The RealReal (Nasdaq: REAL)—the world’s largest online marketplace
for authenticated, consigned luxury goods—today reported financial
results for its fourth quarter and full year ended Dec. 31, 2019.
“Our Q4 results exemplify our long standing approach to
balancing growth and operating leverage. In Q4, we achieved 39% Y/Y
GMV growth with all top level categories experiencing strong
growth. At the same time, Q4 adjusted EBITDA margin improved by
approximately 17 percentage points Y/Y. Additionally, 82.9% of GMV
was driven by repeat buyers in the quarter, a rare attribute of our
marketplace that underscores our buyer loyalty and the strength of
our flywheel,” said Julie Wainwright, CEO and founder.
Fourth Quarter Financial Highlights
- Gross Merchandise Volume (GMV) was $303.0 million, up 39% year
over year.
- Total Revenue was $97.3 million, up 57% year over year.
- Consignment and Service Revenue was $80.7 million, up 46% year
over year.
- Gross Profit was $62.5 million, up 48% year over year.
- Adjusted EBITDA was ($12.7) million or (13.1%) of total
revenue.
- GAAP basic and diluted net loss per share was ($0.25).
- Non-GAAP basic and diluted net loss per share was
($0.17).
- Net cash provided by operating activities was $3.6 million,
compared to ($7.6) million used in the fourth quarter of 2018.
- At the end of the fourth quarter, cash, cash equivalents and
short-term investments totaled $363.3 million.
Full Year 2019 Financial Highlights
- Gross Merchandise Volume (GMV) was $1,008.3 million, up 42%
year over year.
- Total Revenue was $318.0 million, up 53% year over year.
- Gross Profit was $203.2 million, up 48% year over year.
- Adjusted EBITDA was ($73.0) million or (23.0%) of total
revenue.
- Contribution Profit Per Order was $19.72, up 126% year over
year.
- Buyer Acquisition Cost (BAC) was $114, down 18% year over
year.
“In 2019, we surpassed $1 billion in GMV. We also made
significant progress on our path to profitability while still
making investments to capitalize on the massive opportunity in
front of us. In 2020, we will continue to invest in growth while
driving meaningful operating leverage as we continue to
revolutionize luxury resale and deliver value to our consignors and
our buyers,” continued Wainwright.
The RealReal continues to invest and innovate in authentication.
We believe we have the most rigorous authentication process in the
marketplace. Every item we sell is subject to that process. The
impact of automation and technology has dramatically changed the
authentication team’s day-to-day activities, allowing them to
process more products per person while also expanding the depth of
our authentication process, training and quality control
procedures.
“Our goal is to be the safest marketplace to buy pre-owned
luxury goods, and our processes will continue to evolve throughout
2020 as we integrate more technology to stay ahead of
counterfeiters,” added Wainwright. “Our buyer NPS score of 71 and
the fact that approximately 83% of GMV came from repeat buyers and
81% of GMV came from repeat consignors in 2019, indicates that we
are focused on the right issues.”
The RealReal continues to deepen its sustainability commitments,
pledging to become carbon neutral in 2021 as part of the CEO Carbon
Neutral Challenge issued by Gucci president and CEO Marco Bizzarri.
Since its founding through the end of 2019, The RealReal has offset
13,300 metric tons of carbon and saved 608 million liters of
water.
Other Fourth Quarter Highlights
- Trailing 12 months active buyers reached 581,738, up 40% year
over year.
- Orders reached 637,112, up 35% year over year.
- Average Order Value was $476 compared to $464 in the fourth
quarter of 2018.
- Consignment Take Rate increased 130bps year over year to
36.2%.
- GMV from repeat buyers was 82.9% compared to 81.6% in the
fourth quarter of 2018.
