Financial News
The RealReal Earnings: What To Look For From REAL
Secondhand luxury marketplace The RealReal (NASDAQ: REAL) will be reporting results tomorrow after market close. Here’s what to look for.
The RealReal beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $144.9 million, up 10.8% year on year. It was a slower quarter for the company, with a miss of analysts’ user estimates and underwhelming EBITDA guidance for the next quarter. It reported 381,000 users, up 8.5% year on year.
Is The RealReal a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting The RealReal’s revenue to grow 7.6% year on year to $143.2 million, a reversal from the 6.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The RealReal has missed Wall Street’s revenue estimates three times over the last two years.
Looking at The RealReal’s peers in the online marketplace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Shutterstock delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 4.1%, and Remitly reported revenues up 39.3%, topping estimates by 5%. Shutterstock traded up 12.1% following the results while Remitly was also up 18%.
Read our full analysis of Shutterstock’s results here and Remitly’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 6.3% on average over the last month. The RealReal is down 7.1% during the same time and is heading into earnings with an average analyst price target of $3.69 (compared to the current share price of $3).
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