The RealReal (REAL) has been beaten down lately with too much selling pressure. While the stock has lost 7.3% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. How to Determine if a Stock is Oversold We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator ...

Kseniia Kapris/iStock via Getty Images With the stock market maneuvering back to all-time for investors to do some portfolio re-orientation and rotate out big winners for more value- ortented stocks. In particular, there are a number of stocks that posted strong Q2 results despite falling further amid the broader market recovery, and The RealReal (NASDAQ:REAL) is one of these stocks that deserves a hard second look. Shares of The RealReal have fallen nearly 30% since reporting Q2 results in early August, th ...

Consumers Take the Lead, Redefining Trends and Investing in Lasting Value SAN FRANCISCO, Aug. 21, 2024 (GLOBE NEWSWIRE) -- The RealReal – the world's largest online marketplace for authenticated, resale luxury goods — today released its seventh annual 2024 Luxury Resale Report. This comprehensive report uses 13 years of data to examine the current state of luxury resale, delves into the shopping and consignment behaviors of The RealReal's more than 37 million members, and spotlights key trends shaping deman ...

| --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------|-------|-------|--------------------------|-------|-------------| | | | | | | | | Make Well. Buy Well. Resell. Make Well. Buy Well. Resell. | | | | | | | | | | Q2 Earnings Presentation | | August 2024 | Confidential Safe Harbor/Disclosure Statement These materials contain forward-looking statements relating to, among other things, the future performance of The RealReal that are based on the company's curren ...

The RealReal (REAL) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to loss of $0.30 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 13.33%. A quarter ago, it was expected that this online luxury consignment site would post a loss of $0.14 per share when it actually produced a loss of $0.12, delivering a surprise of 14.29%. Over the last four quarters, the ...

Financial Data and Key Metrics Changes - The company reported a 17% year-over-year increase in consignment revenue for Q2 2024, with active buyers growing by 9% compared to the same period in 2023 [4] - Adjusted EBITDA for Q2 was negative $1.8 million, an improvement of $21 million year-over-year, marking the 11th consecutive quarter of year-over-year improvement [4] - Revenue for the first half of 2024 grew by $16 million, with adjusted EBITDA improving by $46 million compared to the prior year [4] Business Line Data and Key Metrics Changes - The consignment business remains a focus, contributing to the overall revenue growth [5] - Direct revenue is expected to stay within 9% to 10% of total revenue going forward, with Q2 being at the high end of that range [19] Market Data and Key Metrics Changes - The average selling price (ASP) in Q2 was down 3%, but this was offset by an increase in items per order, resulting in average order value (AOV) being flat year-over-year [8] - The company noted a modest pressure on consumer spending, with some price compression observed [8] Company Strategy and Development Direction - The company aims to deliver sustained growth and expand margins through sales, marketing, and store initiatives [5] - There is a focus on operational efficiencies and leveraging advancements in AI to enhance profitability [5] - The company is optimistic about the luxury resale market and is refining its approach to identify attractive markets for new stores [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA for the full year 2024, citing strong performance in the first half and the resilience of the business model [6][9] - The company is preparing for a seasonal peak in Q4, expecting GMV growth to accelerate compared to the first half [8][16] Other Important Information - The company highlighted the importance of its consignment model, which mitigates the impact of price changes on its bottom line [9] - The management emphasized the need to educate consumers on the value of luxury items compared to primary market prices [14] Q&A Session Summary Question: Clarification on guidance and GMV dynamics - Management expects GMV growth in the second half to accelerate, with a prudent outlook on potential consumer spending slowdown [8] Question: Trends in the luxury landscape and consumer behavior - Management noted increased price sensitivity among consumers but highlighted the ability to compensate through volume growth [13] Question: Insights on Q4 guidance and seasonal patterns - Management confirmed expectations of a typical seasonal increase from Q3 to Q4, with confidence stemming from healthy supply and consignor growth [16][17] Question: Future expectations for direct revenue - Direct revenue is expected to remain stable within the 9% to 10% range of total revenue, with improved margins anticipated [19]

