Business
The RealReal Announces First Quarter 2023 Results
Q1 2023 Gross Merchandise Value Increased 4% Year-Over-YearQ1 2023 Total Revenue Decreased 3% Year-Over-YearQ1 2023 Consignment Revenue Grew 22%
About this update from The Realreal, Inc.
[{"type":"text","content":"Q1 2023 Gross Merchandise Value Increased 4% Year-Over-YearQ1 2023 Total Revenue Decreased 3% Year-Over-YearQ1 2023 Consignment Revenue Grew 22% Year-Over-Year SAN FRANCISCO, May 09, 2023 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today reported financial results for its first quarter ended March 31, 2023. The company reported a higher take rate and higher gross margins compared to the same period in 2022. First quarter 2023 gross merchandise value (GMV) increased 4%, compared to the same period in 2022. “During the first quarter of 2023, we made progress on our financial and operating results. For the quarter, revenue exceeded the mid-point of our guidance, and Adjusted EBITDA exceeded the high-end of our guidance range. We believe our strategy of re-focusing efforts on the higher margin consignment business is starting to deliver results. During the first quarter, consignment revenue grew 22%, and direct revenue declined 49% year-over-year. Additionally, we made progress on minimizing lower-value consigned items. As a result of these actions, we expanded our gross margin in the first quarter, and we were able to deliver a higher take rate, more gross profit dollars, and improved profitability, ” said John Koryl, Chief Executive Officer of The RealReal. Koryl added, “The early results from our key initiatives are encouraging, and we continue to believe that taking these steps will help us achieve profitability. Importantly, we continue to project that we are on track to achieve Adjusted EBITDA profitability on a full year basis in 2024.” First Quarter Financial Highlights GMV was $444 million, an increase of 4% compared to the same period in 2022Total Revenue was $142 million, a decrease of 3% compared to the same period in 2022Gross Profit was $90 million, an increase of $11 million compared to the same period in 2022Net Loss was $(82.5) million or (58.1)% of total revenue, including a restructuring charge of $36.4 million, compared to $(57.4) million or (39.1)% of total revenue in the same period in 2022Adjusted EBITDA was $(27.3) million or (19.2)% of total revenue compared to $(35.3) million or (24.1)% of total revenue in the first quarter of 2022GAAP basic and diluted net loss per share was $(0.83) compared to $(0.61) in the prior year perio...