As of July 31, 2024, Rent the Runway, Inc. reported total revenue of $78.9 million for the second quarter, reflecting a 4.2% increase from $75.7 million in the same period of 2023. For the six months ended July 31, 2024, total revenue reached $153.9 million, up 2.7% from $149.9 million year-over-year. The company’s other revenue, primarily from the sale of rental products, increased significantly, contributing $10.4 million in Q2 2024 compared to $7.7 million in Q2 2023.
Despite the revenue growth, the company reported a net loss of $(15.6) million for Q2 2024, an improvement from $(26.8) million in Q2 2023. For the six months, the net loss was $(37.6) million, down from $(56.9) million in the prior year. The net loss per share for Q2 2024 was $(4.17), compared to $(7.93) in Q2 2023. Adjusted EBITDA for Q2 2024 was $13.7 million, with a margin of 17.4%, up from $7.7 million and a 10.2% margin in Q2 2023.
Total costs and expenses for Q2 2024 decreased to $88.5 million from $93.2 million in Q2 2023. The company achieved a reduction in fulfillment, technology, and general administrative expenses, contributing to the improved operating loss of $(9.6) million, down from $(17.5) million in the prior year.
As of July 31, 2024, Rent the Runway's total assets were $257.4 million, down from $278.5 million at the end of January 2024. Cash and cash equivalents decreased to $76.6 million from $84.0 million during the same period. Long-term debt rose to $319.8 million, up from $306.7 million, with a maturity extended to October 2026 under the 2023 Amended Temasek Facility, which eliminated interest payments for six fiscal quarters.
The company has been implementing restructuring plans aimed at reducing costs, including a workforce reduction of approximately 10% announced in January 2024, expected to save about $12 million annually. The restructuring charges recognized for the six months ended July 31, 2024, were minimal at $0.2 million.
Rent the Runway continues to focus on enhancing customer experience and retention, with a significant portion of its revenue generated from subscribers. As of July 31, 2024, the company had 129,073 active subscribers, a decrease from 137,566 a year earlier. The company aims to achieve cash flow break-even by January 31, 2025, through ongoing operational improvements and strategic initiatives.
About Rent the Runway, Inc.
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