Q1 and FY 2020 Financial OutlookBased on
information available as of Feb. 25, 2020, we are providing the
following financial guidance for the first quarter as well as for
the full year 2020.
|
(in Millions) |
|
First Quarter 2020 |
|
Full Year 2020 |
|
Low |
High |
|
Low |
High |
Expected GMV Range |
$291 |
$295 |
|
$1,315 |
$1,345 |
Implied Y/Y Growth |
30% |
32% |
|
30% |
33% |
Expected Adjusted EBITDA % of
Revenue Range |
(26.0%) |
(24.0%) |
|
(16.0%) |
(15.0%) |
|
|
|
|
|
|
Webcast and Conference CallThe RealReal will
host a conference call and webcast to discuss its fourth quarter
and full year 2019 financial results today at 2 p.m. PDT. Investors
and participants can access the call by dialing (866) 996-5385 in
the U.S. and (270) 215-9574 internationally. The passcode for the
conference line is 1182588. The call will also be available via
live webcast at investor.therealreal.com along with supporting
slides. An archive of the webcast conference call will be available
shortly after the call ends. The archived webcast will be available
at investor.therealreal.com.
About The RealReal, Inc. The RealReal is the
world’s largest online marketplace for authenticated, consigned
luxury goods. With a rigorous authentication process overseen by
experts, The RealReal provides a safe and reliable platform for
consumers to buy and sell their luxury items. We have 150+ in-house
gemologists, horologists and brand authenticators who inspect
thousands of items each day. As a sustainable company, we give new
life to pieces by hundreds of brands, from Gucci to Cartier,
supporting the circular economy. We make consigning effortless with
free in-home pickup, drop-off service and direct shipping for
individual consignors and estates. At our stores in LA and NYC,
customers can shop, consign, and meet with our experts. At our nine
Luxury Consignment Offices, three of which are in our retail
stores, our expert staff provides free valuations.
Investor Relations Contact:Paul BieberHead of
Investor Relationspaul.bieber@therealreal.com
Press Contact:Erin SantyHead of
Communicationspr@therealreal.com
Forward Looking StatementsThis press release
contains forward-looking statements within the meaning of federal
and state securities laws. Forward-looking statements generally
relate to future events or our future financial or operating
performance. In some cases, you can identify forward-looking
statements by terminology such as “may,” “will,” “should,” “could,”
“expect,” “plan,” anticipate,” “believe,” “estimate,” “predict,”
“intend,” “potential,” “would,” “continue,” “ongoing” or the
negative of these terms or other comparable terminology.
Forward-looking statements in this release include, but are not
limited to statements about future operating results, including our
financial outlook and guidance for the first quarter of 2020 and
full year 2020, our ability to drive revenue growth, our ability to
drive operating leverage, our ability to add capacity, capabilities
and automation to our operations and our strategies, plans,
commitments, objectives and goals. Forward-looking statements are
based on current expectations of future events. Investors should
realize that if underlying assumptions prove inaccurate or that
known or unknown risks or uncertainties materialize, actual results
could vary materially from our expectations and projections.
Investors are therefore cautioned not to place undue reliance on
any forward-looking statements. These forward-looking statements
speak only as of the date of this press release and, except as
required by applicable law, we undertake no obligation to publicly
update or revise any forward-looking statements contained herein,
whether as a result of any new information, future events or
otherwise. Our future results may be different from those described
in our forward-looking statements for a variety of reasons,
including any failure to generate a supply of consigned goods,
pricing pressure on the consignment market resulting from
discounting in the market for new goods, failure to efficiently and
effectively operate our merchandising and fulfillment operations
and other reasons. A list and description of risks, uncertainties
and other factors that could cause or contribute to differences in
our results can be found in our filings with the Securities and
Exchange Commission (“SEC”), including our prospectus filed
pursuant to Rule 424(b) under the Securities Act of 1933, as
amended, on June 28, 2019, our Quarterly Report on Form 10-Q for
the quarters ended June 30, 2019 and September 30, 2019, and in our
Annual Report on Form 10-K for the fiscal year ended December 31,
2019 that will be filed with the SEC by March 2, 2020. We qualify
all of our forward-looking statements by these cautionary
statements.
