Q4 2024 Earnings Presentation April 15, 2025 RENT THE RUNWAY Forward-Looking Statements Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this presentation that do not relate to maers of historical fact should be considered forward-looking statements. These statements include, but are not limited to, statements regarding Rent the Runway, Inc.'s (the "Company," "our" or "we") guidance and underlying a ...

Financial Data and Key Metrics Changes - The company improved its cash position, reducing cash consumption from a decline of $70.5 million in fiscal year 2023 to a decline of only $6.6 million at the end of fiscal year 2024, resulting in record low cash consumption [9] - Total revenue for Q4 2024 was $76.4 million, up $0.6 million or 0.8% year-over-year [50] - Adjusted EBITDA for Q4 2024 was $17.4 million or 22.8% of revenue, compared to $11.2 million or 14.8% of revenue in the prior year [53] - Free cash flow for the 12 months ended January 31, 2025, was negative $7.2 million, an improvement from negative $70.3 million in the previous year [54] Business Line Data and Key Metrics Changes - Subscription and reserve rental revenue decreased by 1.2% year-over-year in Q4 2024, primarily due to lower average subscribers [51] - Fulfillment expenses were $20.2 million in Q4 2024, slightly higher than $20.1 million in Q4 2023, but lower as a percentage of revenue [51] - Gross margins were 37.7% in Q4 2024, down from 39.4% in Q4 2023, reflecting higher revenue share costs [52] Market Data and Key Metrics Changes - Ending active subscribers decreased to 119,778, down approximately 4.9% year-over-year [48] - Average active subscribers during the quarter were 126,148, a decrease of 2.1% compared to the prior year [48] Company Strategy and Development Direction - The company is focusing on a disciplined growth strategy rather than growth at all costs, with plans to invest in inventory to unlock customer growth and retention [10][36] - A significant investment in inventory is planned for 2025, with expectations to double the number of new inventory units year-over-year [26] - The company aims to enhance customer loyalty and retention through improved inventory depth and variety, responding to customer feedback [21][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to operate at nearly break-even levels while maintaining steady revenue [46] - The company anticipates double-digit ending active subscriber growth for fiscal year 2025, despite expected cash consumption between negative $30 million and negative $40 million [62] - Management emphasized the importance of inventory in improving customer loyalty and driving growth [82] Other Important Information - The company has restructured its customer service team to focus more on proactive engagement, which has led to improved customer satisfaction scores [17][16] - The company is leveraging its data to identify and collaborate with desirable brands, enhancing its inventory offerings [38][25] Q&A Session Summary Question: Can you help us understand the cash flow guidance and the drivers of it? - Management indicated that the increase in inventory and the share by RTR program are significant factors driving cash flow guidance, with a notable increase in capital expenditures expected [72][74] Question: How are consumers reacting to recent economic volatility and tariffs? - Management noted that renting offers considerable value compared to buying, and they are focused on addressing customer pain points through increased inventory [76][78] Question: Can you speak to the changes in customer experience due to inventory investments? - Management highlighted that the doubling of inventory will significantly enhance customer experience, with more new arrivals and better brand offerings [84][86]

