Stocks Real Real Despite the luxurious second-hand retailer reporting fourth quarter revenue, it fell by 10% in after-hours trading before resolving some losses. RealReal is the world’s largest online luxury market with over 37 million customers worldwide.
Adjusted loss per share was $0.01 for the quarter, with Wall Street estimates down $0.04. Meanwhile, revenues rose 14% to $164 million, a record high for the company. The company’s key metric, total product value, also increased by 12% to $504 million.
However, EBITDA’s full-year forecast adjusted for revenue was below what analysts painted pencils, so the stocks sank. Even with the first-year free cash flow in history, the outlook for a lower range than investors was sufficient to scare investors.
The company’s net loss rose to more than $68 million from $22 million in the same period last year, primarily due to a warrant liability adjustment of $59 million.
CEO Rati Levesque says the company is currently focusing on unlocking supply, improving efficiency and leveraging AI to enhance shipper experience. The company also said recent debt restructuring should provide more financial flexibility as it works towards consistent profitability. Despite today’s DIP, RealReal stock still has grown nearly 350% over the past year.