Non-GAAP Financial MeasuresTo supplement our
unaudited and condensed financial statements presented in
accordance with generally accepted accounting principles ("GAAP"),
this earnings release and the accompanying tables and the related
earnings conference call contain certain non-GAAP financial
measures, including Contribution Profit, Adjusted EBITDA, Adjusted
EBITDA as a percentage of total net revenue ("Adjusted EBITDA
Margin"), free cash flow, non-GAAP net loss attributable to common
stockholders, and non-GAAP net loss per share attributable to
common stockholders, basic and diluted. We have provided a
reconciliation of these non-GAAP financial measures to the most
directly comparable GAAP financial measures in this earnings
release.
We do not, nor do we suggest that investors should, consider
such non-GAAP financial measures in isolation from, or as a
substitute for, financial information prepared in accordance with
GAAP. Investors should also note that non-GAAP financial measures
we use may not be the same non-GAAP financial measures, and may not
be calculated in the same manner, as that of other companies,
including other companies in our industry.
Adjusted EBITDA is a key performance measure
that our management uses to assess our operating performance.
Because Adjusted EBITDA facilitates internal comparisons of our
historical operating performance on a more consistent basis, we use
this measure as an overall assessment of our performance, to
evaluate the effectiveness of our business strategies and for
business planning purposes. Adjusted EBITDA may not be comparable
to similarly titled metrics of other companies.
We calculate Adjusted EBITDA as net loss before
interest income, interest expense, net other (income) expense,
income tax provision, depreciation and amortization, further
adjusted to exclude stock-based compensation, and certain one-time
expenses. Adjusted EBITDA has certain limitations as the measure
excludes the impact of certain expenses that are included in our
statements of operations that are necessary to run our business and
should not be considered as an alternative to net loss or any other
measure of financial performance calculated and presented in
accordance with GAAP.
In particular, the exclusion of certain expenses in calculating
Adjusted EBITDA and Adjusted EBITDA Margin facilitates operating
performance comparisons on a period-to-period basis and, in the
case of exclusion of the impact of stock-based compensation,
excludes an item that we do not consider to be indicative of our
core operating performance. Investors should, however, understand
that stock-based compensation will be a significant recurring
expense in our business and an important part of the compensation
provided to our employees. Accordingly, we believe that Adjusted
EBITDA and Adjusted EBITDA Margin provide useful information to
investors and others in understanding and evaluating our operating
results in the same manner as our management and board of
directors.
Free cash flow is a non-GAAP financial measure
that is calculated as net cash (used in) provided by operating
activities less net cash used to purchase property and equipment
and capitalized proprietary software development costs. We believe
free cash flow is an important indicator of our business
performance, as it measures the amount of cash we generate.
Accordingly, we believe that free cash flow provides useful
information to investors and others in understanding and evaluating
our operating results in the same manner as our management.
Non-GAAP net loss per share attributable to common
stockholders, basic and diluted is a non-GAAP financial
measure that is calculated as GAAP net loss plus stock-based
compensation expense, provision for income taxes, and nonrecurring
items divided by weighted average shares outstanding. We believe
that adding back stock-based compensation expense and provision for
income taxes, and non-recurring items as adjustments to our GAAP
net loss, before calculating per share amounts for all periods
presented provides a more meaningful comparison between our
operating results from period to period.
Contribution Profit is a non-GAAP financial
measure that is calculated as gross profit per order minus variable
expenses including variable marketing, operations, sales and
merchandising expenses. Fixed expenses include occupancy,
general & administrative, technology, marketing headcount, and
certain operations and merchandising headcount costs.
We view contribution profit as an important metric to assess our
marginal profitability and measure our progress driving operating
efficiencies. Accordingly, we believe that contribution profit
provides useful information to investors and others in
understanding and evaluating our operating results in the same
manner as our management.