Financial Performance - The company's gross merchandise value (GMV) increased by 4% to $440.9 million for the three months ended June 30, 2024, compared to $423.3 million for the same period in 2023[118]. - The net merchandise value (NMV) rose by 8% to $329.4 million for the three months ended June 30, 2024, up from $303.9 million in the prior year[118]. - Total revenue increased by 11% to $144.9 million for the three months ended June 30, 2024, compared to $130.9 million in the same period of 2023[118]. - Consignment revenue increased by $16.1 million, or 17%, to $112.7 million in Q2 2024 compared to Q2 2023, driven by a 4% increase in overall GMV and an improved take rate of 38.5%[153]. - Direct revenue decreased by $4.2 million, or 20%, to $16.7 million in Q2 2024 compared to Q2 2023, primarily due to planned actions to minimize vendor-purchased inventory[155]. - Shipping services revenue increased by $2.1 million, or 16%, to $15.5 million in Q2 2024 compared to Q2 2023, attributed to an increase in the number of orders and higher shipping fees[155]. - Total revenue for Q2 2024 was $144.9 million, up from $130.9 million in Q2 2023, reflecting a growth of 10.5%[150]. - The net loss for Q2 2024 was $16.7 million, an improvement from a net loss of $41.3 million in Q2 2023[150]. Operational Metrics - The company's take rate on consigned goods improved to 38.5% in the three months ended June 30, 2024, from 36.7% in the same period of 2023[116]. - The number of active buyers reached 381,000 for the three months ended June 30, 2024, compared to 351,000 in the same period of 2023[127]. - The percentage of GMV from repeat consignors was 85% for the three months ended June 30, 2024, compared to 84% for the same period in 2023[121]. - The average order value (AOV) remained stable at $538 for the three months ended June 30, 2024, compared to $537 in the same period of 2023[127]. - Active buyers metric reflects scale, brand awareness, and buyer engagement, indicating a strong market presence[136]. - Average Order Value (AOV) remains robust due to the focus on luxury goods, driving operating leverage[137]. Cost and Expense Management - Total cost of revenue decreased to $37.5 million in Q2 2024 from $44.7 million in Q2 2023, a reduction of 16%[150]. - Gross profit increased to $107.5 million in Q2 2024, compared to $86.2 million in Q2 2023, resulting in a gross margin improvement of 829 basis points[161]. - Operating expenses totaled $126.3 million in Q2 2024, slightly down from $127.1 million in Q2 2023, indicating a stable expense management[150]. - Marketing expenses decreased to $13.8 million in Q2 2024 from $15.4 million in Q2 2023, reducing the marketing expense as a percentage of revenue from 12% to 9%[162][163]. - Operations and technology expenses are projected to increase to support growth and investment in automation[145]. - Selling, general and administrative expenses are anticipated to decrease as a percentage of revenue over the long term[146]. - Selling, general and administrative expenses remained relatively flat at $93.9 million for the six months ended June 30, 2024, compared to $94.2 million in the same period of 2023[185]. - Selling, general and administrative expenses as a percentage of revenue decreased to 33% from 35% year-over-year[186]. Cash Flow and Financial Position - As of June 30, 2024, the company had cash and cash equivalents of $150.7 million and an accumulated deficit of $1,167.4 million[193]. - Net cash used in operating activities was $10.2 million for the six months ended June 30, 2024, compared to $60.9 million in the same period of 2023[199]. - Net cash used in investing activities was $10.3 million for the six months ended June 30, 2024, down from $27.3 million in the same period of 2023[200]. - The Company exchanged $145.8 million of 2025 Notes and $6.5 million of 2028 Notes for $135.0 million of 2029 Notes with a 13.00% annual interest rate[206]. - Cash requirements related to the 2029 Notes as of June 30, 2024, were $231.7 million, with $12.0 million expected to be paid within the next 12 months[208]. Debt and Interest - Interest expense increased by $3.1 million, or over 100%, to $(5.8) million for the three months ended June 30, 2024, due to contractual interest from the 2029 Notes issued in February 2024[170]. - Interest income decreased by $0.1 million, or 3%, to $4.3 million for the six months ended June 30, 2024[191]. - Interest expense increased by $4.2 million, or 78%, to $9.5 million for the six months ended June 30, 2024, due to the 2029 Notes issued in February 2024[192]. Restructuring and Adjustments - Restructuring charges include impairments and severance benefits, reflecting ongoing adjustments to operational efficiency[147]. - Restructuring charges were $0 for the three months ended June 30, 2024, compared to $1.9 million in the same period of 2023, indicating completion of prior restructuring efforts[167]. - Restructuring charges decreased by $38.1 million, or 99%, to $196,000 for the six months ended June 30, 2024, compared to $38.3 million in the same period of 2023[187]. Investment and Growth Strategy - The company continues to invest in technology and infrastructure to support future growth and enhance operational efficiency[124]. - The updated take rate structure allows consignors to earn a 20% commission on items sold under $100 and up to 90% on watches sold for over $7,500[135]. - The Company recorded a gain of $4.2 million from the Note Exchange, reflecting the difference between the carrying amount of the Exchanged Notes and the fair value of the 2029 Notes[210].

Exhibit 99.1 THE REALREAL ANNOUNCES SECOND QUARTER 2024 RESULTS Q2 2024 Revenue of $145 million, up $14 million or 11% Year-Over-Year Q2 2024 Net Loss of $(17) million, or (11.5%) of Total Revenue, an improvement of $25 million Year-Over-Year Q2 2024 Adjusted EBITDA of $(1.8) million or (1.2)% of Total Revenue, up $21 million Year-Over-Year SAN FRANCISCO, August 6, 2024 — The RealReal (Nasdaq: REAL)—the world's largest online marketplace for authenticated, resale luxury goods—today reported financial result ...

NEW YORK, June 13, 2024 (GLOBE NEWSWIRE) -- Today, The RealReal, the world's largest online marketplace for authenticated, resale luxury goods, unveils an installation of fake handbags at 301 Canal Street. In a moment where authenticity has never been so important, we're drawing attention to the pervasive counterfeit crisis and provocatively prompting passer-bys to ask themselves what's real, with the goal of starting a conversation about why it matters on a street synonymous with counterfeit culture. Strat ...

VAL The RealReal Inc (REAL) Price 3 55 4.00 3.55 3.00 2.00 1.00 Jan '24 Feb '24 Apr '24 Mar '24 May '24 Jun '24 Seeking Alpha X Jun 13, 2024, 12:18 AM EDT Powered by YC H A R T S Data by Y Charts Statements of Operations Amid this backdrop, I'm renewing my buy call on The RealReal, Here is my full long-term bull case for The RealReal: The RealReal Q1 results (The RealReal Q1 shareholder letter) | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------- ...