RealReal, Inc. has recently released its 10-K report, providing a detailed insight into its operations. The company, incorporated in 2011 and headquartered in San Francisco, California, operates as the world's largest online marketplace for authenticated resale luxury goods. RealReal offers various product categories, including women's and men's fashion, jewelry, and watches, primarily selling products through its online marketplace and retail stores.
In its 10-K report, RealReal emphasizes its focus on revolutionizing luxury resale by providing an end-to-end service that unlocks supply from consignors and creates a trusted, curated online marketplace for buyers globally. The company has cultivated a loyal and engaged consignor and buyer base through investments in its technology platform, logistics infrastructure, and people. RealReal offers a wide selection of authenticated, primarily pre-owned luxury goods on its online marketplace, bearing the brands of thousands of luxury and premium designers.
The company's revenue primarily comes from consignment sales, with consignment revenue reaching $473.4 million in 2024 and $415.6 million in 2023, reflecting an increase in its take rate from 37.5% in 2023 to 38.4% in 2024. RealReal also generates revenue from other services and direct sales, with direct revenue at $64.6 million in 2024, and shipping services revenue at $62.5 million in the same period.
RealReal's key financial and operating metrics for 2024, 2023, and 2022 include a Gross Merchandise Value (GMV) of $1.83 billion, $1.73 billion, and $1.82 billion, respectively. The company's active buyers reached 972,000 in 2024, compared to 922,000 in 2023, and 998,000 in 2022. The Average Order Value (AOV) also increased from $523 in 2023 to $545 in 2024, reflecting the company's ability to attract and retain buyers while driving higher purchase values.
RealReal's focus on consignor and buyer growth and retention is evident in its strategic approach. The company aims to capture the flywheel effect by having buyers also become consignors and vice versa. As of December 31, 2024, 15% of the buyers during the last twelve months also consigned items, and 48% of the consignors also made purchases, highlighting the interconnectedness of its consignor and buyer base.
Moreover, RealReal emphasizes the importance of efficiently managing expenses to attract and retain buyers, as reflected in its declining Buyer Acquisition Cost (BAC) over time. The company also continues to invest in physical infrastructure, technology, and talent to support the future growth of its business.
As a result of these announcements, the company's shares have moved -18.8% on the market, and are now trading at a price of $6.46. Check out the company's full 10-K submission here.
