Rent the Runway raises outlook as Q3 revenue beats expectations

Rent the Runway has upped its full-year outlook after reporting a 31 percent increase in revenue in the third quarter of the year.

The fashion rental platform made revenue of 77.4 million dollars in the three months to October 31, beating expectations as its active subscriber count increased 15 percent.

The company narrowed its net loss to 36.1 million dollars from 87.8 million dollars a year earlier.

“Our restructuring plan, now substantially complete, allows us to invest in our customer proposition while significantly improving cash burn,” chief executive officer and founder Jennifer Hyman said in a statement.

“We made considerable progress in 2022 in key foundational technology and customer initiatives,” she added.

Rent the Runway upped its full-year outlook based on its third-quarter results “despite a tough environment”. The company now expects revenue in the range of 293 million dollars and 295 million dollars, up from its previous guidance of between 285 million dollars and 290 million dollars.

It expects adjusted EBITDA margin of 1 percent, compared to previous guidance of between 0 and -2 percent.

“I'm pleased to share that we exceeded our Q3 2022 revenue and adjusted EBITDA guidance,” Hyman said.

“We’re proud of our strong adjusted EBITDA margin this quarter, which was up significantly versus the same period last year,” she added.