Rent the Runway Inc (NAS:RENT)
$ 8.43 -0.23 (-2.66%) Market Cap: 32.73 Mil Enterprise Value: 331.63 Mil PE Ratio: 0 PB Ratio: 0 GF Score: 29/100
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Q1 2024 Rent the Runway Inc Earnings Call Transcript

Jun 6, 2024 / 08:30 PM GMT
Release Date Price: $26.81 (+7.24%)

Key Points

Positve
  • Rent the Runway Inc (RENT) reported a strong Q1 2024 with revenue reaching $75 million, hitting the top end of their guidance.
  • The company achieved its eighth consecutive quarter of positive adjusted EBITDA, coming in at $6.5 million or 8.7%.
  • Free cash flow burn was reduced to a record low of $1.4 million, an $11 million improvement compared to Q1 2023.
  • Ending active subscribers reached a record high of 145,837, a 16% increase from Q4 2024.
  • The company has successfully transformed its inventory model to a more capital-light approach, acquiring nearly half of its inventory at zero or minimal upfront cost.
Negative
  • Despite the positive trends, Rent the Runway Inc (RENT) still reported a free cash flow burn of $1.4 million.
  • Subscription and reserve rental revenue decreased by 1% year-over-year in Q1 2024.
  • Gross margins decreased quarter-over-quarter to 37.9% from 39.4% in Q4 2023, primarily due to higher upfront revenue share payments and seasonally higher promotional spending.
  • The company is still facing challenges in reigniting new customer growth, despite improvements in inventory and customer experience.
  • Operating expenses, while lower year-over-year, still accounted for 55.2% of revenue in Q1 2024.


Refinitiv StreetEvents Event Transcript
P R E L I M I N A R Y V E R S I O N

RENT.OQ - Rent the Runway Inc
Q1 2024 Rent the Runway Inc Earnings Call
Jun 06, 2024 / 08:30PM GMT

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Conference Call Participants
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* >>Cara Schembri - General Counsel, Corporate Secretary
* >>Jennifer Hyman - Chairman of the Board, President, Chief Executive Officer, Co-Founder, Chief Operating Officer
* >>Siddharth Thacker - Chief Financial Officer
* >>Andrew Boone - Analyst

=====================
Presentation
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Operator [1]
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Welcome to Rentthe Runway's first quarter 2024 earnings results conference call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to Rent the Runway's Chief Legal and Administrative Officer, Cara Schembri. Thank you. Youmay begin.

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