Online resale platform The RealReal has said they aren’t expecting to hit profitability until 2024. The company recently reported fourth-quarter earnings on February 24.
The RealReal’s net loss increased to 236 million dollars from 176 million dollars in 2020. The company did see some improvements in EBITDA, and gross merchandise value increased 50 percent in 2021, reaching 1.48 billion dollars. “We are pleased to announce solid financial results for fourth-quarter 2021, including adjusted EBITDA loss that improved both sequentially and on a year-over-year basis. The improvements were driven primarily by strong top-line growth and operating expense leverage across all major functions of the business,” said Julie Wainwright, founder and CEO of The RealReal, in a statement.
She added, “We continued to expand our use of technology in our operations in 2021. Our proprietary technology innovations have assisted and will continue to assist us in improving unit economics, enabling scaling of our business, and driving higher average selling prices. Despite some processing delays due to short-term operations staffing challenges in late December 2021 and early January 2022 related to COVID-19 cases, supply coming in remains healthy and we anticipate a strong 2022.”
In a statement, Robert Julian, CFO of The RealReal, said, “As we previously committed, we are now providing financial guidance for 2022 as well as a timeline to reach profitability. We project that The RealReal will be Adjusted EBITDA positive for full year 2024, based on continued top-line growth, variable cost productivity, and fixed cost management. At our Investor Day in March, we look forward to providing more details about our path to profitability and some longer-range financial targets, which we are referring to as Vision 2025.”