Luxury resale marketplace The RealReal saw an 11 percent total revenue jump for the second quarter ended June 30, 2024, during which the platform further welcomed a growth of 17 percent in consignment revenue compared to the same period in the previous year.
Chief executive of the company, John Koryl, said the uptick came as The RealReal continued to build on progress and momentum, demonstrating the “success of the changes” made while further highlighting the “resilience of our go-forward business model”.
Gross merchandise value increased 4 percent to 441 million dollars, while gross profit came to 107 million dollars, up 21 million dollars on the year prior, and gross margin amounted to 74.1 percent, an increase of over 800 basis points.
Net loss, meanwhile, narrowed from 41.3 million dollars in the same period of 2023 to 17 million dollars, reflecting 11.5 percent of total revenue. Adjusted EBITDA also shrunk from a prior loss of 22.3 million dollars to a loss of 1.8 million dollars.
Looking ahead, Koryl said The RealReal was “well positioned to benefit from the recent advancements in generative AI”, remaining focused on “achieving operational excellence”.
As such, the company adjusted its Q3 guidance, now anticipating a GMV of between 410 to 430 million dollars, total revenue of 135 to 142 million dollars and an adjusted EBITDA between a loss of two million dollars and upwards of one million dollars.
For the full year, The RealReal is forecasting GMV between 1.79 and 1.82 billion dollars and a total revenue of 580 to 595 million dollars.