The RealReal exceeds Q4 outlook but 2025 guidance disappoints investors

The RealReal, an online marketplace for authenticated luxury resale goods, reported better than expected fourth quarter results with GMV of 504 million dollars and total revenue of 164 million dollars increased 12 percent and 14 percent, respectively. The company's adjusted losses per share at 0.01 dollars for the quarter, beat Wall Street’s estimates of down 0.04 dollars.

However, the company's shares fell 3.3 percent in after-hours trading since the upcoming first quarter and 2025 guidance disappointed investors. The company's first quarter revenue forecast of 157 to 161 million dollars, is below the 160.6 million dollars market expectations and full-year 2025 revenue guidance of 645 to 660 million dollars compares to the 656 million dollars consensus estimate, according to an Investing.com report.

“We achieved strong fourth quarter and full year 2024 results, exiting the year from a position of strength," said Rati Levesque, president and CEO of The RealReal. “We delivered on key milestones in 2024 including positive adjusted EBITDA and positive free cash flow for the full year, and we are just getting started.”

Fourth quarter adjusted EBITDA improved to 11 million dollars or 6.7 percent of revenue. The company recorded net loss of 68 million dollars or negative 41.7 percent of total revenue.

The RealReal's full year 2024 GMV of 1.83 billion dollars and total revenue of 600 million dollars increased 6 percent and 9 percent respectively, compared to 2023.

Looking ahead, based on market conditions as of February 20, 2025, the company forecasts first quarter GMV to range between 484 to 492 million dollars and adjusted EBITDA is expected to be in the range of 3 to 4.5 million dollars.

For the full year ahead, The RealReal anticipates GMV and revenue in the range of 1.96 billion to 1.99 billion dollars and adjusted EBITDA is expected to be between 20 million and 30 million dollars.