After reaching an important support level, The RealReal, Inc. (REAL) could be a good stock pick from a technical perspective. REAL recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term movi ...

(all amounts are expressed in millions of U.S. dollars, excluding per share amounts and unless otherwise stated) TORONTO, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Real Matters Inc. (TSX: REAL) (“Real Matters” or the “Company”), a leading network management services platform for the mortgage and insurance industries, today announced its financial results for the fourth quarter and fiscal year ended September 30, 2024. “Consolidated revenue increased 8% year-over-year to $45.6 million in the fourth quarter, and we p ...

One clear theme so far has rung loud and clear across the Q3 earnings season: never underestimate a small-cap rebound story. Though the tougher macroeconomic tides have indeed put plenty of pressure on certain underperforming businesses, a number of companies have also executedWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the in ...

The RealReal Inc. (REAL) posted third-quarter 2024 results, wherein the bottom line surpassed the Zacks Consensus Estimate. Also, both top and bottom lines increased year over year. The company delivered strong results for the third quarter, with positive supply trends continuing into the fourth quarter. Third-quarter Gross Merchandise Volume (“GMV”), total revenues and adjusted EBITDA all exceeded prior expectations, allowing the company to raise its full-year outlook.REAL’s Quarterly Performance: Key Insi ...

Financial Data and Key Metrics Changes - Third quarter GMV grew 6% year-over-year, reaching $433 million, an acceleration from the second quarter [8][27] - Revenue for the third quarter was $148 million, an increase of 11%, driven by a 14% rise in consignment revenue [8][27] - Adjusted EBITDA for the third quarter was positive $2.3 million, marking the second consecutive quarter of positive adjusted EBITDA [9][31] - Gross profit improved by $17 million year-over-year to $111 million, with a gross margin of 74.9%, up 430 basis points from the previous year [30][31] Business Line Data and Key Metrics Changes - Consignment revenue increased by 14%, while shipping revenues grew by 17% in the third quarter [28] - Direct revenue decreased by 10% as the company established a baseline for its direct business [28] - Active buyers increased by 7% year-over-year to 389,000, with a stable trailing 12-month active buyer count of 958,000 [28][29] Market Data and Key Metrics Changes - The company highlighted a $200 billion untapped value for luxury resale items in the U.S., indicating significant market potential [9] - The average order value (AOV) remained strong at $522, reflecting resilience in consumer demand [70] Company Strategy and Development Direction - The company is focused on a growth playbook that emphasizes unlocking supply through sales, marketing, and retail strategies [10][19] - The retail strategy includes opening one to three stores per year in key markets, with plans for new locations in Miami and Houston [19] - The company aims to enhance operational efficiency through automation and AI, reducing processing time by over 10% [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in supply trends and the overall business model, emphasizing a resilient approach to market challenges [40][56] - The company raised its full-year guidance for GMV, revenue, and adjusted EBITDA based on strong third-quarter performance [34][35] - Management is optimistic about Q4 sales and expects to achieve positive adjusted EBITDA for the year [36][37] Other Important Information - The company has implemented a new incentive structure for its sales team, focusing on GMV dollars rather than units, contributing to gross margin expansion [15] - The company is leveraging social media for marketing, achieving high engagement rates and increasing brand awareness [16][17] Q&A Session Summary Question: Guidance for continued GMV acceleration in Q4 - Management noted healthy supply trends and the effectiveness of their growth playbook, which combines sales, marketing, and retail strategies [40][41] Question: Opportunities for further gross margin improvement - Management indicated that while current gross margins are strong, they expect to maintain similar levels moving forward, with potential for slight improvements [46][47] Question: Consumer price sensitivity and AOV growth - Management reported resilience in their business model, with strong demand and effective marketing strategies contributing to stable AOV [49][50] Question: Growth despite headwinds in luxury brands - Management emphasized the unique value proposition of their business model, which focuses on the intersection of luxury and sustainability [55][56] Question: Long-term margin expectations - Management outlined a clear path for growing both revenue and margins, with expectations for strong flow-through on incremental growth [61][62] Question: Return rates and monetization initiatives - Management attributed improved return rates to operational efficiencies and indicated that return insurance is in early testing phases [64][66] Question: Consumer trends and performance in Q3 - Management highlighted strong supply and demand dynamics, with a focus on building trust and operational excellence [68][69]

