Rent the Runway(US:RENT)2022-09-12 16:00Revenue Growth - Revenue for the three months ended July 31, 2022, was $76.5 million, representing a 63.8% year-over-year growth compared to $46.7 million in the same period of 2021[138]. - Total revenue for the six months ended July 31, 2022, was $143.6 million, an increase of $63.4 million, or 79.1%, compared to $80.2 million for the same period in 2021[192]. - Subscription and Reserve rental revenue was $70.0 million for the three months ended July 31, 2022, an increase of $27.1 million, or 63.2%, driven by a 27% year-over-year increase in Active Subscriber count[181]. - Other revenue was $6.5 million for the three months ended July 31, 2022, an increase of $2.7 million, or 71.1%, representing 8.5% of total revenue, up from 8.1% in the same period of 2021[182]. Subscriber Growth - Active Subscribers grew to 124,131, a 27% increase year-over-year from 97,614, while Total Subscribers reached 173,321, marking a 37% growth year-over-year[138]. - Active Subscribers reached 124,131 as of July 31, 2022, representing a 27% year-over-year increase compared to 97,614 in the same quarter of fiscal year 2021[163]. Profitability and Loss - Gross Profit for the three months ended July 31, 2022, was $32.4 million, with a gross margin of 42.4%, up from 39.0% in the prior year[138]. - The company reported a Net Loss of $(33.9) million for the three months ended July 31, 2022, which is a significant improvement from a Net Loss of $(42.4) million in the same period of 2021[138]. - Adjusted EBITDA improved to $1.8 million for the three months ended July 31, 2022, compared to a loss of $(1.9) million in the same period of 2021, reflecting an Adjusted EBITDA Margin of 2.4%[165]. - Adjusted EBITDA margin improved to 2.4% for the three months ended July 31, 2022, compared to (4.1)% for the same period in 2021[207]. Expenses and Cost Management - Total costs and expenses were $102.1 million for the three months ended July 31, 2022, an increase of $31.9 million, or 45.4%, compared to $70.2 million for the same period in 2021[183]. - Fulfillment expenses were $23.4 million for the three months ended July 31, 2022, an increase of $9.9 million, or 73.3%, representing 30.6% of revenue[184]. - Technology expenses were $14.9 million for the three months ended July 31, 2022, an increase of $4.4 million, or 41.9%, representing 19.5% of revenue[185]. - Marketing expenses were $9.0 million for the three months ended July 31, 2022, an increase of $4.2 million, or 87.5%, compared to $4.8 million for the same period in 2021[186]. - General and Administrative expenses were $29.6 million for the three months ended July 31, 2022, an increase of $8.0 million, or 37.0%, compared to $21.6 million for the same period in 2021[187]. - General and Administrative expenses are expected to decrease significantly as a result of the restructuring plan, while long-term growth may lead to an increase in these expenses[172]. Cash and Financing - The company achieved a Cash and Cash Equivalents balance of $192.3 million as of July 31, 2022, compared to $104.0 million in the prior year[138]. - Cash consumption, measured as net cash used in operating and investing activities, was $(53.8) million for the six months ended July 31, 2022, compared to $(16.1) million for the same period in 2021[214]. - Total indebtedness as of July 31, 2022, was $269.8 million following a debt repayment of $140.7 million concurrent with the IPO[211]. - The company may require additional equity or debt financing in the future to support growth, which could lead to dilution or increased debt service obligations[213]. - As of July 31, 2022, total debt outstanding was approximately $269.8 million, with none payable within the next 12 months[221]. Market and Economic Conditions - The macroeconomic environment, including inflationary pressures and supply chain issues, continues to impact consumer discretionary spending and purchasing behavior[156]. - The company expects transportation costs to continue rising in fiscal year 2022 and is diversifying its transportation network to mitigate these costs[159]. - Fulfillment expenses are anticipated to increase due to rising shipping costs and competitive pressures in the labor market, with a focus on automation to drive efficiencies[169]. - Inflation has increased significantly, but the company does not believe it has had a material effect on its business or financial condition[229]. - The full impact of the COVID-19 pandemic on future results remains uncertain, with potential implications for operations and financial condition[160].