EX-99.1 2 real-ex991_7.htm EX-99.1 real-ex991_7.htm

Exhibit 99.1

 

THE REALREAL ANNOUNCES FOURTH QUARTER AND FULL YEAR 2020 RESULTS

 

Returned to Growth, December GMV +6% Y/Y; Q1 2021 QTD GMV Growth +14% Y/Y

 Q4 Total Supply Units Shipped Increased 13% Y/Y; December Growth Exceeded 20% Y/Y

Q4 New Buyers Reached a Quarterly Record, Increasing 21% Y/Y

 

SAN FRANCISCO, Feb. 22, 2021 — The RealReal (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods—today reported financial results for its fourth quarter and full year ended Dec. 31, 2020.  

“With improving trends in Q4, culminating in December GMV increasing 6% Y/Y, we exited the year with strong momentum. Q1 2021 GMV grew 14% Y/Y quarter to date through Feb. 19, 2021, so  that momentum continues and we are optimistic about the year ahead. Last year, we embarked on strategic initiatives surrounding our neighborhood stores, vendor program and authentication center expansion that will enable us to emerge a stronger company, ” said Julie Wainwright, founder and CEO of The RealReal.

Supply and GMV growth are the lifeblood of The RealReal’s marketplace and drive its success and path to profitability. Supply trends continued to improve in Q4. Total units shipped to the company’s authentication centers improved approximately 10% Q/Q and increased 13% Y/Y in Q4, with growth exceeding 20% Y/Y in December. Retail supply units from The RealReal’s retail locations (stores and Luxury Consignment Offices) improved dramatically in Q4, increasing 70% Y/Y driven by marketing execution and the contribution of new retail locations. Supply continues to sell quickly, with the company’s four-day sell-through continuing to trend at pre-COVID levels. New buyers achieved a quarterly record, increasing 21% Y/Y.

The RealReal continues to execute on its retail strategy of opening smaller footprint neighborhood stores. In Q4, the company opened a neighborhood store in Palo Alto, Calif., followed by additional stores in Brooklyn, N.Y., and Newport Beach, Calif., in Q1. In December, approximately 30% of the company’s new consignors came from its retail locations. The RealReal plans to open approximately 10 neighborhood stores by the end of Q2 to deeply engage with the company’s most valuable customers and significantly unlock supply. Based on our data:

 

Consignors who interact with a RealReal retail location consign more than 1.5x as much retail value as other consignors;

 

Buyers who purchase in store and online spend more than 3x as much per year as online-only buyers;

 

Buyers who engage with The RealReal’s stores have higher NPS scores than online-only buyers; and

 

Buyers who interact with The RealReal’s retail locations have higher average order values (AOVs) and higher order frequency than online-only buyers.

“We exited 2020 with our marketplace back to GMV growth, supply momentum increasing and widespread vaccine distribution hopefully around the corner. Growth is a powerful driver of profitability as it enables us to realize efficiencies in our operations, leverage our fixed expenses, and negotiate better rates with our service providers. We remain focused on executing our growth recovery plans and have accelerated the timeline for opening our new Arizona authentication center to support our next phase of growth. We will continue building on the strong momentum of the past several months to position us to profitably capitalize on the large luxury resale opportunity ahead,” continued Wainwright. 

1


 

Fourth Quarter Financial Highlights

 

Gross Merchandise Volume (GMV) was $301.2 million, a 235bps Q/Q improvement and a 1% Y/Y decrease.

 

Total Revenue was $84.6 million, a 10% Y/Y decrease.1

 

Consignment and Service Revenue was $69.1 million, a 16% Y/Y decrease1.

 

Direct Revenue was $15.5 million, a 38% Y/Y increase.

 

Gross Profit was $51.1 million, a 18% Y/Y decrease.1

 

Net Loss was ($53.0 million).

 

Adjusted EBITDA was ($35.8) million or (42.3%) of total revenue. Adjusted EBITDA includes $1.6 million of COVID-related expenses.

