Delaware | 001-38953 | 45-1234222 | ||||||
(State or Other Jurisdiction
of Incorporation)
|
(Commission File Number) |
(IRS Employer
Identification No.)
|
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55 Francisco Street Suite 150
San Francisco, CA 94133
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o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class |
Trading
Symbol(s)
|
Name of each exchange on which registered | ||||||||||||
Common stock, $0.00001 par value |
REAL | The Nasdaq Global Select Market |
Exhibit
Number
|
Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
The RealReal, Inc. | ||||||||
Date: May 7, 2024 |
By: | /s/ Ajay Madan Gopal | ||||||
Ajay Madan Gopal | ||||||||
Chief Financial Officer |
Q2 2024 | Full Year 2024 | |||||||
GMV | $420 - $450 million | $1.81 - $1.87 billion | ||||||
Total Revenue | $135 - $145 million | $580 - $605 million | ||||||
Adjusted EBITDA | $(6) - $(3) million | $(5) - $8 million1 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue: | |||||||||||
Consignment revenue | $ | 115,648 | $ | 102,643 | |||||||
Direct revenue | 12,709 | 24,953 | |||||||||
Shipping services revenue | 15,443 | 14,308 | |||||||||
Total revenue | 143,800 | 141,904 | |||||||||
Cost of revenue: | |||||||||||
Cost of consignment revenue | 13,280 | 15,529 | |||||||||
Cost of direct revenue | 12,285 | 25,030 | |||||||||
Cost of shipping services revenue | 10,956 | 11,362 | |||||||||
Total cost of revenue | 36,521 | 51,921 | |||||||||
Gross profit | 107,279 | 89,983 | |||||||||
Operating expenses: | |||||||||||
Marketing | 15,283 | 17,518 | |||||||||
Operations and technology | 62,972 | 68,032 | |||||||||
Selling, general and administrative | 46,770 | 49,845 | |||||||||
Restructuring charges | 196 | 36,388 | |||||||||
Total operating expenses (1) |
125,221 | 171,783 | |||||||||
Loss from operations | (17,942) | (81,800) | |||||||||
Change in fair value of warrant liability | (15,583) | — | |||||||||
Gain on extinguishment of debt | 4,177 | — | |||||||||
Interest income | 2,069 | 2,053 | |||||||||
Interest expense | (3,751) | (2,667) | |||||||||
Loss before provision for income taxes | (31,030) | (82,414) | |||||||||
Provision for income taxes | 71 | 86 | |||||||||
Net loss attributable to common stockholders | $ | (31,101) | $ | (82,500) | |||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.30) | $ | (0.83) | |||||||
Weighted average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 105,212,053 | 99,608,071 | |||||||||
(1) Includes stock-based compensation as follows: |
|||||||||||
Marketing | $ | 410 | $ | 450 | |||||||
Operating and technology | 2,304 | 3,691 | |||||||||
Selling, general and administrative | 4,406 | 4,850 | |||||||||
Total | $ | 7,120 | $ | 8,991 |
March 31, 2024 |
December 31, 2023 |
||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 165,996 | $ | 175,709 | |||||||
Accounts receivable, net | 19,819 | 17,226 | |||||||||
Inventory, net | 21,120 | 22,246 | |||||||||
Prepaid expenses and other current assets | 18,387 | 20,766 | |||||||||
Total current assets | 225,322 | 235,947 | |||||||||
Property and equipment, net | 101,327 | 104,087 | |||||||||
Operating lease right-of-use assets | 84,690 | 86,348 | |||||||||
Restricted cash | 14,910 | 14,914 | |||||||||
Other assets | 5,330 | 5,627 | |||||||||
Total assets | $ | 431,579 | $ | 446,923 | |||||||
Liabilities and Stockholders’ Deficit | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 14,126 | $ | 8,961 | |||||||
Accrued consignor payable | 75,800 | 77,122 | |||||||||
Operating lease liabilities, current portion | 21,234 | 20,094 | |||||||||
Other accrued and current liabilities | 82,528 | 82,685 | |||||||||
Total current liabilities | 193,688 | 188,862 | |||||||||
Operating lease liabilities, net of current portion | 100,809 | 104,856 | |||||||||
Convertible senior notes, net | 302,324 | 452,421 | |||||||||
Non-convertible notes, net | 131,199 | — | |||||||||
Warrant liability | 26,000 | — | |||||||||
Other noncurrent liabilities | 4,612 | 4,083 | |||||||||