THE REALREAL, INC. |
Statements of Operations |
(in thousands, except share and per share
data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Revenue: |
|
|
|
|
|
|
|
|
Consignment and service revenue |
|
$ |
80,673 |
|
|
$ |
55,070 |
|
|
$ |
267,412 |
|
|
$ |
183,991 |
|
Direct revenue |
|
|
16,649 |
|
|
|
7,023 |
|
|
|
50,625 |
|
|
|
23,385 |
|
Total revenue |
|
|
97,322 |
|
|
|
62,093 |
|
|
|
318,037 |
|
|
|
207,376 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
Cost of consignment and service revenue |
|
|
20,987 |
|
|
|
13,772 |
|
|
|
73,579 |
|
|
|
50,855 |
|
Cost of direct revenue |
|
|
13,788 |
|
|
|
6,117 |
|
|
|
41,252 |
|
|
|
19,603 |
|
Total cost of revenue |
|
|
34,775 |
|
|
|
19,889 |
|
|
|
114,831 |
|
|
|
70,458 |
|
Gross profit |
|
|
62,547 |
|
|
|
42,204 |
|
|
|
203,206 |
|
|
|
136,918 |
|
Operating expenses (1): |
|
|
|
|
|
|
|
|
Marketing |
|
|
10,896 |
|
|
|
12,631 |
|
|
|
47,734 |
|
|
|
42,165 |
|
Operations and technology |
|
|
39,960 |
|
|
|
32,343 |
|
|
|
143,231 |
|
|
|
104,929 |
|
Selling, general and administrative |
|
|
34,553 |
|
|
|
19,502 |
|
|
|
110,663 |
|
|
|
63,728 |
|
Total operating expenses |
|
|
85,409 |
|
|
|
64,476 |
|
|
|
301,628 |
|
|
|
210,822 |
|
Loss from operations |
|
|
(22,862 |
) |
|
|
(22,272 |
) |
|
|
(98,422 |
) |
|
|
(73,904 |
) |
Interest income |
|
|
1,675 |
|
|
|
444 |
|
|
|
4,593 |
|
|
|
1,046 |
|
Interest expense |
|
|
(45 |
) |
|
|
(225 |
) |
|
|
(616 |
) |
|
|
(1,152 |
) |
Other income (expense), net |
|
|
5 |
|
|
|
(64 |
) |
|
|
(2,102 |
) |
|
|
(1,656 |
) |
Loss before provision for income
taxes |
|
|
(21,227 |
) |
|
|
(22,117 |
) |
|
|
(96,547 |
) |
|
|
(75,666 |
) |
Provision for income taxes |
|
|
147 |
|
|
|
62 |
|
|
|
199 |
|
|
|
99 |
|
Net loss |
|
$ |
(21,374 |
) |
|
$ |
(22,179 |
) |
|
$ |
(96,746 |
) |
|
$ |
(75,765 |
) |
Accretion of redeemable
convertible preferred stock to redemption value |
|
|
— |
|
|
$ |
(3,271 |
) |
|
$ |
(3,355 |
) |
|
$ |
(8,922 |
) |
Net loss attributable to common
stockholders |
|
$ |
(21,374 |
) |
|
$ |
(25,450 |
) |
|
$ |
(100,101 |
) |
|
$ |
(84,687 |
) |
Net loss per share attributable
to common stockholders, basic and diluted |
|
$ |
(0.25 |
) |
|
$ |
(3.00 |
) |
|
$ |
(2.11 |
) |
|
$ |
(10.12 |
) |
Weighted average shares used to
compute net loss per share attributable to common stockholders,
basic and diluted |
|
|
85,823,352 |
|
|
|
8,496,051 |
|
|
|
47,478,544 |
|
|
|
8,365,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based
compensation as follows: |
|
|
|
|
|
|
|
|
Marketing |
|
|
104 |
|
|
|
49 |
|
|
|
392 |
|
|
|
164 |
|
Operating and technology |
|
|
1,083 |
|
|
|
385 |
|
|
|
3,148 |
|
|
|
1,160 |
|
Selling, general and administrative (2) |
|
|
1,608 |
|
|
|
511 |
|
|
|
4,990 |
|
|
|
2,434 |
|
Total |
|
|
2,795 |
|
|
|
945 |
|
|
|
8,530 |
|
|
|
3,758 |
|
|
|
|
|
|
|
|
|
|
(2) Includes
compensation expense related to stock sales by current and former
employees in September 2018 and March 2019. |
|
THE REALREAL, INC. |
