RealReal Inc (NASDAQ: REAL) stock surged over 11.2% in the pre-market session of August 14th, 2019 (As of 7:49 am GMT-4; Source: Google finance) on better than expected earnings report as a public company. The RealReal went public in late June & closed on July 2, 2019, receiving an initial valuation north of $1.5 billion that grew quickly on the public markets. RealReal reported second-quarter losses of $26.9 million. REAL’s Gross Merchandise Volume (GMV) increased $65.5 million to $228.5 million, up 40% year over year. Free cash flow was ($32.1) million. At the end of the second quarter, cash, cash equivalents, and short-term investments totaled $66.7 million. The company’s IPO raised $320.9 million in net proceeds after deducting underwriting discounts and commissions. Inclusive of the IPO net proceeds, the Pro-forma cash balance was $387.6 million at the end of the second quarter. The RealReal’s Registration Statement was declared effective on June 27, 2019.
REAL has reported the adjusted earnings per share of $28 in the second quarter of FY 19 while adjusted revenue growth was 51 percent to $71 million in the second quarter of FY 19, which is in line with the analysts’ estimates for revenue of $71 million. Consignment and Service Revenue increased $18.5 million to $60.7 million, up 44% year over year. Direct Revenue increased $5.5 million to $10.3 million, up 114% year over year. Gross Profit increased $15.3 million to $46.1 million, up 50% year over year. Adjusted EBITDA was $(20.9) million or (29.4%) of total revenue.
Moreover, the company’s trailing twelve months active buyers reached 492,440, up 40% year over year. Orders reached 504,820, up 40% year over year. Average Order Value was $452.61 compared to $453.32 in the second quarter of 2018. Take Rate increased 110bps year over year to 36.6%. GMV from repeat buyers was 83.1% compared to 82.9% in the second quarter of 2018.
For the third quarter of 2019, the company expects GMV to be in the range of $233mn – $239mn. For the third quarter of 2019, the company expects EBITDA Margin to be in the range of (30%) – (28%)
For FY 19, the company expects GMV to be in the range of $974mn – $988mn. For FY 19, the company expects EBITDA Margin to be in the range of (25%) – (24%).