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 Dec. 31, 2020.
“With improving trends in Q4, culminating in December GMV
increasing 6% Y/Y, we exited the year with strong momentum. Q1 2021
GMV grew 14% Y/Y quarter to date through Feb. 19, 2021, so that
momentum continues and we are optimistic about the year ahead. Last
year, we embarked on strategic initiatives surrounding our
neighborhood stores, vendor program and authentication center
expansion that will enable us to emerge a stronger company,” said
Julie Wainwright, founder and CEO of The RealReal.
Supply and GMV growth are the lifeblood of The RealReal’s
marketplace and drive its success and path to profitability. Supply
trends continued to improve in Q4. Total units shipped to the
company’s authentication centers improved approximately 10% Q/Q and
increased 13% Y/Y in Q4, with growth exceeding 20% Y/Y in December.
Retail supply units from The RealReal’s retail locations (stores
and Luxury Consignment Offices) improved dramatically in Q4,
increasing 70% Y/Y driven by marketing execution and the
contribution of new retail locations. Supply continues to sell
quickly, with the company’s four-day sell-through continuing to
trend at pre-COVID levels. New buyers achieved a quarterly record,
increasing 21% Y/Y.
The RealReal continues to execute on its retail strategy of
opening smaller footprint neighborhood stores. In Q4, the company
opened a neighborhood store in Palo Alto, Calif., followed by
additional stores in Brooklyn, N.Y., and Newport Beach, Calif., in
Q1. In December, approximately 30% of the company’s new consignors
came from its retail locations. The RealReal plans to open
approximately 10 neighborhood stores by the end of Q2 to deeply
engage with the company’s most valuable customers and significantly
unlock supply. Based on our data:
- Consignors who interact with a RealReal retail location consign
more than 1.5x as much retail value as other consignors;
- Buyers who purchase in store and online spend more than 3x as
much per year as online-only buyers;
- Buyers who engage with The RealReal’s stores have higher NPS
scores than online-only buyers; and
- Buyers who interact with The RealReal’s retail locations have
higher average order values (AOVs) and higher order frequency than
online-only buyers.
“We exited 2020 with our marketplace back to GMV growth, supply
momentum increasing and widespread vaccine distribution hopefully
around the corner. Growth is a powerful driver of profitability as
it enables us to realize efficiencies in our operations, leverage
our fixed expenses, and negotiate better rates with our service
providers. We remain focused on executing our growth recovery plans
and have accelerated the timeline for opening our new Arizona
authentication center to support our next phase of growth. We will
continue building on the strong momentum of the past several months
to position us to profitably capitalize on the large luxury resale
opportunity ahead,” continued Wainwright.
Fourth Quarter Financial Highlights
- Gross Merchandise Volume (GMV) was $301.2 million, a 235bps Q/Q
improvement and a 1% Y/Y decrease.
- Total Revenue was $84.6 million, a 10% Y/Y decrease1.
- Consignment and Service Revenue was $69.1 million, a 16% Y/Y
decrease1.
- Direct Revenue was $15.5 million, a 38% Y/Y increase.
- Gross Profit was $51.1 million, a 18% Y/Y decrease1.
- Net Loss was ($53.0 million).
- Adjusted EBITDA was ($35.8) million or (42.3%) of total
revenue. Adjusted EBITDA includes $1.6 million of COVID-related
expenses.
- GAAP basic and diluted net loss per share was ($0.60).
- Non-GAAP basic and diluted net loss per share was ($0.49).
- At the end of the fourth quarter, cash, cash equivalents and
short-term investments totaled $354.9 million.
Other Fourth Quarter Financial Highlights and Key
Operating Metrics
- Trailing 12 months active buyers reached 648,856, an increase
of 12% Y/Y.
- New buyers achieved a quarterly record and increased 21% Y/Y
versus down 9% Y/Y in Q3.
- Orders reached 671,278, a 10% Q/Q improvement and a 5% Y/Y
increase.
