Rent the Runway(US:RENT)2024-12-09 13:07Revenue 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]