 

GAAP basic and diluted net loss per share was ($0.60).

 

Non-GAAP basic and diluted net loss per share was ($0.49).  

 

At the end of the fourth quarter, cash, cash equivalents and short-term investments totaled $354.9 million.

 

Other Fourth Quarter Financial Highlights and Key Operating Metrics

 

Trailing 12 months active buyers reached 648,856, an increase of 12% Y/Y.

 

New buyers achieved a quarterly record and increased 21% Y/Y versus down 9% Y/Y in Q3.

 

Orders reached 671,278, a 10% Q/Q improvement and a 5% Y/Y increase.

 

Average Order Value (AOV) was $449, a decrease of 6% Y/Y, and was driven primarily by lower units per transaction. Average selling price (ASP) was essentially flat Y/Y in Q4 and benefited from ASP strength in the Fine Jewelry category and strong demand in high-value handbags, which was offset by momentum with new buyers who usually transact at lower AOVs initially.

 

Consignment Take Rate decreased 50bps Y/Y to 35.7%, reflecting strong performance on a relative basis from lower-take-rate categories (such as handbags, jewelry and sneakers) and a greater mix of consignors earning higher commissions. 

 

GMV from repeat buyers was 82.4% compared to 82.9% in the fourth quarter of 2019.

 

In Q4, we signed a lease for an authentication center in Phoenix, which we plan to begin operating from during the summer of 2021. The Phoenix facility will create more than 1,500 local, full-time jobs over the next five years offering competitive pay, rewards and benefits.

 

Our 2020 sell-through percent was 99%, an increase from 94% in 2019. Sell-through percent represents the ratio of GMV to initial supply value for the specified year.

 

 

(1) Reflects a $2.2 million prior period adjustment. Excluding the $2.2 million prior period adjustment, total revenue was $86.8 million, a decrease of 7% Y/Y, consignment and service revenue was $71.3 million, a 14% Y/Y decrease, and gross profit was $53.4 million, a 15% Y/Y decrease. See Non-GAAP Financial Measures below.


 

 

 

Since The RealReal’s inception in 2011 through Dec. 31, 2020, consignment with The RealReal saved 17,023 metric tons of carbon and 827 million liters of water. In 2020 alone, members saved the equivalent of the GHG emissions from 7.4 million driving miles and 712 million glasses of water by consigning with The RealReal.

 

Consignment of Gucci items grew 2.5 times faster than overall consignment following the launch of our partnership on Oct. 5 through the end of the year, a testament to the success of our collaboration. As a further result of our groundbreaking partnership, together with Gucci, The RealReal is planting more than 35,000 trees with One Tree Planted. 

 

Financial Outlook

We anticipate Q1 GMV will be in the range of $301 million to $310 million, representing a 17% to 20% Y/Y growth rate.

 

Webcast and Conference Call

The RealReal will post a stockholder letter on its investor relations website at https://investor.therealreal.com/financial-information/quarterly-results in lieu of a live presentation and host a conference call at 2 p.m. PST to answer questions regarding its fourth quarter and full year 2020 financial results, the stockholder letter and the supporting slides. Investors and analysts can access the call by dialing (866) 996-5385 in the U.S. or (270) 215-9574 internationally. The passcode for the call is 1836039. The call will also be available via live webcast at https://investor.therealreal.com along with the stockholder letter and the supporting slides. An archive of the webcast conference call will be available shortly after the call ends at https://investor.therealreal.com

 

About The RealReal, Inc. 

The RealReal is the world’s largest online marketplace for authenticated, resale luxury goods, with more than 20 million members. With a rigorous authentication process overseen by experts, The RealReal provides a safe and reliable platform for consumers to buy and sell their luxury items. We have hundreds of in-house gemologists, horologists and brand authenticators who inspect thousands of items each day. As a sustainable company, we give new life to pieces by thousands of brands across numerous categories—including women's and men's fashion, fine jewelry and watches, art and home—in support of the circular economy. We make selling effortless with free virtual appointments, in-home pickup, drop-off and direct shipping. We do all of the work for consignors, including authenticating, using AI and machine learning to determine optimal pricing, photographing and listing their items, as well as handling shipping and customer service. At our 13 retail locations, including our eight shoppable stores, customers can sell, meet with our experts and receive free valuations.

