The RealReal (Nasdaq: REAL)—the world’s largest online marketplace
for authenticated, resale luxury goods—today reported financial
results for its second quarter ended June 30, 2021. The company
reported another quarter of strong growth, driving its highest
quarterly gross merchandise volume (GMV) to date in Q2, increasing
91% Y/Y and 53% compared to the same period in 2019. The RealReal
also achieved its highest quarterly additions of both new and
repeat consignors to its marketplace to date.
“We’re pleased to report another quarter of strong growth and
believe the strength of the current trends in the business will
continue for the balance of this year and into next year. In
addition to our GMV growth and improved gross profit per order, the
efficiency of our operations and marketing continue to improve —
all key elements of our path to profitability,” said Julie
Wainwright, founder and CEO of The RealReal.
In Q2, The RealReal executed a number of key initiatives to
support efficient growth. The company resumed at-home concierge
appointments, with overall units per appointment exceeding
pre-COVID levels and resulting in at-home representing 38% of total
units in June. The RealReal also drove increased supply through its
expanding brick-and-mortar presence, with retail stores generating
approximately 30% of new consignors in Q2. With the opening of
neighborhood stores in Austin, Texas; Dallas; and Atlanta; followed
by an additional opening in Marin County, Calif., at the start of
Q3, the company now operates nine neighborhood stores and plans to
open one or two more over the coming months.
“Our retail stores continue to perform very well, particularly
in driving new consignor acquisition and supply. Following the
expansion of our neighborhood store footprint, we plan to pause our
retail rollout to optimize performance and gather data to inform
our future rollout strategy,” continued Wainwright.
The RealReal also released the next generation of its
authentication and pricing engines in Q2, part of its investment in
technology to further differentiate its business, drive
efficiencies in its operations and enable significant future scale.
To accommodate future growth with improved unit economics, The
RealReal opened its Arizona authentication center in Q2. The
facility opened on time and under budget and started processing
product in Phoenix in late June. The company plans to create more
than 1,500 local, full-time green jobs in Arizona over the next
five years, offering competitive pay, rewards and benefits.
Second Quarter Financial Highlights
- GMV was $350.0 million, an increase of 91% Y/Y and 53% compared
to the same period in 2019.
- Total Revenue was $104.9 million, an increase of 83% Y/Y and
46% compared to the same period in 2019.
- Net Loss was ($70.7 million) and includes a charge of
approximately $11.0 million that was recorded as an accrued legal
settlement.
- Adjusted EBITDA was ($32.9) million or (31.4%) of total
revenue. Adjusted EBITDA includes $1.1 million of COVID-related
expenses and $0.8 million of duplicative occupancy expense
associated with our Arizona authentication center move from
California.
- GAAP basic and diluted net loss per share was ($0.78).
- Non-GAAP basic and diluted net loss per share was ($0.50).
- At the end of the second quarter, cash and cash equivalents
totaled $491.6 million.
- GMV growth driven by strong supply growth and buyer engagement:
- Trailing 12 months (TTM) active buyers reached 730K, an
increase of 19% Y/Y and 48% compared to the same period in
2019.
- TTM GMV per active buyer increased 3% Y/Y to approximately
$1,675 and is approaching pre-COVID levels.
- Orders reached 673K, an increase of 53% Y/Y and 33% compared to
the same period in 2019.
- AOV was $520, an increase of 25% Y/Y and 15% compared to the
same period in 2019. The primary driver of the higher AOV was a 17%
Y/Y increase in average selling price (ASP). ASP benefited from
strength in the watch and fine jewelry categories and strong demand
in high-value handbags. Units per transaction (UPT) increased 7%
Y/Y and exited the quarter above pre-COVID levels.
- GMV from repeat buyers was 84.5% compared to 82.3% in the
second quarter of 2020.
- Revenue growth driven by GMV growth, with all-time high AOV
offset by lower take rate:
- Consignment and Service Revenue was $82.4 million, an increase
of 76% Y/Y and 38% compared to the same period of 2019.
- Direct Revenue was $22.5 million, an increase of 113% Y/Y and
85% compared to the same period in 2019.
