The RealReal losses narrow but revenue continues to fall

Resale luxury marketplace The RealReal reported its fourth quarter and full year results amid an ongoing cost-saving strategy that is currently being carried out by the platform.

For the fourth quarter of 2023, the company’s net loss fell from its prior 39 million dollars to 22 million dollars, or 15.1 percent of total revenue, while it also saw an improved adjusted EBITDA of 1.4 million dollars, compared to its prior negative 20.2 million dollars.

Despite this, The RealReal continued to experience a fall in total revenue, which took a 10 percent hit over the period, dropping to 143 million dollars. Similarly, its GMV also fell by 9 percent to 451 million dollars.

For the full year, decreases were also seen in GMV and total revenue; the latter falling 9 percent to 549 million dollars, the former dropping 5 percent to 1.73 billion dollars.

Its net loss for the period, meanwhile, slightly improved from 196 million dollars last year to 168 million dollars, while its adjusted EBITDA also saw a subtle uptick, dropping from negative 112.4 million dollars to negative 55.2 million dollars.

Speaking on the results, CEO John Koryl said in a release: “These are historic milestones and firsts for the company since our IPO in 2019. Our strategic shift to re-focus on the consignment business is delivering strong progress in our results.

“We refined our growth model with a focus on profitable supply and in the process we significantly improved our margin structure. We intend to carry forward this improved margin structure as we reaccelerate growth going forward.”

For the company’s Q1 and full year 2024 guidance, The RealReal said it had not reconciled its forward-looking adjusted EBITDA to net income because it “could not predict with reasonable certainty the ultimate outcome of certain components” of various ongoing reconciliations.

For Q1, the company is expecting GMV of between 415 to 445 million dollars and total revenue between 135 to 145 million dollars. For the full year, it forecasted GMV between 1.80 to 1.88 billion dollars and revenue of 580 to 605 million dollars.