Balance Sheets |
(in thousands, except share and per share
data) |
(unaudited) |
|
|
December 31, 2019 |
|
December 31, 2018 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
154,446 |
|
|
$ |
34,393 |
|
Short-term investments |
|
|
208,811 |
|
|
|
27,131 |
|
Accounts receivable |
|
|
7,779 |
|
|
|
7,571 |
|
Inventory, net |
|
|
23,599 |
|
|
|
10,355 |
|
Prepaid expenses and other current assets |
|
|
13,804 |
|
|
|
9,696 |
|
Total current assets |
|
|
408,439 |
|
|
|
89,146 |
|
Property and equipment, net |
|
|
55,831 |
|
|
|
33,286 |
|
Restricted cash |
|
|
— |
|
|
|
11,234 |
|
Other assets |
|
|
2,660 |
|
|
|
1,751 |
|
Total assets |
|
$ |
466,930 |
|
|
$ |
135,417 |
|
Liabilities, Redeemable
Convertible Preferred Stock, Convertible Preferred Stock and
Stockholders’ Equity (Deficit) |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
11,159 |
|
|
$ |
5,149 |
|
Accrued consignor payable |
|
|
52,820 |
|
|
|
35,259 |
|
Other accrued and current liabilities |
|
|
54,567 |
|
|
|
41,956 |
|
Long-term debt, current portion |
|
|
— |
|
|
|
5,990 |
|
Total current liabilities |
|
|
118,546 |
|
|
|
88,354 |
|
Long-term debt, net of current
portion |
|
|
— |
|
|
|
3,249 |
|
Other noncurrent liabilities |
|
|
9,456 |
|
|
|
7,304 |
|
Total liabilities |
|
|
128,002 |
|
|
|
98,907 |
|
Redeemable convertible preferred
stock, $0.00001 par value; no and 31,053,601 shares authorized
as of December 31, 2019, and December 31, 2018, respectively;
no and 31,053,601 shares issued and outstanding as of December
31, 2019, and December 31, 2018, respectively |
|
|
— |
|
|
|
151,381 |
|
Convertible preferred stock
$0.00001 par value; no and 73,950,153 shares authorized as of
December 31, 2019, and December 31, 2018, respectively; no and
73,724,645 shares issued and outstanding as of December 31,
2019, and December 31, 2018, respectively |
|
|
— |
|
|
|
142,819 |
|
Stockholders’ equity
(deficit): |
|
|
|
|
Common stock, $0.00001 par value; 500,000,000 and 145,467,774
shares authorized as of December 31, 2019, and December 31,
2018, respectively; 85,872,320 and 8,593,077 shares issued and
outstanding as of December 31, 2019, and December 31, 2018,
respectively |
|
|
1 |
|
|
|
— |
|
Additional paid-in capital |
|
|
693,425 |
|
|
|
— |
|
Accumulated comprehensive income (loss) |
|
|
7 |
|
|
|
(25 |
) |
Accumulated deficit |
|
|
(354,505 |
) |
|
|
(257,665 |
) |
Total stockholders’ equity (deficit) |
|
|
338,928 |
|
|
|
(257,690 |
) |
Total liabilities, redeemable convertible preferred stock,
convertible preferred stock and stockholders’ equity
(deficit) |
|
$ |
466,930 |
|
|
$ |
135,417 |
|
|
|
|
|
|
|
|
|
|
THE REALREAL, INC. |
Statements of Cash Flows |
(in thousands) |
(unaudited) |
|
|
Year Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
Cash flows from operating
activities: |
|
|
|
|
Net loss |
|
$ |
(96,746 |
) |
|
$ |
(75,765 |
) |
Adjustments to reconcile net loss to cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
|
13,408 |
|
|