- Consignment Take Rate decreased 150bps Y/Y to 34.5%, reflecting
strong performance on a relative basis from structurally
lower-take-rate categories.
- Gross Profit per Order increases 11% Q/Q from a 42% Q/Q
reduction in buyer incentives and high AOV:
- Gross Profit was $63.4 million, an increase of 78% Y/Y and 38%
compared to the same period of 2019.
- Gross Profit per Order improved $9 Q/Q to $94 per order.
- Reducing fashion’s impact:
- Since The RealReal’s inception in 2011 through June 30, 2021,
consignment with The RealReal saved 20,200 metric tons of carbon
and 976 million liters of water.
Webcast and Conference Call
The RealReal will post a stockholder letter on its investor
relations website
at investor.therealreal.com/financial-information/quarterly-results in
lieu of a live presentation and host a conference call at 2:00 p.m.
Pacific Time (5:00 p.m. Eastern Time) to answer questions regarding
its first quarter 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 4829565. The call
will also be available via live webcast
at 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 investor.therealreal.com.
About The RealReal, Inc.
The RealReal is the world’s largest online marketplace for
authenticated, resale luxury goods, with more than 23 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 17 retail
locations, including our 13 shoppable stores, customers can sell,
meet with our experts and receive free valuations.
Investor Relations Contact:Paul BieberHead of
Investor Relations and Capital
Marketspaul.bieber@therealreal.com
Press Contact:Erin SantyHead of
Communicationspr@therealreal.com
Forward Looking Statements
This 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 for the year ended December 31, 2020, a copy 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 Measures
To 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, 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.
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,
employer payroll tax on employee stock transactions, and certain
one-time expenses. The employer payroll tax expense related to
employee stock transactions are tied to the vesting or exercise of
underlying equity awards and the price of our common stock at the
time of vesting, which may vary from period to period independent
of the operating performance of our business. 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 and the
related employer payroll tax on employee stock transactions,
excludes an item that we do not consider to be indicative of our
core operating performance. Investors should, however, understand
that stock-based compensation and the related employer payroll tax
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 and related payroll tax, 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.
THE REALREAL,
INC.Statements of Operations(In
thousands, except share and per share data)(Unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue: |
|
|
|
|
|
|
|
Consignment and service revenue |
$ |
82,452 |
|
|
|
$ |
46,768 |
|
|
|
$ |
157,534 |
|
|
|
$ |
111,854 |
|
|
Direct revenue |
22,460 |
|
|
|
10,523 |
|
|
|
46,195 |
|
|
|
23,466 |
|
|
Total revenue |
104,912 |
|
|
|
57,291 |
|
|
|
203,729 |
|
|
|
