Rent The Runway, Inc. · NASDAQ:RENT
Rent The Runway — Q4 2024 Earnings Presentation
37 slides from Rent The Runway's earnings presentation, Apr 15, 2025
Slide 1: Q4 2024 Earnings Presentation
Q4 2024 Earnings Presentation April 15, 2025
Slide 2: Forward-Looking Statements Disclaimer
Forward-Looking Statements Disclaimer RENT THE RUNWAY This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this presentation that do not relate to maers of historical fact should be considered forward-loo
Slide 3: Contents
Contents RENT THE RUNWAY 01 Q4 + FY2024 Summary 02 2025 Plans 03 Q1 + FY2025 Guidance 04 Appendix 33
Slide 4: Q4 + FY2024 Summary
RENT THE RUNWAY Q4 + FY2024 Summary 4
Slide 5: Q4'24 Key Metrics and Financial Highlights
Q4’24 Key Metrics and Financial Highlights RENT THE RUNWAY TOTAL REVENUE ACTIVE SUBSCRIBERS TOTAL SUBSCRIBERS 119.8K, Down 5% YoY $76.4M AVERAGE ACTIVE SUBSCRIBERS 164.0K Up 1% YoY 126.1K, Down 2% YoY Down 5% YoY GROSS PROFIT / MARGIN NET LOSS / MARGIN ADJ. EBITDA / MARGIN $28.8M / 38% $(13.4)M / (1
Slide 6: FY24 Key Metrics and Financial Highlights
FY24 Key Metrics and Financial Highlights RENT THE RUNWAY TOTAL REVENUE ACTIVE SUBSCRIBERS TOTAL SUBSCRIBERS 119.8K, Down 5% YoY $306.2M AVERAGE ACTIVE SUBSCRIBERS 164.0K Up 3% YoY 132.6K, Down 2% YoY Down 5% YoY GROSS PROFIT / MARGIN NET LOSS / MARGIN ADJ. EBITDA / MARGIN $115.9M / 38% $(69.9)M / (
Slide 7: Active Subscribers as of January 31, 2025
Active Subscribers as of January 31, 2025 Down 5% YoY RENT THE RUNWAY SUBSCRIBERS (IN THOUSANDS) YoY Active Subs 40% 80% 78% 110% 82% 27% 15% 10% 8% 11% (2)% (1)% 0% (6)% 1% (5)% YoY Avg Active Subs (31)% 60% 79% 93% 94% 51% 20% 12% 9% 9% 4% (1)% (0)% (3)% (3)% (2)% Paused % of Total 29% 23% 22% 28%
Slide 8: Total Revenue Up 1% YoY in Q4'24
Total Revenue Up 1% YoY in Q4’24 RENT THE RUNWAY TOTAL REVENUE, NET ($ IN MILLIONS) Subscriber Highlights ● 88% of revenue from subscribers in Q4’24 ● 26% of subscribers added one or more paid items into their subscriptions in Q4’24 YoY Growth (44)% 62% 66% 91% 100% 64% 31% 18% 11% (1)% (6)% 1% 1% 4
Slide 9: Revenue to Gross Profit - Q4'24 and Q4'23
Revenue to Gross Profit - Q4’24 and Q4’23 RENT THE RUNWAY FISCAL QUARTER ENDED JAN 31, 2025 % of Revenue 26% 22% 14% 38% $ IN MILLIONS FISCAL QUARTER ENDED JAN 31, 2024 % of Revenue 27% 22% 12% 39% $ IN MILLIONS 9 Note: Calculations are based on unrounded figures.
Slide 10: Revenue to Gross Profit - FY24 and FY23
Revenue to Gross Profit - FY24 and FY23 RENT THE RUNWAY FISCAL YEAR ENDED JAN 31, 2025 % of Revenue 27% 21% 14% 38% $ IN MILLIONS FISCAL YEAR ENDED JAN 31, 2024 % of Revenue 29% 19% 12% 40% $ IN MILLIONS 10 Note: Calculations are based on unrounded figures.
