According to its new preliminary results, the American platform, leader in the luxury resale market, should achieve a turnover and an adjusted Ebitda higher than its previous forecasts. The site has also reduced its losses and indebtedness.
The dark period of 2023, during which The RealReal had to reduce its workforce by 7%, its office space in San Francisco and New York, and close six stores and sales outlets across the Atlantic, is well and truly over.
Riding the second-hand trend, the Platform founded in 2011, which defines itself as the “world’s largest online marketplace for the resale of authenticated luxury goods” (Fashion, High Jewelry-Watchmaking, Art of Living and Home), with 38 million members, should achieve a good financial year in 2024 according to its preliminary financial results for the fourth quarter ended December 31.
Positive adjusted EBITDA
Not only has it exceeded forecasts in terms of sales, but it has also significantly improved its profitability.
“2024 marked an important turning point for our company. We achieved a positive adjusted EBITDA for the year, and we are just getting started,” said Rati Levesque, President and CEO of The RealReal.
In the fourth quarter, the company is expected to achieve revenue of between $163.1 million and $164.1 million, which is better than previous forecasts ($158 million to $165 million).
For the whole of 2024, the annual turnover is expected to be between 599.6 and 600.6 million dollars, whereas it previously expected 595 to 602 million dollars.
The Real Real is also now counting on a GMV (Gross Merchandise Value) of 1.829 billion dollars instead of 1.810 to 1.826 billion dollars.
Finally, the adjusted EBITDA, also higher than previous forecasts, is expected to be between $10.7 and $11.2 million, instead of $4.7 to $7.7 million. In the fourth quarter, it should indeed soar to $10.7 to $11.2 million, when forecasts were only $6.5 to $9.5 million.
Reduced loss
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Read also > The RealReal exceeds forecasts in the third quarter.
Featured photos: © Courtesy of The Real Real