- Average Order Value (AOV) was $449, a decrease of 6% Y/Y, and
was driven primarily by lower units per transaction. Average
selling price (ASP) was essentially flat Y/Y in Q4 and benefited
from ASP strength in the Fine Jewelry category and strong demand in
high-value handbags, which was offset by momentum with new buyers
who usually transact at lower AOVs initially.
- Consignment Take Rate decreased 50bps
Y/Y to 35.7%, reflecting strong performance on a relative basis
from lower-take-rate categories (such as handbags, jewelry and
sneakers) and a greater mix of consignors earning higher
commissions.
- GMV from repeat buyers was 82.4%
compared to 82.9% in the fourth quarter of 2019.
- In Q4, we signed a lease for an
authentication center in Phoenix, which we plan to begin operating
from during the summer of 2021. The Phoenix facility will create
more than 1,500 local, full-time jobs over the next five years
offering competitive pay, rewards and benefits.
- Our 2020 sell-through percent was 99%,
an increase from 94% in 2019. Sell-through percent represents the
ratio of GMV to initial supply value for the specified year.
- Since The RealReal’s inception in 2011
through Dec. 31, 2020, consignment with The RealReal saved 17,023
metric tons of carbon and 827 million liters of water. In 2020
alone, members saved the equivalent of the GHG emissions from 7.4
million driving miles and 712 million glasses of water by
consigning with The RealReal.
- Consignment of Gucci items grew 2.5
times faster than overall consignment following the launch of our
partnership on Oct. 5 through the end of the year, a testament to
the success of our collaboration. As a further result of our
groundbreaking partnership, together with Gucci, The RealReal is
planting more than 35,000 trees with One Tree Planted.
1 Reflects a $2.2 million prior period adjustment.
Excluding the $2.2 million prior period adjustment, total revenue
was $86.8 million, a decrease of 7% Y/Y, consignment and service
revenue was $71.3 million, a 14% Y/Y decrease, and gross profit was
$53.4 million, a 15% Y/Y decrease. See Non-GAAP Financial Measures
below.
Financial OutlookWe anticipate Q1 GMV will be
in the range of $301 million to $310 million, representing a 17% to
20% Y/Y growth rate.
Webcast and Conference Call
The RealReal will post a stockholder letter on its investor
relations website at
https://investor.therealreal.com/financial-information/quarterly-results in
lieu of a live presentation and host a conference call at 2 p.m.
PST to answer questions regarding its fourth quarter and full year
2020 financial results, the stockholder letter and the supporting
slides. Investors and analysts can access the call by dialing (866)
996-5385 in the U.S. or (270) 215-9574 internationally. The
passcode for the call is 1836039. The call will also be available
via live webcast at https://investor.therealreal.com along with the
stockholder letter and the supporting slides. An archive of the
webcast conference call will be available shortly after the call
ends at https://investor.therealreal.com.
About The RealReal,
Inc.The RealReal is the world’s largest online marketplace
for authenticated, resale luxury goods, with more than 20 million
members. 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 hundreds of
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 thousands of brands across numerous
categories—including women's and men's fashion, fine jewelry and
watches, art and home—in support of the circular economy. We make
selling effortless with free virtual appointments, in-home pickup,
drop-off and direct shipping. We do all of the work for consignors,
including authenticating, using AI and machine learning to
determine optimal pricing, photographing and listing their items,
as well as handling shipping and customer service. At our 13 retail
locations, including our eight shoppable stores, customers can
sell, meet with our experts and receive free valuations.
