The company estimates gross value of $ 5 + billion, total revenue of $ 1.5 + billion and positive adjusted EBITDA of $ 100 + million in 2025
SAN FRANCISCO, March 22, 2022 (GLOBE NEWSWIRE) – The RealReal (Nasdaq: REAL) – the world’s largest online marketplace for authentic, retail luxury goods – today announced its Vision 2025 financial goals and will host its Investor Day later today.
“We are pleased to host our Investor Day at our Phoenix Authentication Center and showcase many of our technology innovations across our operations, including authentication and dynamic pricing. We look forward to discussing in depth our long-term financial goals, which we call Vision 2025, said Julie Wainwright, founder and CEO of The RealReal.
Robert Julian, CFO at The RealReal said, “As we have previously committed, we aim for positively adjusted EBITDA for the full year 2024, based on strong top-line growth, operational excellence and fixed cost management. Our 2025 vision for The RealReal is $ 5 + Billions of Gross Merchandise Value (GMV), $ 1.5+ billion of total revenue and $ 100+ million of positive adjusted EBITDA. We look forward to providing more details later today at our Investor Day event.
The virtual part of the Investor Day event will feature presentations from the RealReal executive team and a question-and-answer session.
Vision 2025 long-term financial goals for full year 2025
Based on market conditions as of March 22, 2022, we deliver long-term goals for GMV, Total Revenue and Adjusted EBITDA, which is a non-GAAP financial measure.
We have not foreseen adjusted EBITDA with net income (loss), the directly comparable GAAP measure, because we can not reasonably predict the ultimate result of certain components of such reconciliations, including payroll taxes on employee stock transactions that are not in our Control, or other components that may arise, without undue effort. For these reasons, we can assess the probable significance of the unavailable information, which could significantly affect the amount of future net income (loss).
Investor Day live webcast
Registration for the Investor Day Management Live Presentation and Question-and-Answer Session is available at investorday.therealreal.com. The live webcast is scheduled to begin today at 10:00 a.m. Pacific time (1:00 a.m. Eastern time) and will run approximately two hours and fifteen minutes. A replay of the webcast, along with the Investor Day Management presentation material, will be available investor.therealreal.com.
About The RealReal, Inc.
RealReal is the world’s largest online marketplace for authentic, resale luxury goods, with more than 25 million members. With a rigorous authentication process overseen by experts, The RealReal offers a secure and reliable platform for consumers to buy and sell their luxury items. We have hundreds of internal gemologists, horologists and brand authenticators who review thousands of items every day. As a sustainable society, we are giving new life to thousands of brands in many categories – including women’s and men’s fashion, jewelry and watches, arts and home – in support of the circular economy. We make the sale effortlessly with free virtual appointments, home pickup, drop-off and direct shipping. We do all the work for senders, including authentication, using AI and machine learning to determine optimal prices, photos and listing their items, as well as shipping and customer service. At our 19 retail locations, including our 16 shoppable stores, customers can sell, meet with our experts and receive free ratings.
Investor Relations Contact:
Caitlin Howe
Vice President, Investor Relations
IR@therealreal.com
Press contact:
Erin Santy
Head of Communications
pr@therealreal.com
Forward Looking Statements
This press release contains forward-looking statements regarding, among other things, the future performance of The RealReal, which are based on the company’s current expectations, forecasts and assumptions and involve risks and uncertainties. In some cases, you can identify predictive statements through terminology such as “could”, “want”, “should”, “could”, “expect”, “plan”, “predict”, “believe”, “estimate”, “” predict “,” intent “,” potential “,” further “,” ongoing “or the negative of these terms or other similar terminology. These statements include, but are not limited to, statements about future operating and financial results, including timelines for Profitability, 2025 vision and long-term financial goals. Actual results may differ materially from those predicted or implied and reported results should not be construed as indicative of future performance. Other factors that may or may not cause such differences include limited to, the impact of the COVID-19 pandemic on our operations and our business environment, any failure to generate a supply of goods, price pressure on the shipping market t result of discounting in the market for new goods, failure to operate our authentication and fulfillment operations efficiently and effectively, job shortages and other reasons.
More information on factors that can influence the company’s business results can be found under the headings “Risk Factors” and “Discussion and Management Analysis and Analysis of the Financial Condition and Operating Results” in the company’s last annual report completed on Form 10-K for the year. December 31, 2021 and subsequent quarterly reports on Form 10-Q, copies of which can be obtained by visiting the Company’s Investor Relations website or on the SEC website at www.sec.gov. Unfair reliance should not be placed on forward-looking statements in this press release based on information available to the Company as of the date hereof. The company does not assume any obligation to update such statements.
Non-GAAP financial measures
This press release includes Adjusted EBITDA, which is a non-GAAP measure.
We do not propose, and we do not propose, that investors should consider non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors should also note that non-GAAP financial measures we use may not be the same as non-GAAP financial measures, and may not be calculated in the same way as those of other companies, including other companies in our industry.
Adjusted EBITDA is a key performance measure that our management uses to evaluate our operational performance. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure as an overall assessment of our performance, to evaluate the effectiveness of our business strategies and for business planning purposes. Adjusted EBITDA may not be comparable to similar title metrics of other companies.
We calculate Adjusted EBITDA as net loss before interest income, interest expenses, other (income) expenses net, disposition (benefits) for income tax, depreciation and amortization, further adjusted to exclude share-based compensation, patronage tax on employee stock transactions, and certain one-time expenses. Employer tax costs related to employee stock transactions are related to the understanding or exercise of underground stock prices and the price of our common stock at the time of vesting, which may vary from period to period regardless of the operating performance of our business. Adjusted EBITDA has certain limitations because the measure excludes the impact of certain expenses that are included in our operating statements that are necessary to run our business and should not be calculated and presented as an alternative to net loss or any other measure of financial performance. in accordance with GAAP.
In particular, the exclusion of certain expenses in the calculation of adjusted EBITDA facilitates business performance comparisons on a period-to-period basis and, in the event of the exclusion of the impact of the share-based payment and the associated employer payroll tax on employee stock transactions, excludes an element that we do not consider to be indicative of our core business performance. Investors should understand, however, that stock-based compensation and the associated employer payroll tax are a significant recurring expense in our business and an important component of the compensation for our employees. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others to understand and evaluate our operating results in the same manner as our Board of Directors and Board of Directors.
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