Total liabilities | 758,632 | 750,222 | |||||||||
Stockholders’ deficit: | |||||||||||
Common stock, $0.00001 par value; 500,000,000 shares authorized as of March 31, 2024, and December 31, 2023; 105,917,789 and 104,670,500 shares issued and outstanding as of March 31, 2024, and December 31, 2023, respectively |
1 | 1 | |||||||||
Additional paid-in capital | 823,672 | 816,325 | |||||||||
Accumulated deficit | (1,150,726) | (1,119,625) | |||||||||
Total stockholders’ deficit | (327,053) | (303,299) | |||||||||
Total liabilities and stockholders’ deficit | $ | 431,579 | $ | 446,923 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (31,101) | $ | (82,500) | |||||||
Adjustments to reconcile net loss to cash used in operating activities: | |||||||||||
Depreciation and amortization | 8,309 | 7,821 | |||||||||
Stock-based compensation expense | 7,120 | 8,991 | |||||||||
Reduction of operating lease right-of-use assets | 3,667 | 5,172 | |||||||||
Bad debt expense | 424 | 651 | |||||||||
Non-cash interest expense | 818 | 575 | |||||||||
Issuance costs allocated to liability classified warrants | 374 | — | |||||||||
Accretion of debt discounts and issuance costs | 581 | 633 | |||||||||
Property, plant, equipment, and right-of-use asset impairments | — | 32,891 | |||||||||
Provision for inventory write-downs and shrinkage | 1,149 | 3,446 | |||||||||
Gain on debt extinguishment | (4,177) | — | |||||||||
Change in fair value of warrant liability | 15,583 | — | |||||||||
Other adjustments | (699) | 36 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | (3,017) | 2,615 | |||||||||
Inventory, net | (23) | 8,678 | |||||||||
Prepaid expenses and other current assets | 2,993 | (1,139) | |||||||||
Other assets | 258 | (461) | |||||||||
Operating lease liability | (4,916) | (6,158) | |||||||||
Accounts payable | 133 | (1,385) | |||||||||
Accrued consignor payable | (1,322) | (9,429) | |||||||||
Other accrued and current liabilities | 385 | (894) | |||||||||
Other noncurrent liabilities | (6) | 24 | |||||||||
Net cash used in operating activities | (3,467) | (30,433) | |||||||||
Cash flow from investing activities: | |||||||||||
Capitalized proprietary software development costs | (3,180) | (4,214) | |||||||||
Purchases of property and equipment | (2,141) | (11,706) | |||||||||
Net cash used in investing activities | (5,321) | (15,920) | |||||||||
Cash flow from financing activities: | |||||||||||
Proceeds from exercise of stock options | 7 | — | |||||||||
Taxes paid related to restricted stock vesting | (305) | (295) | |||||||||
Cash received from settlement of capped calls in conjunction with the note exchange | 396 | — | |||||||||
Issuance costs paid related to the Note Exchange | (1,027) | — | |||||||||
Net cash used in financing activities | (929) | (295) | |||||||||
Net decrease in cash, cash equivalents and restricted cash | (9,717) | (46,648) | |||||||||
Cash, cash equivalents and restricted cash | |||||||||||
Beginning of period | 190,623 | 293,793 | |||||||||
End of period | $ | 180,906 | $ | 247,145 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Adjusted EBITDA Reconciliation: | |||||||||||
Net loss | $ | (31,101) | $ | (82,500) | |||||||
Net loss (% of revenue) | 21.6 | % | 58.1 | % | |||||||
Depreciation and amortization | 8,309 | 7,821 | |||||||||
Interest income | (2,069) | (2,053) | |||||||||
Interest expense | 3,751 | 2,667 | |||||||||
Provision for income taxes | 71 | 86 | |||||||||
EBITDA | (21,039) | (73,979) | |||||||||
Stock-based compensation | 7,120 | 8,991 | |||||||||
CEO transition costs (1) |
— | 159 | |||||||||
Payroll taxes expense on employee stock transactions | 56 | 44 | |||||||||
Legal settlement |
— | 1,100 | |||||||||
Restructuring charges (2) |
196 | 36,388 | |||||||||
Gain on extinguishment of debt (3) |
(4,177) | — | |||||||||
Change in fair value of warrant liability (4) |
15,583 | — | |||||||||
Adjusted EBITDA | $ | (2,261) | $ | (27,297) | |||||||
Adjusted EBITDA (% of revenue) | 1.6 | % | 19.2 | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net loss | $ | (31,101) | $ | (82,500) | |||||||
