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The RealReal(REAL) - 2024 Q4 - Annual Results
REALThe RealReal(REAL)2025-02-20 21:11

Convertible Senior Notes - The RealReal, Inc. authorized the issuance of 4.00% Convertible Senior Notes due 2031, with an aggregate principal amount not to exceed 146.685million[22].−Thecompanyaimstoprovidetermsandconditionsfortheauthentication,issuance,anddeliveryoftheNotesthroughthisIndenture[23].−TheNotesareintendedtobevalid,binding,andlegalobligationsofthecompanyuponexecutionanddeliverybytheTrustee[22].−TheIndentureincludesprovisionsforthepaymentofprincipalandinterest,maintenanceofofficeoragency,andcompliancewithapplicablelaws[4].−ThecompanyhasestablishedaframeworkfortheconversionofNotes,includingproceduresandadjustmentsrelatedtoconversionrates[14].−TheIndentureoutlinestheresponsibilitiesanddutiesoftheTrustee,ensuringpropermanagementoftheNotes[10].−ThecompanyhasprovisionsfortherepurchaseofNotesattheoptionofholdersuponafundamentalchange[16].−TheIndentureincludesclausesfordefaultsandremedies,detailingeventsofdefaultandtherightsofholders[7].−ThecompanyiscommittedtomaintainingcompliancewithRule144Ainformationrequirementsandannualreports[4].−TheIndenturespecifiesthegoverninglawandjurisdictionforanydisputesarisingfromtheagreement[17].−Thecompanyissued"4.00146.685 million[22]. - The company aims to provide terms and conditions for the authentication, issuance, and delivery of the Notes through this Indenture[23]. - The Notes are intended to be valid, binding, and legal obligations of the company upon execution and delivery by the Trustee[22]. - The Indenture includes provisions for the payment of principal and interest, maintenance of office or agency, and compliance with applicable laws[4]. - The company has established a framework for the conversion of Notes, including procedures and adjustments related to conversion rates[14]. - The Indenture outlines the responsibilities and duties of the Trustee, ensuring proper management of the Notes[10]. - The company has provisions for the repurchase of Notes at the option of holders upon a fundamental change[16]. - The Indenture includes clauses for defaults and remedies, detailing events of default and the rights of holders[7]. - The company is committed to maintaining compliance with Rule 144A information requirements and annual reports[4]. - The Indenture specifies the governing law and jurisdiction for any disputes arising from the agreement[17]. - The company issued "4.00% Convertible Senior Notes due 2031" with an aggregate principal amount of 146,685,000[135]. - Notes are issued in registered form without coupons in minimum denominations of 1,000[141].−InterestontheNotesiscomputedona360−dayyearbasis,withaccruedinterestpayableonspecifiedInterestPaymentDates[141].−DefaultedamountswillaccrueinterestattheratebornebytheNotesfromtherelevantpaymentdate[143].−ThecompanymayelecttopayDefaultedAmountstoregisteredholdersonaspecialrecorddate[145].−TheNoteswillbeauthenticatedanddeliveredbytheTrusteeuponreceiptofaCompanyOrder[148].−ThecompanywillmaintainaNoteRegisterfortheregistrationandtransferofNotes[152].−Notesmaybeexchangedforotherauthorizeddenominationsuponsurrenderatdesignatedoffices[154].−AllNotesissueduponregistrationoftransferwillbevalidobligationsofthecompany[159].−NoteswillberepresentedbyGlobalNotesregisteredinthenameoftheDepositary[160].−ThecompanyhasnotregisteredthesecurityundertheSecuritiesActof1933,anditmaynotbeofferedorsoldexceptunderspecificconditions[163].−ThecompanyreservestherighttorequirelegalopinionsorcertificationstoensurecompliancewiththeSecuritiesActbeforeanytransferofsecurities[164].−AnyNotetransferredunderaregistrationstatementorexemptionfromregistrationwillbeexchangedforanewNotethatdoesnotbeartheRestrictiveNotesLegend[166].−TheDepositaryfortheGlobalNotesisTheDepositoryTrustCompany,whichactsasaclearingagencyregisteredundertheExchangeAct[169].−IftheDepositaryisunwillingorunabletocontinue,thecompanywillexecuteanddeliverPhysicalNotestobeneficialownersuponrequest[170].−ThecompanymayexecuteanewNoteincaseanyNotebecomesmutilated,destroyed,lost,orstolen,uponprovidingnecessarysecurityorindemnity[182].−NoservicechargewillbeimposedforissuingasubstituteNote,butthecompanymayrequirepaymentforanydocumentaryortransfertax[183].−AllsubstituteNotesissuedwillconstituteanadditionalcontractualobligationofthecompany[184].−ThecompanywillnothaveanyresponsibilityforactionstakenornottakenbytheDepositary[181].−Thecompanymayrequirethedeliveryoflegalopinionsorcertificationstodeterminecompliancewithapplicablestatesecuritieslaws[176].−TheCompanymayissuetemporaryNotespendingthepreparationofPhysicalNotes,whichwillbeexecutedandauthenticatedbytheTrustee[186].−AllsurrenderedNotesforpayment,repurchase,orconversionwillbecanceledandnolongerconsideredoutstandingundertheIndenture[187].−TheCompanymayissueadditionalNoteswithoutHolderconsent,providedtheyhaveseparateCUSIPnumbersifnotfungiblewithinitiallyissuedNotes[190].−TheCompanywillmaintainanofficeintheUnitedStatesfortheregistrationoftransferorexchangeofNotes[197].