|
9,290 |
|
Stock-based compensation expense |
|
|
7,711 |
|
|
|
2,911 |
|
Change in fair value of convertible note derivative liability |
|
|
— |
|
|
|
1,248 |
|
Bad debt expense |
|
|
1,371 |
|
|
|
999 |
|
Compensation expense related to stock sales by current and former
employees |
|
|
819 |
|
|
|
847 |
|
Change in fair value of convertible preferred stock warrant
liability |
|
|
2,100 |
|
|
|
450 |
|
Accrued interest on convertible notes |
|
|
— |
|
|
|
223 |
|
Loss on retirement of property and equipment |
|
|
— |
|
|
|
203 |
|
Accretion of unconditional endowment grant liability |
|
|
94 |
|
|
|
118 |
|
Accretion of debt discounts |
|
|
11 |
|
|
|
104 |
|
Amortization of premiums (discounts) on short-term investments |
|
|
(320 |
) |
|
|
78 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
(1,579 |
) |
|
|
(1,572 |
) |
Inventory, net |
|
|
(13,244 |
) |
|
|
(3,741 |
) |
Prepaid expenses and other current assets |
|
|
(4,108 |
) |
|
|
(5,338 |
) |
Other assets |
|
|
(1,026 |
) |
|
|
(318 |
) |
Accounts payable |
|
|
6,010 |
|
|
|
(2,576 |
) |
Accrued consignor payable |
|
|
17,561 |
|
|
|
6,587 |
|
Other accrued and current liabilities |
|
|
10,686 |
|
|
|
15,681 |
|
Other noncurrent liabilities |
|
|
2,762 |
|
|
|
3,376 |
|
Net cash used in operating activities |
|
|
(54,490 |
) |
|
|
(47,195 |
) |
Cash flow from investing
activities: |
|
|
|
|
Purchases of short-term investments |
|
|
(220,609 |
) |
|
|
(31,454 |
) |
Proceeds from maturities of short-term investments |
|
|
39,281 |
|
|
|
9,624 |
|
Proceeds from sale of short-term investments |
|
|
— |
|
|
|
7,023 |
|
Capitalized proprietary software development costs |
|
|
(9,267 |
) |
|
|
(5,724 |
) |
Purchases of property and equipment |
|
|
(24,761 |
) |
|
|
(13,392 |
) |
Net cash used in investing activities |
|
|
(215,356 |
) |
|
|
(33,923 |
) |
Cash flow from financing
activities: |
|
|
|
|
Proceeds from issuance of common stock in initial public offering,
net of issuance costs |
|
|
315,541 |
|
|
|
— |
|
Proceeds from issuance of redeemable convertible preferred stock,
net of issuance costs |
|
|
43,492 |
|
|
|
86,640 |
|
Proceeds from issuance of convertible preferred stock, net of
issuance costs |
|
|
26,283 |
|
|
|
9,627 |
|
Proceeds from issuance of convertible notes, net of issuance
costs |
|
|
— |
|
|
|
14,273 |
|
Proceeds from exercise of stock options and common stock
warrants |
|
|
2,729 |
|
|
|
614 |
|
Payment of deferred offering costs |
|
|
— |
|
|
|
(24 |
) |
Taxes paid related to net share settlement of equity awards |
|
|
(130 |
) |
|
|
— |
|
Issuance cost paid related to conversion of convertible notes |
|
|
— |
|
|
|
(545 |
) |
Repayment of debt |
|
|
(9,250 |
) |
|
|
(4,500 |
) |
Net cash provided by financing activities |
|
|
378,665 |
|
|
|
106,085 |
|
Net increase in cash, cash equivalents and restricted cash |
|
|
108,819 |
|
|
|
24,967 |
|
Cash, cash equivalents,
and restricted cash |
|
|
|
|
Beginning of period |
|
|
45,627 |
|
|
|
20,660 |
|