Investor Relations Contact: Paul Bieber Head of
Investor Relations paul.bieber@therealreal.com
Press Contact: Erin Santy Head of
Communications pr@therealreal.com
Forward Looking StatementsThis
press release contains forward-looking statements relating to,
among other things, the future performance of The RealReal that are
based on the company's current expectations, forecasts and
assumptions and involve risks and uncertainties. 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,”
“continue,” “ongoing” or the negative of these terms or other
comparable terminology. These statements include, but are not
limited to, statements about future operating results, including
the amounts of our operating expense and capital expenditure
investments or reductions and our strategies, plans, commitments,
objectives and goals, in particular in the context of the impacts
of the COVID-19 pandemic and the recent social unrest. Actual
results could differ materially from those predicted or implied and
reported results should not be considered as an indication of
future performance. Other factors that could cause or contribute to
such differences include, but are not limited to, the impact of the
COVID-19 pandemic and the recent social unrest on our operations
and our business environment, 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.
More information about factors that could affect the company's
operating results is included under the captions “Risk Factors” and
“Management's Discussion and Analysis of Financial Condition and
Results of Operations” in the company's most recent Annual Report
on Form 10-K and subsequent quarterly reports on Form 10-Q, copies
of which may be obtained by visiting the company's Investor
Relations website at https://investor.therealreal.com or the SEC's
website at www.sec.gov. Undue reliance should not be placed on the
forward-looking statements in this press release, which are based
on information available to the company on the date hereof. The
company assumes no obligation to update such 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 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, and Contribution Profit. 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.
In Q4, we reflected a $2.2 million prior period adjustment to
Consignment and service revenue, of which approximately $600
thousand related to Q1 through Q3 of 2020, and approximately $1.6
million related to previous periods. This adjustment is the result
of an administrative error related to a reconciliation of a subset
of adjustments to consignor commissions that were paid outside of
our normal payment cycle. We have since corrected this
reconciliation process. We will reflect this adjustment in our
presentation of our quarterly and prior year results in our Form
10-K. Since these adjustments were not material to any prior period
interim or annual financial statements, no amendments to previously
filed interim or annual periods reports are required. In order to
facilitate comparability between Q4 of 2020 and Q4 of 2019, we have
presented total revenue, consignment and service revenue and gross
profit on a Non-GAAP basis for Q4 to exclude the impact of the
prior period adjustment.
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, other (income) expense net,
