The RealReal, Inc. reported a total revenue of $600.5 million for the fiscal year ending December 31, 2024, marking an increase of 9.3% from $549.3 million in 2023. The company's consignment revenue, which constitutes the majority of its income, rose by 14% to $473.4 million, driven by a 6% increase in gross merchandise value (GMV) and a higher average order value (AOV) of $545, up from $523 in the previous year. Despite this revenue growth, the company continued to experience net losses, reporting a net loss of $134.2 million, a slight improvement from the $168.5 million loss in 2023.
In terms of operational metrics, The RealReal's active buyer count reached approximately 973,000, with repeat buyers accounting for 88% of GMV. The company also noted that over 80% of its GMV came from repeat consignors, highlighting a strong retention rate among its customer base. The take rate, which reflects the percentage of proceeds retained from consignment sales, increased to 38.4% from 37.5% in the prior year, attributed to a revised commission structure implemented in late 2022.
Strategically, The RealReal has focused on enhancing its technology and operational efficiencies. The company has invested in automation and artificial intelligence to streamline its authentication and merchandising processes. Additionally, it has reduced its workforce by approximately 7% and closed several retail locations as part of a restructuring plan aimed at cutting costs and improving profitability. As of December 31, 2024, the company employed 3,011 full-time equivalent employees, a reduction from previous years.
The company also undertook significant financial maneuvers, including the issuance of new convertible senior notes and the exchange of existing notes to extend its debt maturity profile. As of the end of 2024, The RealReal had $287 million in convertible senior notes and $134.5 million in non-convertible notes. The company reported cash and cash equivalents of $172.2 million, which it believes will be sufficient to meet its operational needs for at least the next 12 months.
Looking ahead, The RealReal anticipates continued challenges in achieving profitability, given its history of losses and the competitive landscape of the luxury resale market. The company aims to leverage its technology investments and customer loyalty to drive growth, while also navigating macroeconomic uncertainties that could impact consumer spending. The management remains focused on optimizing its operations and expanding its market presence, particularly through its online platform and retail stores.
About TheRealReal, Inc.
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