Secondhand luxury marketplace The RealReal (NASDAQ: REAL) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.
The RealReal met analysts’ revenue expectations last quarter, reporting revenues of $164 million, up 14.4% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations and a slight miss of analysts’ number of active buyers estimates. It reported 408,000 users, up 7.1% year on year.
Is The RealReal a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting The RealReal’s revenue to grow 11.1% year on year to $159.8 million, improving from the 1.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The RealReal has missed Wall Street’s revenue estimates twice over the last two years.
Looking at The RealReal’s peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 83%, beating analysts’ expectations by 5.2%, and Etsy reported flat revenue, topping estimates by 1.4%. EverQuote traded down 12.2% following the results while Etsy was also down 8%.
Read our full analysis of EverQuote’s results here and Etsy’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 20.6% on average over the last month. The RealReal is up 41.5% during the same time and is heading into earnings with an average analyst price target of $8.65 (compared to the current share price of $6.99).
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