135,320 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
Cost of consignment and service revenue |
21,524 |
|
|
|
12,860 |
|
|
|
41,638 |
|
|
|
30,949 |
|
|
Cost of direct revenue |
19,975 |
|
|
|
8,760 |
|
|
|
40,340 |
|
|
|
19,714 |
|
|
Total cost of revenue |
41,499 |
|
|
|
21,620 |
|
|
|
81,978 |
|
|
|
50,663 |
|
|
Gross profit |
63,413 |
|
|
|
35,671 |
|
|
|
121,751 |
|
|
|
84,657 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
Marketing |
13,109 |
|
|
|
9,639 |
|
|
|
28,670 |
|
|
|
22,561 |
|
|
Operations and technology |
59,837 |
|
|
|
36,543 |
|
|
|
111,771 |
|
|
|
77,280 |
|
|
Selling, general and administrative |
44,264 |
|
|
|
32,559 |
|
|
|
87,592 |
|
|
|
66,553 |
|
|
Legal settlement |
11,000 |
|
|
|
— |
|
|
|
11,288 |
|
|
|
1,110 |
|
|
Total operating expenses (1) |
128,210 |
|
|
|
78,741 |
|
|
|
239,321 |
|
|
|
167,504 |
|
|
Loss from operations |
(64,797 |
) |
|
|
(43,070 |
) |
|
|
(117,570 |
) |
|
|
(82,847 |
) |
|
Interest income |
107 |
|
|
|
616 |
|
|
|
194 |
|
|
|
1,902 |
|
|
Interest expense |
(6,006 |
) |
|
|
(384 |
) |
|
|
(9,302 |
) |
|
|
(404 |
) |
|
Other income (expense), net |
— |
|
|
|
(97 |
) |
|
|
17 |
|
|
|
(89 |
) |
|
Loss before provision for income
taxes |
(70,696 |
) |
|
|
(42,935 |
) |
|
|
(126,661 |
) |
|
|
(81,438 |
) |
|
Provision (benefit) for income
taxes |
27 |
|
|
|
55 |
|
|
|
55 |
|
|
|
55 |
|
|
Net loss attributable to common
stockholders |
$ |
(70,723 |
) |
|
|
$ |
(42,990 |
) |
|
|
$ |
(126,716 |
) |
|
|
$ |
(81,493 |
) |
|
Net loss per share attributable
to common stockholders, basic and diluted |
$ |
(0.78 |
) |
|
|
$ |
(0.49 |
) |
|
|
$ |
(1.40 |
) |
|
|
$ |
(0.94 |
) |
|
Weighted average shares used to compute net loss per share
attributable to common stockholders, basic and diluted |
91,062,220 |
|
|
|
87,064,384 |
|
|
|
90,555,963 |
|
|
|
86,826,590 |
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based
compensation as follows: |
|
|
|
|
|
|
|
Marketing |
$ |
560 |
|
|
|
$ |
335 |
|
|
|
$ |
1,296 |
|
|
|
$ |
523 |
|
|
Operating and technology |
5,550 |
|
|
|
2,852 |
|
|
|
10,246 |
|
|
|
4,330 |
|
|
Selling, general and administrative |
6,703 |
|
|
|
2,942 |
|
|
|
12,190 |
|
|
|
4,686 |
|
|
Total |
$ |
12,813 |
|
|
|
$ |
6,129 |
|
|
|
$ |
23,732 |
|
|
|
$ |
9,539 |
|
|
THE REALREAL,
INC.Condensed Balance Sheets(In
thousands, except share and per share data)(Unaudited)
|
June 30,2021 |
|
December 31,2020 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
491,648 |
|
|
|
$ |
350,846 |
|
|
Short-term investments |
— |
|
|
|
4,017 |
|
|
Accounts receivable, net |
5,808 |
|
|
|
7,213 |
|
|
Inventory |
59,078 |
|
|
|
42,321 |
|
|
Prepaid expenses and other current assets |
17,634 |
|
|
|
17,072 |
|
|
Total current assets |
574,168 |
|
|
|
421,469 |
|
|
Property and equipment, net |
78,157 |
|
|
|
63,454 |
|
|
Operating lease right-of-use
assets |
141,360 |
|
|
|
118,136 |
|
|
Other assets |
2,816 |
|
|
|
2,050 |
|
|
Total assets |
$ |
796,501 |
|
|
|
$ |
605,109 |
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
13,533 |
|
|
|
$ |
14,346 |
|
|
Accrued consignor payable |
55,035 |
|
|
|
57,053 |
|
|
Operating lease liabilities, current portion |
15,610 |
|
|
|
14,999 |
|
|
Other accrued and current liabilities |
76,669 |
|
|
|
