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Dec 31, 2024
RealReal Q4 2024 Earnings Report
RealReal reported strong fourth quarter and full year 2024 results, exiting the year from a position of strength.
Key Takeaways
The RealReal announced strong fourth quarter and full year 2024 results, with fourth quarter revenue up 14% year-over-year to a record high of $164 million. The company achieved positive Adjusted EBITDA and positive free cash flow for the full year, demonstrating significant improvements in financial performance.
Fourth quarter 2024 revenue reached a record high of $164 million, a 14% increase year-over-year.
Full year 2024 Adjusted EBITDA was positive $9 million, a $64 million improvement compared to 2023.
Full year 2024 Operating Cash Flow was positive $27 million, an $88 million increase year-over-year.
Fourth quarter Adjusted EBITDA was $11 million, or 6.7% of total revenue, improving by $10 million compared to the prior year.
RealReal
RealReal
RealReal Revenue by Segment
Revenue by Segment
Consignment Revenue
CapyFin.comDirect Revenue
CapyFin.comShipping Services Revenue
CapyFin.com Forward Guidance
For Q1 2025, The RealReal expects GMV to be between $484 million and $492 million, total revenue between $157 million and $161 million, and Adjusted EBITDA between $3.0 million and $4.5 million. For the full year 2025, GMV is projected to be between $1.96 billion and $1.99 billion, total revenue between $645 million and $660 million, and Adjusted EBITDA between $20 million and $30 million.
Positive Outlook
- Projected positive Adjusted EBITDA for Q1 2025 and full year 2025.
- Anticipated growth in GMV for both Q1 2025 and full year 2025.
- Expected increase in total revenue for both Q1 2025 and full year 2025.
- Continued focus on strategic pillars to unlock supply, drive operational efficiency, and obsess over service.
- Leveraging AI to improve consignor experience and drive operating leverage.
Challenges Ahead
- Inability to predict with reasonable certainty the ultimate outcome of certain components of forward-looking Adjusted EBITDA reconciliation.
- Potential impact of payroll tax expense on employee stock transactions not within company control.
- Uncertainty regarding other components that may arise without unreasonable effort.
- Inability to assess the probable significance of unavailable information for future net income (loss).
- Reliance on market conditions as of February 20, 2025, which may change.
Revenue & Expenses
Visualization of income flow from segment revenue to net income