 

Investor Relations Contact:

Paul Bieber

Head of Investor Relations

paul.bieber@therealreal.com

 

Press Contact:

Erin Santy

Head of Communications

pr@therealreal.com

 

 


 

Forward Looking Statements

This press release contains forward-looking statements relating to, among other things, the future performance of The RealReal that are based on the company's current expectations, forecasts and assumptions and involve risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology. These statements include, but are not limited to, statements about future operating results, including the amounts of our operating expense and capital expenditure investments or reductions and our strategies, plans, commitments, objectives and goals, in particular in the context of the impacts of the COVID-19 pandemic and the recent social unrest. Actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Other factors that could cause or contribute to such differences include, but are not limited to, the impact of the COVID-19 pandemic and the recent social unrest on our operations and our business environment, any failure to generate a supply of consigned goods, pricing pressure on the consignment market resulting from discounting in the market for new goods, failure to efficiently and effectively operate our merchandising and fulfillment operations and other reasons.

More information about factors that could affect the company's operating results is included under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the company's most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting the company's Investor Relations website at https://investor.therealreal.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements.

 

Non-GAAP Financial Measures

To supplement our unaudited and condensed financial statements presented in accordance with generally accepted accounting principles ("GAAP"), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA as a percentage of total net revenue ("Adjusted EBITDA Margin"), free cash flow, non-GAAP net loss attributable to common stockholders, and non-GAAP net loss per share attributable to common stockholders, basic and diluted, and Contribution Profit. We have provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures in this earnings release. 

 

We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors should also note that non-GAAP financial measures we use may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies, including other companies in our industry.

In Q4, we reflected a $2.2 million prior period adjustment to Consignment and service revenue, of which approximately $600 thousand related to Q1 through Q3 of 2020, and approximately $1.6 million related to previous periods. This adjustment is the result of an administrative error related to a reconciliation of a subset of adjustments to consignor commissions that were paid outside of our normal payment cycle. We have since corrected this reconciliation process. We will reflect this adjustment in our presentation of our quarterly and prior year results in our Form 10-K. Since these adjustments were not material to any prior

 


 

period interim or annual financial statements, no amendments to previously filed interim or annual periods reports are required. In order to facilitate comparability between Q4 of 2020 and Q4 of 2019, we have presented total revenue, consignment and service revenue and gross profit on a Non-GAAP basis for Q4 to exclude the impact of the prior period adjustment.

Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure as an overall assessment of our performance, to evaluate the effectiveness of our business strategies and for business planning purposes. Adjusted EBITDA may not be comparable to similarly titled metrics of other companies.

 

We calculate Adjusted EBITDA as net loss before interest income, interest expense, other (income) expense net, provision (benefit) for income taxes, depreciation and amortization, further adjusted to exclude stock-based compensation, certain one-time expenses and prior period adjustments. Adjusted EBITDA has certain limitations as the measure excludes the impact of certain expenses that are included in our statements of operations that are necessary to run our business and should not be considered as an alternative to net loss or any other measure of financial performance calculated and presented in accordance with GAAP.

 

In particular, the exclusion of certain expenses and prior period adjustments in calculating Adjusted EBITDA and Adjusted EBITDA Margin facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of stock-based compensation, excludes an item that we do not consider to be indicative of our core operating performance. Investors should, however, understand that stock-based compensation will be a significant recurring expense in our business and an important part of the compensation provided to our employees. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. 

 

Free cash flow is a non-GAAP financial measure that is calculated as net cash (used in) provided by operating activities less net cash used to purchase property and equipment and capitalized proprietary software development costs. We believe free cash flow is an important indicator of our business performance, as it measures the amount of cash we generate. Accordingly, we believe that free cash flow provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management. 

