Q2 2024 Rent the Runway Inc Earnings Call Transcript
Key Points
- Q2 2024 revenue was $78.9 million, up 4.2% year over year, exceeding the high end of guidance.
- Adjusted EBITDA was $13.7 million or 17.4% of revenue, marking the ninth consecutive quarter of positive EBITDA.
- New customer growth in the reserve business was up around 50% year over year without any incremental marketing dollars.
- Significant improvements in site performance, including a 10x faster grid loading time and a 30% reduction in bounce rates.
- Successful execution of cost reduction efforts, leading to a 17.7% decrease in operating expenses year over year.
- Ending active subscribers decreased by 6.2% year over year, primarily due to reduced promotions.
- Gross margins decreased to 41.1% in Q2 2024 from 43.9% in Q2 2023 due to higher rental product costs.
- Free cash flow for Q2 2024 was negative $4.5 million, although improved from negative $17.5 million in Q2 2023.
- Fulfillment costs remained high, although they benefited from a new transportation contract and warehouse efficiencies.
- The company is still working towards achieving free cash flow breakeven for the full year 2024.
Welcome to Rent the Runway second-quarter 2024 earnings results conference call. (Operator Instructions) If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As reminder, this conference 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. You may begin.
Good afternoon, everyone, and thanks for joining us today. During this call, we will make references to our Q2 2024 earnings presentation, which can be found in the events and presentations section of our Investor Relations website.
Before we begin, we'd 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, and our growth. These statements are subject to various risks, uncertainties and assumptions which could cause our actual
| 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
