Business
Rent the Runway, Inc. Announces Second Quarter 2023 Results
Announces Intention to Accelerate Path to Free Cash Flow Profitability Before Cash Interest to FY24 Q2 Net Loss of $(26.8)M and Net Loss Margin was (35.4)%,
About this update from Rent The Runway, Inc.
[{"type":"text","content":"Announces Intention to Accelerate Path to Free Cash Flow Profitability Before Cash Interest to FY24 Q2 Net Loss of $(26.8)M and Net Loss Margin was (35.4)%, vs $(33.9)M and (44.3)% in Q2 2022 Strong Adjusted EBITDA of $7.7M and Adjusted EBITDA Margin of 10.2% in Q2 2023, Up From $1.8M and 2.4% in Q2 2022 Revises Fiscal Year 2023 Guidance NEW YORK, Sept. 08, 2023 (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 ended July 31, 2023. \"For some time, we have been focused on taking decisive actions with the goal to bring Rent the Runway to profitability, and we believe now is the right time to accelerate our efforts. We made significant progress in Q2 across the bottom line, exceeding our profitability guidance, and with Adjusted EBITDA margins hitting a historic high at 10.2%,” said Jennifer Hyman, Co-Founder and CEO, Rent the Runway. “We believe that a key part of achieving our profitability milestone is prioritizing the medium and long-term health of the business over short-term revenue gains and lower margin customers. Above all, we are empowering our leaders to make the right decisions in service to this goal and in service to our customers and investors, and look forward to continuing to capture what we believe is a significant market opportunity ahead.” “Our teams have made strong progress reducing fixed and variable costs,” said CFO Sid Thacker. “We believe these improvements--combined with expected changes in promotional strategies and increases in rental product acquired through non-wholesale channels--have accelerated our path to achieve free cash flow breakeven, before cash interest expense, in FY24.” Second Quarter 2023 Key Metrics and Financial Highlights Revenue was $75.7 million, a (1.0)% decrease year-over-year from $76.5 million in the second quarter of fiscal year 2022.137,566 ending Active Subscribers, representing an increase of 11% year-over-year from 124,131 at the end of the second quarter of fiscal year 2022.141,393 Average Active Subscribers representing an increase of 9% year-over-year from 129,565 at the end of the second quarter of fiscal year 2022.184,389 ending Total Subscribers, representing an increase of 6% year-over-year from 173,321 at the e...