Second Hand Electricity Supplier The Realreal Total Turnover In The First Quarter Grew 15%

Us second-hand luxury electric business The RealReal announced the initial financial data for the first quarter of fiscal year 2020. By the end of March 31st, the total turnover of The RealReal in the first quarter (GMV) increased by 15% to 258 million US dollars over the same period.

The RealReal the total volume of transactions in the first two weeks of March continued to grow. The turnover in the first week grew by more than 30% over the same period, and the turnover in the second week increased by 12% over the same period. By the third week, affected by the isolation and isolation of the epidemic, the turnover of The RealReal began to decline: from March 17th to the beginning of April, turnover fell by 40% to 45%.

According to The RealReal, the net loss in the first quarter of fiscal year 2020 will be between 38 million 900 thousand and 39 million 900 thousand dollars (a net loss of 23 million 200 thousand dollars in the same period last year). The adjusted EBITDA (interest tax depreciation and amortization) loss is 31 million 500 thousand to 32 million 500 thousand US dollars.

In response to the new crown virus epidemic, Matt Gustke, chief executive officer of The RealReal, said, "this is an unforeseen crisis, which has a great impact on us, which limits our warehouse operation capacity and reduces the level of operation previously planned." For the sake of health and safety, shops and consignment offices of The RealReal have been suspended and will not be accepted by customers for consignment orders.

　　 In terms of cash flow, The RealReal has adopted a series of measures to save cash and reduce expenditure, including reducing marketing expenses; total staff number is reduced by 10%; 15% of employees are paid off without pay; they re sign contracts with suppliers and postpone payment of other fees; suspend recruitment; postpone individual investment, and reduce salaries by executives.

In addition, the The RealReal Chicago new store, originally planned to open in the summer, will also be postponed. The total area of the store is 12 thousand square feet (about 1115 square meters), and will become the largest The RealReal entity store.

By adopting the above measures, The RealReal expects to reduce US $about 70000000 in operating expenses in the 2020 fiscal year and capital expenditure of around $15 million. As of March 31st, The RealReal's total cash, cash equivalents and short-term investments totaled about $303 million. As of April 15th closing, The RealReal shares rose 8.51% to 8.67 U.S. dollars per share.

In the first quarter of March 31st, the initial financial data for The RealReal were as follows:

GMV was $258 million, an increase of 15% over the same period last year.

Net loss is expected to be between $38 million 900 thousand and $39 million 900 thousand.

Adjusted EBITDA (profit before interest tax depreciation amortization) is expected to be between $31 million 500 thousand and $32 million 500 thousand.

In the past 12 months, the number of active buyers has reached 601766, an increase of 32% over the same period.

Orders reached 574215, an increase of 15% over the same period.

The average order price was $449, compared with $450 a year ago.