Core Viewpoint - Rent the Runway, Inc. is set to release its third quarter 2024 financial results on December 9, 2024, before market open, and will host a conference call to discuss these results and provide a business update [1]. Company Overview - Founded in 2009, Rent the Runway is transforming 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, featuring 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 been recognized multiple times on CNBC's "Disruptor 50" and Fast Company's Most Innovative Companies list, highlighting its significant impact in the fashion industry [4].

Core Viewpoint - Rent the Runway, Inc. (RENT) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks Consensus Estimate for Rent the Runway indicates an expected loss of -$19.08 per share for the fiscal year ending January 2025, reflecting a year-over-year change of 40.2% [5]. - Over the past three months, analysts have raised their earnings estimates for Rent the Runway by 14.1% [5]. Impact of Earnings Estimates - Changes in a company's future earnings potential, as shown through earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, which influences their buying and selling actions, subsequently affecting stock prices [3]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. - The upgrade of Rent the Runway to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [6].

Micro-Cap Stocks Overview - Micro-cap stocks are generally defined as companies with market capitalizations between $50 million and $300 million, but this is not a strict classification as prices can fluctuate significantly [1] - Investing in micro-cap stocks can lead to substantial returns, as evidenced by NVIDIA's market cap of $279 million at its IPO in 1999, which would have turned a $10,000 investment into over $31 million today, representing a total return of over 300,000% [2] - Conversely, micro-cap stocks can also lead to total loss of investment, illustrated by SunPower's delisting and subsequent bankruptcy [3] Rent the Runway - Rent the Runway, a pioneer in the clothing rental market, is currently trading at $9.13 with a 52-week range of $4.46 to $41.81 and a price target of $25.86 [4] - The company is improving its financial situation and aims to break even on cash flow this year, although it is experiencing a decline in subscribers while competitors like Nuuly are growing rapidly [5] - In August, Rent the Runway reported a 20% increase in orders in its "reserve" segment, which is expected to attract more monthly subscribers [5] - Improvements to the website have nearly doubled the checkout completion rate compared to the first half of the year, indicating increased customer purchasing behavior [6] 374Water - 374Water, a wastewater treatment company, is testing new technology with the City of Orlando and is currently trading at $1.27 with a price target of $3.00 [7] - Successful tests could lead to significant revenue as the city intends to purchase multiple units if the trials are successful [8] - The Orlando operation will also serve as a demonstration site for potential federal and industrial customers, which could expand the company's market reach [8][9] Skye Bioscience - Skye Bioscience is a clinical-stage pharmaceutical company developing a CB1 inhibitor for weight loss, currently trading at $3.52 with a price target of $18.67 [10][11] - The drug aims to provide weight loss effects similar to GLP-1 agonists but through a different mechanism, potentially opening a new market for customers [11] - There are concerns regarding the negative psychological effects associated with CB1 inhibitors, as seen in recent results from Novo Nordisk, which impacted its stock price [12] - Skye released a statement suggesting that its drug could mitigate these negative effects and has entered Phase 2 trials as of August [12]

Group 1: Company Overview - Rent the Runway (RTR) is a fashion company that allows customers to rent high-priced designer garments, specifically catering to women, providing access to luxury clothing at a lower cost than purchasing [2][3] - The company aims to offer an "unlimited closet" experience, allowing customers to swap garments whenever they like, generating revenue primarily through subscription fees ranging from $94 to $235 per month [3] Group 2: Financial Performance - RTR has improved its profitability, increasing its gross margin by nearly 600 basis points since fiscal year 2021, with an adjusted EBITDA margin exceeding 17% last quarter, a 700+ basis point increase from the previous year [4] - Free cash flow has significantly improved, with a loss of $6 million in the first half of 2024 compared to a loss of $30 million in the same period of 2023, with expectations to break even on cash flow in 2024 [5][6] Group 3: Competitive Landscape - RTR's active subscribers have declined by 3% year over year, while competitors like Nuuly have seen a 55% growth in active subscribers, indicating a competitive disadvantage for RTR [8][10] - Nuuly, owned by Urban Outfitters, has a significant advantage in offering a wider variety of clothing options and a lower price point, which contributes to its superior growth compared to RTR [10] Group 4: Market Sentiment and Valuation - Despite challenges, RTR's low valuation is notable, trading at nearly one-tenth of its projected sales over the next twelve months, which has attracted interest from some Wall Street analysts [12] - Analysts have set a price target of $26 per share for RTR, suggesting a potential upside of 180% from its current trading price of $9.31 [1][11]

Rent the Runway, Inc. (RENT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Si ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________ ____________________________ FORM 10-Q ____________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to ________ Commission file number 001-40958 RENT THE RUNWAY, IN ...

Rent the Runway, Inc. (NASDAQ:RENT) Q2 2024 Earnings Conference Call September 5, 2024 4:30 PM ET Corporate Participants Cara Schembri - Chief Legal & Administrative Officer Jennifer Hyman - Co-Founder, Chief Executive Officer and Chair Siddharth Thacker - Chief Financial Officer Conference Call Participants Matt Condon - Citizens JMP Securities Ashley Helgans - Jefferies Operator Welcome to Rent the Runway's Second Quarter 2024 Earnings Results Conference Call. At this time, all participants are on a liste ...

Rent the Runway, Inc. (RENT) came out with a quarterly loss of $4.17 per share versus the Zacks Consensus Estimate of a loss of $5.86. This compares to loss of $8 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 28.84%. A quarter ago, it was expected that this company would post a loss of $6.56 per share when it actually produced a loss of $6.03, delivering a surprise of 8.08%. Over the last four quarters, the company has surpa ...

Exhibit 99.1 Rent the Runway, Inc. Announces Second Quarter 2024 Results Exceeded Revenue and Adjusted EBITDA Guidance for Q2 2024. Continued Improvement in Business Momentum in Q2 2024. Record Low Cash Consumption in 1H 2024. Raised FY24 Revenue Guidance Underscores Confidence in Business Trajectory. Reiterates Expectation for Free Cash Flow Breakeven in FY 2024. New York (September 5, 2024) - Rent the Runway, Inc. ("Rent the Runway" or "RTR") (NASDAQ: RENT), transforming the way women get dressed by pione ...

Exceeded Revenue and Adjusted EBITDA Guidance for Q2 2024. Continued Improvement in Business Momentum in Q2 2024. Record Low Cash Consumption in 1H 2024. Raised FY24 Revenue Guidance Underscores Confidence in Business Trajectory. Reiterates Expectation for Free Cash Flow Breakeven in FY 2024. NEW YORK, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Rent the Runway, Inc. ("Rent the Runway" or "RTR") (NASDAQ: RENT), transforming the way women get dressed by pioneering the world's first Closet in the Cloud, today reported ...