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Jun 30, 2023
RealReal Q2 2023 Earnings Report
The RealReal reported a decrease in GMV and total revenue due to a strategic shift towards higher-margin consignment business, resulting in improved gross margins and reduced net loss.
Key Takeaways
The RealReal's Q2 2023 results reflect a strategic shift towards higher-margin consignment business. GMV decreased by 7%, and total revenue decreased by 15%. However, gross margin increased significantly, and the company reduced its net loss and Adjusted EBITDA loss compared to the previous year. The company is focusing on profitable growth and expects to achieve Adjusted EBITDA profitability on a full-year basis in 2024.
GMV decreased by 7% year-over-year to $423 million.
Total revenue decreased by 15% year-over-year to $131 million.
Gross margin increased by 908 basis points year-over-year to 65.9%.
Net loss improved to $(41.3) million, or (31.6)% of total revenue.
RealReal
RealReal
RealReal Revenue by Segment
Revenue by Segment
Consignment Revenue
CapyFin.comDirect Revenue
CapyFin.comShipping Services Revenue
CapyFin.com Forward Guidance
The RealReal provided guidance for Q3 and full year 2023. For Q3 2023, GMV is expected to be between $385 million and $415 million, total revenue between $120 million and $130 million, and Adjusted EBITDA between $(18) million and $(15) million. For full year 2023, GMV is expected to be between $1.725 billion and $1.775 billion, total revenue between $540 million and $560 million, and Adjusted EBITDA between $(72) million and $(66) million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income