Realreal ( (REAL) ) has released its Q4 earnings. Here is a breakdown of the information Realreal presented to its investors.
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The RealReal is the world’s largest online marketplace for authenticated, resale luxury goods, offering a platform for buying and selling luxury items with a focus on sustainability and the circular economy. The company provides services such as authentication, pricing, photographing, and shipping, making luxury resale accessible to a broad audience.
The RealReal reported a record-high fourth-quarter revenue of $164 million, a 14% increase year-over-year, and marked a positive shift with a $9 million Adjusted EBITDA for 2024. The company also achieved a significant improvement in its net loss, reducing it by $34 million to $134 million for the year, and generating a positive operating cash flow of $27 million.
The company saw a 12% increase in its gross merchandise value (GMV) for the fourth quarter, reaching $504 million, while the annual GMV rose by 6% to $1.83 billion. The gross profit for the quarter was $122 million, with a gross margin of 74.4%. Despite a net loss of $68 million in the fourth quarter, this included a $59 million adjustment due to changes in the fair value of warrant liability. The company also noted an increase in active buyers and average order values, reflecting growing consumer engagement.
Looking ahead, The RealReal is poised to continue its growth trajectory by focusing on operational efficiency and leveraging AI to enhance the customer experience. The company has strengthened its financial position through strategic debt transactions and aims to improve its Adjusted EBITDA margin as it accelerates growth and optimizes its operations in 2025.