Financial Performance - Revenue for fiscal year 2024 was $306.2 million, a 2.7% increase year-over-year from $298.2 million in fiscal year 2023[15]. - Net loss for fiscal year 2024 was $(69.9) million, compared to $(113.2) million in fiscal year 2023, representing a net loss as a percentage of revenue of (22.8)%, down from (38.0)%[15]. - Adjusted EBITDA for fiscal year 2024 was $46.9 million, compared to $26.9 million in fiscal year 2023, with an adjusted EBITDA margin of 15.3%[15]. - For fiscal year 2025, the company expects revenue between $68 million and $70 million and free cash flow between $(30) million and $(40) million[15]. - The net loss for the year ended January 31, 2025, was $69.9 million, compared to a net loss of $113.2 million for the year ended January 31, 2024, indicating an improvement of 38.2%[34]. - Total revenue for the three months ended January 31, 2025, was $76.4 million, a slight increase from $75.8 million in the same period of 2024, representing a growth of 0.8%[32]. - Subscription and Reserve rental revenue decreased to $64.6 million in Q1 2025 from $65.4 million in Q1 2024, a decline of 1.2%[32]. - Adjusted EBITDA for the three months ended January 31, 2025, was $17.4 million, representing an Adjusted EBITDA margin of 22.8%, compared to $11.2 million and 14.8% in the prior year[38]. - Free Cash Flow for the three months ended January 31, 2025, was $2.1 million, with a Free Cash Flow Margin of 2.7%, contrasting with a Free Cash Flow of $(3.4) million and a margin of (4.5)% in the previous quarter[40]. Subscriber Metrics - Active subscribers at the end of fiscal year 2024 were 119,778, a decrease of 5% from 125,954 at the end of fiscal year 2023[11]. - The company aims to return to subscriber growth in fiscal year 2025, focusing on customer loyalty and inventory reinvestment[2][6]. Cash and Liquidity - Cash and cash equivalents at the end of fiscal year 2024 were $77.4 million, with a decline in cash consumption from $(70.5) million in fiscal year 2023 to $(6.6) million[4][15]. - The company reported a cash and cash equivalents balance of $77.4 million as of January 31, 2025, down from $84.0 million as of January 31, 2024, a decrease of 7.9%[30]. - The company experienced a total net cash used in operating activities of $12.9 million for the year ended January 31, 2025, compared to $(15.7) million in the previous year[40]. - The company reported net cash provided by operating activities of $1.4 million for the three months ended January 31, 2025, compared to $4.7 million for the three months ended October 31, 2024[40]. Inventory and Customer Retention - The company announced the largest inventory acquisition in its history, expecting to approximately double the new inventory in fiscal year 2025[2][7]. - Customer retention improved by 8% in fiscal year 2024 compared to fiscal year 2023, attributed to increased inventory depth[15]. - The company plans to increase units from the Share by RTR program to approximately 62% of total units in fiscal year 2025, a 2.5x increase versus fiscal year 2024[10]. Debt and Liabilities - Long-term debt increased to $333.7 million as of January 31, 2025, from $306.7 million as of January 31, 2024, an increase of 8.8%[30]. - Total liabilities rose to $422.5 million as of January 31, 2025, compared to $400.8 million as of January 31, 2024, reflecting a growth of 5.4%[30]. - Total assets decreased from $278.5 million as of January 31, 2024, to $240.0 million as of January 31, 2025, a reduction of 13.8%[30]. Other Financial Metrics - The weighted-average shares used in computing net loss per share increased to 3,897,238 for the three months ended January 31, 2025, compared to 3,530,973 for the same period in 2024, an increase of 10.4%[32]. - For the three months ended January 31, 2025, the net loss was $13.4 million, an improvement from a net loss of $24.8 million for the same period in 2024[38]. - The company reported a total of $24.2 million in interest expense for the year ended January 31, 2025, down from $33.7 million in the previous year[38]. - The write-off of liquidated assets was $2.7 million for the three months ended January 31, 2025, compared to $0.8 million in the same period of 2024[38]. - The company incurred restructuring charges related to severance and related costs, amounting to $2.0 million for the three months ended January 31, 2024[38]. - Total depreciation for rental products was $17.0 million for the three months ended January 31, 2025, up from $16.7 million in the same period of 2024[38]. - Proceeds from the sale of rental products amounted to $8.0 million for the three months ended January 31, 2025, compared to $6.5 million in the previous quarter[40].