Financial Performance - GMV increased by 6% to $433.1 million in Q3 2024 compared to $407.6 million in Q3 2023, and by 4% to $1,325.9 million in the nine months ended September 30, 2024 compared to $1,275.3 million in the same period of 2023[128] - NMV increased by 11% to $335.2 million in Q3 2024 compared to $302.9 million in Q3 2023, and by 7% to $999.4 million in the nine months ended September 30, 2024 compared to $934.6 million in the same period of 2023[128] - Total revenue increased by 11% to $147.8 million in Q3 2024 compared to $133.2 million in Q3 2023, and by 8% to $436.5 million in the nine months ended September 30, 2024 compared to $405.9 million in the same period of 2023[128] - Gross profit increased by 18% to $110.7 million in Q3 2024 compared to $94.1 million in Q3 2023, and by 20% to $325.5 million in the nine months ended September 30, 2024 compared to $270.2 million in the same period of 2023[128] - Adjusted EBITDA for the three months ended September 30, 2024, was $2.3 million, compared to a loss of $7.0 million in the same period in 2023[150] - Net loss for the three months ended September 30, 2024, was $17.9 million, compared to $22.9 million in the same period in 2023[161] - Total gross margin improved by 430 basis points in Q3 2024, driven by higher consignment revenue and improved take rate[172] - Total gross margin increased by 799 basis points in the nine months ended September 30, 2024, driven by the increase in consignment revenue and improvement in take rate[192] - Net cash used in operating activities was $1.1 million for the nine months ended September 30, 2024, compared to $71.8 million for the same period in 2023[210] - Net cash used in investing activities was $16.8 million for the nine months ended September 30, 2024, primarily for purchases of property and equipment and capitalized proprietary software development costs[212] - Net cash used in financing activities was $4.6 million for the nine months ended September 30, 2024, primarily due to payment of debt issuance costs related to the Note Exchange[213] Revenue Breakdown - Consignment revenue for the three months ended September 30, 2024, was $116.9 million, up from $102.9 million in the same period in 2023[161] - Direct revenue for the three months ended September 30, 2024, was $15.6 million, down from $17.4 million in the same period in 2023[161] - Shipping services revenue for the three months ended September 30, 2024, was $15.2 million, up from $13.0 million in the same period in 2023[161] - Consignment revenue increased by $14.1 million, or 14%, to $116.9 million in Q3 2024, driven by a 6% increase in GMV and a higher take rate of 38.6% (up from 38.1%)[164] - Direct revenue decreased by $1.7 million, or 10%, to $15.6 million in Q3 2024 due to reduced vendor-purchased inventory[166] - Shipping services revenue increased by $2.3 million, or 17%, to $15.2 million in Q3 2024, driven by higher order volume and increased shipping fees[167] - Consignment revenue increased by $43.2 million, or 14%, in the nine months ended September 30, 2024, driven by a 4% increase in GMV, a 3% increase in AOV, and a 110 basis point improvement in take rate[183][184] - Direct revenue decreased by $18.1 million, or 29%, in the nine months ended September 30, 2024, primarily due to planned actions to minimize vendor-purchased inventory[185] - Shipping services revenue increased by $5.5 million, or 14%, in the nine months ended September 30, 2024, primarily due to an increase in the standard shipping fee per order[187] Cost and Expense Analysis - Cost of consignment revenue decreased by $0.3 million, or 2%, to $13.3 million in Q3 2024, contributing to a 180 basis point increase in consignment gross margin[168] - Operations and technology expenses increased by $5.2 million, or 8%, to $66.2 million in Q3 2024 due to higher headcount-related compensation[175] - Selling, general and administrative expenses increased by $2.7 million, or 6%, to $47.5 million in Q3 2024, primarily due to higher employee compensation[177] - Marketing expenses remained flat at $11.6 million in Q3 2024, but decreased as a percentage of revenue to 8% from 9%[173][174] - Cost of consignment revenue decreased by $4.0 million, or 9%, in the nine months ended September 30, 2024, driven by reduced overhead costs, leading to a 296 basis point increase in consignment revenue gross margin[188] - Cost of direct revenue decreased by $22.2 million, or 36%, in the nine months ended September 30, 2024, primarily due to the decrease in direct revenue[189] - Marketing expense decreased by $3.8 million, or 9%, in the nine months ended September 30, 2024, primarily due to decreased advertising costs[193] - Restructuring charges decreased by $37.2 million, or 99%, in the nine months ended September 30, 2024, as the company completed real estate and workforce reductions in 2023[198] Membership and Engagement - The company has a global base of more than 37.8 million members as of September 30, 2024[127] - The percentage of GMV from repeat consignors in Q3 2024 was 85%, up from 83% in Q3 2023[131] - As of September 30, 2024, 15% of buyers in the last twelve months had become consignors, and 48% of consignors had become buyers[133] - The company's buyer net promoter score was 51 in 2023, higher than the online shopping industry average of 45[132] - Active buyers are defined as those who purchased goods through the online marketplace, regardless of returns or cancellations, reflecting scale and engagement[146] - The Average Order Value (AOV) is a key driver of operating leverage, reflecting the average price of items sold and the number of items per order[147] Take Rate and Commission Structure - The company's take rate on consigned goods increased to 38.6% in Q3 2024 from 38.1% in Q3 2023, driven by a larger sales mix of higher take rate categories such as women's apparel[126] - The company has cumulatively paid more than $4.6 billion in commissions to consignors through September 30, 2024[128] - The company's take rate structure offers consignors up to 90% commission on watches sold for over $7,500 and 20% commission on items under $100[145] Debt and Financial Obligations - Interest expense increased by $3.3 million, or 123%, for the three months ended September 30, 2024, compared to the same period in 2023, due to the contractual interest expense related to the 2029 Notes issued in February 2024[182] - Interest expense increased by $7.5 million, or 93%, in the nine months ended September 30, 2024 compared to the same period in 2023, primarily due to the contractual interest expense related to the 2029 Notes issued in February 2024[203] - The company issued $135.0 million in aggregate principal amount of 2029 Notes in exchange for $145.8 million of 2025 Notes and $6.5 million of 2028 Notes, extending the average maturity date of its outstanding indebtedness[218] - The 2029 Notes bear interest at a rate of 13.00% per annum, consisting of cash interest at 8.75% and payment-in-kind interest at 4.25%[219] - As of September 30, 2024, the company's cash requirements related to the 2029 Notes were $225.8 million, with $12.2 million expected to be paid within the next 12 months[221] - The company recorded a gain of $4.2 million from the Note Exchange, representing the difference between the carrying amount of the Exchanged Notes and the fair value of the 2029 Notes[223] Cash and Liquidity - As of September 30, 2024, the company had cash and cash equivalents of $153.2 million and an accumulated deficit of $1,185.4 million[204] - The company expects operating losses and negative cash flows from operations to continue in the foreseeable future, but believes its existing cash and cash equivalents will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months[205] Other Financial Items - The company recognized a $0.7 million unrealized gain on warrant liability in Q3 2024, compared to no change in Q3 2023[180] - Interest income decreased by $0.3 million, or 14%, to $1.9 million in Q3 2024 due to lower average cash balances[181] - The fair value of warrant liability increased by $9.2 million, or 100%, in the nine months ended September 30, 2024, due to the issuance of warrants as part of the Note Exchange in February 2024[199]

