In a call with analysts, CEO and Founder Julie Wainwright noted that the company generated a GMV of $1.008 billion for the full year 2019. She said the company also “made significant progress on our path to profitability, as our adjusted EBITDA margin improved by 540 basis points year on year, while making significant investments that position us to capitalize on the massive opportunity in front of us.”
Wainwright added that the company “will continue to invest in growth through expanding our retail footprint, making appropriate investments in marketing and growing our sales team.”
For the fourth quarter, the company reported that GMV was $303 million, which represented a 39 percent year-over-year rise. Consignment and service revenue was $80.7 million, which represented a 46 percent YOY rise.
Wainwright said in a statement, “Our Q4 results exemplify our long-standing approach to balancing growth and operating leverage. In Q4, we achieved 39 percent Y/Y GMV growth, with all top-level categories experiencing strong growth.”
She continued, “At the same time, the Q4 adjusted EBITDA margin improved by approximately 17 percentage points Y/Y. Additionally, 82.9 percent of GMV was driven by repeat buyers in the quarter, a rare attribute of our marketplace that underscores our buyer loyalty and the strength of our flywheel.”
The company reported total revenue of $97.3 million, which represented a 57 percent YOY rise for the fourth quarter. Gross profit was $62.5 million, which represented a 48 percent YOY increase. Non-GAAP basic and diluted net loss per share was 17 cents.
The RealReal had brought in $300 million in its initial public offering (IPO) last year. The firm priced its shares above a target range, having sold 15 million shares for $20 each after they were marketed at $17 to $19. The offering was led by Credit Suisse Group AG, UBS Group AG and Bank of America Corp. At the time, it was noted that IBISWorld Pty Ltd. data showed that used footwear, accessories and clothing represented a $10 billion market in the U.S.