Core Insights - Rent the Runway, Inc. reported a significant improvement in cash consumption, with a decline of only $6.6 million in fiscal year 2024 compared to a decline of $70.5 million in fiscal year 2023, indicating a record low cash burn [1][3][5] - The company announced its largest inventory acquisition in history, with plans to double the new inventory on the platform in fiscal year 2025, aiming to enhance customer experience and drive subscriber growth [1][8][12] - Rent the Runway expects a return to subscriber growth in fiscal year 2025, supported by a disciplined growth strategy and a focus on customer loyalty [4][5][11] Financial Performance - For fiscal year 2024, total revenue was $306.2 million, a 2.7% increase from $298.2 million in fiscal year 2023 [12] - The company reported a net loss of $69.9 million for fiscal year 2024, an improvement from a net loss of $113.2 million in fiscal year 2023 [12][30] - Adjusted EBITDA for fiscal year 2024 was $46.9 million, compared to $26.9 million in fiscal year 2023, with an adjusted EBITDA margin of 15.3% [12][34] Subscriber Metrics - As of January 31, 2025, Rent the Runway had 119,778 active subscribers, a decrease of 5% from 125,954 at the end of fiscal year 2023 [12] - Average active subscribers for fiscal year 2024 were 132,574, reflecting a 2% decrease year-over-year [12] - The company improved customer retention by 8% in fiscal year 2024 compared to fiscal year 2023, attributed to increased inventory depth [12][7] Inventory and Customer Experience Initiatives - The company launched a "We Heard You" customer campaign to enhance customer engagement and satisfaction, focusing on inventory that customers desire [8] - The Share by RTR program is expected to account for approximately 62% of total units in fiscal year 2025, representing a 2.5x increase from fiscal year 2024 [8] - New customer experience initiatives include a 60-day risk-free renting promise and personalized onboarding through customer service calls [8]

Company Overview - Rent the Runway, Inc. is disrupting the trillion-dollar fashion industry with its "Closet in the Cloud" concept, allowing women to feel their best every day [4] - The company offers subscription services, a-la-carte rentals, and resale shopping from hundreds of designer brands, providing a wide assortment of millions of items for various occasions [4] - Under the leadership of CEO and Co-Founder Jennifer Hyman, Rent the Runway has received multiple accolades, including being named to CNBC's "Disruptor 50" five times and Fast Company's Most Innovative Companies list four times [4] Upcoming Financial Results - Rent the Runway is set to release its fourth quarter and fiscal year 2024 financial results on April 15, 2025, before market open [1] - A conference call and live webcast will be held at 8:30 a.m. Eastern Time on the same day to discuss the results and provide a business update [1] Accessing Information - The financial results and live webcast will be accessible through the Investor Relations section of Rent the Runway's website [2] - A replay of the conference call will be available for at least fourteen days after the call [3]

Q1 2024 Earnings Presentation June 6, 2024 RENT THE RUNWAY 3 TBU RENT THE RUNWAY 3 Contents Recent Business Highlights 02 Q2 + FY2024 Guidance 03 RENT THE RUNWAY Q 1 2024 Summary 4 RENT THE RUNWAY Forward-Looking Statements Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this presentation that do not relate to maers of historical fact should be considered forward-looking statements. These statement ...

Q2 2024 Earnings Presentation September 5, 2024 3 3 Contents Recent Business Highlights 02 Q3 + FY 2024 Guidance 03 RENT THE RUNWAY Forward-Looking Statements Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this presentation that do not relate to maers of historical fact should be considered forward-looking statements. These statements include, but are not limited to, statements regarding Rent the ...

Q3 2024 Earnings Presentation December 9, 2024 RENT THE RUNWAY Forward-Looking Statements Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this presentation that do not relate to maers of historical fact should be considered forward-looking statements. These statements include, but are not limited to, statements regarding Rent the Runway, Inc.'s (the "Company," "our" or "we") future results of opera ...

