Rent the Runway, Inc. (“Rent the Runway” or "RTR") (NASDAQ: RENT),
the world’s first and largest shared designer closet platform,
today reported financial results for the fiscal quarter and fiscal
year 2023 ended January 31, 2024.
"2023 was a year of significant improvements to the
customer experience that we believe have set the foundation for a
milestone fiscal year 2024," said Jennifer Hyman, Co-Founder and
CEO, Rent the Runway. "We launched a premium personal concierge
service to style our customers, made it easier for customers to
discover inventory they love, and created a more aspirational
product experience. As a result, NPS today is at the highest level
in several years, customers have been buying more inventory from
us, and customer retention has markedly improved YOY. We believe we
are well positioned to re-ignite our marketing and customer
acquisition engine to drive growth and FCF breakeven in fiscal
2024."
"We believe fiscal year 2024 will be a
transformative year for Rent the Runway," said Sid Thacker, Chief
Financial Officer, Rent the Runway. "Over the past several years,
we have reduced fixed costs significantly and made considerable
progress towards building a more capital-light model. We expect
these actions to result in free cash flow breakeven for fiscal year
2024. Importantly, we believe that the cost and capital expenditure
decisions that are important components of our free cash flow
breakeven plan have already been made. We have conviction that Rent
the Runway is poised to exit fiscal year 2024 as a sustainable,
growing, and free cash flow breakeven business."
Fourth Quarter 2023 Key Metrics and
Financial Highlights
- Revenue was $75.8 million, a 0.5%
increase year-over-year from $75.4 million in the fourth quarter of
fiscal year 2022.
- 125,954 ending Active Subscribers,
representing a change of (1)% year-over-year from 126,712 at the
end of the fiscal year 2022.
- 128,840 Average Active Subscribers
representing a change of (1)% year-over-year from 130,476 at the
end of the fourth quarter of fiscal year 2022.
- 173,247 ending Total Subscribers,
representing an increase of 1% year-over-year from 171,998 at the
end of the fiscal year 2022.
- Gross Profit was $29.9 million,
representing a decrease of (10.2)% from $33.3 million in the fourth
quarter of fiscal year 2022. Gross Margin was 39.4%, as compared to
44.2% in the fourth quarter of fiscal year 2022.
- Net Loss was $(24.8) million, as
compared to $(26.2) million in the fourth quarter of fiscal year
2022. Net Loss as a percentage of revenue was (32.7)%, as compared
to (34.7)% in the fourth quarter of fiscal year 2022.
- Adjusted EBITDA was $11.2 million, as
compared to $7.1 million in the fourth quarter of fiscal year 2022.
Adjusted EBITDA margin was 14.8%, as compared to 9.4% in the fourth
quarter of fiscal year 2022.
Fiscal Year 2023 Key Metrics and Financial
Highlights
- Revenue was $298.2 million, a 0.6%
increase year-over-year from $296.4 million in fiscal year
2022.
- 135,211 Average Active Subscribers
representing an increase of 5% year-over-year from 128,586 at the
end of fiscal year 2022.
- Gross Profit was $119.7 million,
roughly flat from $120.0 million in fiscal year 2022. Gross Margin
was 40.1%, as compared to 40.5% in fiscal year 2022.
- Net Loss was $(113.2) million, as
compared to $(138.7) million in fiscal year 2022. Net Loss as a
percentage of revenue was (38.0)%, as compared to (46.8)% in fiscal
year 2022.
- Adjusted EBITDA was $26.9 million, as
compared to $6.7 million in fiscal year 2022. Adjusted EBITDA
margin was 9.0%, as compared to 2.3% in fiscal year 2022.
- Net cash used in operating activities
plus net cash used in investing activities was $(70.3) million for
fiscal year 2023, as compared to $(92.0) million for fiscal year
2022.
- Net cash used in operating activities
plus net cash used in investing activities as a percentage of
revenue was (23.6)% for fiscal year 2023, as compared to (31.0)%
for fiscal year 2022.
- As of January 31, 2024, cash and
cash equivalents was $84.0 million.
Fiscal Fourth Quarter, Fiscal Year 2023 and
Recent Business Highlights
- Increased inventory in-stock
rates through our depth strategy, which significantly
improved the customer experience, led to a 20 point increase in
Subscription Net Promoter scores from Q2 '23 to Q4 '23 and
increased customer loyalty by 10% in Q4 '23 versus Q4 '22.
