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, 2021.
The company reported continued strong top-line growth and
significant operating expense leverage. Fourth quarter and full
year 2021 gross merchandise value (GMV) increased 45% and 50%,
respectively, compared to the same periods in 2020.
“We are pleased to announce solid financial results for fourth
quarter 2021, including Adjusted EBITDA loss that improved both
sequentially and on a year-over-year basis. The improvements were
driven primarily by strong top-line growth and operating expense
leverage across all major functions of the business,” said Julie
Wainwright, founder and CEO of The RealReal.
Wainwright added, “We continued to expand our use of technology
in our operations in 2021. Our proprietary technology innovations
have assisted and will continue to assist us in improving unit
economics, enabling scaling of our business, and driving higher
average selling prices. Despite some processing delays due to
short-term operations staffing challenges in late December 2021 and
early January 2022 related to COVID-19 cases, supply coming in
remains healthy and we anticipate a strong 2022. ”
Robert Julian, CFO of The RealReal, stated, “As we previously
committed, we are now providing financial guidance for 2022 as well
as a timeline to reach profitability. We project that The RealReal
will be Adjusted EBITDA positive for full year 2024, based on
continued top-line growth, variable cost productivity, and fixed
cost management. At our Investor Day in March, we look forward to
providing more details about our path to profitability and some
longer-range financial targets, which we are referring to as Vision
2025.”
Fourth Quarter Financial Highlights
- GMV was $437 million, an increase of 45% compared to the same
period in 2020
- Total Revenue was $145 million, an increase of 67% compared to
the same period in 2020
- Net Loss was $52 million compared to $51 million in the same
period in 2020
- Adjusted EBITDA was $(26.9) million or (18.5)% of total revenue
compared to (41.2)% of total revenue in the fourth quarter of
2020
- GAAP basic and diluted net loss per share was $(0.56) compared
to $(0.57) in the prior year period
- Non-GAAP basic and diluted net loss per share was $(0.42)
compared to $(0.49) in the prior year period
- Top-line-related Metrics
- Trailing 12-months (TTM) active buyers reached 797,000, an
increase of 23% compared to the same period in 2020
- Orders reached 861,000, an increase of 28% compared to the same
period in 2020
- Average order value (AOV) was $508, an increase of 13% compared
to the same period in 2020
- Higher AOV was driven by a 10% year-over-year increase in units
per transaction (UPT) and a 3% increase in average selling price
(ASP)
- GMV from repeat buyers was 84% compared to 82% in the fourth
quarter of 2020
Full Year 2021 Financial Highlights
- GMV was $1,482 million, an increase of 50% compared to full
year 2020
- Total Revenue was $468 million, an increase of 56% compared to
full year 2020
- Net Loss was $236 million compared to $176 million in 2020
- Adjusted EBITDA was $(126.9) million or (27.1)% of total
revenue compared to (42.7)% of total revenue for full year
2020
- GAAP basic and diluted net loss per share was $(2.58) compared
to $(2.01) in the prior year
- Non-GAAP basic and diluted net loss per share was $(1.88)
compared to $(1.71) in the prior year
- At the end of 2021, cash and cash equivalents totaled $418
million
Q1 and Full Year 2022 GuidanceBased on market
conditions as of Feb. 23, 2022, we are providing guidance for GMV,
total revenue and Adjusted EBITDA, which is a Non-GAAP financial
measure.
|
Q1 2022 |
Full Year
2022 |
GMV |
$410 - $425 million |
$2,000 - $2,100 million |
Total
Revenue |
$130 - $140 million |
$635 - $665 million |
Adjusted
EBITDA |
$(39) - $(35) million |
$(100) - $(80) million |
We have not reconciled forward-looking Adjusted EBITDA to net
income (loss), the most directly comparable GAAP measure, because
we cannot predict with reasonable certainty the ultimate outcome of
certain components of such reconciliations, including payroll tax
expense on employee stock transactions, that are not within our
control, or other components that may arise, without unreasonable
effort. For these reasons, we are unable to assess the probable
significance of the unavailable information, which could materially
impact the amount of future net income (loss).
Webcast and Conference CallThe RealReal will
post a stockholder letter on its investor relations website
at investor.therealreal.com/financial-information/quarterly-results and
host a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern
Time) to answer questions regarding its fourth quarter and full
year 2021 results. 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 6255296. The call
will also be available via live webcast
at investor.therealreal.com along with the stockholder
letter and 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 25 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 19 retail
locations, including our 16 shoppable stores, customers can sell,
meet with our experts and receive free valuations.
