Rent the Runway, Inc. (“Rent the Runway” or "RTR") (NASDAQ: RENT),
the world’s first and largest shared designer closet platform,
today reported financial results for the fiscal quarter ended
July 31, 2023.
"For some time, we have been focused on taking decisive actions
with the goal to bring Rent the Runway to profitability, and we
believe now is the right time to accelerate our efforts. We made
significant progress in Q2 across the bottom line, exceeding our
profitability guidance, and with Adjusted EBITDA margins hitting a
historic high at 10.2%,” said Jennifer Hyman, Co-Founder and CEO,
Rent the Runway. “We believe that a key part of achieving our
profitability milestone is prioritizing the medium and long-term
health of the business over short-term revenue gains and lower
margin customers. Above all, we are empowering our leaders to make
the right decisions in service to this goal and in service to our
customers and investors, and look forward to continuing to capture
what we believe is a significant market opportunity ahead.”
“Our teams have made strong progress reducing fixed
and variable costs,” said CFO Sid Thacker. “We believe these
improvements--combined with expected changes in promotional
strategies and increases in rental product acquired through
non-wholesale channels--have accelerated our path to achieve free
cash flow breakeven, before cash interest expense, in FY24.”
Second Quarter 2023 Key Metrics and Financial
Highlights
- Revenue was $75.7 million, a (1.0)% decrease year-over-year
from $76.5 million in the second quarter of fiscal year 2022.
- 137,566 ending Active Subscribers, representing an increase of
11% year-over-year from 124,131 at the end of the second quarter of
fiscal year 2022.
- 141,393 Average Active Subscribers representing an increase of
9% year-over-year from 129,565 at the end of the second quarter of
fiscal year 2022.
- 184,389 ending Total Subscribers, representing an increase of
6% year-over-year from 173,321 at the end of the second quarter of
fiscal year 2022.
- Gross Profit was $33.2 million, representing an increase of
2.5% from $32.4 million in the second quarter of fiscal year 2022.
Gross Margin was 43.9%, as compared to 42.4% in the second quarter
of fiscal year 2022.
- Net Loss was $(26.8) million, as compared to $(33.9) million in
the second quarter of fiscal year 2022. Net Loss as a percentage of
revenue was (35.4)%, as compared to (44.3)% in the second quarter
of fiscal year 2022.
- Adjusted EBITDA was $7.7 million, as compared to $1.8 million
in the second quarter of fiscal year 2022. Adjusted EBITDA margin
was 10.2%, as compared to 2.4% in the second quarter of fiscal year
2022.
Fiscal Second Quarter and Recent Business
Highlights
- Implemented Inventory Depth Strategy: laid
important groundwork designed to meaningfully improve in-stock
rates by increasing new inventory depth at approximately 1.7X the
depths of our 1H23 buys, which is expected to drive a positive
customer experience in 2H23 and beyond. We have further expanded
our depth plans for 2024 and expect to see continued improvement on
in-stock rates in 1H24 as a result.
- Further improved operating efficiencies: In
August, completed a new transportation deal with UPS to lock in
competitive rates and consolidate the vast majority of our shipping
needs. We believe this partnership will enable us to continue
serving our customers with premium delivery and return service, and
to further expand new programs like At Home Pick Up and Saturday
Delivery.
- Introduced new site and discovery features:
launched elevated product detail pages (PDP), improved site
filtering, and more rapidly refreshed editorial curations; also
rolled out AI search beta to 20% of the RTR customer base. These
features, on the whole, have driven significant reductions in time
to select shipments for our customers.
- Continued to enhance the onboarding
experience: Launched yesterday a new subscriber onboarding
experience to help lead customers to inventory they love quickly
and pick their first shipment. Intended to drive engagement and
retention, the new experience also includes the creation of an
interactive customer styling profile and encourages sign up into
our concierge program to aid with live, 1:1 assistance.