provision (benefit) for income taxes, depreciation and
amortization, further adjusted to exclude stock-based compensation,
certain one-time expenses and prior period adjustments. 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 and prior
period adjustments 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 (benefit) for income taxes, and
non-recurring items divided by weighted average shares outstanding.
We believe that adding back stock-based compensation expense,
provision (benefit) 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, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Revenue: |
|
|
|
|
|
|
|
Consignment and service revenue |
$ |
69,073 |
|
|
$ |
82,522 |
|
|
$ |
245,643 |
|
|
$ |
267,412 |
|
Direct revenue |
|
15,512 |
|
|
|
11,209 |
|
|
|
52,623 |
|
|
|
50,625 |
|
Total revenue |
|
84,585 |
|
|
|
93,731 |
|
|
|
298,266 |
|
|
|
318,037 |
|
Cost of revenue: |
|
|
|
|
|
|
|
Cost of consignment and service revenue |
|
19,723 |
|
|
|
20,987 |
|
|
|
66,976 |
|
|
|
73,579 |
|
Cost of direct revenue |
|
13,728 |
|
|
|
10,197 |
|
|
|
45,406 |
|
|
|
41,252 |
|
Total cost of revenue |
|
33,451 |
|
|
|
31,184 |
|
|
|
112,382 |
|
|
|
114,831 |
|
Gross profit |
|
51,134 |
|
|
|
62,547 |
|
|
|
185,884 |
|
|
|
203,206 |
|
Operating expenses: |
|
|
|
|
|
|
|
Marketing |
|
17,066 |
|
|
|
10,896 |
|
|
|
54,813 |
|
|
|
47,734 |
|
Operations and technology |
|
45,950 |
|
|
|
39,960 |
|
|
|
163,808 |
|
|
|
143,231 |
|
Selling, general and administrative |
|
38,715 |
|
|
|
34,553 |
|
|
|
141,762 |
|
|
|
110,663 |
|
Total operating expenses (1) |
|
101,731 |
|
|
|
85,409 |
|
|
|
360,383 |
|
|
|
301,628 |
|
Loss from operations |
|
(50,597 |
) |
|
|
(22,862 |
) |
|
|
(174,499 |
) |
|
|
(98,422 |
) |
Interest income |
|
168 |
|
|
|
1,675 |
|
|
|
2,518 |
|
|
|
4,593 |
|
Interest expense |
|
(2,454 |
) |
|
|
(45 |
) |
|
|
(5,264 |
) |
|
|
(616 |
) |
Other income (expense), net |
|
(80 |
) |
|
|
5 |
|
|
|
(169 |
) |
|
|
(2,102 |
) |
Loss before provision for income taxes |
|
(52,963 |
) |
|
|
(21,227 |
) |
|
|
(177,414 |
) |
|
|
(96,547 |
) |
Provision (benefit) for income taxes |
|
63 |
|
|
|
147 |
|
|
|
101 |
|
|
|
199 |
|
Net loss |
$ |
(53,026 |
) |
|
$ |
(21,374 |
) |
|
$ |
(177,515 |
) |
|
$ |
(96,746 |
) |
Accretion of redeemable convertible preferred stock to redemption
value |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(3,355 |
) |
Net loss attributable to common stockholders |
$ |
(53,026 |
) |
|
$ |
(21,374 |
) |
|
$ |
(177,515 |
) |
|
$ |
(100,101 |
) |
Net loss per share attributable to common stockholders, basic and
diluted |
$ |
(0.60 |
) |
|
$ |
(0.25 |
) |
|
$ |
(2.03 |
) |
|
$ |
(2.11 |
) |
Weighted average shares used to compute net loss per |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share attributable to common stockholders, basic and
diluted |
|
88,810,674 |
|
|
|
85,823,352 |
|
|
|
87,587,409 |
|
|
|
47,478,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based compensation as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing |
$ |
527 |
|
|
$ |
104 |
|
|
$ |
1,755 |
|
|
$ |
392 |
|
Operating and technology |
|
3,019 |
|
|
|
1,083 |
|
|
|
10,241 |
|
|
|
3,148 |
|
Selling, general and administrative (2) |
|
3,865 |
|
|
|
1,608 |
|
|
|
12,326 |
|
|
|
4,990 |
|
Total |
$ |
7,411 |
|
|
$ |