Slide 11: Gross Profit to Adjusted EBITDA - Q4'24 and Q4'23
Gross Profit to Adjusted EBITDA - Q4’24 and Q4’23 RENT THE RUNWAY FISCAL QUARTER ENDED JAN 31, 2025 % of Revenue 38% (6)% (11)% (27)% (4)% (0)% 3% 26% 0% 4% 23% $ IN MILLIONS FISCAL QUARTER ENDED JAN 31, 2024 % of Revenue 39% (9)% (15)% (33)% (5)% (4)% 7% 27% 4% 3% 15% $ IN MILLIONS Note: See GAAP to
Slide 12: Gross Profit to Adjusted EBITDA - FY24 and FY23
Gross Profit to Adjusted EBITDA - FY24 and FY23 RENT THE RUNWAY FISCAL YEAR ENDED JAN 31, 2025 % of Revenue 38% (9)% (12)% (28)% (4)% (0)% 3% 25% 0% 2% 15% $ IN MILLIONS FISCAL YEAR ENDED JAN 31, 2024 % of Revenue 40% (10)% (16)% (34)% (5)% (1)% 9% 24% 1% 2% 9% $ IN MILLIONS Note: See GAAP to Non-GAA
Slide 13: Adjusted EBITDA to Free Cash Flow - FY24 and FY23
Adjusted EBITDA to Free Cash Flow - FY24 and FY23 RENT THE RUNWAY TWELVE MONTHS ENDED JAN 31, 2025 % of Revenue 15% (16)% (1)% 1% (1)% (0)% 1% (2)% $ IN MILLIONS TWELVE MONTHS ENDED JAN 31, 2024 % of Revenue 9% (26)% (2)% 0% (4)% (1)% 0% (24)% $ IN MILLIONS Note: See GAAP to Non-GAAP Reconciliation
Slide 14: 2025 Plans
14 RENT THE RUNWAY 2025 Plans
Slide 15: RTR Has Undergone a Cultural Transformation
RENT THE RUNWAY RTR Has Undergone a Cultural Transformation Rejuvenated & Loyalty & Cost Customer-Obsessed Retention Discipline Team 15
Slide 16: Bringing the Customer Obsession & Founder Mentality into Everything We Do
RENT THE RUNWAY Bringing the Customer Obsession & Founder Mentality into Everything We Do Re-organized RTR into 4 Cross-Functional Pods focused on simple, but ambitious business goals: New Customer Growth, Retention, Inventory, Revenue Streamlined process to drive innovation All product launches dri
Slide 17: We're Reconnecting With Our Customer
We’re Reconnecting With Our Customer RENT THE RUNWAY Igniting our community in 2025 – There’s more to come! ➔ ONLINE – CEO Jenn Hyman Ask Me Anything on Reddit ➔ IRL – First-ever hybrid event at RTR oice combining live community audience & livestream ➔ ON SITE – A New Era of RTR – new inventory fro
Slide 18: Driving Loyalty & Retention in 2025 with Biggest Inventory Acquisition
RENT THE RUNWAY And Focused on Driving Loyalty & Retention in 2025 by Making the Biggest Inventory Acquisition in RTR History Current Plans Include: ~2x +75% New Items +85% 1H25 New Styles New Styles New arrivals during periods previously light on newness 6x May receipts 3x July receipts 18
Slide 19: The Data Case For Deepening Inventory Investment Even Further
The Data Case For Deepening Inventory Investment Even Further RENT THE RUNWAY Responding to our We believe that further Despite focus on depth increasing depth of Customer Feedback customer – Inventory is and breadth, we’ve had inventory in FY25, after a “I wish what I wanted was consistently the to
Slide 20: Inventory Infusion is the Strongest Strategic Lever for Growth
We Believe Inventory Infusion is the Strongest Strategic Lever for Growth RENT THE RUNWAY More than Doubling Investment Transforming Brand Launching 83 New Brands in Key Pillar Brands Collaborations Strategy Pillar brands are classified by having Introducing trend-forward, emerging, and Transforming
Slide 21: The Customer Can Expect to Feel Constant Newness
RENT THE RUNWAY The Customer Can Expect to Feel Constant Newness New inventory coming in every month with dozens to hundreds The number of NEW items in her of new styles posted each and shipment are expected to every week – something we’ve increase ~75% vs. last year never done before Volume of New
Slide 22: She is Enjoying a Rapidly Improved Customer Experience
And She is Enjoying a Rapidly Improved Customer Experience RENT THE RUNWAY Select product launches in March 2025 Back-in-Stock Notifications Pre-Conversion Availability Continued Discovery from PDP 60-day Customer Promise Improving order experience by notifying her Enabling prospect customers to see
Slide 23: Exploring More Enhancements and Innovations for Her
We are exploring more enhancements and innovations for her RENT THE RUNWAY Discovery and testing throughout 1H25 Expansion of Premium Onboarding Services More Control for In-Stock Notifications Personalized Curations & Recommendations Easier Browsing Based on Recent Activity Expected Mid-April Expect
Slide 24: Cost Discipline Remains a Key Focus
