The RealReal (Nasdaq: REAL)—the world’s largest online marketplace
for authenticated, resale luxury goods—today announced its Vision
2025 financial targets and will host its Investor Day later today.
“We are pleased to host our Investor Day at our Phoenix
Authentication Center and showcase many of our technology
innovations across our operations, including authentication and
dynamic pricing. We look forward to discussing in-depth our
long-range financial targets, which we are referring to as Vision
2025,” said Julie Wainwright, founder and CEO of The RealReal.
Robert Julian, CFO at The RealReal stated, “As we previously
committed, we are targeting positive Adjusted EBITDA for full year
2024, based on strong top-line growth, operational excellence and
fixed-cost management. Our Vision 2025 for The RealReal is $5+
billion of Gross Merchandise Value (GMV), $1.5+ billion of Total
Revenue and $100+ million of positive Adjusted EBITDA. We look
forward to providing more details later today at our Investor Day
event.”
The virtual portion of the Investor Day event will feature
presentations from The RealReal executive team and a
question-and-answer session.
Vision 2025 Long-Range Financial Targets for Full Year
2025
Based on market conditions as of March 22, 2022, we are
providing long-term targets for GMV, Total Revenue and Adjusted
EBITDA, which is a Non-GAAP financial measure.
- GMV of $5.0+ billion
- Total Revenue of $1.5+ billion
- Adjusted EBITDA of $100+
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).
Live Webcast of Investor Day
Registration for the live webcast of the Investor Day management
presentation and question-and-answer session is available at
investorday.therealreal.com. The live webcast is scheduled to begin
today at 10:00 a.m. Pacific Time (1:00 p.m. Eastern Time) and will
run approximately two hours and forty-five minutes. A replay of the
webcast, along with the Investor Day management presentation
materials, will be available 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 timeline to profitability, 2025 vision and
long-range financial targets. 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
authentication 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, 2021 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
This press release contains Adjusted EBITDA, which is a non-GAAP
measure.
We do not, nor do we suggest that investors should, consider
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 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 provides useful information to investors and
others in understanding and evaluating our operating results in the
same manner as our management and board of directors.
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