End of period |
|
$ |
154,446 |
|
|
$ |
45,627 |
|
|
|
|
|
|
Supplemental disclosures
of cash flow information |
|
|
|
|
Cash paid for interest |
|
$ |
553 |
|
|
$ |
666 |
|
Cash paid for income taxes |
|
|
102 |
|
|
|
49 |
|
|
|
|
|
|
|
|
|
|
The following table reflects the reconciliation of net loss to
Adjusted EBITDA for each of the periods indicated (in
thousands):
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Adjusted EBITDA
Reconciliation: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(21,374 |
) |
|
$ |
(22,179 |
) |
|
$ |
(96,746 |
) |
|
$ |
(75,765 |
) |
Depreciation and amortization |
|
|
3,870 |
|
|
|
2,801 |
|
|
|
13,408 |
|
|
|
9,290 |
|
Stock-based compensation |
|
|
2,795 |
|
|
|
945 |
|
|
|
7,711 |
|
|
|
2,911 |
|
Compensation expense related to stock sales by current and
former employees |
|
|
— |
|
|
|
— |
|
|
|
819 |
|
|
|
847 |
|
Abandoned offering costs |
|
|
293 |
|
|
|
— |
|
|
|
293 |
|
|
|
— |
|
Donation to TRR Foundation |
|
|
3,155 |
|
|
|
— |
|
|
|
3,155 |
|
|
|
— |
|
Vendor services settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,000 |
|
Interest income |
|
|
(1,675 |
) |
|
|
(444 |
) |
|
|
(4,593 |
) |
|
|
(1,046 |
) |
Interest expense |
|
|
45 |
|
|
|
225 |
|
|
|
616 |
|
|
|
1,152 |
|
Other (income) expense, net |
|
|
(5 |
) |
|
|
64 |
|
|
|
2,102 |
|
|
|
1,656 |
|
Provision for income taxes |
|
|
147 |
|
|
|
62 |
|
|
|
199 |
|
|
|
99 |
|
Adjusted
EBITDA |
|
$ |
(12,749 |
) |
|
$ |
(18,526 |
) |
|
$ |
(73,036 |
) |
|
$ |
(58,856 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of GAAP net loss to non-GAAP net loss
attributable to common stockholders, the most directly comparable
GAAP financial measure, in order to calculate non-GAAP net loss
attributable to common stockholders per share, basic and diluted,
is as follows (in thousands, except share and per share data):
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Net loss |
|
$ |
(21,374 |
) |
|
$ |
(22,179 |
) |
|
$ |
(96,746 |
) |
|
$ |
(75,765 |
) |
Stock-based compensation |
|
|
2,795 |
|
|
|
945 |
|
|
|
7,711 |
|
|
|
2,911 |
|
Compensation expense related to
stock sales by current and former employees |
|
|
— |
|
|
|
— |
|
|
|
819 |
|
|
|
847 |
|
Provision for income taxes |
|
|
147 |
|
|
|
62 |
|
|
|
199 |
|
|
|
99 |
|
Accretion of redeemable
convertible preferred stock |
|
|
— |
|
|
|
(3,271 |
) |
|
|
(3,355 |
) |
|
|
(8,922 |
) |
Remeasurement of preferred stock
warrant liability |
|
|
— |
|
|
|
62 |
|
|
|
2,100 |
|
|
|
450 |
|
Abandoned offering costs |
|
|
293 |
|
|
|
— |
|
|
|
293 |
|
|
|
— |
|
Donation to TRR Foundation |
|
|
3,155 |
|
|
|
— |
|
|
|
3,155 |
|
|
|
— |
|
Non-GAAP net loss attributable to
common stockholders |
|
$ |
(14,984 |
) |
|
$ |
(24,381 |
) |
|
$ |
(85,824 |
) |
|
$ |
(80,380 |
) |
Weighted-average common shares
outstanding used to calculate Non-GAAP net loss attributable
to common stockholders per share, basic and diluted |
|
|
85,823,352 |
|
|
|
8,496,051 |
|
|
|
47,478,544 |
|
|
|
8,365,344 |
|