Investor Relations Contact:Caitlin HoweVice
President, Investor RelationsIR@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 and financial
results, including our strategies, plans, commitments, objectives
and goals, in particular in the context of the impacts of the
COVID-19 pandemic, and our financial guidance, timeline to
profitability, 2025 vision and long-range financial projections.
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 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,
labor shortages 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 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 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, 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, 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 December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Revenue: |
|
|
|
|
|
|
|
Consignment and service revenue |
$ |
99,863 |
|
|
$ |
71,320 |
|
|
$ |
346,848 |
|
|
$ |
247,326 |
|
Direct revenue |
|
45,262 |
|
|
|
15,512 |
|
|
|
120,844 |
|
|
|
52,623 |
|
Total revenue |
|
145,125 |
|
|
|
86,832 |
|
|
|
467,692 |
|
|
|
299,949 |
|
Cost of revenue: |
|
|
|
|
|
|
|
Cost of consignment and service revenue |
|
28,436 |
|
|
|
19,723 |
|
|
|
92,788 |
|
|
|
66,976 |
|
Cost of direct revenue |
|
36,062 |
|
|
|
13,728 |
|
|
|
101,427 |
|
|
|
45,406 |
|
Total cost of revenue |
|
64,498 |
|
|
|
33,451 |
|
|
|
194,215 |
|
|
|
112,382 |
|
Gross profit |
|
80,627 |
|
|
|
53,381 |
|
|
|
273,477 |
|
|
|
187,567 |
|
Operating expenses: |
|
|
|
|
|
|
|
Marketing |
|
18,371 |
|
|
|
17,066 |
|
|
|
62,749 |
|
|
|
54,813 |
|
Operations and technology |
|
62,923 |
|
|
|
45,950 |
|
|
|
235,829 |
|
|
|
163,808 |
|
Selling, general and administrative |
|
43,914 |
|
|
|
38,715 |
|
|
|
176,418 |
|
|
|
140,652 |
|
Legal settlement |
|
1,601 |
|
|
|
— |
|
|
|
13,389 |
|
|
|
1,110 |
|
Total operating expenses (1) |
|
126,809 |
|
|
|
101,731 |
|
|
|
488,385 |
|
|
|
360,383 |
|
Loss from operations |
|
(46,182 |
) |
|
|
(48,350 |
) |
|
|
(214,908 |
) |
|
|
(172,816 |
) |
Interest income |
|
116 |
|
|
|
168 |
|
|
|
365 |
|
|
|
2,518 |
|
Interest expense |
|
(6,157 |
) |
|
|
(2,454 |
) |
|
|
(21,531 |
) |
|
|
(5,264 |
) |
Other income (expense), net |
|
1 |
|
|
|
(80 |
) |
|
|
23 |
|
|
|
(169 |
) |
Loss before provision for income
taxes |
|
(52,222 |
) |
|
|
(50,716 |
) |
|
|
(236,051 |
) |
|
|
(175,731 |
) |
Provision (benefit) for income
taxes |
|
(27 |
) |
|
|
63 |
|
|
|
56 |
|
|
|
101 |
|
Net loss attributable to common
stockholders |
$ |
(52,195 |
) |
|
$ |
(50,779 |
) |
|
$ |
(236,107 |
) |
|
$ |
(175,832 |
) |
Net loss per share attributable
to common stockholders, basic and diluted |
$ |
(0.56 |
) |
|
$ |
(0.57 |
) |
|
$ |
(2.58 |
) |
|
$ |
(2.01 |
) |
Weighted average shares used to compute net loss per share
attributable to common stockholders, basic and diluted |
|
92,634,986 |
|
|
|
88,810,674 |
|
|
|
91,409,624 |
|
|
|
87,587,409 |
|
|
|
|
|
|
|
|
|
(1) Includes stock-based
compensation as follows: |
|
|
|
|
|
|
|
Marketing |
$ |
633 |
|
|
$ |
527 |
|
|
$ |
2,557 |
|
|
$ |
1,755 |
|
Operating and technology |
|
5,606 |
|
|
|
3,019 |
|
|
|
21,395 |
|
|
|
10,241 |
|
Selling, general and administrative |
|
6,239 |
|
|
|
3,865 |
|
|
|
24,850 |
|
|
|
12,326 |
|
Total |
$ |
12,478 |
|
|
$ |
7,411 |
|
|
$ |
48,802 |
|
|
$ |
24,322 |
|
THE REALREAL,
INC.Condensed Balance Sheets(In
thousands, except share and per share data)(Unaudited)
|
