Rent the Runway(US:RENT)2024-04-10 20:14Financial Performance - Q4 2023 revenue was $75.8 million, a 0.5% increase year-over-year from $75.4 million in Q4 2022[4] - Q4 2023 adjusted EBITDA was $11.2 million, with an adjusted EBITDA margin of 14.8%, up from $7.1 million and 9.4% in Q4 2022[4] - Fiscal year 2023 revenue was $298.2 million, a 0.6% increase year-over-year from $296.4 million in fiscal year 2022[7] - Fiscal year 2023 net loss was $(113.2) million, an improvement from $(138.7) million in fiscal year 2022, with a net loss margin of (38.0)% compared to (46.8)%[7] - Average active subscribers for fiscal year 2023 increased by 5% year-over-year to 135,211[7] - Total revenue for the three months ended January 31, 2024, was $75.8 million, a slight increase from $75.4 million in the same period of 2023[26] - Net loss for the year ended January 31, 2024, was $113.2 million, compared to a net loss of $138.7 million in 2023, showing an improvement[28] - For the three months ended January 31, 2024, the net loss was $24.8 million, compared to a net loss of $26.2 million for the same period in 2023[32] Cash Flow and Liquidity - The company expects to achieve free cash flow breakeven for the full year of fiscal 2024[9] - Cash and cash equivalents at the end of the period were $84.0 million, down from $154.5 million in the previous year[30] - Free Cash Flow for the year ended January 31, 2024, was $(70.3) million, an improvement from $(92.0) million in 2023, indicating better cash management[34] - The Free Cash Flow Margin improved to (23.6)% for the year ended January 31, 2024, compared to (31.0)% in 2023, showing a positive trend in cash flow generation[34] Operational Efficiency - Adjusted EBITDA for the year ended January 31, 2024, was $26.9 million, significantly up from $6.7 million in 2023, reflecting an improvement in operational efficiency[36] - Adjusted EBITDA margin and free cash flow expectations for Q1 2024 and fiscal year 2024 are not available without unreasonable efforts due to high variability and complexity[21] Customer Metrics - The company reported a 20-point increase in Subscription Net Promoter Scores from Q2 2023 to Q4 2023, indicating improved customer loyalty[7] - The Concierge Program has grown to nearly 40% of early-term customers, driving higher loyalty and ready for continued scale[9] Assets and Liabilities - Total assets decreased to $278.5 million as of January 31, 2024, from $336.2 million in 2023[24] - Total liabilities increased to $400.8 million in 2024, compared to $371.5 million in 2023[24] Expenses and Charges - The company incurred restructuring charges of $2.0 million for the year ended January 31, 2024[26] - The company incurred restructuring charges of $2.0 million for the year ended January 31, 2024, compared to $2.4 million in 2023, indicating a reduction in restructuring costs[36] - The company reported a cash interest expense of $4.7 million for the year ended January 31, 2024, down from $20.1 million in 2023, reflecting improved debt management[36] Depreciation and Compensation - Rental product depreciation increased to $57.1 million for the year ended January 31, 2024, compared to $52.9 million in 2023, indicating higher asset utilization[36] - Share-based compensation for the year ended January 31, 2024, was $26.2 million, up from $25.4 million in 2023, reflecting ongoing employee incentive programs[36] Interest Income - Interest income for the year ended January 31, 2024, was $33.7 million, slightly down from $36.8 million in 2023, reflecting changes in interest rates[36] Non-recurring Adjustments - Non-recurring adjustments for the year ended January 31, 2024, totaled $1.7 million, primarily related to debt refinancing, compared to $1.3 million in 2023[36]