Rental fashion platform Rent the Runway has reported widening losses despite a 91 percent increase in revenue in the fourth quarter.
In the three months to January 31, the US business reported revenue of 64.1 million dollars, topping analysts’ estimates of 63.2 million dollars.
It came as the company’s active subscribers count shot up 110 percent.
Despite the revenue growth, however, its net loss widened to 39.3 million dollars from a loss of 38.8 million dollars in the same quarter a year earlier.
It made an adjusted EBITDA loss of 5.5 million dollars compared to a loss of 4.3 million dollars the prior year.
Looking at the full year, the company increased revenue by 29 percent to 203.3 million dollars.
However, its net loss widened to 211.8 million dollars from 171.1 million dollars a year earlier.
It made an adjusted EBITDA loss of 19.2 million dollars compared to a loss of 20.3 million dollars the prior year.
Looking ahead at fiscal year 2022, the company dropped its outlook and now expects revenue in the range of 295 million dollars to 305 million dollars.
Rent the Runway CEO and founder Jennifer Hyman said: “I’m proud that the strategic initiatives we focused on in 2021 paid off.
“We improved the overall financial profile of Rent the Runway, making progress across all key financial metrics and demonstrating the resilience of the business during a year that was anything but normal.”