Secondhand luxury platform The RealReal has reported a soaring increase in its Q4 and full-year revenues.
In the fourth quarter of the fiscal year, the San Francisco-based company saw total revenues increase 57 percent year-on-year to 97.3 million US dollars, while its net loss dropped to 21.4 million US dollars from 22.2 million US dollars in the prior-year period. Gross profit was up 48 percent to 62.5 million US dollars while adjusted EBITDA was 12.7 million US dollars or 13.1 percent of total revenue.
For the full-year, total revenues increased by 53 percent to 318 million US dollars, while net loss increased from 75.8 million US dollars to 96.7 million US dollars. Gross profit increased by 48 percent to 203.2 million US dollars while adjusted EBITDA was 73 million US dollars or 23 percent of total revenue.
Seperately, the company announced a new San Francisco flagship store set to open its doors in March.
“In 2019, we surpassed 1 billion US dollars in gross merchandise volume (GMV). We also made significant progress on our path to profitability while still making investments to capitalize on the massive opportunity in front of us,” Julie Wainwright, CEO and founder of the RealReal said in a statement. “In 2020, we will continue to invest in growth while driving meaningful operating leverage as we continue to revolutionize luxury resale and deliver value to our consignors and our buyers.
“Our goal is to be the safest marketplace to buy pre-owned luxury goods, and our processes will continue to evolve throughout 2020 as we integrate more technology to stay ahead of counterfeiters. Our buyer net promoter score (NPS) of 71 and the fact that approximately 83 percent of GMV came from repeat buyers and 81 percent of GMV came from repeat consignors in 2019, indicates that we are focused on the right issues.”
Photo credit: The RealReal, Facebook