December 31,2021 |
|
December 31,2020 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
418,171 |
|
|
$ |
350,846 |
|
Short-term investments |
|
— |
|
|
|
4,017 |
|
Accounts receivable, net |
|
7,767 |
|
|
|
7,213 |
|
Inventory, net |
|
71,015 |
|
|
|
42,321 |
|
Prepaid expenses and other current assets |
|
20,859 |
|
|
|
17,072 |
|
Total current assets |
|
517,812 |
|
|
|
421,469 |
|
Property and equipment, net |
|
89,286 |
|
|
|
63,454 |
|
Operating lease right-of-use
assets |
|
145,311 |
|
|
|
118,136 |
|
Other assets |
|
2,535 |
|
|
|
2,050 |
|
Total assets |
$ |
754,944 |
|
|
$ |
605,109 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
4,503 |
|
|
$ |
14,346 |
|
Accrued consignor payable |
|
71,042 |
|
|
|
57,053 |
|
Operating lease liabilities, current portion |
|
18,253 |
|
|
|
14,999 |
|
Other accrued and current liabilities |
|
94,188 |
|
|
|
61,862 |
|
Total current liabilities |
|
187,986 |
|
|
|
148,260 |
|
Operating lease liabilities, net
of current portion |
|
143,159 |
|
|
|
115,084 |
|
Convertible senior notes,
net |
|
348,380 |
|
|
|
149,188 |
|
Other noncurrent liabilities |
|
2,291 |
|
|
|
1,284 |
|
Total liabilities |
|
681,816 |
|
|
|
413,816 |
|
Stockholders’ equity: |
|
|
|
Common stock, $0.00001 par value; 500,000,000 shares
authorized as of December 31, 2021 and December 31,
2020; 92,960,066 and 89,301,664 shares issued and
outstanding as of December 31, 2021 and December 31,
2020, respectively |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
841,255 |
|
|
|
723,302 |
|
Accumulated other comprehensive income |
|
— |
|
|
|
11 |
|
Accumulated deficit |
|
(768,128 |
) |
|
|
(532,021 |
) |
Total stockholders’ equity |
|
73,128 |
|
|
|
191,293 |
|
Total liabilities and stockholders’ equity |
$ |
754,944 |
|
|
$ |
605,109 |
|
THE REALREAL,
INC.Condensed Statements of Cash Flows(In
thousands)(Unaudited)
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(236,107 |
) |
|
$ |
(175,832 |
) |
Adjustments to reconcile net loss to cash used in operating
activities: |
|
|
|
Depreciation and amortization |
|
23,531 |
|
|
|
18,845 |
|
Stock-based compensation expense |
|
48,802 |
|
|
|
24,322 |
|
Reduction of operating lease right-of-use assets |
|
19,439 |
|
|
|
16,062 |
|
Bad debt expense |
|
1,034 |
|
|
|
903 |
|
Accrued interest on convertible notes |
|
950 |
|
|
|
216 |
|
Accretion of debt discounts and issuance costs |
|
13,989 |
|
|
|
2,399 |
|
Loss on retirement of property and equipment |
|
546 |
|
|
|
280 |
|
Other adjustments |
|
10 |
|
|
|
(86 |
) |
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable, net |
|
(1,588 |
) |
|
|
(337 |
) |
Inventory, net |
|
(28,694 |
) |
|
|
(20,405 |
) |
Prepaid expenses and other current assets |
|
(4,009 |
) |
|
|
(3,443 |
) |
Other assets |
|
(638 |
) |
|
|
548 |
|
Operating lease liability |
|
(15,285 |
) |
|
|
(12,752 |
) |
Accounts payable |
|
(9,989 |
) |
|
|
2,800 |
|
Accrued consignor payable |
|
13,989 |
|
|
|
4,233 |
|
Other accrued and current liabilities |
|
30,922 |
|
|
|
7,994 |
|
Other noncurrent liabilities |
|
947 |
|
|
|
(166 |
) |
Net cash used in operating activities |
|
(142,151 |
) |
|
|
(134,419 |
) |
Cash flow from investing
activities: |
|
|
|
Purchases of short-term investments |
|
— |
|
|
|
(73,280 |
) |
Proceeds from maturities of short-term investments |
|
4,000 |
|
|
|
278,215 |
|
Proceeds from sale of short-term investments |
|
— |
|
|
|
— |
|
Capitalized proprietary software development costs |
|