 

Non-GAAP net loss per share attributable to common stockholders, basic and diluted is a non-GAAP financial measure that is calculated as GAAP net loss plus stock-based compensation expense, provision (benefit) for income taxes, and non-recurring items divided by weighted average shares outstanding. We believe that adding back stock-based compensation expense, provision (benefit) for income taxes, and non-recurring items as adjustments to our GAAP net loss, before calculating per share amounts for all periods presented provides a more meaningful comparison between our operating results from period to period.

 

Contribution Profit is a non-GAAP financial measure that is calculated as gross profit per order minus variable expenses including variable marketing, operations, sales and merchandising expenses. Fixed expenses include occupancy, general & administrative, technology, marketing headcount, and certain operations and merchandising headcount costs. 

 

We view contribution profit as an important metric to assess our marginal profitability and measure our progress driving operating efficiencies. Accordingly, we believe that contribution profit provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management. 

 


 

THE REALREAL, INC.

Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consignment and service revenue

 

$

69,073

 

 

$

82,522

 

 

$

245,643

 

 

$

267,412

 

Direct revenue

 

 

15,512

 

 

 

11,209

 

 

 

52,623

 

 

 

50,625

 

Total revenue

 

 

84,585

 

 

 

93,731

 

 

 

298,266

 

 

 

318,037

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of consignment and service revenue

 

 

19,723

 

 

 

20,987

 

 

 

66,976

 

 

 

73,579

 

Cost of direct revenue

 

 

13,728

 

 

 

10,197

 

 

 

45,406

 

 

 

41,252

 

Total cost of revenue

 

 

33,451

 

 

 

31,184

 

 

 

112,382

 

 

 

114,831

 

Gross profit

 

 

51,134

 

 

 

62,547

 

 

 

185,884

 

 

 

203,206

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing

 

 

17,066

 

 

 

10,896

 

 

 

54,813

 

 

 

47,734

 

Operations and technology

 

 

45,950

 

 

 

39,960

 

 

 

163,808

 

 

 

143,231

 

Selling, general and administrative

 

 

38,715

 

 

 

34,553

 

 

 

141,762

 

 

 

110,663

 

Total operating expenses (1)

 

 

101,731

 

 

 

85,409

 

 

 

360,383

 

 

 

301,628

 

Loss from operations

 

 

(50,597

)

 

 

(22,862

)

 

 

(174,499

)

 

 

(98,422

)

Interest income

 

 

168

 

 

 

1,675

 

 

 

2,518

 

 

 

4,593

 

Interest expense

 

 

(2,454

)

 

 

(45

)

 

 

(5,264

)

 

 

(616

)

Other income (expense), net

 

 

(80

)

 

 

5

 

 

 

(169

)

 

 

(2,102

)

Loss before provision for income taxes

 

 

(52,963

)

 

 

(21,227

)

 

 

(177,414

)

 

 

(96,547

)

Provision (benefit) for income taxes

 

 

63

 

 

 

147

 

 

 

101

 

 

 

199

 

Net loss

 

$

(53,026

)

 

$

(21,374

)

 

$

(177,515

)

 

$

(96,746

)

Accretion of redeemable convertible preferred stock to

   redemption value

 

$

 

 

$

 

 

$

 

 

$

(3,355

)

Net loss attributable to common stockholders

 

$

(53,026

)

 

$

(21,374

)

 

$

(177,515

)

 

$

(100,101

)

Net loss per share attributable to common stockholders,

   basic and diluted

 

$

(0.60

)

 

$

(0.25

)

 

$

(2.03

)

 

$

(2.11

)

Weighted average shares used to compute net loss per

   share attributable to common stockholders, basic and diluted

 

 

88,810,674

 

 

 

85,823,352

 

 

 

87,587,409

 

 

 

47,478,544

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing

 

$

527

 

 

$

104

 

 

$

1,755

 

 

$

392

 

Operating and technology

 

 

3,019

 

 

 

1,083

 

 

 

10,241

 

 

 

3,148

 

Selling, general and administrative (2)

 

 

3,865

 

 

 

1,608

 

 

 

12,326

 

 

 

4,990

 

Total

 

$

7,411

 

 

$

2,795

 

 

$

24,322

 

 

$

8,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Includes compensation expense related to stock sales by current and former employees in  March 2019.