Revenue and Growth - Revenue for the three months ended October 31, 2024 was $75.9 million, representing 4.7% year-over-year growth[120] - Revenue for the nine months ended October 31, 2024 was $229.8 million, representing 3.3% year-over-year growth[120] - Total revenue increased by $3.4 million (4.7%) to $75.9 million for the three months ended October 31, 2024, driven by higher Reserve revenue and increased average selling price per unit[160] - Subscription and Reserve rental revenue grew by $1.6 million (2.5%) to $66.3 million, driven by higher Reserve revenue and average revenue per subscriber[161] - Other revenue increased by $1.8 million (23.1%) to $9.6 million, representing 12.6% of total revenue, up from 10.8% in the same period last year[162] - Total revenue increased by $7.4 million (3.3%) to $229.8 million for the nine months ended October 31, 2024, driven by higher units purchased per subscriber[179] - Other revenue increased by $6.0 million (26.2%) to $28.9 million for the nine months ended October 31, 2024, representing 12.6% of total revenue, up from 10.3% in the same period last year[182] Gross Profit and Margin - Gross Profit for the three months ended October 31, 2024 was $26.3 million, with a gross margin of 34.7%[120] - Gross Profit for the nine months ended October 31, 2024 was $87.1 million, with a gross margin of 37.9%[120] - Gross Profit for the three months ended October 31, 2024 was $26.3 million, with a Gross Margin of 34.7%, compared to $25.2 million and 34.8% for the same period in 2023[140] Net Loss and Adjusted EBITDA - Net Loss for the three months ended October 31, 2024 was $(18.9) million, representing (24.9)% of revenue[120] - Net Loss for the nine months ended October 31, 2024 was $(56.5) million, representing (24.6)% of revenue[120] - Adjusted EBITDA for the three months ended October 31, 2024 was $9.3 million, with an Adjusted EBITDA Margin of 12.3%[120] - Adjusted EBITDA for the nine months ended October 31, 2024 was $29.5 million, with an Adjusted EBITDA Margin of 12.8%[120] - Adjusted EBITDA for the three months ended October 31, 2024 was $9.3 million, with a margin of 12.3%, compared to $3.5 million and 4.8% for the same period in 2023[142] - Adjusted EBITDA increased to $29.5 million for the nine months ended October 31, 2024, with a margin of 12.8%, up from $15.7 million and 7.1% in the same period last year[201] - Net loss for the three months ended October 31, 2024 was $(18.9) million, compared to $(31.5) million for the same period in 2023[203] - Adjusted EBITDA for the three months ended October 31, 2024 was $9.3 million, compared to $3.5 million for the same period in 2023[203] - Adjusted EBITDA margin for the three months ended October 31, 2024 was 12.3%, compared to 4.8% for the same period in 2023[203] Subscribers and Retention - Active Subscribers as of October 31, 2024 were 132,518, showing 1% year-over-year growth[120] - Active Subscribers increased to 132,518 as of October 31, 2024, up from 131,725 as of October 31, 2023, driven by improved subscriber retention[136] Costs and Expenses - Total costs and expenses decreased by $4.8 million (5.1%) to $89.6 million, primarily due to cost savings from the January 2024 restructuring plan and improved warehouse labor productivity[163] - Fulfillment expenses decreased by $0.1 million (0.5%) to $21.4 million, representing 28.2% of revenue, down from 29.7% in the same period last year[165] - Technology expenses decreased by $3.4 million (28.1%) to $8.7 million, representing 11.5% of revenue, down from 16.7% in the same period last year[167] - Marketing expenses remained flat at $7.1 million, with non-personnel costs at $6.4 million, representing 8.4% of revenue[169] - General and administrative expenses decreased by $3.2 million (13.1%) to $21.2 million, representing 27.9% of revenue, down from 33.7% in the same period last year[171] - Rental product depreciation and revenue share increased by $2.4 million (9.3%) to $28.2 million, representing 37.2% of revenue, up from 35.6% in the same period last year[173] - Other depreciation and amortization decreased by $0.5 million (14.3%) to $3.0 million for the three months ended October 31, 2024, driven by lower depreciation from machinery and equipment and reusable packaging[174] - Total costs and expenses decreased by $13.5 million (4.8%) to $269.6 million for the nine months ended October 31, 2024, driven by lower share-based compensation and cost savings from the January 2024 restructuring plan[183] - Fulfillment expenses decreased by $3.3 million (5.0%) to $62.6 million for the nine months ended October 