FY 2023 UPDATED OUTLOOK
For the third quarter of fiscal year 2023, Rent the Runway
expects:
- Revenue in the range of $72 million to $74 million
- Adjusted EBITDA Margin of 3% to 4%
For fiscal year 2023, Rent the Runway now expects:
- Revenue of at least $296.4 million, our fiscal year 2022
Revenue
- Adjusted EBITDA Margin of 7% to 8%
- Free Cash Flow of ~$(50-53M*)
*Including anticipated $3M incremental inventory purchase
Please see our second quarter 2023 earnings presentation at
https://investors.renttherunway.com/ under the “Presentations”
section for supplemental guidance.
Earnings Presentation, Conference Call and
Webcast
The second quarter 2023 Earnings Presentation is
now accessible through the Investor Relations section of Rent the
Runway’s website at https://investors.renttherunway.com/ under the
“Presentations” section.
Rent the Runway will host a conference call and webcast to
discuss its second quarter 2023 financial results and provide a
business update today, September 8, 2023, at 8:30 am EDT.
The financial results and live webcast will be accessible
through the Investor Relations section of Rent the Runway’s website
at https://investors.renttherunway.com/ under the “Events” section.
To access the call through a conference line, dial 1-877-407-3982
(in the U.S.) or 1-201-493-6780 (international callers).
A replay of the conference call will be posted shortly after the
call and will be available for at least fourteen days. To access
the replay, dial 1-844-512-2921 (in the U.S.) or 1-412-317-6671
(international callers). The access code for the replay is
13740518.
About Rent the Runway, Inc.
Founded in 2009, Rent the Runway is disrupting
the trillion-dollar fashion industry and changing the way women get
dressed through the Closet in the Cloud, the world’s first and
largest shared designer closet. RTR’s mission has remained the same
since its founding: powering women to feel their best every day.
Through RTR, customers can subscribe, rent items a-la-carte and
shop resale from hundreds of designer brands. The Closet in the
Cloud offers a wide assortment of millions of items for every
occasion, from evening wear and accessories to ready-to-wear,
workwear, denim, casual, maternity, outerwear, blouses, knitwear,
loungewear, jewelry, handbags, activewear and ski wear. RTR has
built a two-sided discovery engine, which connects deeply engaged
customers and differentiated brand partners on a powerful platform
built around its brand, data, logistics and technology. Under CEO
and Co-Founder Jennifer Hyman’s leadership, RTR has been named to
CNBC’s “Disruptor 50” five times in ten years, and has been placed
on Fast Company’s Most Innovative Companies list four times, while
Hyman herself has been named to the “TIME 100: Most Influential
People in the World" and as one of People Magazine’s “Women
Changing the World."
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements. These statements include, but are not
limited to, statements regarding our future results of operations,
financial position, and revenue, future product launches, business
objectives, anticipated macroeconomic environment, benefits of our
inventory-focused strategy and other strategic initiatives,
including building inventory depth, promotional strategy and
onboarding initiatives, anticipated cost savings including from the
new transportation deal with a major national carrier, and
expectations regarding subscriber trends. Forward-looking
statements are inherently subject to risks and uncertainties, some
of which cannot be predicted or quantified. In some cases, you can
identify forward-looking statements because they contain words such
as “aim,” “anticipate,” “believe,” “contemplate,” “continue,”
“could,” “estimate,” “expect,” “intend,” “may,” “plan,”
“potential,” “predict,” “project,” “should,” “target,” “toward,”
“will,” or “would,” or the negative of these words or other similar
terms or expressions. You should not put undue reliance on any
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results and will
not necessarily be accurate indications of the times at, or by,
which such performance or results will be achieved, if at all.
