Secondhand luxury marketplace The RealReal (NASDAQ: REAL) will be reporting earnings tomorrow after the bell. Here’s what to look for.
The RealReal beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $147.8 million, up 11% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a slight miss of analysts’ number of active buyers estimates. It reported 389,000 users, up 6.9% year on year.
Is The RealReal a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting The RealReal’s revenue to grow 13.8% year on year to $163.2 million, a reversal from the 10.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The RealReal has missed Wall Street’s revenue estimates twice over the last two years.
Looking at The RealReal’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Etsy delivered year-on-year revenue growth of 1.2%, missing analysts’ expectations by 1.2%, and Coinbase reported revenues up 138%, topping estimates by 22%. Coinbase traded down 8% following the results.
Read our full analysis of Etsy’s results here and Coinbase’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 7.5% on average over the last month. The RealReal is down 18% during the same time and is heading into earnings with an average analyst price target of $9.46 (compared to the current share price of $8.14).
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