Non-GAAP net loss attributable to
common stockholders per share, basic and diluted |
|
$ |
(0.17 |
) |
|
$ |
(2.87 |
) |
|
$ |
(1.81 |
) |
|
$ |
(9.61 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents a reconciliation of net cash
provided by (used in) operating activities to free cash flow for
each of the periods indicated (in thousands):
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Net cash provided by (used in)
operating activities |
|
$ |
3,629 |
|
|
$ |
(7,570 |
) |
|
$ |
(54,490 |
) |
|
$ |
(47,195 |
) |
Purchase of property and equipment and capitalized proprietary
software development costs |
|
|
(11,247 |
) |
|
|
(6,131 |
) |
|
|
(34,028 |
) |
|
|
(19,116 |
) |
Free Cash Flow |
|
$ |
(7,618 |
) |
|
$ |
(13,701 |
) |
|
$ |
(88,518 |
) |
|
$ |
(66,311 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Financial and Operating Metrics:
|
|
March 31, 2018 |
|
June 30, 2018 |
|
September 30, 2018 |
|
December 31, 2018 |
|
March 31, 2019 |
|
June 30, 2019 |
|
September 30, 2019 |
|
December 31, 2019 |
|
|
(In thousands, except AOV and percentages) |
GMV |
|
$ |
158,378 |
|
|
$ |
162,954 |
|
|
$ |
170,923 |
|
|
$ |
218,495 |
|
|
$ |
224,116 |
|
|
$ |
228,487 |
|
|
$ |
252,766 |
|
|
$ |
302,975 |
|
NMV |
|
$ |
113,347 |
|
|
$ |
115,916 |
|
|
$ |
123,550 |
|
|
$ |
153,776 |
|
|
$ |
160,538 |
|
|
$ |
164,782 |
|
|
$ |
186,617 |
|
|
$ |
219,508 |
|
Consignment and Services
Revenue |
|
$ |
40,999 |
|
|
$ |
42,178 |
|
|
$ |
45,744 |
|
|
$ |
55,070 |
|
|
$ |
56,236 |
|
|
$ |
60,713 |
|
|
$ |
69,790 |
|
|
$ |
80,673 |
|
Direct Revenue |
|
$ |
5,460 |
|
|
$ |
4,807 |
|
|
$ |
6,095 |
|
|
$ |
7,023 |
|
|
$ |
13,019 |
|
|
$ |
10,263 |
|
|
$ |
10,695 |
|
|
$ |
16,649 |
|
Number of Orders |
|
|
356 |
|
|
|
359 |
|
|
|
409 |
|
|
|
471 |
|
|
|
498 |
|
|
|
505 |
|
|
|
577 |
|
|
|
637 |
|
Take Rate |
|
|
35.1 |
% |
|
|
35.5 |
% |
|
|
36.4 |
% |
|
|
34.9 |
% |
|
|
35.3 |
% |
|
|
36.6 |
% |
|
|
36.8 |
% |
|
|
36.2 |
% |
Active Buyers |
|
|
326 |
|
|
|
352 |
|
|
|
379 |
|
|
|
416 |
|
|
|
456 |
|
|
|
492 |
|
|
|
543 |
|
|
|
582 |
|
AOV |
|
$ |
445 |
|
|
$ |
453 |
|
|
$ |
418 |
|
|
$ |
464 |
|
|
$ |
450 |
|
|
$ |
453 |
|
|
$ |
438 |
|
|
$ |
476 |
|
% of GMV from Repeat Buyers |
|
|
81.5 |
% |
|
|
82.9 |
% |
|
|
82.9 |
% |
|
|
81.6 |
% |
|
|
82.4 |
% |
|
|
83.1 |
% |
|
|
81.8 |
% |
|
|
82.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 and 2018 Contribution Profit Per Order:
|
|
2019 |
|
|
|
2018 |
|
|
Y/Y Change |
AOV |
$ |
454.7 |
|
|
$ |
445.6 |
|
|
2 |
% |
Revenue |
$ |
143.4 |
|
|
$ |
130.0 |
|
|
10 |
% |
Gross Profit |
$ |
91.6 |
|
|
$ |
85.8 |
|
|
7 |
% |
Variable Expenses |
$ |
71.9 |
|
|
$ |
77.1 |
|
|
(7 |
%) |
Contribution
Profit |
$ |
19.7 |
|
|
$ |
8.7 |
|
|
126 |
% |
Contribution Margin |
|
13.8 |
% |
|
|
6.7 |
% |
|
704 |
bps |
Fixed Cost |
$ |
52.6 |
|
|
$ |
45.6 |
|
|
15 |
% |
EBITDA |
$ |
(32.9 |
) |
|
$ |
(36.9 |
) |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
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