Business
The RealReal Announces Fourth Quarter and Full Year 2022 Results
Q4 and FY 2022 Gross Merchandise Value Increased Year-Over-Year 13% and 23%, respectivelyQ4 and FY 2022 Total Revenue Increased Year-Over-Year 10% and 29%,
About this update from The Realreal, Inc.
[{"type":"text","content":"Q4 and FY 2022 Gross Merchandise Value Increased Year-Over-Year 13% and 23%, respectivelyQ4 and FY 2022 Total Revenue Increased Year-Over-Year 10% and 29%, respectivelyCash & Cash Equivalents at Year-End was $294 million SAN FRANCISCO, Feb. 28, 2023 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today reported financial results for its fourth quarter and full year ended December 31, 2022. Fourth quarter and full year 2022 gross merchandise value (GMV) increased 13% and 23%, respectively, compared to the same periods in 2021. “We are pleased to announce solid financial results for the fourth quarter and full year 2022, including improved gross profit and Adjusted EBITDA loss on a year-over-year basis,” said Rati Levesque, President and Chief Operating Officer of The RealReal. “During the fourth quarter and into 2023, we continue to focus on our key initiatives: (1) update our consignor commission structure, (2) improve efficiency and cut costs, (3) optimize product pricing, and (4) pursue potential new revenue streams. We continue to believe these actions will move the business forward. Additionally, we are pleased with the recent addition of John Koryl as Chief Executive Officer; his leadership will be invaluable as we drive toward profitability.” Robert Julian, Chief Financial Officer of The RealReal, stated, “The fourth quarter results demonstrated the financial progress we have made throughout 2022. In particular, shrinking the unprofitable direct business and growing the profitable consignment business resulted in a 490-basis-point improvement in gross margin in the fourth quarter of 2022 compared to the fourth quarter of 2021. This change also benefited our balance sheet. As of the end of 2022, net inventory decreased $28 million year-over-year, and we anticipate that our inventory balance will continue to decline in 2023. Also, we improved cash used in operating, investing, and financing activities in the fourth quarter of 2022 to $(7) million, compared to $(57) million in the first quarter, $(45) million in the second quarter, and $(15) million in third quarter of 2022.” Fourth Quarter Financial Highlights GMV was $493 million, an increase of 13% compared to the same period in 2021Total Revenue was $160 million, an increase of 10% compared to t...