RealReal Beats Non-GAAP EPS Estimates Despite Missed Revenue Forecast
May 10, 2023
Trending News ☀️
REALREAL ($NASDAQ:REAL): The RealReal, Inc., an online luxury goods company, has recently released its latest financial report for the quarter. Despite a missed revenue forecast, the company still managed to beat Non-GAAP EPS estimates. Its Non-GAAP EPS of -$0.36 exceeded expectations by $0.07, although revenue of $141.9M fell short of the consensus by $0.51M. The RealReal is a San Francisco-based online luxury consignment marketplace that connects buyers and sellers of pre-owned luxury goods. The company has several initiatives in place to help drive sales, such as its recent partnership with consignment store ThredUp. The company also recently launched a new app for iOS and Android that allows customers to easily shop for luxury items on the go.
In spite of the missed revenue forecast, The RealReal still managed to post a Non-GAAP EPS of -$0.36, which is significantly better than most analysts had anticipated. This could be attributed to the company’s focus on cost control and efficiency. It appears that the company’s strategies are starting to pay off, as it continues to grow its customer base and expand its product selection. The company has several initiatives in place to continue driving sales, and its focus on cost efficiency appears to be paying off. Investors will be keeping a close eye on the company’s performance in the coming quarters to see how it fares in its goal of becoming a leader in the online luxury goods market.
Earnings
In REALREAL‘s latest earning report for FY2022 Q4 as of December 31 2022, the company earned a total revenue of 159.66M USD and a net income of -38.61M USD.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Realreal. More…
| Total Revenues | Net Income | Net Margin |
| 603.49 | -196.44 | -32.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Realreal. More…
| Operations | Investing | Financing |
| -91.56 | -36.92 | 4.1 |
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 |
| 615.64 | 785.73 | -1.72 |
Key Ratios Snapshot
Some of the financial key ratios for Realreal are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.8% | – | -30.8% |
| FCF Margin | ROE | ROA |
| -21.3% | 74.6% | -18.9% |
Share Price
REALREAL, the luxury consignment marketplace, reported its earnings on Tuesday and beat the non-GAAP earnings per share estimates. Despite its positive results, REALREAL’s stock opened at $1.4 and closed at $1.3, a decrease of 3.6% from its previous closing price of $1.4. This decline reflects investors’ worries about the company’s missed revenue forecast and future growth prospects. Overall, despite the decline in stock price due to the missed revenue forecast, REALREAL appears to be making slowly but steady progress toward profitability, which should please investors in the long run. Live Quote…
Analysis
At GoodWhale, we have analyzed the fundamentals of REALREAL to give you a better understanding of their position as an investment. Our Risk Rating indicates that REALREAL is a medium risk investment from both a financial and a business standpoint. We have detected two risk warnings on their balance sheet and cashflow statement, so we recommend registering with us to take a closer look. By doing so, you will be able to gain more insight into REALREAL’s performance and decide whether it is a good investment for you or not. Our analysis of REALREAL’s fundamentals provides you with the information you need to make an informed decision. We also offer timely updates on industry news and trends to keep you up-to-date. So, don’t hesitate to register with GoodWhale and get the facts you need to make the best investment decision for you. More…
Peers
The RealReal Inc is a luxury consignment company that sells pre-owned designer items. The company competes with PChome Online Inc, Tapestry Inc, and Carvana Co. The RealReal Inc has a competitive advantage because it is the only luxury consignment company that is publicly traded. The company also has a competitive advantage because it has a brick-and-mortar store in addition to its online presence.
– PChome Online Inc ($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
The RealReal Inc. recently released their Non-GAAP earnings per share (EPS) of -$0.36, which beat expectations by $0.07. On the other hand, revenues were reported at $141.9M, missing the estimated amount by $0.51M. Following the release of this news, the stock price moved down for the day. Investors are likely to keep a close watch on the company’s performance in the upcoming quarters as it is still struggling with profitability.
They should also consider analyzing the company’s operations, competitive strategies, and financial health before investing in RealReal. Furthermore, any future news related to their partnerships and collaborations should also be monitored.
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