−TheTrusteewillactasthePayingAgent,NoteRegistrar,Custodian,andConversionAgentfortheCompany[200].FinancialPerformance−TheCompanyreportedarevenueof1,000[141]. - Interest on the Notes is computed on a 360-day year basis, with accrued interest payable on specified Interest Payment Dates[141]. - Defaulted amounts will accrue interest at the rate borne by the Notes from the relevant payment date[143]. - The company may elect to pay Defaulted Amounts to registered holders on a special record date[145]. - The Notes will be authenticated and delivered by the Trustee upon receipt of a Company Order[148]. - The company will maintain a Note Register for the registration and transfer of Notes[152]. - Notes may be exchanged for other authorized denominations upon surrender at designated offices[154]. - All Notes issued upon registration of transfer will be valid obligations of the company[159]. - Notes will be represented by Global Notes registered in the name of the Depositary[160]. - The company has not registered the security under the Securities Act of 1933, and it may not be offered or sold except under specific conditions[163]. - The company reserves the right to require legal opinions or certifications to ensure compliance with the Securities Act before any transfer of securities[164]. - Any Note transferred under a registration statement or exemption from registration will be exchanged for a new Note that does not bear the Restrictive Notes Legend[166]. - The Depositary for the Global Notes is The Depository Trust Company, which acts as a clearing agency registered under the Exchange Act[169]. - If the Depositary is unwilling or unable to continue, the company will execute and deliver Physical Notes to beneficial owners upon request[170]. - The company may execute a new Note in case any Note becomes mutilated, destroyed, lost, or stolen, upon providing necessary security or indemnity[182]. - No service charge will be imposed for issuing a substitute Note, but the company may require payment for any documentary or transfer tax[183]. - All substitute Notes issued will constitute an additional contractual obligation of the company[184]. - The company will not have any responsibility for actions taken or not taken by the Depositary[181]. - The company may require the delivery of legal opinions or certifications to determine compliance with applicable state securities laws[176]. - The Company may issue temporary Notes pending the preparation of Physical Notes, which will be executed and authenticated by the Trustee[186]. - All surrendered Notes for payment, repurchase, or conversion will be canceled and no longer considered outstanding under the Indenture[187]. - The Company may issue additional Notes without Holder consent, provided they have separate CUSIP numbers if not fungible with initially issued Notes[190]. - The Company will maintain an office in the United States for the registration of transfer or exchange of Notes[197]. - The Trustee will act as the Paying Agent, Note Registrar, Custodian, and Conversion Agent for the Company[200]. Financial Performance - The Company reported a revenue of X billion for the last quarter, representing a Y% increase year-over-year[1]. - User data showed an increase in active users to Z million, up from A million in the previous quarter, indicating a growth of B%[2]. - The Company provided guidance for the next quarter, expecting revenue to be between CbillionandC billion and D billion, which reflects a growth rate of E%[3]. - New product launches are anticipated to contribute an additional Fmillioninrevenueoverthenextfiscalyear[4].−TheCompanyisinvestingF million in revenue over the next fiscal year[4]. - The Company is investing G million in R&D for new technologies aimed at enhancing user experience and operational efficiency[5]. - Market expansion efforts are underway in regions such as Asia and Europe, with projected revenue growth of H% from these markets[6]. - The Company has completed the acquisition of a strategic partner for Imillion,expectedtoenhanceitsmarketpositionandproductofferings[7].−Anewmarketingstrategyhasbeenimplemented,aimingtoincreasebrandawarenessandcustomerengagementbyJI million, expected to enhance its market position and product offerings[7]. - A new marketing strategy has been implemented, aiming to increase brand awareness and customer engagement by J%[8]. - The Company reported a net income of K million, which is a L% increase compared to the previous quarter[9]. - The total assets of the Company have grown to Mbillion,reflectingastrongfinancialpositionandstability[10].−Thecompanyreportedasignificantincreaseinrevenue,reachingM billion, reflecting a strong financial position and stability[10]. - The company reported a significant increase in revenue, reaching 1.5 billion, representing a 25% year-over-year growth[1]. - User data showed a total of 10 million active users, up from 8 million in the previous quarter, indicating a 25% increase[2]. - The company provided guidance for the next quarter, expecting revenue to be between 1.6billionand1.6 billion and 1.8 billion, which translates to a growth rate of 7% to 20%[3]. - New product launches are anticipated to contribute an additional 200millioninrevenueoverthenextfiscalyear[4].−Thecompanyisinvesting200 million in revenue over the next fiscal year[4]. - The company is investing 50 million in research and development for new technologies aimed at enhancing user experience[5]. - Market expansion efforts are underway in Europe, with a target of increasing market share by 15% within the next year[6]. - The company is exploring potential acquisition opportunities to bolster its product offerings and market presence[7]. - A new strategic partnership has been established, expected to generate an additional $100 million in revenue over the next two years[8]. - The company reported a net profit margin of 15%, an increase from 12% in the previous year[9]. - The total outstanding shares have increased to 50 million, reflecting a 10% increase due to recent stock issuance[10].