Thu, Jun 6, 9:24 PM (282 days ago)
Rent the Runway, Inc. (RTR) reported its quarterly financial performance for the period ending April 30, 2024. Key highlights include: - **Revenue**: Total revenue was $75.0 million, a slight increase of 1.1% year-over-year. Subscription and Reserve rental revenue decreased by 1.0% to $66.1 million, while Other revenue grew by 20.3% to $8.9 million. - **Costs and Expenses**: Total costs and expenses decreased by 4.2% to $91.5 million. Fulfillment costs dropped by 5.9% to $20.6 million due to transportation and processing efficiencies. Technology expenses fell by 26.7% to $9.6 million, and General and Administrative expenses decreased by 14.0% to $22.8 million, driven by restructuring savings and lower share-based compensation. - **Profitability**: Gross profit was $28.4 million, down from $31.4 million, with a gross margin of 37.9%. The net loss narrowed to $22.0 million from $30.1 million. Adjusted EBITDA improved to $6.5 million from $4.5 million, reflecting a margin of 8.7%. - **Cash Flow**: Net cash used in operating activities plus investing activities was $(1.4) million, a significant improvement from $(12.1) million in the prior year. Cash and cash equivalents stood at $82.0 million. - **Operational Metrics**: Active subscribers were relatively flat at 145,837, and total subscribers (including paused) were 185,346. - **Strategic Initiatives**: RTR continued to focus on enhancing customer experience, optimizing marketing strategies, and managing costs through its restructuring plans. Overall, RTR showed progress in reducing losses and improving cash flow, despite challenges in revenue growth and competitive pressures.