Business
Rent the Runway, Inc. Announces Fourth Quarter and Full Year 2023 Results
Exceeded Revenue and Adjusted EBITDA Guidance for Q4 2023 Expect Revenue Growth in FY 2024 through Focus on Marketing, Product Innovation and Strong Customer
About this update from Rent The Runway, Inc.
[{"type":"text","content":"Exceeded Revenue and Adjusted EBITDA Guidance for Q4 2023 Expect Revenue Growth in FY 2024 through Focus on Marketing, Product Innovation and Strong Customer Retention. Committed to Achieving Free Cash Flow Breakeven for FY 2024. Q4 2023 Net Loss of $(24.8)M and Net Loss Margin of (32.7)%, vs. $(26.2)M and (34.7)% in Q4 2022 Adjusted EBITDA of $11.2M and Adjusted EBITDA Margin of 14.8% in Q4 2023, Up From $7.1M and 9.4% in Q4 2022 Healthy Inventory In-Stock Position Exiting FY 2023 has Driven Strong Customer Retention Historical High Quarterly and Annual Sales in Resale Business Drove Strong Adjusted EBITDA Margins NEW YORK, April 10, 2024 (GLOBE NEWSWIRE) -- Rent the Runway, Inc. (“Rent the Runway” or \"RTR\") (NASDAQ: RENT), the world’s first and largest shared designer closet platform, today reported financial results for the fiscal quarter and fiscal year 2023 ended January 31, 2024. \"2023 was a year of significant improvements to the customer experience that we believe have set the foundation for a milestone fiscal year 2024,\" said Jennifer Hyman, Co-Founder and CEO, Rent the Runway. \"We launched a premium personal concierge service to style our customers, made it easier for customers to discover inventory they love, and created a more aspirational product experience. As a result, NPS today is at the highest level in several years, customers have been buying more inventory from us, and customer retention has markedly improved YOY. We believe we are well positioned to re-ignite our marketing and customer acquisition engine to drive growth and FCF breakeven in fiscal 2024.\" \"We believe fiscal year 2024 will be a transformative year for Rent the Runway,\" said Sid Thacker, Chief Financial Officer, Rent the Runway. \"Over the past several years, we have reduced fixed costs significantly and made considerable progress towards building a more capital-light model. We expect these actions to result in free cash flow breakeven for fiscal year 2024. Importantly, we believe that the cost and capital expenditure decisions that are important components of our free cash flow breakeven plan have already been made. We have conviction that Rent the Runway is poised to exit fiscal year 2024 as a sustainable, growing, and free cash flow breakeven business.\" Fourth Quarter 2023 Key Metrics and Financial Highlights Revenue was $75.8 milli...