Q4 2023 Rent the Runway Inc Earnings Call Transcript
Key Points
- Exceeded top and bottom line guidance for fiscal year 2023, setting a strong foundation for growth and profitability in fiscal year 2024.
- Achieved historical high Q4 and full year adjusted EBITDA, with Q4 at $11.2 million and full year at $26.9 million.
- Grew onsite inventory resell business by 36%, significantly increasing the number of customers transacting and units purchased per subscriber.
- Improved subscription net promoter score by 20 points from Q2 '23 to Q4 '23, indicating increased customer satisfaction and loyalty.
- Implemented a more capital-light inventory model, with a third of inventory procured on consignment and 28% from exclusive designs program, reducing upfront costs.
- Ending active subscribers in Q4 '23 slightly down by 0.6% year over year, indicating a challenge in subscriber growth.
- Total revenue for Q4 '23 only marginally increased by 0.5% year over year, showing slow revenue growth.
- Fulfillment costs, although improved, still represent a significant portion of revenue at 26.5% in Q4 '23.
- Gross margins in Q4 '23 were lower than Q4 '22, reflecting higher rental product costs and increased sales through the resale channel.
- Free cash flow for fiscal year 2023 was negative $70.3 million, highlighting the need for further improvement in cash generation.
Welcome to Rent the Runway fourth quarter and fiscal year 2023 earnings results conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone. As a reminder, this conference is being recorded. I would now like to turn the call over to Rent the Runways, Chief Legal and Administrative Officer, Cara Schembri. Thank you. You may begin.
Good afternoon, everyone, and thanks for joining us today. And during this call we will make references to our Q4 fiscal year 2023 earnings presentation, which can be found in the Events and Presentations section of our Investor Relations website.
Before we begin we would like to remind you that this call will include forward looking statements. These statements include our future expectations regarding financial results, guidance and targets, market opportunities
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