Forward-looking statements are based on information available at
the time those statements are made and were based on current
expectations, estimates, forecasts, and projections as well as the
beliefs and assumptions of management as of that time with respect
to future events. These statements are subject to risks and
uncertainties, many of which involve factors or circumstances that
are beyond our control, that could cause actual performance or
results to differ materially from those expressed in or suggested
by the forward-looking statements. In light of these risks and
uncertainties, the forward-looking events and circumstances
discussed in this press release may not occur and actual results
could differ materially from those anticipated or implied in the
forward-looking statements. These risks and uncertainties include
our ability to manage our growth effectively; risks related to the
macroeconomic environment; the highly competitive and rapidly
changing nature of the global fashion industry; our ability to
cost-effectively grow our customer base; any failure to retain
customers; risk related to COVID-19 and other future pandemics or
public health crises; risks related to shipping, logistics and our
supply chain; our ability to accurately forecast customer demand,
manage our offerings effectively and plan for future expenses; our
ability to improve website and mobile app performance and keep pace
with technological changes; risks arising from the restructuring of
our operations; our reliance on the effective operation of
proprietary technology systems and software as well as those of
third-party vendors and service providers; our ability to remediate
our material weaknesses in our internal control over financial
reporting; laws and regulations applicable to our business; failure
by us to adequately obtain, maintain, protect and enforce our
intellectual property and proprietary rights; compliance with data
privacy, data security, data protection and consumer protection
laws and industry standards; risks associated with our brand and
manufacturing partners; our reliance on third parties for elements
of the payment processing infrastructure underlying our business;
our dependence on online sources to attract consumers and promote
our business which may be affected by third-party interference or
cause our customer acquisition costs to rise; failure by us, our
brand partners, or third party manufacturers to comply with our
vendor code of conduct or other laws; and risks related to our
Class A capital stock and ownership structure. Additional
information regarding these and other risks and uncertainties that
could cause actual results to differ materially from the Company’s
expectations is included in our Quarterly Report on Form 10-Q for
the quarter ended April 30, 2023, as will be updated in our
Quarterly Report on Form 10-Q for the quarter ended July 31,
2023. Except as required by law, we do not undertake any obligation
to publicly update or revise any forward-looking statement, whether
as a result of new information, future developments, or
otherwise.
Key Business and Financial
Metrics
Active Subscribers is defined as the number of
subscribers with an active membership as of the last day of any
given period and excludes paused subscribers.
Average Active Subscribers is defined as the mean of the
beginning of quarter and end of quarter Active Subscribers for a
quarterly period; and for other periods, represents the mean of the
Average Active Subscribers of every quarter within that period.
Gross Profit is defined as total revenue less fulfillment
expense, revenue share and rental product depreciation. We
depreciate owned apparel assets over three years and owned
accessory assets over two years, net of 20% and 30% salvage values,
respectively, and recognize the depreciation and remaining cost of
items when sold or retired on our statement of operations. Rental
product depreciation expense is time-based and reflects all items
we own. We use Gross Profit and Gross Profit as a percentage of
revenue, or Gross Margin to measure the continued efficiency of our
business after the cost of our products and fulfillment costs are
included.
Non-GAAP Financial Measures
This press release and the accompanying tables contain the
non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA
margin, free cash flow, free cash flow margin, free cash flow
before cash interest expense, and free cash flow before cash
interest expense margin. In addition to our results determined in
accordance with GAAP, we believe that Adjusted EBITDA and Adjusted
EBITDA margin are useful in evaluating our performance and free
cash flow and free cash flow before cash interest expense (as well
as related margins) are useful in evaluating our performance and
liquidity. Adjusted EBITDA is a key performance measure used by
management to assess our operating performance and the operating
leverage of our business prior to capital expenditures. These
non-GAAP financial metrics are not meant to be considered as
indicators of our financial performance in isolation from or as a
substitute for our financial information prepared in accordance
with GAAP and should be read only in conjunction with financial
information presented on a GAAP basis. There are limitations to the
use of the non-GAAP financial metrics presented in this press
release. For example, our non-GAAP financial metrics may not be
comparable to similarly titled measures of other companies. Other
companies, including companies in our industry, may calculate
non-GAAP financial metrics differently than we do, limiting the
usefulness of those measures for comparative purposes.
