Rent the Runway (NASDAQ: RENT) Reports Record Quarterly Revenue of $77.4 Million, Raises Annual Revenue and Adj. EBITDA Guidance

Rent the Runway, Inc. (NASDAQ: RENT) is a unique fashion technology company, which seeks to disrupt the way women choose their clothing via the company’s “Closet in the Cloud” technology. This innovation is the world’s first and largest shared designer closet with over 800 different designer brands. Shares of the fashion technology company are surging 76% through late trading on Thursday, December 8, 2022. Over the past three months, Rent the Runway has seen average daily volume of 1.17 million shares. However, volume of 43.58 million shares or dollar volume of around $99.8 million, has exchanged hands through late trading.

Shares of Rent the Runway are soaring after the company reported third quarter 2022 financial results. During the quarter ended October 31, 2022, the fashion company reported record quarterly revenue of $77.4 million, which represents year-over-year growth of 31%. Gross margins soared up 7 points to 41% during the quarter.

Overall, the company reported adjusted EBITDA of $6.6 million compared to -$5.6 million for the same period last year. Overall, Rent the Runway reported a net loss of $36.1 million, including $5.8 million related to restructuring charges. However, the net loss was still a significant improvement from Q3 2021’s net loss of $87.8 million.

Rent the Runway said it had a total of 134,240 active subscribers during the quarter, which represents growth of 15% year-over-year. Total subscribers grew 17% y/y to 176,167 people. In November, the company unveiled its first celebrity collection with Ashley Park, co-star of the Netflix hit “Emily in Paris.” In addition, Rent the Runway launched four new exclusive design brands during Fall 2022: Atlein, Ronny Kobo, Marina Moscone and Toccin.

Turning to guidance, management expanded its revenue and adjusted EBITDA outlook for the fourth quarter of fiscal year 2022 and for fiscal full-year 2022. For Q4 2022, the company estimates revenues between $72 million and $74 million, with an adj. EDBITDA margin range between 4% and 5%. For the fiscal full-year 2022, Rent the Runway estimates revenue between $293 million and $295 million, with an adj. EBITDA margin of 1%.

“I’m pleased to share that we exceeded our Q3 ’22 Revenue and Adjusted EBITDA guidance. Revenue for the quarter was $77.4 million, up 31% compared to Q3 ’21. We’re proud of our strong Adjusted EBITDA margin this quarter, which was up significantly versus the same period last year. We are also raising guidance for the year despite a tough environment,” said Jennifer Hyman, CEO and Co-Founder of Rent the Runway. “Our restructuring plan, now substantially complete, allows us to invest in our customer proposition while significantly improving cash burn. We made considerable progress in 2022 in key foundational technology and customer initiatives. Over the coming year, we look forward to providing even more value to our customers and brand partners.”

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The post Rent the Runway (NASDAQ: RENT) Reports Record Quarterly Revenue of $77.4 Million, Raises Annual Revenue and Adj. EBITDA Guidance appeared first on Spotlight Growth.

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