Leadership Changes - Rati Sahi Levesque appointed as CEO, succeeding John Koryl who has departed the company[1] Financial Performance (Q3 2024) - Preliminary Q3 2024 GMV of $433.1 million, exceeding prior guidance of $410-$430 million[5] - Preliminary Q3 2024 Total Revenue of $147.8 million, exceeding prior guidance of $135-$142 million[5] - Preliminary Q3 2024 Adjusted EBITDA of $2.3 million, exceeding prior guidance of $(2)-$1 million[5] Updated Financial Guidance (FY 2024) - Updated FY 2024 GMV guidance of $1.810-$1.826 billion, up from prior guidance of $1.790-$1.820 billion[5] - Updated FY 2024 Total Revenue guidance of $595-$602 million, up from prior guidance of $580-$595 million[5] - Updated FY 2024 Adjusted EBITDA guidance of $4.5-$7.5 million, up from prior guidance of $0-$6 million[5] Company Overview and Operations - The RealReal has 37 million members and is the world's largest online marketplace for authenticated, resale luxury goods[8] - The company uses AI and machine learning for optimal pricing and has hundreds of in-house experts for authentication[8] Adjusted EBITDA Details - Adjusted EBITDA for Q3 2024 includes adjustments for stock-based compensation, payroll taxes, and one-time expenses[16]

Q3 2024 Revenue of $148 million, up $15 million or 11% Year-Over-YearQ3 2024 Net Loss of $(18) million, or (12.1)% of Total Revenue, improved $5 million Year-Over-YearQ3 2024 Adjusted EBITDA of $2.3 million or 1.6% of Total Revenue, increased $9 million Year-Over-Year SAN FRANCISCO, Nov. 04, 2024 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today reported financial results for its third quarter ended September 30, 2024. Third q ...

The RealReal has appointed President and Chief Operating Officer Rati Sahi Levesque as president and CEO and as a member of the board. Levesque succeeds John Koryl, who has left the company and is no longer on the board, the online marketplace for resale luxury goods said in a Monday (Oct. 28) press release. A 13-year veteran of The RealReal, Levesque became the company's first employee in 2011 and has held leadership roles across sales, merchandising, product and technology, operations and marketing, accor ...

SAN FRANCISCO, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Today, during National Consignment Month, The RealReal, the world’s largest online marketplace for authenticated, resale luxury goods, launches its second star-studded sale in partnership with environmental leader Conservation International, featuring 230 luxury pieces consigned by influential women who have shaped fashion, journalism, social justice, and culture. The sale features ready-to-wear, handbags, shoes, jewelry, and more from the personal wardrobes ...