We define Adjusted EBITDA as net loss, adjusted to exclude
interest expense, rental product depreciation, other depreciation
and amortization, share-based compensation expense, write-off of
liquidated assets, non-recurring adjustments (see below footnotes
to reconciliation table), income tax (benefit) expense, other
income and expense, net, and other gains / losses. Adjusted EBITDA
margin is defined as Adjusted EBITDA calculated as a percentage of
revenue.
We define free cash flow as net cash used in operating
activities and net cash used in investing activities on a combined
basis. We define free cash flow before cash interest
expense as net cash used in operating activities and net cash used
in investing activities on a combined basis, before cash interest
expense. Free cash flow margin and free cash flow before cash
interest expense margin are defined as free cash flow and free cash
flow before cash interest expense, respectively, as a percentage of
revenue.
The reconciliation of presented non-GAAP financial metrics to
the most directly comparable GAAP financial measure is presented
below. We encourage reviewing the reconciliation in conjunction
with the presentation of the non-GAAP financial metrics for each of
the periods presented. In future periods, we may exclude similar
items, may incur income and expenses similar to these excluded
items, and may include other expenses, costs and non-recurring
items. Reconciliation of Adjusted EBITDA, Adjusted EBITDA margin
and free cash flow guidance and free cash flow before cash interest
expense expectations for fiscal year 2024 to the closest
corresponding GAAP measure is not available without unreasonable
efforts on a forward-looking basis due to the high variability,
complexity, and low visibility with respect to the charges excluded
from these non-GAAP measures, in particular, share-based
compensation expense, non-recurring expenses, which can have
unpredictable fluctuations based on unforeseen activity that is out
of our control and/or cannot reasonably be predicted.
Investor ContactInvestor Relations
investors@renttherunway.com
Media ContactAlison
Rappaportpress@renttherunway.com
|
Rent the Runway, Inc.Condensed
Consolidated Balance Sheets(in
millions)(unaudited) |
|
|
July 31, |
|
January 31, |
|
|
2023 |
|
|
|
2023 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
123.7 |
|
|
$ |
154.5 |
|
Restricted cash, current |
|
4.2 |
|
|
|
3.1 |
|
Prepaid expenses and other current assets |
|
9.6 |
|
|
|
14.5 |
|
Total current assets |
|
137.5 |
|
|
|
172.1 |
|
Restricted cash |
|
5.8 |
|
|
|
6.0 |
|
Rental product, net |
|
88.0 |
|
|
|
78.7 |
|
Fixed assets, net |
|
40.0 |
|
|
|
44.7 |
|
Intangible assets, net |
|
3.9 |
|
|
|
4.1 |
|
Operating
lease right-of-use assets |
|
25.3 |
|
|
|
26.7 |
|
Other assets |
|
3.9 |
|
|
|
3.9 |
|
Total assets |
$ |
304.4 |
|
|
$ |
336.2 |
|
Liabilities and
Stockholders’ Equity (Deficit) |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
10.2 |
|
|
$ |
12.4 |
|
