The RealReal, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable improvements in revenue and profitability compared to the same periods in 2023. Total revenue for Q3 2024 reached $147.8 million, an 11% increase from $133.2 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $436.5 million, up 8% from $405.9 million in the prior year. The growth was primarily driven by a 14% increase in consignment revenue, which totaled $116.9 million for Q3 2024, compared to $102.9 million in Q3 2023.
Gross profit also saw significant growth, rising to $110.7 million in Q3 2024, an 18% increase from $94.1 million in Q3 2023. For the nine-month period, gross profit increased by 20% to $325.5 million from $270.2 million. The company's gross margin improved, with total cost of revenue decreasing as a percentage of total revenue, reflecting operational efficiencies.
Operating expenses for Q3 2024 were $125.3 million, up from $116.6 million in Q3 2023, but total operating expenses for the nine months decreased to $376.8 million from $415.5 million in the previous year. The loss from operations narrowed to $(14.6) million in Q3 2024, compared to $(22.5) million in Q3 2023, and for the nine months, the loss from operations was $(51.3) million, significantly improved from $(145.2) million in the same period last year.
The net loss attributable to common stockholders for Q3 2024 was $(17.9) million, down from $(22.9) million in Q3 2023. For the nine months, the net loss was $(65.7) million, a substantial reduction from $(146.8) million in the prior year. The basic net loss per share improved to $(0.16) for Q3 2024 from $(0.22) in Q3 2023.
As of September 30, 2024, The RealReal reported cash and cash equivalents of $153.2 million, down from $175.7 million at the end of 2023. The company’s total assets decreased to $406.3 million from $446.9 million, while total current liabilities increased to $225.7 million from $188.9 million. The accumulated deficit rose to $(1.2) billion, reflecting ongoing operational challenges.
Strategically, the company underwent a significant debt restructuring in February 2024, exchanging $145.8 million of 2025 Notes and $6.5 million of 2028 Notes for $135 million of new 2029 Notes, which carry a higher interest rate of 13%. This move was aimed at extending the maturity of its debt and improving liquidity.
The RealReal continues to face challenges in the luxury resale market, including competition and the need to attract and retain consignors. The company has implemented a savings plan that included workforce reductions and real estate optimization to lower operating expenses. Despite these challenges, the company reported a positive trend in its financial performance, with improvements in revenue and reductions in net losses.
About TheRealReal, Inc.
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