61,862 |
|
|
Total current liabilities |
160,847 |
|
|
|
148,260 |
|
|
Operating lease liabilities, net
of current portion |
139,419 |
|
|
|
115,084 |
|
|
Convertible senior notes,
net |
340,194 |
|
|
|
149,188 |
|
|
Other noncurrent liabilities |
1,762 |
|
|
|
1,284 |
|
|
Total liabilities |
642,222 |
|
|
|
413,816 |
|
|
Stockholders’ equity: |
|
|
|
Common stock, $0.00001 par value; 500,000,000 shares
authorized as of June 30, 2021 and December 31, 2020;
91,459,505 and 89,301,664 shares issued and outstanding
as of June 30, 2021 and December 31, 2020,
respectively |
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
813,015 |
|
|
|
723,302 |
|
|
Accumulated other comprehensive income |
— |
|
|
|
11 |
|
|
Accumulated deficit |
(658,737 |
) |
|
|
(532,021 |
) |
|
Total stockholders’ equity |
154,279 |
|
|
|
191,293 |
|
|
Total liabilities and stockholders’ equity |
$ |
796,501 |
|
|
|
$ |
605,109 |
|
|
THE REALREAL,
INC.Condensed Statements of Cash Flows(In
thousands)(Unaudited)
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(126,716 |
) |
|
|
$ |
(81,493 |
) |
|
Adjustments to reconcile net loss to cash used in operating
activities: |
|
|
|
Depreciation and amortization |
11,806 |
|
|
|
8,756 |
|
|
Stock-based compensation expense |
23,732 |
|
|
|
9,539 |
|
|
Reduction of operating lease right-of-use assets |
9,788 |
|
|
|
8,059 |
|
|
Bad debt expense |
482 |
|
|
|
474 |
|
|
Accrued interest on convertible notes |
894 |
|
|
|
— |
|
|
Accretion of debt discounts and issuance costs |
5,803 |
|
|
|
169 |
|
|
Other adjustments |
46 |
|
|
|
(224 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable, net |
923 |
|
|
|
993 |
|
|
Inventory |
(16,757 |
) |
|
|
3,203 |
|
|
Prepaid expenses and other current assets |
(633 |
) |
|
|
(1,321 |
) |
|
Other assets |
(766 |
) |
|
|
(394 |
) |
|
Operating lease liability |
(8,066 |
) |
|
|
(4,842 |
) |
|
Accounts payable |
(1,873 |
) |
|
|
(5,529 |
) |
|
Accrued consignor payable |
(2,018 |
) |
|
|
(17,937 |
) |
|
Other accrued and current liabilities |
14,621 |
|
|
|
(5,624 |
) |
|
Other noncurrent liabilities |
418 |
|
|
|
(410 |
) |
|
Net cash used in operating activities |
(88,316 |
) |
|
|
(86,581 |
) |
|
Cash flow from investing
activities: |
|
|
|
Purchases of short-term investments |
— |
|
|
|
(73,280 |
) |
|
Proceeds from maturities of short-term investments |
4,000 |
|
|
|
176,802 |
|
|
Capitalized proprietary software development costs |
(4,821 |
) |
|
|
(3,779 |
) |
|
Purchases of property and equipment |
(20,642 |
) |
|
|
(10,861 |
) |
|
Net cash (used in) provided by investing activities |
(21,463 |
) |
|
|
88,882 |
|
|
Cash flow from financing
activities: |
|
|
|
Proceeds from issuance of 2025 convertible senior notes, net of
issuance costs |
— |
|
|
|
166,314 |
|
|
Purchase of capped calls in conjunction with the issuance of the
2025 convertible senior notes |
— |
|
|
|
(22,546 |
) |
|
Proceeds from issuance of 2028 convertible senior notes, net of
issuance costs |
278,396 |
|
|
|
— |
|
|
Purchase of capped calls in conjunction with the issuance of the
2028 convertible senior notes |
(33,666 |
) |
|
|
— |
|
|
Proceeds from exercise of stock options |
4,759 |
|
|
|
4,354 |
|
|
Proceeds from issuance of Employee Stock Purchase Program |
