The RealReal Inc. (NASDAQ: REAL) reported Q3 EPS of ($0.41), $0.03 worse than the analyst estimate of ($0.38). Revenue for the quarter came in at $78.1 million versus the consensus estimate of $76.69 million.

Third Quarter Financial Highlights

• Gross Merchandise Volume (GMV) was $245.4 million, a 17% Q/Q improvement and a 3% Y/Y decrease.
• Total Revenue was $78.1 million, a 16% Q/Q improvement and a 4% Y/Y decrease.
• Consignment and Service Revenue was $64.4 million, a 15% Q/Q improvement and a 7% Y/Y decrease.
• Direct Revenue was $13.6 million, a 25% Q/Q and 11% Y/Y increase.
• Gross Profit was $49.8 million, a 18% Q/Q improvement and a 5% Y/Y decrease.
• Net Loss was ($43.3 million).
• Adjusted EBITDA was ($29.0) million or (37.2%) of total revenue.
• Adjusted EBITDA includes $2.2 million of COVID related expenses such as higher payroll expenses, personal protective equipment, deep cleanings, medical personnel at our facilities, transportation services, etc.
• GAAP basic and diluted net loss per share was ($0.49).
• Non-GAAP basic and diluted net loss per share was ($0.41).
• At the end of the third quarter, cash, cash equivalents and short-term investments totaled $395.2 million.

“Improving trends in New York City and Los Angeles, momentum with virtual appointments and continued strength in the The RealReal B2B vendor program improved our ability to source supply in Q3 and contributed to improving quarter over quarter GMV trends. We were pleased with our GMV performance in Q3 despite the difficult Y/Y comparison and continued COVID headwinds,” said Julie Wainwright, CEO of The RealReal.

Supply trends improved significantly quarter over quarter. Total supply units shipped to our e-commerce facilities improved approximately 32% Q/Q and increased 3% Y/Y in Q3. Excluding NYC and Los Angeles, Q3 supply units shipped increased 7% Y/Y.

On the demand side, traffic trends remained healthy in Q3 with sessions up 18% Y/Y, and the company’s four day sell-through continued to trend at pre-COVID levels, which demonstrates that supply continues to sell quickly.

On National Consignment Day Oct. 5, the company announced its partnership with Gucci to launch an online shop featuring pre-loved Gucci items and promote circularity for luxury fashion. “Together we’re shining a global spotlight on resale that we hope will encourage all consumers to support the circular economy and join us in reducing fashion’s carbon footprint,” commented Wainwright. The partnership marks multiple significant firsts -- it’s the first collaboration with a brand on a dedicated shop on The RealReal.com and the first time a brand partnership has included an incentive to buy resale. The partnership is also grounded in sustainability.

“We are laser focused on making the operational changes and strategic investments that will position us to emerge from COVID a stronger, more agile company prepared to capitalize on the significant luxury resale market opportunity in front of us,” continued Wainwright.

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