Business
The RealReal Announces Third Quarter 2021 Results
Third Quarter Gross Merchandise Value Increased 50% Year-Over-Year to $368 millionThird Quarter Total Revenue Increased 53% Year-Over-Year to $119
About this update from The Realreal, Inc.
[{"type":"text","content":"Third Quarter Gross Merchandise Value Increased 50% Year-Over-Year to $368 millionThird Quarter Total Revenue Increased 53% Year-Over-Year to $119 millionThird Quarter Gross Profit Per Order Improved $4 Year-Over-Year to $94 Per Order SAN FRANCISCO, Nov. 08, 2021 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today reported financial results for its third quarter ended Sept. 30, 2021. The company reported strong top-line growth as well as solid bottom-line improvements. Gross merchandise value (GMV) increased 50% and 46% compared to the same periods in 2020 and 2019, respectively. Third quarter gross profit per order was approximately $94, an increase of $4 per order, or a 4% improvement year-over-year. In addition, the company achieved leverage in all major expense categories in the third quarter of 2021 compared to prior year. “We are pleased to announce strong results for the third quarter. Our product supply has ramped nicely driven by at-home concierge appointments and our expanded retail footprint. Based on what we know today, we believe the operational and supply impacts to our business from COVID-19 are effectively behind us, and we are well-positioned for a strong holiday season. Additionally, we believe The RealReal’s unique business model is largely insulated from the supply chain shortages and certain of the inflationary impacts many retailers are experiencing,” said Julie Wainwright, founder and CEO of The RealReal. Wainwright continued, “Like many retailers, we experienced certain pressures to our operations during the third quarter, namely elevated shipping costs and staffing challenges in our authentication centers. To address, we implemented multiple initiatives, including shipping diversification and last-mile optimization as well as training and development programs and a continued focus on automation. The investments we made in 2019 and 2020 to move toward expanded automation in our authentication centers have already begun to show a strong return on investment.” During the third quarter, The RealReal announced a new Chief Financial Officer, Robert Julian. As an operations- and strategy-focused CFO, Julian has a track record of driving shareholder value and building world-class finance organizations. “Overall, our business is exper...