1,092 |
|
|
|
— |
|
|
Taxes paid related to restricted stock vesting |
— |
|
|
|
(521 |
) |
|
Net cash provided by financing activities |
250,581 |
|
|
|
147,601 |
|
|
Net increase in cash and cash equivalents |
140,802 |
|
|
|
149,902 |
|
|
Cash and cash
equivalents |
|
|
|
Beginning of period |
350,846 |
|
|
|
154,446 |
|
|
End of period |
$ |
491,648 |
|
|
|
$ |
304,348 |
|
|
The following table reflects the reconciliation of net loss to
Adjusted EBITDA for each of the periods indicated (in
thousands):
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Adjusted EBITDA
Reconciliation: |
|
|
|
|
|
|
|
Net loss |
$ |
(70,723 |
) |
|
|
$ |
(42,990 |
) |
|
|
$ |
(126,716 |
) |
|
|
$ |
(81,493 |
) |
|
Depreciation and amortization |
6,371 |
|
|
|
4,611 |
|
|
|
11,806 |
|
|
|
8,756 |
|
|
Stock-based compensation |
12,813 |
|
|
|
6,129 |
|
|
|
23,732 |
|
|
|
9,539 |
|
|
Payroll tax expense on employee stock transactions (1) |
216 |
|
|
|
— |
|
|
|
722 |
|
|
|
— |
|
|
Legal settlement (2) |
11,000 |
|
|
|
— |
|
|
|
11,288 |
|
|
|
1,110 |
|
|
Restructuring charges (3) |
1,503 |
|
|
|
442 |
|
|
|
1,503 |
|
|
|
442 |
|
|
Interest income |
(107 |
) |
|
|
(616 |
) |
|
|
(194 |
) |
|
|
(1,902 |
) |
|
Interest expense |
6,006 |
|
|
|
384 |
|
|
|
9,302 |
|
|
|
404 |
|
|
Other (income) expense, net |
— |
|
|
|
97 |
|
|
|
(17 |
) |
|
|
89 |
|
|
Provision for income taxes |
27 |
|
|
|
55 |
|
|
|
55 |
|
|
|
55 |
|
|
Adjusted
EBITDA |
$ |
(32,894 |
) |
|
|
$ |
(31,888 |
) |
|
|
$ |
(68,519 |
) |
|
|
$ |
(63,000 |
) |
|
(1) We exclude employer payroll tax expense related to employee
stock-based transactions because we believe that excluding this
item provides meaningful supplemental information regarding our
operating results. In particular, this expense is dependent on the
price of our common stock at the time of vesting or exercise, which
may vary from period to period, and other factors that are beyond
our control and do not correlate to the operation of the business.
When evaluating the performance of our business and making
operating plans, we do not consider these items. Similar charges
were not adjusted in prior periods as they were not material.(2) On
July 27, 2021, we filed a stipulation to settle the putative
shareholder class action filed against us, our officers and
directors and the underwriters for the Company's initial public
offering alleging, among other things, that defendants violated
federal securities laws by issuing false or misleading statements
regarding certain of its financial and operating metrics and the
Company’s authentication processes. The settlement stipulation is
subject to preliminary and final approval by the court. The
financial terms of the settlement stipulation provide that the
Company will pay $11.0 million within thirty (30) days of the later
of preliminary approval of the settlement or plaintiff’s counsel
providing payment instructions.(3) The restructuring charges for
the three and six months ended June 30, 2021 comprise of the costs
to transition operations from the Brisbane warehouse to our new
Phoenix warehouse. The restructuring charges for the three and six
months ended June 30, 2020 consist of COVID-19 related costs
including employee severance.