2,795 |
|
|
$ |
24,322 |
|
|
$ |
8,530 |
|
|
|
|
|
|
|
|
|
(2) Includes compensation expense related to stock sales by current
and former employees in March 2019. |
THE REALREAL, INC. |
Condensed Balance Sheets |
(In thousands, except share and per share
data) |
(Unaudited) |
|
|
December 31, 2020 |
|
December 31, 2019 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
350,846 |
|
|
$ |
154,446 |
|
Short-term investments |
|
|
4,017 |
|
|
|
208,811 |
|
Accounts receivable |
|
|
7,213 |
|
|
|
7,779 |
|
Inventory, net |
|
|
42,321 |
|
|
|
23,599 |
|
Prepaid expenses and other current assets |
|
|
17,072 |
|
|
|
13,804 |
|
Total current assets |
|
|
421,469 |
|
|
|
408,439 |
|
Property and equipment, net |
|
|
63,454 |
|
|
|
55,831 |
|
Operating lease right-of-use assets |
|
|
118,136 |
|
|
|
— |
|
Other assets |
|
|
2,050 |
|
|
|
2,660 |
|
Total assets |
|
$ |
605,109 |
|
|
$ |
466,930 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
14,346 |
|
|
$ |
11,159 |
|
Accrued consignor payable |
|
|
57,053 |
|
|
|
52,820 |
|
Operating lease liabilities, current portion |
|
|
14,999 |
|
|
|
— |
|
Other accrued and current liabilities |
|
|
61,862 |
|
|
|
54,567 |
|
Total current liabilities |
|
|
148,260 |
|
|
|
118,546 |
|
Operating lease liabilities, net of current portion |
|
|
115,084 |
|
|
|
— |
|
Convertible senior notes, net |
|
|
149,188 |
|
|
|
— |
|
Other noncurrent liabilities |
|
|
1,284 |
|
|
|
9,456 |
|
Total liabilities |
|
|
413,816 |
|
|
|
128,002 |
|
Stockholders’ equity: |
|
|
|
|
Common stock, $0.00001 par value; 500,000,000 shares |
|
|
|
|
|
|
|
|
authorized as of December 31, 2020 and December 31, 2019;
89,301,664 and 85,872,320 shares issued and outstanding
as of December 31, 2020 and December 31, 2019,
respectively |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
723,302 |
|
|
|
693,426 |
|
Accumulated other comprehensive income |
|
|
11 |
|
|
|
7 |
|
Accumulated deficit |
|
|
(532,021 |
) |
|
|
(354,506 |
) |
Total stockholders’ equity |
|
|
191,293 |
|
|
|
338,928 |
|
Total liabilities and stockholders’ equity |
|
$ |
605,109 |
|
|
$ |
466,930 |
|
|
|
|
|
|
THE REALREAL, INC. |
Condensed Statements of Cash Flows |
(In thousands) |
(Unaudited) |
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
|
2019 |
|
Cash flows from operating activities: |
|
|
|
|
Net loss |
|
$ |
(177,515 |
) |
|
$ |
(96,746 |
) |
Adjustments to reconcile net loss to cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
|
18,845 |
|
|
|
13,408 |
|
Stock-based compensation expense |
|
|
24,322 |
|
|
|
7,711 |
|
Reduction of operating lease right-of-use assets |
|
|
16,062 |
|
|
|
— |
|
Bad debt expense |
|
|
903 |
|
|
|
1,371 |
|
Compensation expense related to stock sales by current and former
employees |
|
|
— |
|
|
|
819 |
|
Change in fair value of convertible preferred stock warrant
liability |
|
|
— |
|
|
|
2,100 |
|
Accrued interest on convertible notes |
|
|
216 |
|
|
|
— |
|
Loss on retirement of property and equipment |
|
|
280 |
|
|
|
— |
|
Accretion of unconditional endowment grant liability |
|
|
51 |
|
|
|
94 |
|
Accretion of debt discounts and issuance costs |
|
|
2,399 |
|
|
|
11 |
|
Amortization of premiums (discounts) on short-term investments |
|
|
(137 |
) |
|
|
(320 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