(9,967 |
) |
|
|
(8,678 |
) |
Purchases of property and equipment |
|
(37,470 |
) |
|
|
(18,253 |
) |
Net cash (used in) provided by investing activities |
|
(43,437 |
) |
|
|
178,004 |
|
Cash flow from financing
activities: |
|
|
|
Proceeds from issuance of 2025 convertible senior notes, net of
issuance costs |
|
— |
|
|
|
166,278 |
|
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 |
|
278,234 |
|
|
|
— |
|
Purchase of capped calls in conjunction with the issuance of the
2028 convertible senior notes |
|
(33,666 |
) |
|
|
— |
|
Proceeds from exercise of stock options |
|
6,009 |
|
|
|
8,859 |
|
Proceeds from issuance of stock in connection with the Employee
Stock Purchase Program |
|
2,341 |
|
|
|
972 |
|
Taxes paid related to restricted stock vesting |
|
(5 |
) |
|
|
(748 |
) |
Net cash provided by financing activities |
|
252,913 |
|
|
|
152,815 |
|
Net increase in cash and cash equivalents |
|
67,325 |
|
|
|
196,400 |
|
Cash and cash
equivalents |
|
|
|
Beginning of period |
|
350,846 |
|
|
|
154,446 |
|
End of period |
$ |
418,171 |
|
|
$ |
350,846 |
|
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, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Adjusted EBITDA
Reconciliation: |
|
|
|
|
|
|
|
Net loss |
$ |
(52,195 |
) |
|
$ |
(50,779 |
) |
|
$ |
(236,107 |
) |
|
$ |
(175,832 |
) |
Depreciation and amortization |
|
5,691 |
|
|
|
5,172 |
|
|
|
23,531 |
|
|
|
18,845 |
|
Stock-based compensation |
|
12,478 |
|
|
|
7,411 |
|
|
|
48,802 |
|
|
|
24,322 |
|
Payroll tax expense on employee stock transactions (1) |
|
201 |
|
|
|
— |
|
|
|
1,168 |
|
|
|
— |
|
Legal fees reimbursement benefit (2) |
|
(704 |
) |
|
|
— |
|
|
|
(1,204 |
) |
|
|
— |
|
Legal settlement (3) |
|
1,601 |
|
|
|
— |
|
|
|
13,389 |
|
|
|
1,110 |
|
Restructuring charges (4) |
|
— |
|
|
|
— |
|
|
|
2,314 |
|
|
|
514 |
|
Interest income |
|
(116 |
) |
|
|
(168 |
) |
|
|
(365 |
) |
|
|
(2,518 |
) |
Interest expense |
|
6,157 |
|
|
|
2,454 |
|
|
|
21,531 |
|
|
|
5,264 |
|
Other (income) expense, net |
|
(1 |
) |
|
|
80 |
|
|
|
(23 |
) |
|
|
169 |
|
Provision (benefit) for income taxes |
|
(27 |
) |
|
|
63 |
|
|
|
56 |
|
|
|
101 |
|
Adjusted
EBITDA |
$ |
(26,915 |
) |
|
$ |
(35,767 |
) |
|
$ |
(126,908 |
) |
|
$ |
(128,025 |
) |
(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 2020 as they were not material.(2) During the
year ended December 31, 2021, we received insurance
reimbursement of $4.3 million related to legal fees for a
certain matter, of which $3.1 million have been applied to the
current year's legal expenses.(3) On November 5, 2021, a
stipulation of settlement was filed with the federal court to
settle the putative shareholder class action filed against us, our
officers and directors, and the underwriters for the Company’s
initial public offering. The stipulation of settlement 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. Also on November 5, 2021, a stipulation of settlement
was filed in the derivative case filed against us as a nominal
defendant and our officers and directors as defendants. The
stipulation of settlement was finally approved by the court on
February 11, 2022. The stipulation of settlement was preliminarily
approved on December 8, 2021, and the $0.5 million was paid within
30 days of preliminary approval, or on January 7, 2022.(4) The
restructuring charges for the year ended December 31, 2021 comprise
of the costs to transition operations from the Brisbane warehouse