31, 2024, representing 27.2% of revenue, down from 29.6% in the same period last year[184] - Technology expenses decreased by $11.1 million (29.1%) to $27.0 million for the nine months ended October 31, 2024, driven by cost savings from the January 2024 restructuring plan[187] - General and administrative expenses decreased by $10.6 million (13.8%) to $66.2 million for the nine months ended October 31, 2024, representing 28.8% of revenue, down from 34.5% in the same period last year[191] - Rental product depreciation and revenue share increased by $13.4 million (20.1%) to $80.1 million for the nine months ended October 31, 2024, representing 34.9% of revenue, up from 30.0% in the same period last year[193] Cash and Liquidity - Cash and Cash Equivalents as of October 31, 2024 was $74.1 million[120] - Cash and cash equivalents as of October 31, 2024 were $74.1 million, with restricted cash of $9.0 million[204] - Net cash provided by operating activities for the nine months ended October 31, 2024 was $11.5 million, compared to $(7.7) million for the same period in 2023[213] - Net cash used in investing activities for the nine months ended October 31, 2024 was $(20.8) million, compared to $(39.6) million for the same period in 2023[213] - The company expects to achieve cash flow break-even in fiscal year 2024[208] - The 2023 Amended Temasek Facility eliminates all interest payments for six full fiscal quarters starting from Q4 2023[207] - The company filed a shelf registration statement allowing it to offer securities up to $40 million[210] - Net cash used in investing activities for the nine months ended October 31, 2023 was $(39.6) million, primarily due to $(56.3) million in rental product purchases and $(3.2) million in fixed and intangible asset purchases[218] - The company had $326.7 million of total debt outstanding as of October 31, 2024, with none maturing within the next 12 months[220] - The 2023 Amended Temasek Facility eliminated all interest for six fiscal quarters starting Q4 2023 and reduced the minimum liquidity covenant from $50 million to $30 million[220] Debt and Interest - Net interest expense decreased by $3.9 million (39.0%) to $6.1 million for the three months ended October 31, 2024, primarily due to reduced PIK and cash interest from the 2023 Amended Temasek Facility[177] - The 2023 Amended Temasek Facility is expected to reduce cash interest payments during fiscal years 2024 and 2025, improving overall liquidity[129] - The 2023 Amended Temasek Facility eliminates all interest payments for six full fiscal quarters starting from Q4 2023[207] - The 2023 Amended Temasek Facility eliminated all interest for six fiscal quarters starting Q4 2023 and reduced the minimum liquidity covenant from $50 million to $30 million[220] Operational Efficiency and Cost Management - The company expects transportation costs to decrease as a percentage of sales in fiscal year 2024 due to transportation efficiencies and a new transportation contract[133] - The company anticipates higher sales projections and the impact of increasing rental product depth to decrease purchases of rental product as a percentage of revenue in fiscal year 2024[127] - The company plans to continue driving fulfillment and operational efficiency gains to offset cost increases and strategically evolve its mix of revenue and product acquisition[140] - The company expects to reduce fixed costs as a percentage of total revenue in fiscal year 2024, with operating costs growing more slowly than total revenue[127] - Purchases of rental product as a percentage of revenue decreased to 26% in fiscal year 2023 from 21% in 2022 and 15% in 2021, with expectations of further decrease in fiscal year 2024[127] - 61% of new items were acquired through non-Wholesale channels in fiscal year 2023, up from 58% in 2022 and 55% in 2021, with plans to further increase this percentage in fiscal year 2024[127] Internal Controls and Financial Reporting - Material weaknesses in internal control over financial reporting were identified as of October 31, 2024, including insufficient evidence of control operation and ineffective IT general controls[230] - Remediation efforts include formalizing control procedures, improving segregation of duties, and implementing IT general controls[232] - The company continues to implement comprehensive access control protocols and program change management controls to address material weaknesses[234] - No changes in internal control over financial reporting during the quarter ended October 31, 2024 materially affected the company's controls[235] - The company concluded no impairment was necessary for long-lived assets as of October 31, 2023, as undiscounted cash flows exceeded carrying values[224]