Cost Discipline Remains a Key Focus: We’re Making This Inventory RENT THE RUNWAY Investment by Leveraging More Cost-Efficient Channels Maintain cost discipline in FY25 In FY 2025, we plan to procure 60%+ units via Revenue share – 2.5x the number of units purchased in FY 2024. Requires minimal upfront
Slide 25: She's Excited About What's Coming
“Inventory. Nailed it. As a RENT “Doubling the inventory RENT long-term subscriber, “CAN’T THE and expanding exclusive THE you’ve made my closet RUNWAY collections is a bold and WAIT to see RUNWAY more than I’ve ever thought exciting move. RTR is this new possible, and this can truly clearly seing
Slide 26: Q1 + FY 2025 Guidance
RENT THE RUNWAY Q1 + FY 2025 Guidance 26
Slide 27: Q1 & Fiscal Year 2025 Guidance
Q1 & Fiscal Year 2025 Guidance RENT THE RUNWAY Q1 2025 Guidance1 Total Revenue: $68M - $70M Adjusted EBITDA % of Revenue: -5% to -7% of Revenue FY 2025 Guidance1 Ending Active Subscribers: Double Digit Growth vs FY 2024 Rental Product Acquired2: ~$70 M - $75 M Free Cash Flow3: -$30 M to -$40 M 1 Rec
Slide 28: Appendix
28 RENT THE RUNWAY Appendix
Slide 29: Improved the Financial Profile of RTR Significantly Since FY21
Improved the Financial Profile of RTR Significantly Since FY21 RENT THE RUNWAY Note: See GAAP to Non-GAAP Reconciliation in appendix. Free cash flow defined as net cash (used in) provided by operating activities and net cash (used in) provided by investing activities on a combined 29 basis. Margins calc
Slide 30: Condensed Consolidated Statements of Operations
Condensed Three Months Three Months RENT THE RUNWAY Ended Ended Year Ended Year Ended 1/31/2025 1/31/2024 1/31/2025 1/31/2024 Consolidated (In millions, except per share amounts) Total revenue, net $76.4 TBU $75.8 $306.2 $298.2 Statements of Fulfillment Technology 20.2 8.7 20.1 11.0 82.8 35.7 86.0 49
Slide 31: Condensed Consolidated Balance Sheets
Condensed RENT THE RUNWAY Consolidated As Of 1/31/2025 As Of 1/31/2024 Balance Sheets (in millions) Cash and cash equivalents $77.4 $84.0 Restricted cash, current 4.7 5.2 Prepaid expenses and other current assets 11.8 13.0 Restricted cash, fixed 4.4 4.8 Rental product, net 73.3 94.0 Fixed and intangi
Slide 32: Condensed Consolidated Statements of Cash Flows
Condensed RENT THE RUNWAY Consolidated Statements Year Ended Year Ended Year Ended of Cash Flows (in millions) 1/31/2025 1/31/2024 1/31/2023 Net loss $(69.9) $(113.2) $(138.7) Net cash (used in) provided by operating activities 12.9 (15.7) (47.7) Net cash (used in) provided by investing activities (
Slide 33: Selected Cash Flows Detail and Supplemental Cash Flow Information
Selected Cash RENT THE RUNWAY Flows Detail and Year Ended Year Ended Supplemental (in millions) 1/31/2025 1/31/2024 Cash Flow INVESTING ACTIVITIES Purchases of rental product $(49.2) $(77.9) Information Proceeds from liquidation of rental product Proceeds from sale of rental product $5.4 $28.1 $4.6
Slide 34: Reconciliation of Purchases of Rental Product to Rental Product Acquired
Reconciliation RENT THE RUNWAY of Purchases of Rental Product Year Year to Rental Ended 1/31/2025 Ended 1/31/2024 Product (in millions) Cost of owned rental product paid for in the period, as presented on Purchases of rental product $(49.2) $(77.9) the Condensed Consolidated Statements of Cash Flows
Slide 35: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation RENT THE RUNWAY of Net Loss to Three Months Three Months Ended Ended Year Ended Year Ended Year Ended Year Ended Adjusted 1/31/2025 1/31/2024 1/31/2025 1/31/2024 1/31/2023 1/31/2022 (in millions) EBITDA Net loss $(13.4) $(24.8) $(69.9) $(113.2) $(138.7) $(211.8) Interest (income) / ex
Slide 36: Reconciliation of Cash Used by Operating Activities to Free Cash Flow
Reconciliation RENT THE RUNWAY of Cash Used by Operating Three Months Ended Three Months Ended Three Months Ended Year Ended Year Ended Year Ended Year Ended Activities to (in millions) 1/31/2025 10/31/2024 1/31/2024 1/31/2025 1/31/2024 1/31/2023 1/31/2022 Free Cash Flow Net cash (used in) provided
Slide 37: Operating Expense Detail
Operating RENT THE RUNWAY Expense Three Months Three Months Ended Ended Year Ended Year Ended Detail 1/31/2025 1/31/2024 1/31/2025 1/31/2024 (in millions) Technology $8.7 $11.0 $35.7 $49.1 Marketing $4.3 $6.6 $28.2 $31.2 General and administrative $20.6 $24.8 $86.8 $101.6 Total operating expenses $3