to our new Phoenix warehouse. The restructuring charges for the
year ended December 31, 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 December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net loss |
$ |
(52,195 |
) |
|
$ |
(50,779 |
) |
|
$ |
(236,107 |
) |
|
$ |
(175,832 |
) |
Stock-based compensation |
|
12,478 |
|
|
|
7,411 |
|
|
|
48,802 |
|
|
|
24,322 |
|
Payroll tax expense on employee stock transactions |
|
201 |
|
|
|
— |
|
|
|
1,168 |
|
|
|
— |
|
Legal fees reimbursement benefit |
|
(704 |
) |
|
|
— |
|
|
|
(1,204 |
) |
|
|
— |
|
Legal settlement |
|
1,601 |
|
|
|
— |
|
|
|
13,389 |
|
|
|
1,110 |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
2,314 |
|
|
|
514 |
|
Provision (benefit) for income taxes |
|
(27 |
) |
|
|
63 |
|
|
|
56 |
|
|
|
101 |
|
Non-GAAP net loss attributable to common stockholders |
$ |
(38,646 |
) |
|
$ |
(43,305 |
) |
|
$ |
(171,582 |
) |
|
$ |
(149,785 |
) |
Weighted-average common shares outstanding used to calculate
Non-GAAP net loss attributable to common stockholders per share,
basic and diluted |
|
92,634,986 |
|
|
|
88,810,674 |
|
|
|
91,409,624 |
|
|
|
87,587,409 |
|
Non-GAAP net loss attributable to common stockholders per share,
basic and diluted |
$ |
(0.42 |
) |
|
$ |
(0.49 |
) |
|
$ |
(1.88 |
) |
|
$ |
(1.71 |
) |
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 December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net cash used in operating
activities |
$ |
(18,764 |
) |
|
$ |
(38,402 |
) |
|
$ |
(142,151 |
) |
|
$ |
(134,419 |
) |
Purchase of property and equipment and capitalized proprietary
software development costs |
|
(9,679 |
) |
|
|
(4,606 |
) |
|
|
(47,437 |
) |
|
|
(26,931 |
) |
Free Cash Flow |
$ |
(28,443 |
) |
|
$ |
(43,008 |
) |
|
$ |
(189,588 |
) |
|
$ |
(161,350 |
) |
Key Financial and Operating Metrics:
|
December 31,2019 |
|
March 31,2020 |
|
June 30,2020 |
|
September 30 2020 |
|
December 31, 2020 |
|
March 31,2021 |
|
June 30,2021 |
|
September 30,2021 |
|
December 31,2021 |
|
(In thousands, except AOV and percentages) |
GMV |
$ |
302,975 |
|
|
$ |
257,606 |
|
|
$ |
182,771 |
|
|
$ |
245,355 |
|
|
$ |
301,219 |
|
|
$ |
327,327 |
|
|
$ |
350,001 |
|
|
$ |
367,925 |
|
|
$ |
437,179 |
|
NMV |
$ |
219,508 |
|
|
$ |
184,625 |
|
|
$ |
139,797 |
|
|
$ |
189,059 |
|
|
$ |
223,390 |
|
|
$ |
244,162 |
|
|
$ |
256,509 |
|
|
$ |
273,417 |
|
|
$ |
318,265 |
|
Consignment and Service
Revenue |
$ |
81,386 |
|
|
$ |
65,086 |
|
|
$ |
46,768 |
|
|
$ |
64,152 |
|
|
$ |
71,320 |
|
|
$ |
75,082 |
|
|
$ |
82,452 |
|
|
$ |
89,451 |
|
|
$ |
99,863 |
|
Direct Revenue |
$ |
11,209 |
|
|
$ |
12,942 |
|
|
$ |
10,523 |
|
|
$ |
13,645 |
|
|
$ |
15,512 |
|
|
$ |
23,735 |
|
|
$ |
22,460 |
|
|
$ |
29,387 |
|
|
$ |
45,262 |
|
Number of Orders |
|
637 |
|
|
|
574 |
|
|
|
438 |
|
|
|
550 |
|
|
|
671 |
|
|
|
690 |
|
|
|
673 |
|
|
|
757 |
|
|
|
861 |
|
Take Rate |
|
36.2 |
% |
|
|
36.2 |
% |
|
|
36.0 |
% |
|
|
35.4 |
% |
|
|
35.7 |
% |
|
|
34.3 |
% |
|
|
34.5 |
% |
|
|
34.9 |
% |
|
|
35.0 |
% |
Active Buyers |
|
582 |
|
|
|
602 |
|
|
|
612 |
|
|
|
617 |
|
|
|
649 |
|
|
|
687 |
|
|
|
730 |
|
|
|
772 |
|
|
|
797 |
|
AOV |
$ |
476 |
|
|
$ |
449 |
|
|
$ |
417 |
|
|
$ |
446 |
|
|
$ |
449 |
|
|
$ |
474 |
|
|
$ |
520 |
|
|
$ |
486 |
|
|
$ |
508 |
|
% of GMV from Repeat Buyers |
|
82.9 |
% |
|
|
84.4 |
% |
|
|
82.3 |
% |
|
|
82.9 |
% |
|
|
82.4 |
% |
|
|
83.6 |
% |
|
|
84.5 |
% |
|
|
84.1 |
% |
|
|
83.8 |
% |
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