 

 

 


 

THE REALREAL, INC.

Condensed Balance Sheets

(In thousands, except share and per share data)

(Unaudited)

 

 

 

December 31,

2020

 

 

December 31,

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

350,846

 

 

$

154,446

 

Short-term investments

 

 

4,017

 

 

 

208,811

 

Accounts receivable

 

 

7,213

 

 

 

7,779

 

Inventory, net

 

 

42,321

 

 

 

23,599

 

Prepaid expenses and other current assets

 

 

17,072

 

 

 

13,804

 

Total current assets

 

 

421,469

 

 

 

408,439

 

Property and equipment, net

 

 

63,454

 

 

 

55,831

 

Operating lease right-of-use assets

 

 

118,136

 

 

 

 

Other assets

 

 

2,050

 

 

 

2,660

 

Total assets

 

$

605,109

 

 

$

466,930

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

14,346

 

 

$

11,159

 

Accrued consignor payable

 

 

57,053

 

 

 

52,820

 

Operating lease liabilities, current portion

 

 

14,999

 

 

 

 

Other accrued and current liabilities

 

 

61,862

 

 

 

54,567

 

Total current liabilities

 

 

148,260

 

 

 

118,546

 

Operating lease liabilities, net of current portion

 

 

115,084

 

 

 

 

Convertible senior notes, net

 

 

149,188

 

 

 

 

Other noncurrent liabilities

 

 

1,284

 

 

 

9,456

 

Total liabilities

 

 

413,816

 

 

 

128,002

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.00001 par value; 500,000,000 shares

   authorized as of December 31, 2020 and December 31, 2019;

    89,301,664 and 85,872,320 shares issued and outstanding

   as of December 31, 2020 and December 31, 2019, respectively

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

723,302

 

 

 

693,426

 

Accumulated other comprehensive income

 

 

11

 

 

 

7

 

Accumulated deficit

 

 

(532,021

)

 

 

(354,506

)

Total stockholders’ equity

 

 

191,293

 

 

 

338,928

 

Total liabilities and stockholders’ equity

 

$

605,109

 

 

$

466,930

 

 

 


 

THE REALREAL, INC.

Condensed Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(177,515

)

 

$

(96,746

)

Adjustments to reconcile net loss to cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

18,845

 

 

 

13,408

 

Stock-based compensation expense

 

 

24,322

 

 

 

7,711

 

Reduction of operating lease right-of-use assets

 

 

16,062

 

 

 

 

Bad debt expense

 

 

903

 

 

 

1,371

 

Compensation expense related to stock sales by current and former employees

 

 

 

 

 

819

 

Change in fair value of convertible preferred stock warrant liability

 

 

 

 

 

2,100

 

Accrued interest on convertible notes

 

 

216

 

 

 

 

Loss on retirement of property and equipment

 

 

280

 

 

 

 

Accretion of unconditional endowment grant liability

 

 

51

 

 

 

94

 

Accretion of debt discounts and issuance costs

 

 

2,399

 

 

 

11

 

Amortization of premiums (discounts) on short-term investments

 

 

(137

)

 

 

(320

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(337

)

 

 

(1,579

)

Inventory, net

 

 

(18,722

)

 

 

(13,244

)

Prepaid expenses and other current assets

 

 

(3,443

)

 

 

(4,108

)

Other assets

 

 

548

 

 

 

(1,026

)

Operating lease liability

 

 

(12,752

)

 

 

 

Accounts payable

 

 

4,457

 

 

 