(337 |
) |
|
|
(1,579 |
) |
Inventory, net |
|
|
(18,722 |
) |
|
|
(13,244 |
) |
Prepaid expenses and other current assets |
|
|
(3,443 |
) |
|
|
(4,108 |
) |
Other assets |
|
|
548 |
|
|
|
(1,026 |
) |
Operating lease liability |
|
|
(12,752 |
) |
|
|
— |
|
Accounts payable |
|
|
4,457 |
|
|
|
6,010 |
|
Accrued consignor payable |
|
|
4,233 |
|
|
|
17,561 |
|
Other accrued and current liabilities |
|
|
7,994 |
|
|
|
10,686 |
|
Other noncurrent liabilities |
|
|
(166 |
) |
|
|
2,762 |
|
Net cash used in operating activities |
|
|
(132,762 |
) |
|
|
(54,490 |
) |
Cash flow from investing activities: |
|
|
|
|
Purchases of short-term investments |
|
|
(73,280 |
) |
|
|
(220,609 |
) |
Proceeds from maturities of short-term investments |
|
|
278,215 |
|
|
|
39,281 |
|
Capitalized proprietary software development costs |
|
|
(8,678 |
) |
|
|
(9,267 |
) |
Purchases of property and equipment |
|
|
(19,910 |
) |
|
|
(24,761 |
) |
Net cash provided by (used in) investing activities |
|
|
176,347 |
|
|
|
(215,356 |
) |
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 |
|
Proceeds from issuance of convertible preferred stock, net of
issuance costs |
|
|
— |
|
|
|
26,283 |
|
Proceeds from issuance of convertible senior notes, net of issuance
costs |
|
|
166,278 |
|
|
|
— |
|
Purchase of capped calls |
|
|
(22,546 |
) |
|
|
— |
|
Proceeds from exercise of stock options and common stock
warrants |
|
|
8,859 |
|
|
|
2,729 |
|
Proceeds from issuance of Employee Stock Purchase Program |
|
|
972 |
|
|
|
— |
|
Taxes paid related to restricted stock vesting |
|
|
(748 |
) |
|
|
(130 |
) |
Repayment of debt |
|
|
— |
|
|
|
(9,250 |
) |
Net cash provided by financing activities |
|
|
152,815 |
|
|
|
378,665 |
|
Net increase in cash, cash equivalents and restricted cash |
|
|
196,400 |
|
|
|
108,819 |
|
Cash, cash equivalents, and restricted cash |
|
|
|
|
Beginning of period |
|
|
154,446 |
|
|
|
45,627 |
|
End of period |
|
$ |
350,846 |
|
|
$ |
154,446 |
|
|
|
|
|
|
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, |
|
|
|
2020 |
|
|
|
2019 |
|
Adjusted EBITDA Reconciliation: |
|
|
|
|
Net loss |
|
$ |
(53,026 |
) |
|
$ |
(21,374 |
) |
Depreciation and amortization |
|
|
5,172 |
|
|
|
3,870 |
|
Stock-based compensation |
|
|
7,411 |
|
|
|
2,795 |
|
Prior period adjustment (1) |
|
|
2,247 |
|
|
|
— |
|
Abandoned offering costs |
|
|
— |
|
|
|
293 |
|
Donation to TRR Foundation |
|
|
— |
|
|
|
3,155 |
|
Interest income |
|
|
(168 |
) |
|
|
(1,675 |
) |
Interest expense |
|
|
2,454 |
|
|
|
45 |
|
Other (income) expense, net |
|
|
80 |
|
|
|
(5 |
) |
Provision for income taxes |
|
|
63 |
|
|
|
147 |
|
Adjusted EBITDA |
|
$ |
(35,767 |
) |
|
$ |
(12,749 |
) |
|
|
|
|
|
|
|
|
|
|
(1) This
adjustment is the result of an administrative error related to a
reconciliation of a subset of adjustments to consignor commissions
that were paid outside of our normal payment cycle. |
|
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, |
|
|
|
2020 |
|
|
|
2019 |
|
Net loss |
|
$ |
(53,026 |
) |
|
$ |
(21,374 |
) |
Stock-based compensation |
|
|
7,411 |
|
|
|
2,795 |
|
Prior period adjustment |
|
|
2,247 |
|
|
|
— |
|
Abandoned offering costs |
|
|
— |
|
|
|
293 |
|
Donation to TRR
Foundation |
|
|
— |
|
|
|
3,155 |
|
Provision for income
taxes |
|
|
63 |
|
|
|
147 |
|