Accrued expenses and other current liabilities |
|
21.1 |
|
|
|
24.4 |
|
Deferred revenue |
|
10.8 |
|
|
|
12.0 |
|
Customer credit liabilities |
|
6.5 |
|
|
|
6.8 |
|
Operating lease liabilities |
|
4.6 |
|
|
|
4.4 |
|
Total current liabilities |
|
53.2 |
|
|
|
60.0 |
|
Long-term debt, net |
|
290.6 |
|
|
|
272.5 |
|
Operating lease
liabilities |
|
35.9 |
|
|
|
38.3 |
|
Other liabilities |
|
0.7 |
|
|
|
0.7 |
|
Total liabilities |
|
380.4 |
|
|
|
371.5 |
|
|
|
|
|
Stockholders’ equity
(deficit) |
|
|
|
Class A common stock |
|
0.1 |
|
|
|
0.1 |
|
Class B common stock |
|
— |
|
|
|
— |
|
Preferred stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
920.7 |
|
|
|
904.5 |
|
Accumulated deficit |
|
(996.8 |
) |
|
|
(939.9 |
) |
Total stockholders’ equity
(deficit) |
|
(76.0 |
) |
|
|
(35.3 |
) |
Total liabilities and
stockholders’ equity (deficit) |
$ |
304.4 |
|
|
$ |
336.2 |
|
Rent the Runway, Inc.Condensed
Consolidated Statements of Operations(in millions,
except share and per share amounts)(unaudited) |
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
Subscription and Reserve rental revenue |
$ |
68.0 |
|
|
$ |
70.0 |
|
|
$ |
134.8 |
|
|
$ |
131.4 |
|
Other revenue |
|
7.7 |
|
|
|
6.5 |
|
|
|
15.1 |
|
|
|
12.2 |
|
Total revenue, net |
|
75.7 |
|
|
|
76.5 |
|
|
|
149.9 |
|
|
|
143.6 |
|
Costs and expenses: |
|
|
|
|
|
|
|
Fulfillment |
|
22.5 |
|
|
|
23.4 |
|
|
|
44.4 |
|
|
|
46.3 |
|
Technology |
|
12.9 |
|
|
|
14.9 |
|
|
|
26.0 |
|
|
|
28.5 |
|
Marketing |
|
8.2 |
|
|
|
9.0 |
|
|
|
17.5 |
|
|
|
17.7 |
|
General and administrative |
|
25.9 |
|
|
|
29.6 |
|
|
|
52.4 |
|
|
|
58.8 |
|
Rental product depreciation and revenue share |
|
20.0 |
|
|
|
20.7 |
|
|
|
40.9 |
|
|
|
42.4 |
|
Other depreciation and amortization |
|
3.7 |
|
|
|
4.5 |
|
|
|
7.5 |
|
|
|
8.7 |
|
Total costs and expenses |
|
93.2 |
|
|
|
102.1 |
|
|
|
188.7 |
|
|
|
202.4 |
|
Operating loss |
|
(17.5 |
) |
|
|
(25.6 |
) |
|
|
(38.8 |
) |
|
|
(58.8 |
) |
Interest income / (expense),
net |
|
(9.5 |
) |
|
|
(9.6 |
) |
|
|
(18.3 |
) |
|
|
(18.9 |
) |
Other income / (expense),
net |
|
0.1 |
|
|
|
1.3 |
|
|
|
0.1 |
|
|
|
1.3 |
|
Net loss before income tax benefit / (expense) |
|
(26.9 |
) |
|
|
(33.9 |
) |
|
|
(57.0 |
) |
|
|
(76.4 |
) |
Income tax benefit /
(expense) |
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
Net loss |
$ |
(26.8 |
) |
|
$ |
(33.9 |
) |
|
$ |
(56.9 |
) |
|
$ |
(76.4 |
) |
Net loss per share attributable to common stockholders, basic and
diluted |
$ |
(0.40 |
) |
|
$ |
(0.53 |
) |
|
$ |
(0.85 |
) |
|
$ |
(1.20 |
) |
Weighted-average shares used in computing net loss per share
attributable to common stockholders, basic and diluted |
|
67,608,274 |
|
|
|
64,074,681 |
|
|
|
66,751,529 |
|
|
|
63,758,256 |
|
Rent the Runway, Inc.Condensed
Consolidated Statements of Cash Flow(in
millions)(unaudited) |
|
|
Six Months Ended July 31, |
|
|
2023 |
|
|
|
2022 |
|
OPERATING
ACTIVITIES |
|
|
|
Net loss |
$ |
(56.9 |
) |
|
$ |
(76.4 |
) |
Adjustments to reconcile net
