf 2031 für etwa $147M neuer wandelbarer Anleihen verlängert wurde.
Das Unternehmen erzielte ein positives bereinigtes EBITDA für 2024 und markiert einen wichtigen Wendepunkt, trotz vorläufiger Nettoverluste von $(68,3)-$(68,8)M für das vierte Quartal und $(134,0)-$(134,5)M für das Geschäftsjahr 2024.
- Q4 GMV exceeded guidance at $503.5M
- Q4 Adjusted EBITDA beat guidance at $10.7-11.2M
- Achieved positive FY 2024 Adjusted EBITDA of $9.0-9.5M
- Reduced total debt by $37M through strategic exchange
- Projects strong 2025 Adjusted EBITDA growth to $20-30M
- Significant gross margin improvements in 2024
- Q4 2024 net loss of $(68.3)-$(68.8)M
- FY 2024 net loss of $(134.0)-$(134.5)M
- Warrant liability adjustment impact of $(68.2)M for FY 2024
Insights
The preliminary results and 2025 outlook reveal a compelling turnaround story for The RealReal, marked by three critical developments:
First, the achievement of positive Adjusted EBITDA for FY2024 at
Second, the strategic debt exchange is particularly noteworthy as it accomplishes three objectives:
- Reduces total debt by
$37M , following a$17M reduction in February 2024 - Extends maturities from 2028 to 2031 for
65% of convertible notes - Improves interest terms from
1.00% to4.00% , reflecting current market conditions while maintaining manageable debt service costs
Third, the company's investment in data, technology and AI capabilities appears to be yielding results through improved gross margins and operational efficiencies. The Q4 GMV of
However, investors should note that while Adjusted EBITDA is improving, the company still posted significant net losses of
SAN FRANCISCO, Feb. 10, 2025 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today provided preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2024 and announced its entry into strategic debt exchange transactions with certain holders of its
Preliminary Fourth Quarter and Full Year 2024 Financial Results
“I am pleased to report strong Q4 and full year 2024 preliminary results. Our growth playbook combined with operational excellence enabled us to deliver GMV and Adjusted EBITDA above our guidance range," said Rati Levesque, President and Chief Executive Officer of The RealReal. “2024 marked an important inflection point for our business. We achieved positive Adjusted EBITDA for the year, and we’re just getting started.”
Gross Merchandise Value (GMV) and Adjusted EBITDA for the fourth quarter and full year are expected to exceed previously issued guidance ranges, as outlined in the table below.
| Q4 2024 Preliminary Results | Prior Q4 2024 Guidance | |
| GMV | ||
| Total Revenue | ||
| Adjusted EBITDA |
| FY 2024 Preliminary Results | Prior FY 2024 Guidance | |
| GMV | ||
| Total Revenue | ||
| Adjusted EBITDA |
*Adjusted EBITDA is based on preliminary net loss ranges of
The Company’s preliminary financial results are based on the Company’s current estimate of its results for the quarter and full year ended December 31, 2024, and remain subject to change based on the completion of closing and review procedures and the execution of the Company’s internal controls over financial reporting.
First Quarter and Full Year 2025 Financial Outlook
Based on market conditions as of February 10, 2025, we are providing guidance for GMV, total revenue, and Adjusted EBITDA, which is a non-GAAP financial measure.
Ajay Gopal, Chief Financial Officer of The RealReal, said, “The RealReal has made tremendous headway on our growth and profitability goals. We look forward to continuing this momentum in 2025, expanding Adjusted EBITDA margin through the combination of our growth playbook and operational efficiencies driven by our data, technology, and AI capabilities.”
Gopal continued, “We delivered significant gross margin improvements in 2024 setting the stage for consistent and largely sustainable rates going forward. We will continue to stay focused on accelerating full year growth and delivering operating leverage. For full year 2025, we expect Adjusted EBITDA in the range of
| Q1 2025 Guidance | |
| GMV | |
| Total Revenue | |
| Adjusted EBITDA |
| FY 2025 Guidance | |
| GMV | |
| Total Revenue | |
| Adjusted EBITDA |
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).
Convertible Debt Exchange Announcement
On February 10, 2025, The RealReal consummated private, separately negotiated debt exchange transactions with holders representing in aggregate approximately
As a result of the Exchange Transactions, the Company reduced its total indebtedness by approximately
“We are pleased to reduce our total indebtedness by approximately
Moelis & Company LLC is serving as financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to The RealReal in connection with the Exchange Transactions.
The RealReal Fourth Quarter and Full Year 2024 Earnings Call
The Company will release its actual financial results for the fourth quarter and full year ended December 31, 2024, after the market closes on February 20, 2025. The RealReal will host a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to review its financial results. A live webcast of the conference call will be available online at investor.therealreal.com. The archived webcast will be available shortly after the call 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. Register for the call using this link.
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 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 release contains certain non-GAAP financial measures, including GMV and Adjusted EBITDA. We have provided a reconciliation of adjusted EBITDA to the most directly comparable GAAP financial measure in this 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, CEO separation benefit, and transition costs, 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 is 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 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 provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
| Three Months Ended December 31, 2024 | Year Ended December 31, 2024 | ||||||||||||
| Low Estimate | High Estimate | Low Estimate | High Estimate | ||||||||||
| (in thousands) | |||||||||||||
| Adjusted EBITDA Reconciliation: | |||||||||||||
| Net loss | $ | (68,762 | ) | $ | (68,262 | ) | $ | (134,510 | ) | $ | (134,010 | ) | |
| Add (deduct): | |||||||||||||
| Depreciation and amortization | 8,294 | 8,294 | 33,100 | 33,100 | |||||||||
| Interest income | (1,671 | ) | (1,671 | ) | (7,943 | ) | (7,943 | ) | |||||
| Interest expense | 5,916 | 5,916 | 21,384 | 21,384 | |||||||||
| Provision for income taxes | 98 | 98 | 276 | 276 | |||||||||
| EBITDA | (56,125 | ) | (55,625 | ) | (87,693 | ) | (87,193 | ) | |||||
| Stock-based compensation expense | 6,502 | 6,502 | 29,082 | 29,082 | |||||||||
| CEO separation benefit and transition costs(1) | 782 | 782 | 782 | 782 | |||||||||
| Payroll taxes on employee stock transactions | 121 | 121 | 371 | 371 | |||||||||
| Legal settlement | - | - | 600 | 600 | |||||||||
| Restructuring charges | - | - | 196 | 196 | |||||||||
| Gain on extinguishment of debt | - | - | (4,177 | ) | (4,177 | ) | |||||||
| Change in fair value of warrant liability(2) | 58,958 | 58,958 | 68,167 | 68,167 | |||||||||
| One time expenses(3) | 462 | 462 | 1,672 | 1,672 | |||||||||
| Adjusted EBITDA | $ | 10,700 | $ | 11,200 | $ | 9,000 | $ | 9,500 | |||||
(1) 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.
(2) 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.
(3) 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.
FAQ
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