Business
Rent the Runway, Inc. Announces Third Quarter 2023 Results
Announces Corporate Debt Restructuring Reiterates FY23 Revenue and Adjusted EBITDA Guidance. Committed to Delivering Free Cash Flow Breakeven in FY 2024
About this update from Rent The Runway, Inc.
[{"type":"text","content":"Announces Corporate Debt Restructuring Reiterates FY23 Revenue and Adjusted EBITDA Guidance. Committed to Delivering Free Cash Flow Breakeven in FY 2024 Significantly Improved Inventory In-Stock Position Drove Improved Customer Satisfaction and Retention; Sets Stage for FY24 Growth NEW YORK, Dec. 05, 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 October 31, 2023. RTR also announced today that it has amended its credit facility (the \"Amended Facility\") with the existing lender and administrative agent (“Existing Lender”), as noted in our disclosed regulatory filings with the SEC. The amended facility eliminates interest (PIK and cash) for the next 6 fiscal quarters and reduces the minimum liquidity covenant from $50 million to $30 million, and makes additional updates with details described below. \"We are proud to announce significant modifications to our debt that are expected to provide meaningful flexibility for our business. We believe that the terms that we’ve agreed to with our longtime lender further enable Rent the Runway to achieve significant free cash flow before the debt’s maturity date, helping us to demonstrate the strength of our business model to the market--and, importantly, to grow,” said Jennifer Hyman, Co-Founder and CEO, Rent the Runway. “Meanwhile, we’ve made significant strides to improve our inventory in-stock position, which we believe represents a turning point for Rent the Runway. We believe nailing our assortment is a key unlock to subscriber growth in 2024 and beyond, and we have data to indicate that the adjustments we’ve made have already resulted in improved customer retention and satisfaction.” \"We believe that the debt modifications are proof of the constructive relationship we maintain with our lending partner and provide Rent the Runway with additional financial flexibility,” said Sid Thacker, Chief Financial Officer, Rent the Runway. “We began to see meaningful greenshoots in our data that our inventory strategies are working. We believe that these improvements, in conjunction with continued focus on our cost structure, provide the business with a solid foundation. Our focus remains on ensuring that Rent the Runway grow...