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 June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net loss |
$ |
(70,723 |
) |
|
|
$ |
(42,990 |
) |
|
|
$ |
(126,716 |
) |
|
|
$ |
(81,493 |
) |
|
Stock-based compensation |
12,813 |
|
|
|
6,129 |
|
|
|
23,732 |
|
|
|
9,539 |
|
|
Payroll tax expense on employee stock transactions |
216 |
|
|
|
— |
|
|
|
722 |
|
|
|
— |
|
|
Legal settlement |
11,000 |
|
|
|
— |
|
|
|
11,288 |
|
|
|
1,110 |
|
|
Restructuring charges |
1,503 |
|
|
|
442 |
|
|
|
1,503 |
|
|
|
442 |
|
|
Provision for income taxes |
27 |
|
|
|
55 |
|
|
|
55 |
|
|
|
55 |
|
|
Non-GAAP net loss attributable to common stockholders |
$ |
(45,164 |
) |
|
|
$ |
(36,364 |
) |
|
|
$ |
(89,416 |
) |
|
|
$ |
(70,347 |
) |
|
Weighted-average common shares outstanding used to calculate
Non-GAAP net loss attributable to common stockholders per share,
basic and diluted |
91,062,220 |
|
|
|
87,064,384 |
|
|
|
90,555,963 |
|
|
|
86,826,590 |
|
|
Non-GAAP net loss attributable to common stockholders per share,
basic and diluted |
$ |
(0.50 |
) |
|
|
$ |
(0.42 |
) |
|
|
$ |
(0.99 |
) |
|
|
$ |
(0.81 |
) |
|
The following table presents a reconciliation of net cash used
in operating activities to free cash flow for each of the periods
indicated (in thousands):
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net cash used in operating
activities |
$ |
(40,508 |
) |
|
|
$ |
(31,610 |
) |
|
|
$ |
(88,316 |
) |
|
|
$ |
(86,581 |
) |
|
Purchase of property and equipment and capitalized proprietary
software development costs |
(17,133 |
) |
|
|
(6,674 |
) |
|
|
(25,463 |
) |
|
|
(14,640 |
) |
|
Free Cash Flow |
$ |
(57,641 |
) |
|
|
$ |
(38,284 |
) |
|
|
$ |
(113,779 |
) |
|
|
$ |
(101,221 |
) |
|
Key Financial and Operating Metrics:
|
June 30,2019 |
|
September 30,2019 |
|
December 31,2019 |
|
March 31,2020 |
|
June 30,2020 |
|
September 30 2020 |
|
December 31, 2020 |
|
March 31,2021 |
|
June 30,2021 |
|
(In thousands, except AOV and percentages) |
GMV |
$ |
228,487 |
|
|
$ |
252,766 |
|
|
$ |
302,975 |
|
|
$ |
257,606 |
|
|
$ |
182,771 |
|
|
$ |
245,335 |
|
|
$ |
301,219 |
|
|
$ |
327,327 |
|
|
$ |
350,001 |
|
NMV |
$ |
164,782 |
|
|
$ |
186,617 |
|
|
$ |
219,508 |
|
|
$ |
184,625 |
|
|
$ |
139,797 |
|
|
$ |
189,059 |
|
|
$ |
223,390 |
|
|
$ |
244,162 |
|
|
$ |
256,509 |
|
Consignment and Services
Revenue |
$ |
59,890 |
|
|
$ |
69,067 |
|
|
$ |
81,386 |
|
|
$ |
65,086 |
|
|
$ |
46,768 |
|
|
$ |
64,152 |
|
|
$ |
71,320 |
|
|
$ |
75,082 |
|
|
$ |
82,452 |
|
Direct Revenue |
$ |
12,139 |
|
|
$ |
12,271 |
|
|
$ |
11,209 |
|
|
$ |
12,942 |
|
|
$ |
10,523 |
|
|
$ |
13,645 |
|
|
$ |
15,512 |
|
|
$ |
23,735 |
|
|
$ |
22,460 |
|
Number of Orders |
505 |
|
|
577 |
|
|
637 |
|
|
574 |
|
|
438 |
|
|
550 |
|
|
671 |
|
|
690 |
|
|
673 |
|
Take Rate |
36.6 |
% |
|
36.8 |
% |
|
36.2 |
% |
|
36.2 |
% |
|
36.0 |
% |
|
35.4 |
% |
|
35.7 |
% |
|
34.3 |
% |
|
34.5 |
% |
Active Buyers |
492 |
|
|
543 |
|
|
582 |
|
|
602 |
|
|
612 |
|
|
617 |
|
|
649 |
|
|
687 |
|
|
730 |
|
AOV |
$ |
453 |
|
|
$ |
438 |
|
|
$ |
476 |
|
|
$ |
449 |
|
|
$ |
417 |
|
|
$ |
446 |
|
|
$ |
449 |
|
|
$ |
474 |
|
|
$ |
520 |
|
% of GMV from Repeat Buyers |
83.1 |
% |
|
81.8 |
% |
|
82.9 |
% |
|
84.4 |
% |
|
82.3 |
% |
|
82.9 |
% |
|
82.4 |
% |
|
83.6 |
% |
|
84.5 |
% |
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