The RealReal, the world's largest online marketplace for authenticated, resale luxury goods, has reported strong preliminary financial results for the fourth quarter and full year of 2024. The company also announced its entry into strategic debt exchange transactions, which have significantly improved its financial position.
For the fourth quarter of 2024, The RealReal expects its gross merchandise value (GMV) to reach $503.5 million, exceeding the previously issued guidance range of $484.0 * $500.0 million. Total revenue for the same period is projected to be between $163.1 * $164.1 million, surpassing the earlier forecast of $158.0 * $165.0 million. Adjusted EBITDA is anticipated to be between $10.7 * $11.2 million, significantly higher than the previous guidance of $6.5 * $9.5 million.
Moving on to the full year 2024, The RealReal expects its GMV to reach $1.829 billion, surpassing the earlier guidance range of $1.810 * $1.826 billion. Total revenue is projected to be between $599.6 * $600.6 million, higher than the previous guidance of $595 * $602 million. The company anticipates its adjusted EBITDA for the full year to be between $9.0 * $9.5 million, up from the earlier guidance range of $4.7 * $7.7 million.
Looking ahead to the first quarter and full year of 2025, The RealReal has provided guidance for GMV, total revenue, and adjusted EBITDA. For the first quarter of 2025, the company expects GMV to be between $484 * $492 million, total revenue to be between $157 * $161 million, and adjusted EBITDA to be between $3.0 * $4.5 million. For the full year 2025, the company anticipates its GMV to be between $1.96 * $1.99 billion, total revenue to be between $645 * $660 million, and adjusted EBITDA to be between $20 * $30 million.
The RealReal has also completed strategic debt exchange transactions, reducing its total indebtedness by approximately $37 million and extending a significant portion of its 2028 maturities to 2031. This move has strengthened the company's financial position and enhanced its capital structure flexibility.
The company will release its actual financial results for the fourth quarter and full year ended December 31, 2024, after the market closes on February 20, 2025. The RealReal will host a conference call to review its financial results on the same day.
The RealReal's sustained growth and improved financial position reflect its ongoing commitment to delivering value to its stakeholders and advancing its strategic objectives. As a result of these announcements, the company's shares have moved -2.1% on the market, and are now trading at a price of $7.87. If you want to know more, read the company's complete 8-K report here.