Non-GAAP net loss attributable
to common stockholders |
|
$ |
(43,305 |
) |
|
$ |
(14,984 |
) |
Weighted-average common shares
outstanding used to calculate Non-GAAP net loss attributable to
common stockholders per share, basic and diluted |
|
|
88,810,674 |
|
|
|
85,823,352 |
|
Non-GAAP net loss attributable
to common stockholders per share, basic and diluted |
|
$ |
(0.49 |
) |
|
$ |
(0.17 |
) |
|
|
|
|
|
The following table presents a reconciliation of net cash (used
in) provided by operating activities to free cash flow for each of
the periods indicated (in thousands):
|
Three Months
Ended December 31, |
|
Year Ended
December 31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Net cash
(used in) provided by operating activities |
$ |
(36,745 |
) |
|
$ |
3,629 |
|
|
$ |
(132,762 |
) |
|
$ |
(54,490 |
) |
Purchase of property and equipment and capitalized proprietary
software development costs |
|
(6,263 |
) |
|
|
(11,247 |
) |
|
|
(28,588 |
) |
|
|
(34,028 |
) |
Free Cash
Flow |
$ |
(43,008 |
) |
|
$ |
(7,618 |
) |
|
$ |
(161,350 |
) |
|
$ |
(88,518 |
) |
|
|
|
|
|
|
|
|
Key Financial and Operating Metrics: |
|
|
|
March 31, 2019 |
June 30, 2019 |
September 30, 2019 |
December 31, 2019 |
March 31, 2020 |
June 30, 2020 |
September 30, 2020 |
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except AOV and percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GMV |
|
$ |
224,116 |
|
$ |
228,487 |
|
$ |
252,766 |
|
$ |
302,975 |
|
$ |
257,606 |
|
$ |
182,771 |
|
$ |
245,355 |
|
$ |
301,219 |
|
NMV |
|
$ |
160,538 |
|
$ |
164,782 |
|
$ |
186,617 |
|
$ |
219,508 |
|
$ |
184,625 |
|
$ |
139,797 |
|
$ |
189,059 |
|
$ |
222,437 |
|
Consignment and Services Revenue |
|
$ |
55,575 |
|
$ |
60,070 |
|
$ |
69,245 |
|
$ |
82,522 |
|
$ |
65,297 |
|
$ |
46,866 |
|
$ |
64,407 |
|
$ |
69,073 |
|
Direct Revenue |
|
$ |
15,007 |
|
$ |
12,139 |
|
$ |
12,271 |
|
$ |
11,209 |
|
$ |
12,942 |
|
$ |
10,523 |
|
$ |
13,645 |
|
$ |
15,512 |
|
Number of Orders |
|
|
498 |
|
|
505 |
|
|
577 |
|
|
637 |
|
|
574 |
|
|
438 |
|
|
550 |
|
|
671 |
|
Take Rate |
|
|
35.3 |
% |
|
36.6 |
% |
|
36.8 |
% |
|
36.2 |
% |
|
36.2 |
% |
|
36.0 |
% |
|
35.4 |
% |
|
35.7 |
% |
Active Buyers |
|
|
456 |
|
|
492 |
|
|
543 |
|
|
582 |
|
|
602 |
|
|
612 |
|
|
617 |
|
|
649 |
|
AOV |
|
$ |
450 |
|
$ |
453 |
|
$ |
438 |
|
$ |
476 |
|
$ |
449 |
|
$ |
417 |
|
$ |
446 |
|
$ |
449 |
|
% of GMV from Repeat Buyers |
|
|
82.4 |
% |
|
83.1 |
% |
|
81.8 |
% |
|
82.9 |
% |
|
84.4 |
% |
|
82.3 |
% |
|
82.9 |
% |
|
82.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution Profit Per Order: |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2018 |
|
|
2020 Y/Y Change |
AOV |
|
$ |
441.8 |
|
|
$ |
454.7 |
|
|
$ |
445.6 |
|
|
-3% |
Revenue |
|
$ |
133.5 |
|
|
$ |
143.4 |
|
|
$ |
130.0 |
|
|
-7% |
Gross Profit (1) |
|
$ |
185.9 |
|
|
$ |
203.2 |
|
|
$ |
136.9 |
|
|
-9% |
Gross Profit Per Order |
|
$ |
83.2 |
|
|
$ |
91.6 |
|
|
$ |
85.8 |
|
|
-9% |
Variable Expenses |
|
$ |
79.0 |
|
|
$ |
71.9 |
|
|
$ |
77.1 |
|
|
10% |
Contribution
Profit |
|
$ |
4.2 |
|
|
$ |
19.7 |
|
|
$ |
8.7 |
|
|
-79% |
Contribution Margin |
|
|
3.2 |
% |
|
|
13.8 |
% |
|
|
6.7 |
% |
|
(1060 bps) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects prior period adjustments. |
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