Stock-based compensation | 7,120 | 8,991 | |||||||||
Payroll tax expense on employee stock transactions | 56 | 44 | |||||||||
CEO transition costs | — | 159 | |||||||||
Restructuring charges | 196 | 36,388 | |||||||||
Legal settlement | — | 1,100 | |||||||||
Provision for income taxes | 71 | 86 | |||||||||
Gain on extinguishment of debt | (4,177) | — | |||||||||
Change in fair value of warrant liability | 15,583 | — | |||||||||
Non-GAAP net loss attributable to common stockholders | $ | (12,252) | $ | (35,732) | |||||||
Weighted-average common shares outstanding used to calculate Non-GAAP net loss attributable to common stockholders per share, basic and diluted | 105,212,053 | 99,608,071 | |||||||||
Non-GAAP net loss attributable to common stockholders per share, basic and diluted | $ | (0.12) | $ | (0.36) |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net cash used in operating activities | $ | (3,467) | $ | (30,433) | |||||||
Purchase of property and equipment and capitalized proprietary software development costs | (5,321) | (15,920) | |||||||||
Free Cash Flow | $ | (8,788) | $ | (46,353) |
March 31, 2022 |
June 30, 2022 |
September 30, 2022 |
December 31, 2022 |
March 31, 2023 |
June 30, 2023 |
September 30, 2023 |
December 31, 2023 |
March 31, 2024 |
|||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except AOV and percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
GMV | $ | 428,206 | $ | 454,163 | $ | 440,659 | $ | 492,955 | $ | 444,366 | $ | 423,341 | $ | 407,608 | $ | 450,668 | $ | 451,941 | |||||||||||||||||||||||||||||||||||
NMV | $ | 310,511 | $ | 332,508 | $ | 325,105 | $ | 367,382 | $ | 327,805 | $ | 303,918 | $ | 302,912 | $ | 335,245 | $ | 334,815 | |||||||||||||||||||||||||||||||||||
Consignment Revenue | $ | 83,989 | $ | 96,917 | $ | 93,874 | $ | 110,199 | $ | 102,643 | $ | 96,577 | $ | 102,852 | $ | 113,500 | $ | 115,648 | |||||||||||||||||||||||||||||||||||
Direct Revenue | $ | 48,823 | $ | 42,646 | $ | 34,005 | $ | 33,252 | $ | 24,953 | $ | 20,887 | $ | 17,356 | $ | 15,964 | $ | 12,709 | |||||||||||||||||||||||||||||||||||
Shipping Services Revenue | $ | 13,888 | $ | 14,872 | $ | 14,824 | $ | 16,204 | $ | 14,308 | $ | 13,391 | $ | 12,964 | $ | 13,909 | $ | 15,443 | |||||||||||||||||||||||||||||||||||
Number of Orders | 878 | 934 | 952 | 993 | 891 | 789 | 794 | 826 | 840 | ||||||||||||||||||||||||||||||||||||||||||||
Take Rate | 35.7 | % | 36.1 | % | 36.0 | % | 35.7 | % | 37.4 | % | 36.7 | % | 38.1 | % | 37.7 | % | 38.4 | % | |||||||||||||||||||||||||||||||||||
Active Buyers | 828 | 889 | 950 | 998 | 1,014 | 985 | 954 | 922 | 922 | ||||||||||||||||||||||||||||||||||||||||||||
AOV | $ | 487 | $ | 486 | $ | 463 | $ | 496 | $ | 499 | $ | 537 | $ | 513 | $ | 545 | $ | 538 |
Q2 2024 | Full Year 2024 | |||||||
GMV | $420 - $450 million | $1.81 - $1.87 billion | ||||||
Revenue | $135 - $145 million | $580 - $605 million | ||||||
Adjusted EBITDA | $(6) - $(3) million | $(5) - $8 million1 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Total revenue | $ | 143,800 | $ | 141,904 | |||||||
Adjusted EBITDA Reconciliation: | |||||||||||
Net loss | $ | (31,101) | $ | (82,500) | |||||||
Net loss (% of revenue) | 21.6 | % | 58.1 | % | |||||||
Depreciation and amortization | 8,309 | 7,821 | |||||||||
Interest income | (2,069) | (2,053) | |||||||||
Interest expense | 3,751 | 2,667 | |||||||||
Provision for income taxes | 71 | 86 | |||||||||
EBITDA | (21,039) | (73,979) | |||||||||
Stock-based compensation | 7,120 | 8,991 | |||||||||
CEO transition costs (1) |
— | 159 | |||||||||
Payroll taxes expense on employee stock transactions | 56 | 44 | |||||||||
Legal settlement | — | 1,100 | |||||||||
Restructuring charges (2) |
196 | 36,388 | |||||||||
Gain on extinguishment of debt (3) |
(4,177) | — | |||||||||
Change in fair value of warrant liability (4) |
15,583 | — | |||||||||
Adjusted EBITDA | $ | (2,261) | $ | (27,297) | |||||||
Adjusted EBITDA (% of revenue) | 1.6 | % | 19.2 | % |