The RealReal exceeds expectations with strong Q4 and FY24 results

The RealReal, an online marketplace for pre-owned luxury goods, announced strong preliminary fourth-quarter and full-year 2024 results, exceeding its previously issued guidance.

Fourth-quarter gross merchandise volume (GMV) reached 503.5 million dollars, surpassing the forecast of 484 million dollars to 500 million dollars. Revenue for the quarter is estimated between 163.1 million dollars and 164.1 million dollars, exceeding the projected range of 158 million dollars to 165 million dollars.

Adjusted EBITDA also outperformed expectations, landing between 10.7 million dollars and 11.2 million dollars, compared to the initial outlook of 6.5 million dollars to 9.5 million dollars.

For the full year 2024, The RealReal achieved a GMV of 1.829 billion dollars, exceeding its guidance of 1.810 billion dollars to 1.826 billion dollars. Revenue is estimated between 599.6 million dollars and 600.6 million dollars, also surpassing the forecast of 595 million dollars to 602 million dollars.

Full-year adjusted EBITDA is expected to be between 9 million dollars and 9.5 million dollars, exceeding the initial projection of 4.7 million dollars to 7.7 million dollars.

“Our growth playbook, combined with operational excellence, enabled us to deliver GMV and Adjusted EBITDA above our guidance range,” said Rati Levesque, president and chief executive officer of The RealReal.

Looking ahead to fiscal year 2025, The RealReal anticipates GMV between 1.96 billion dollars and 1.99 billion dollars, and revenue between 645 million dollars and 660 million dollars. The company also projects significant improvement in adjusted EBITDA, forecasting a range of 20 million dollars to 30 million dollars.

“We look forward to continuing this momentum in 2025, expanding adjusted EBITDA margin through the combination of our growth playbook and operational efficiencies driven by our data, technology, and AI capabilities,” added Ajay Gopal, chief financial officer.

He emphasized the company’s confidence in its business model as it scales, highlighting the expected adjusted EBITDA growth.