loss to net cash (used in) provided by operating activities: |
|
|
|
Rental product depreciation and write-offs |
|
19.9 |
|
|
|
24.1 |
|
Write-off of rental product sold |
|
5.0 |
|
|
|
3.0 |
|
Other depreciation and amortization |
|
7.5 |
|
|
|
8.7 |
|
(Gain) / loss from lease termination and write-off of fixed
assets |
|
0.1 |
|
|
|
1.9 |
|
Proceeds from rental product sold |
|
(10.8 |
) |
|
|
(8.8 |
) |
(Gain) / loss from liquidation of rental product |
|
(0.4 |
) |
|
|
(0.2 |
) |
Accrual of paid-in-kind interest |
|
14.7 |
|
|
|
7.0 |
|
Amortization of debt discount |
|
3.4 |
|
|
|
2.0 |
|
Share-based compensation expense |
|
16.2 |
|
|
|
12.4 |
|
Changes in operating assets and liabilities: |
|
|
|
Prepaid expenses and other current assets |
|
4.9 |
|
|
|
0.9 |
|
Operating lease right-of-use assets |
|
1.4 |
|
|
|
3.2 |
|
Other assets |
|
— |
|
|
|
(0.1 |
) |
Accounts payable, accrued expenses and other current
liabilities |
|
(5.0 |
) |
|
|
(5.3 |
) |
Deferred revenue and customer credit liabilities |
|
(1.5 |
) |
|
|
1.3 |
|
Operating lease liabilities |
|
(2.2 |
) |
|
|
(6.8 |
) |
Other liabilities |
|
(0.4 |
) |
|
|
0.1 |
|
Net cash (used in) provided by operating activities |
|
(4.1 |
) |
|
|
(33.0 |
) |
INVESTING
ACTIVITIES |
|
|
|
Purchases of rental
product |
|
(36.3 |
) |
|
|
(27.6 |
) |
Proceeds from liquidation of
rental product |
|
2.2 |
|
|
|
2.6 |
|
Proceeds from sale of rental
product |
|
10.8 |
|
|
|
8.8 |
|
Purchases of fixed and
intangible assets |
|
(2.2 |
) |
|
|
(4.6 |
) |
Net cash (used in) provided by investing activities |
|
(25.5 |
) |
|
|
(20.8 |
) |
FINANCING
ACTIVITIES |
|
|
|
Other financing payments |
|
(0.3 |
) |
|
|
(3.1 |
) |
Net cash (used in) provided by financing activities |
|
(0.3 |
) |
|
|
(3.1 |
) |
Net (decrease) increase in
cash and cash equivalents and restricted cash |
|
(29.9 |
) |
|
|
(56.9 |
) |
Cash and cash equivalents and
restricted cash at beginning of period |
|
163.6 |
|
|
|
259.6 |
|
Cash and cash equivalents and
restricted cash at end of period |
$ |
133.7 |
|
|
$ |
202.7 |
|
Rent the Runway, Inc.Condensed
Consolidated Statements of Cash Flow(in
millions)(unaudited) |
|
|
Six Months Ended July 31, |
|
|
2023 |
|
|
2022 |
RECONCILIATION OF CASH
AND CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONDENSED
CONSOLIDATED BALANCE SHEETS: |
|
|
|
Cash and cash equivalents |
$ |
123.7 |
|
$ |
192.3 |
Restricted cash, current |
|
4.2 |
|
|
4.6 |
Restricted cash,
noncurrent |
|
5.8 |
|
|
5.8 |
Total cash and cash
equivalents and restricted cash |
$ |
133.7 |
|
$ |
202.7 |
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
Cash payments (receipts)
for: |
|
|
|
Fixed operating lease payments, net |
$ |
5.7 |
|
$ |
7.3 |
Fixed assets and intangibles received in the prior period |
|
0.1 |
|
|
0.8 |
Rental product received in the prior period |
|
5.4 |
|
|
6.5 |
Non-cash financing and
investing activities: |
|
|
|
Financing leases right-of-use asset amortization |
$ |
0.3 |
|
$ |
0.2 |
