The RealReal Inc. (REAL) Tops Q4 EPS by 2c, Revenues Beat

The RealReal Inc. (NASDAQ: REAL) reported Q4 EPS of ($0.17), $0.02 better than the analyst estimate of ($0.19). Revenue for the quarter came in at $97.3 million versus the consensus estimate of $90.54 million.

Fourth Quarter Financial Highlights

• Gross Merchandise Volume (GMV) was $303.0 million, up 39% year over year.
• Total Revenue was $97.3 million, up 57% year over year.
• Consignment and Service Revenue was $80.7 million, up 46% year over year.
• Gross Profit was $62.5 million, up 48% year over year.
• Adjusted EBITDA was ($12.7) million or (13.1%) of total revenue.
• GAAP basic and diluted net loss per share was ($0.25).
• Non-GAAP basic and diluted net loss per share was ($0.17).
• Net cash provided by operating activities was $3.6 million, compared to ($7.6) million used in the fourth quarter of 2018.
• At the end of the fourth quarter, cash, cash equivalents and short-term investments totaled $363.3 million.

“Our Q4 results exemplify our long standing approach to balancing growth and operating leverage. In Q4, we achieved 39% Y/Y GMV growth with all top level categories experiencing strong growth. At the same time, Q4 adjusted EBITDA margin improved by approximately 17 percentage points Y/Y. Additionally, 82.9% of GMV was driven by repeat buyers in the quarter, a rare attribute of our marketplace that underscores our buyer loyalty and the strength of our flywheel,” said Julie Wainwright, CEO and founder.

“In 2019, we surpassed $1 billion in GMV. We also made significant progress on our path to profitability while still making investments to capitalize on the massive opportunity in front of us. In 2020, we will continue to invest in growth while driving meaningful operating leverage as we continue to revolutionize luxury resale and deliver value to our consignors and our buyers,” continued Wainwright.

“Our goal is to be the safest marketplace to buy pre-owned luxury goods, and our processes will continue to evolve throughout 2020 as we integrate more technology to stay ahead of counterfeiters,” added Wainwright. “Our buyer NPS score of 71 and the fact that approximately 83% of GMV came from repeat buyers and 81% of GMV came from repeat consignors in 2019, indicates that we are focused on the right issues.”

For earnings history and earnings-related data on The RealReal Inc. (REAL) click here.

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