6,010

 

Accrued consignor payable

 

 

4,233

 

 

 

17,561

 

Other accrued and current liabilities

 

 

7,994

 

 

 

10,686

 

Other noncurrent liabilities

 

 

(166

)

 

 

2,762

 

Net cash used in operating activities

 

 

(132,762

)

 

 

(54,490

)

Cash flow from investing activities:

 

 

 

 

 

 

 

 

Purchases of short-term investments

 

 

(73,280

)

 

 

(220,609

)

Proceeds from maturities of short-term investments

 

 

278,215

 

 

 

39,281

 

Capitalized proprietary software development costs

 

 

(8,678

)

 

 

(9,267

)

Purchases of property and equipment

 

 

(19,910

)

 

 

(24,761

)

Net cash provided by (used in) investing activities

 

 

176,347

 

 

 

(215,356

)

Cash flow from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock in initial public offering, net of issuance costs

 

 

 

 

 

315,541

 

Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs

 

 

 

 

 

43,492

 

Proceeds from issuance of convertible preferred stock, net of issuance costs

 

 

 

 

 

26,283

 

Proceeds from issuance of convertible senior notes, net of issuance costs

 

 

166,278

 

 

 

 

Purchase of capped calls

 

 

(22,546

)

 

 

 

Proceeds from exercise of stock options and common stock warrants

 

 

8,859

 

 

 

2,729

 

Proceeds from issuance of Employee Stock Purchase Program

 

 

972

 

 

 

 

Taxes paid related to restricted stock vesting

 

 

(748

)

 

 

(130

)

Repayment of debt

 

 

 

 

 

(9,250

)

Net cash provided by financing activities

 

 

152,815

 

 

 

378,665

 

Net increase in cash, cash equivalents and restricted cash

 

 

196,400

 

 

 

108,819

 

Cash, cash equivalents, and restricted cash

 

 

 

 

 

 

 

 

Beginning of period

 

 

154,446

 

 

 

45,627

 

End of period

 

$

350,846

 

 

$

154,446

 

 

 


 

The following table reflects the reconciliation of net loss to Adjusted EBITDA for each of the periods indicated (in thousands):

 

 

 

Three Months Ended  December 31,

 

 

 

2020

 

 

2019

 

Adjusted EBITDA Reconciliation:

 

 

 

 

 

 

 

 

Net loss

 

$

(53,026

)

 

$

(21,374

)

Depreciation and amortization

 

 

5,172

 

 

 

3,870

 

Stock-based compensation

 

 

7,411

 

 

 

2,795

 

Prior period adjustment (1)

 

 

2,247

 

 

 

 

Abandoned offering costs

 

 

 

 

 

293

 

Donation to TRR Foundation

 

 

 

 

 

3,155

 

Interest income

 

 

(168

)

 

 

(1,675

)

Interest expense

 

 

2,454

 

 

 

45

 

Other (income) expense, net

 

 

80

 

 

 

(5

)

Provision for income taxes

 

 

63

 

 

 

147

 

Adjusted EBITDA

 

$

(35,767

)

 

$

(12,749

)

 

(1) This adjustment is the result of an administrative error related to a reconciliation of a subset of adjustments to consignor commissions that were paid outside of our normal payment cycle. 

 

A reconciliation of GAAP net loss to non-GAAP net loss attributable to common stockholders, the most directly comparable GAAP financial measure, in order to calculate non-GAAP net loss attributable to common stockholders per share, basic and diluted, is as follows (in thousands, except share and per share data):

 

 

 

Three Months Ended  December 31,

 

 

 

2020

 

 

2019

 

Net loss

 

$

(53,026

)

 

$

(21,374

)

Stock-based compensation

 

 

7,411

 

 

 

2,795

 

Prior period adjustment

 

 

2,247

 

 

 

 

Abandoned offering costs

 

 

 

 

 

293

 

Donation to TRR Foundation

 

 

 

 

 

3,155

 

Provision for income taxes

 

 

