The RealReal shares slip on weak guidance despite Q4 beat

Published 20/02/2025, 22:52
The RealReal shares slip on weak guidance despite Q4 beat

SAN FRANCISCO - The RealReal, Inc. (NASDAQ:REAL) reported better-than-expected fourth quarter results but saw its shares fall 3.3% in after-hours trading due to weaker-than-anticipated guidance for the upcoming quarter and full year.

The online luxury resale marketplace posted adjusted earnings per share of -$0.01 for Q4, beating analyst estimates of -$0.04. Revenue came in at $164 million, surpassing the consensus forecast of $162.46 million and marking a 14% YoY increase.

Despite the earnings beat, The RealReal’s outlook fell short of expectations. The company guided for Q1 2025 revenue of $157-161 million, below the $160.6 million analyst consensus. Full-year 2025 revenue guidance of $645-660 million also disappointed compared to the $656 million consensus estimate.

"We achieved strong fourth quarter and full year 2024 results, exiting the year from a position of strength," said Rati Levesque, President and CEO of The RealReal. "We delivered on key milestones in 2024 including positive Adjusted EBITDA and positive free cash flow for the full year, and we are just getting started."

The company reported Q4 gross merchandise value (GMV) of $504 million, up 12% YoY. Adjusted EBITDA improved to $11 million or 6.7% of revenue, compared to $1 million or 1% of revenue in Q4 2023.

For the full year 2024, The RealReal generated revenue of $600 million, a 9% increase from 2023. The company also achieved positive free cash flow of $1 million for the year, a $104 million improvement from the previous year.

Despite the positive results, investors appeared focused on the softer guidance, sending shares lower in extended trading.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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