Online luxury marketplace The RealReal reported third quarter gross merchandise value (GMV) of 408 million dollars and total revenue of 133 million dollars decreased 8 percent and 7 percent, respectively.
During the quarter, the company’s consignment revenue grew 10 percent and direct revenue was 49 percent lower compared to the same period in 2022.
“Today we reported our best quarter of adjusted EBITDA since the company’s IPO in 2019. Our strategic shift to re-focus on the higher-margin portion of the consignment business is delivering significant progress in our results,” said John Koryl, chief executive officer of The RealReal.
“Looking forward, we continue to project we are on track to deliver positive Adjusted EBITDA on a full year basis in 2024,” added Koryl.
Gross margin for the quarter was 70.6 percent, an increase of 1053 basis points, net loss contracted to 22.9 million dollars or negative 17.2 percent of total revenue. Adjusted EBITDA reduced to negative 7 million dollars or negative 5.2 percent of total revenue.
GAAP basic and diluted net loss per share reduced to 22 cents and non-GAAP basic and diluted net loss attributable to common shareholders per share was 15 cents compared to 38 cents in the same period in 2022.
For the fourth quarter, the company projects GMV in the range of 430 to 460 million dollars, revenue in the range of 135 to 145 million dollars and adjusted EBITDA in the range of negative 5 to 0 million dollars.
For the full year, GMV is expected to range between 1.705 to 1.735 million dollars, revenues between 540 to 550 million dollars and adjusted EBITDA in the range of negative 62 to 57 million dollars.