63

 

 

 

147

 

Non-GAAP net loss attributable to common stockholders

 

$

(43,305

)

 

$

(14,984

)

Weighted-average common shares outstanding used to calculate Non-GAAP net loss attributable to common stockholders per share, basic and diluted

 

 

88,810,674

 

 

 

85,823,352

 

Non-GAAP net loss attributable to common stockholders per share, basic and diluted

 

$

(0.49

)

 

$

(0.17

)

 

The following table presents a reconciliation of net cash (used in) provided by operating activities to free cash flow for each of the periods indicated (in thousands):

 

 

 

Three Months Ended  December 31,

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net cash (used in) provided by operating activities

 

$

(36,745

)

 

$

3,629

 

 

$

(132,762

)

 

$

(54,490

)

Purchase of property and equipment and capitalized proprietary software development costs

 

 

(6,263

)

 

 

(11,247

)

 

 

(28,588

)

 

 

(34,028

)

Free Cash Flow

 

$

(43,008

)

 

$

(7,618

)

 

$

(161,350

)

 

$

(88,518

)

 

 


 

Key Financial and Operating Metrics:

 

 

 

March 31,

2019

 

June 30,

2019

 

September 30,

2019

 

December 31,

2019

 

March 31,

2020

 

June 30,

2020

 

September 30,

2020

 

December 31,

2020

 

 

 

(In thousands, except AOV and percentages)

 

 

 

 

GMV

 

$

224,116

 

$

228,487

 

$

252,766

 

$

302,975

 

$

257,606

 

$

182,771

 

$

245,355

 

$

301,219

 

NMV

 

$

160,538

 

$

164,782

 

$

186,617

 

$

219,508

 

$

184,625

 

$

139,797

 

$

189,059

 

$

222,437

 

Consignment and Services Revenue

 

$

55,575

 

$

60,070

 

$

69,245

 

$

82,522

 

$

65,297

 

$

46,866

 

$

64,407

 

$

69,073

 

Direct Revenue

 

$

15,007

 

$

12,139

 

$

12,271

 

$

11,209

 

$

12,942

 

$

10,523

 

$

13,645

 

$

15,512

 

Number of Orders

 

 

498

 

 

505

 

 

577

 

 

637

 

 

574

 

 

438

 

 

550

 

 

671

 

Take Rate

 

 

35.3

%

 

36.6

%

 

36.8

%

 

36.2

%

 

36.2

%

 

36.0

%

 

35.4

%

 

35.7

%

Active Buyers

 

 

456

 

 

492

 

 

543

 

 

582

 

 

602

 

 

612

 

 

617

 

 

649

 

AOV

 

$

450

 

$

453

 

$

438

 

$

476

 

$

449

 

$

417

 

$

446

 

$

449

 

% of GMV from Repeat Buyers

 

 

82.4

%

 

83.1

%

 

81.8

%

 

82.9

%

 

84.4

%

 

82.3

%

 

82.9

%

 

82.4

%

 

Contribution Profit Per Order:

 

 

 

2020

 

 

2019

 

 

2018

 

 

2020 Y/Y Change

 

AOV

 

$

441.8

 

 

$

454.7

 

 

$

445.6

 

 

-3%

 

Revenue

 

$

133.5

 

 

$

143.4

 

 

$

130.0

 

 

-7%

 

Gross Profit (1)

 

$

185.9

 

 

$

203.2

 

 

$

136.9

 

 

-9%

 

Gross Profit Per Order

 

$

83.2

 

 

$

91.6

 

 

$

85.8

 

 

-9%

 

Variable Expenses

 

$

79.0

 

 

$

71.9

 

 

$

77.1

 

 

10%

 

Contribution Profit

 

$

4.2

 

 

$

19.7

 

 

$

8.7

 

 

-79%

 

Contribution Margin

 

 

3.2

%

 

 

13.8

%

 

 

6.7

%

 

(1060 bps)

 

 

(1) Reflects prior period adjustments.