ROU assets obtained in exchange for lease liabilities |
|
— |
|
|
0.4 |
Purchases of fixed assets and intangibles not yet settled |
|
0.1 |
|
|
1.5 |
Purchases of rental product not yet settled |
|
5.0 |
|
|
8.9 |
Rent the Runway, Inc.Reconciliation of
GAAP to Non-GAAP Financial Measures(in
millions)(unaudited) |
|
The following
table presents a reconciliation of net loss, the most comparable
GAAP financial measure, to Adjusted EBITDA for the periods
presented: |
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(in millions) |
|
(in millions) |
Net loss |
$ |
(26.8 |
) |
|
$ |
(33.9 |
) |
|
$ |
(56.9 |
) |
|
$ |
(76.4 |
) |
Interest (income) / expense,
net(1) |
|
9.5 |
|
|
|
9.6 |
|
|
|
18.3 |
|
|
|
18.9 |
|
Rental product
depreciation |
|
12.8 |
|
|
|
13.5 |
|
|
|
24.9 |
|
|
|
27.1 |
|
Other depreciation and
amortization(2) |
|
3.7 |
|
|
|
4.5 |
|
|
|
7.5 |
|
|
|
8.7 |
|
Share-based
compensation(3) |
|
7.4 |
|
|
|
6.9 |
|
|
|
16.2 |
|
|
|
12.4 |
|
Write-off of liquidated
assets(4) |
|
0.7 |
|
|
|
1.8 |
|
|
|
1.7 |
|
|
|
2.4 |
|
Non-recurring
adjustments(5) |
|
0.5 |
|
|
|
0.7 |
|
|
|
0.5 |
|
|
|
1.0 |
|
Income tax (benefit) /
expense |
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
Other (income) / expense,
net(6) |
|
(0.1 |
) |
|
|
(1.3 |
) |
|
|
(0.1 |
) |
|
|
(1.3 |
) |
Other (gains) / losses(7) |
|
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
Adjusted EBITDA |
$ |
7.7 |
|
|
$ |
1.8 |
|
|
$ |
12.2 |
|
|
$ |
(7.0 |
) |
Adjusted EBITDA Margin(8) |
|
10.2 |
% |
|
|
2.4 |
% |
|
|
8.1 |
% |
|
|
(4.9 |
)% |
(1) Includes debt discount amortization of $1.8
million in the three months ended July 31, 2023, $1.0 million
in the three months ended July 31, 2022, $3.4 million in the
six months ended July 31, 2023 and $2.0 million in the six
months ended July 31, 2022.
(2) Reflects non-rental product depreciation
and capitalized software amortization.
(3) Reflects the non-cash expense for
share-based compensation.
(4) Reflects the write-off of the remaining
book value of liquidated rental product that had previously been
held for sale.
(5) Non-recurring adjustments for the three
months ended July 31, 2023 includes $0.5 million of costs
related to the option exchange and the three months ended
July 31, 2022 includes $0.7 million of costs related to public
company SOX readiness. Non-recurring adjustments for the six months
ended July 31, 2023 includes $0.5 million of costs related to
the option exchange and for the six months ended July 31, 2022
includes $1.0 million of costs related to public company SOX
readiness.
(6) Primarily includes $1.3 million of
monetized tax credits for the three and six months ended
July 31, 2022.
(7) Includes gains / losses recognized in
relation to foreign exchange, operating lease terminations and the
related surrender of fixed assets (see “Note 4 - Leases – Lessee
Accounting” in the Notes to the Condensed Consolidated Financial
Statements).
(8) Adjusted EBITDA Margin calculated as
Adjusted EBITDA as a percentage of revenue.
