REALREAL Reports USD 133.2 million in Total Revenue for Q3 of FY2023, Down 6.7% YOY
November 20, 2023
🌥️Earnings Overview
For the third quarter of FY2023 ending on September 30 2023, REALREAL ($NASDAQ:REAL) reported total revenue of USD 133.2 million, a 6.7% decrease compared to the same quarter in the prior year. Net income for the period was USD -23.0 million, a decrease of -47.3 million compared to the same quarter a year earlier.
Analysis
A GoodWhale analysis of REALREAL‘s wellbeing shows that the company is strong in terms of growth, but weak in asset, dividend, and profitability. REALREAL is classified as a ‘rhino’ company, meaning that it has achieved moderate revenue or earnings growth. Investors who are interested in investing in such companies may look at the potential for future growth and the possibility of capital gains. However, REALREAL also has a low health score of 2/10, which is an indication of its low ability to pay off debt and fund future operations. This means that investors should consider the risks associated with investing in this company before they take the plunge. The company’s financial health should also be monitored periodically to ensure that it continues to remain viable. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Realreal. More…
| Total Revenues | Net Income | Net Margin |
| 565.59 | -185.39 | -27.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Realreal. More…
| Operations | Investing | Financing |
| -68.09 | -46.06 | 0.29 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Realreal. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 452.68 | 742.7 | -2.81 |
Key Ratios Snapshot
Some of the financial key ratios for Realreal are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.5% | – | -30.9% |
| FCF Margin | ROE | ROA |
| -20.2% | 38.6% | -24.1% |
Peers
The RealReal Inc is a luxury consignment company that sells pre-owned designer items. The company competes with PChome Online Inc, Tapestry Inc, and Carvana Co. The RealReal Inc has a competitive advantage because it is the only luxury consignment company that is publicly traded. The company also has a competitive advantage because it has a brick-and-mortar store in addition to its online presence.
– PChome Online Inc ($TPEX:8044)
PChome Online Inc is a Taiwanese company that provides an online marketplace for consumers in Taiwan. The company has a market cap of 5.88B as of 2022 and a Return on Equity of 3.34%. PChome Online Inc operates an online marketplace that sells a wide variety of merchandise, including books, electronics, and home appliances. The company also provides a range of services, such as online payment and shipping.
– Tapestry Inc ($NYSE:TPR)
Tapestry, Inc., is an American luxury fashion holding company based in New York City. It was founded in 2016 as a result of the merger of Coach, Inc. and Kate Spade & Company. The company operates several major brands in the luxury fashion market, including Coach, Kate Spade, Stuart Weitzman, and Tapestry Collection.
Tapestry’s market capitalization is $7.57 billion as of 2022. The company’s return on equity is 28.67%. Tapestry is a luxury fashion holding company that operates several major brands, including Coach, Kate Spade, Stuart Weitzman, and Tapestry Collection.
– Carvana Co ($NYSE:CVNA)
Carvana Co is a company that operates an e-commerce platform for selling used cars. The company has a market cap of 1.94B as of 2022 and a return on equity of -183.76%. Carvana Co’s market cap is lower than the average for companies in the same industry, and its ROE is significantly negative. The company’s business model is not sustainable in the long term, and it is likely that Carvana Co will eventually go bankrupt.
Summary
RealReal is an online marketplace for luxury consignment that recently reported its financial results for the third quarter of FY2023. Total revenue for the period decreased by 6.7% year-over-year to USD 133.2 million, while net income improved from a loss of -47.3 million to -23.0 million.
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