Business
Rent the Runway, Inc. Announces First Quarter 2022 Results
Strong revenue momentum: Q1 2022 revenue up 100% year-over-year Achieves record ending Active Subscriber count Significant increase in Gross Margin to 34%, up
About this update from Rent The Runway, Inc.
[{"type":"text","content":"Strong revenue momentum: Q1 2022 revenue up 100% year-over-year Achieves record ending Active Subscriber count Significant increase in Gross Margin to 34%, up 9 percentage points YoY NEW YORK, June 09, 2022 (GLOBE NEWSWIRE) -- Rent the Runway, Inc. (“Rent the Runway”) (NASDAQ: RENT), the world’s first and largest shared designer closet platform, today reported financial results for the fiscal quarter ended April 30, 2022. “I’m excited to share that we exceeded our Q1 guidance across all key metrics both on the top and bottom lines, growing revenue 100% YoY and gross margin by 9 points YoY. Our strong performance is evidence of our firm position in the broader experience economy, which has enabled us to make significant progress on our path to profitability and achieve record ending Active Subscribers in the first quarter of 2022,” said Jennifer Hyman, CEO and Co-Founder of Rent the Runway. “Rent the Runway has never been more relevant than it is today. Whether our customers are traveling, dining out, attending events, heading back to the office, or simply hanging out with friends, they are turning to our platform for a more affordable, convenient and sustainable way to express their joy and infuse fashion variety into virtually every use case in their lives.” CFO Scarlett O’Sullivan stated, “We are pleased by our Q1'22 performance post Omicron and are also encouraged by the strong momentum we see carrying into Q2'22. From a profitability standpoint, we continued to improve our gross margin and Adjusted EBITDA margin in Q1'22, both of which are up significantly YoY. Underscoring our confidence in the business, we are reiterating our outlook of 45%-50% YoY revenue growth in fiscal year 2022, and our target of Adjusted EBITDA breakeven in the next 2-4 quarters, while progressing towards our top priority of free cash flow breakeven in the mid-term.” First Quarter 2022 Key Metrics and Financial Highlights Revenue was $67.1 million, a 100% increase year-over-year from $33.5 million in the first quarter of fiscal year 2021.134,998 ending Active Subscribers, representing an increase of 82% year-over-year from 74,018 at the end of the first quarter of fiscal year 2021.177,213 ending Total Subscribers, representing an increase of 70% year-over-year from 104,138 at the end of the first quarter of fiscal year 2021.Gross Profit was $22.5 mil...