|
Rent the Runway,
Inc.Reconciliation of GAAP to
Non-GAAP Financial Measures(in
millions)(unaudited) |
|
The following
table presents a reconciliation of net cash (used in) provided by
operating activities, the most comparable GAAP financial measure,
to Free Cash Flow, Free Cash Flow Margin, Free Cash Flow Before
Cash Interest Expense, and Free Cash Flow Before Cash Interest
Expense Margin for the periods presented: |
|
|
|
Six Months Ended July 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(in millions) |
Net cash (used in) provided by
operating activities |
|
$ |
(4.1 |
) |
|
$ |
(33.0 |
) |
Purchases of rental product |
|
|
(36.3 |
) |
|
|
(27.6 |
) |
Proceeds from liquidation of rental product |
|
|
2.2 |
|
|
|
2.6 |
|
Proceeds from sale of rental product |
|
|
10.8 |
|
|
|
8.8 |
|
Purchases of fixed and intangible assets |
|
|
(2.2 |
) |
|
|
(4.6 |
) |
Free Cash Flow |
|
$ |
(29.6 |
) |
|
$ |
(53.8 |
) |
Free Cash Flow Margin |
|
|
(19.7 |
)% |
|
|
(37.5 |
)% |
Cash Interest Expense |
|
|
(3.0 |
) |
|
|
(9.9 |
) |
Free Cash Flow Before Cash
Interest Expense |
|
$ |
(26.6 |
) |
|
$ |
(43.9 |
) |
Free Cash Flow Before Cash
Interest Expense Margin |
|
|
(17.7 |
)% |
|
|
(30.6 |
)% |
Rent the Runway, Inc.Reconciliation of
GAAP to Non-GAAP Financial Measures(in
millions)(unaudited) |
|
The following
table presents a reconciliation of net loss, the most comparable
GAAP financial measure, to Free Cash Flow, Free Cash Flow Margin,
Free Cash Flow Before Cash Interest Expense, and Free Cash Flow
Before Cash Interest Expense Margin for the periods presented: |
|
|
|
Six Months Ended July 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(in millions) |
Net loss |
|
$ |
(56.9 |
) |
|
$ |
(76.4 |
) |
Interest (income) / expense, net |
|
|
18.3 |
|
|
|
18.9 |
|
Rental product depreciation |
|
|
24.9 |
|
|
|
27.1 |
|
Other depreciation and amortization |
|
|
7.5 |
|
|
|
8.7 |
|
Share-based compensation |
|
|
16.2 |
|
|
|
12.4 |
|
Write-off of liquidated assets |
|
|
1.7 |
|
|
|
2.4 |
|
Non-recurring adjustments |
|
|
0.5 |
|
|
|
1.0 |
|
Income tax (benefit) / expense |
|
|
(0.1 |
) |
|
|
— |
|
Other (income) / expense, net |
|
|
(0.1 |
) |
|
|
(1.3 |
) |
Other (gains) / losses |
|
|
0.2 |
|
|
|
0.2 |
|
Adjusted EBITDA |
|
$ |
12.2 |
|
|
$ |
(7.0 |
) |
Purchases of rental product |
|
|
(36.3 |
) |
|
|
(27.6 |
) |
Purchases of fixed and intangible assets |
|
|
(2.2 |
) |
|
|
(4.6 |
) |
Cash interest expense |
|
|
(3.0 |
) |
|
|
(9.9 |
) |
Cash interest earned |
|
|
2.8 |
|
|
|
— |
|
Change in assets and liabilities |
|
|
(2.8 |
) |
|
|
(6.7 |
) |
Non-recurring adjustments |
|
|
(0.5 |
) |
|
|
(1.0 |
) |
Other adjustments(1) |
|
|
0.2 |
|
|
|
3.0 |
|
Free Cash Flow |
|
$ |
(29.6 |
) |
|
$ |
(53.8 |
) |
Free Cash Flow Margin |
|
|
(19.7 |
)% |
|
|
(37.5 |
)% |
Cash Interest Expense |
|
|
(3.0 |
) |
|
|
(9.9 |
) |
Free Cash Flow Before Cash
Interest Expense |
|
$ |
(26.6 |
) |
|
$ |
(43.9 |
) |
Free Cash Flow Before Cash
Interest Expense Margin |
|
|
(17.7 |
)% |
|
|
(30.6 |
)% |
(1) Other adjustments primarily includes cash tax adjustments
and other gains (losses).
Rent the Runway (NASDAQ:RENT)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Rent the Runway (NASDAQ:RENT)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024