Revenue Performance - Revenue for Q3 2024 was $75.9 million, a 4.7% increase year-over-year from $72.5 million in Q3 2023[10] - Total revenue for the three months ended October 31, 2024, was $75.9 million, a 4.7% increase from $72.5 million in the same period last year[30] - Subscription and reserve rental revenue increased to $66.3 million for the three months ended October 31, 2024, compared to $64.7 million for the same period last year, reflecting a growth of 2.5%[30] - For fiscal year 2024, the company anticipates revenue growth of 2% to 4% compared to fiscal year 2023[11] - The company expects Q4 2024 revenue to be between $74.4 million and $80.3 million[11] Subscriber Metrics - Active Subscribers at the end of Q3 2024 were 132,518, representing a 1% increase from 131,725 in Q3 2023[10] Profitability and Loss - Net loss for Q3 2024 was $(18.9) million, significantly improved from $(31.5) million in Q3 2023, with net loss as a percentage of revenue decreasing to (24.9)% from (43.4)%[10] - Net loss for the three months ended October 31, 2024, was $18.9 million, an improvement from a net loss of $31.5 million in the same period last year[30] - Operating loss for the nine months ended October 31, 2024, was $39.8 million, compared to $60.7 million for the same period last year, indicating a reduction of 34.4%[30] - Adjusted EBITDA for Q3 2024 was $9.3 million, compared to $3.5 million in Q3 2023, with an adjusted EBITDA margin of 12.3%[10] - Adjusted EBITDA for the nine months ended October 31, 2024, was $29.5 million, up from $15.7 million in the same period of 2023, indicating an 88.5% increase[42] - Adjusted EBITDA Margin for the three months ended October 31, 2024, was 12.3%, compared to 4.8% for the same period in 2023, reflecting a substantial increase in profitability[38] Cash Flow and Liquidity - Free cash flow consumption improved to $9 million for the nine months ending October 31, 2024, which is $38 million lower than the same period in 2023[7] - The company aims for free cash flow breakeven on a full-year basis for FY 2024[5] - Free Cash Flow for the nine months ended October 31, 2024, was $(9.3) million, a significant improvement from $(47.3) million in the same period of 2023[42] - Free Cash Flow Margin for the nine months ended October 31, 2024, was (4.0)%, an improvement from (21.3)% in the same period of 2023[40] - The company reported a net cash provided by operating activities of $11.5 million for the nine months ended October 31, 2024, compared to a net cash used of $7.7 million in the same period last year[32] - The company reported a net cash used in operating activities of $11.5 million for the nine months ended October 31, 2024, compared to $(7.7) million in the same period of 2023[40] Asset and Liability Management - Total current assets decreased to $88.3 million as of October 31, 2024, down from $102.2 million as of January 31, 2024, representing a decline of 13.6%[28] - Total liabilities increased to $422.8 million as of October 31, 2024, compared to $400.8 million as of January 31, 2024, marking a rise of 5.0%[28] - Total stockholders' equity (deficit) was $(171.2) million as of October 31, 2024, compared to $(122.3) million as of January 31, 2024, reflecting a deterioration in equity position[28] Operational Improvements - The company has achieved the fastest year-over-year growth in Reserve orders since Q1 2022, attributed to operational improvements[7] - Launched a new 1-Shipment Subscription Plan for $119 per month, providing access to a full RTR Subscription closet[7] Depreciation and Expenses - The company incurred $28.2 million in rental product depreciation and revenue share for the three months ended October 31, 2024, up from $25.8 million in the same period last year, an increase of 9.3%[30] - Total rental product depreciation for the nine months ended October 31, 2024, was $47.6 million, compared to $40.4 million in the same period of 2023, showing a 30.0% increase[42] - Interest expense for the nine months ended October 31, 2024, was $17.7 million, down from $28.3 million in the same period of 2023, a reduction of 37.5%[42] - Purchases of rental product for the nine months ended October 31, 2024, totaled $41.4 million, down from $56.3 million in the same period of 2023, indicating a 26.5% decrease[42] Non-recurring Adjustments - The company recognized $0.1 million in non-recurring adjustments related to one-time professional fees for the three months ended October 31, 2024[38]