- Transformed prospect
experience with merchandising-heavy, use-case based hubs,
showing the customer how RTR is a solution for her needs for work,
events, travel and every day. New prospect experience has already
driven increases in conversion.
- Achieved significant growth in
our 'Try Before You Buy' resale business with record
quarterly and annual resale revenue. We believe that our model is a
competitive advantage for RTR as we are able to offer exceptional
pricing to customers on inventory they already have at home and
already love, in order to increase customer loyalty, fund inventory
newness and generate strong margins.
- Grew Concierge Program to
nearly 40% of early-term customers offering 1:1 styling
advice to customers alongside help with their orders. The Concierge
Program has driven higher loyalty and we believe is ready for
continued scale.
- Hired Natalie McGrath as Chief
Marketing Officer to re-engage our customer growth
flywheel. Natalie joined RTR on March 4, 2024 from
Afterpay where she led Marketing for North America and Europe. We
have started the year reigniting brand love by celebrating women in
our core customer demographic. We launched LinkedIn and "Real
Runway" campaigns, which both share influential women’s stories.
Our LinkedIn campaign called for nominations and self-nominations
of women’s achievements in the workplace, and garnered ~630M total
impressions.
Outlook
For fiscal year 2024, Rent the Runway expects:
- Revenue growth of between 1% to 6%
versus fiscal year 2023
- Adjusted EBITDA Margin of 15% to
16%
- Free Cash Flow Breakeven on a full
year basis
For the fiscal first quarter of 2024, Rent the
Runway expects:
- Revenue of between $73 million and $75
million
- Adjusted EBITDA Margin of 7% to
8%
Please see our fourth quarter 2023 earnings
presentation at https://investors.renttherunway.com/ under the
“Presentations” section for supplemental guidance.
Earnings Presentation, Conference Call and
Webcast
The fourth quarter and fiscal year 2023 Earnings
Presentation is now accessible through the Investor Relations
section of Rent the Runway’s website at
https://investors.renttherunway.com/ under the “Presentations”
section.
Rent the Runway will host a conference call and
webcast to discuss its fourth quarter and fiscal year 2023
financial results and provide a business update today, April 10,
2024, at 4:30 pm ET.
The financial results and live webcast will be
accessible through the Investor Relations section of Rent the
Runway’s website at https://investors.renttherunway.com/ under
the “Events” section. To access the call through a conference line,
dial 1-877-407-3982 (in the U.S.) or 1-201-493-6780 (international
callers).
A replay of the conference call will be posted
shortly after the call and will be available for at least fourteen
days. To access the replay, dial 1-844-512-2921 (in the U.S.) or
1-412-317-6671 (international callers). The access code for the
replay is 13744900.
About Rent the Runway, Inc.
Founded in 2009, Rent the Runway is disrupting
the trillion-dollar fashion industry and changing the way women get
dressed through the Closet in the Cloud, the world’s first and
largest shared designer closet. RTR’s mission has remained the same
since its founding: powering women to feel their best every day.
Through RTR, customers can subscribe, rent items a-la-carte and
shop resale from hundreds of designer brands. The Closet in the
Cloud offers a wide assortment of millions of items for every
occasion, from evening wear and accessories to ready-to-wear,
workwear, denim, casual, maternity, outerwear, blouses, knitwear,
loungewear, jewelry, handbags, activewear and ski wear. RTR has
built a two-sided discovery engine, which connects deeply engaged
customers and differentiated brand partners on a powerful platform
built around its brand, data, logistics and technology. Under CEO
and Co-Founder Jennifer Hyman’s leadership, RTR has been named to
CNBC’s “Disruptor 50” five times in ten years, and has been placed
on Fast Company’s Most Innovative Companies list four times, while
Hyman herself has been named to the "TIME 100: Most Influential
People in the World" and as one of People Magazine’s “Women
Changing the World."
Forward-Looking Statements:
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
All statements contained in this press release that do not relate
to matters of historical fact should be considered forward-looking
statements. These statements include, but are not limited to,
statements regarding our future results of operations, financial
position, revenue and free cash flow, subscriber growth, future
product launches, business objectives, including our plans to
reduce fixed costs, benefits of our inventory-focused strategy and
other strategic initiatives, marketing plans, and expectations
regarding subscriber trends, customer retention and satisfaction.
Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified. In
some cases, you can identify forward-looking statements because
they contain words such as “aim,” “anticipate,” “believe,”
“contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “plan,” “potential,” “predict,” “project,” “should,”
“target,” “toward,” “will,” or “would,” or the negative of these
words or other similar terms or expressions. You should not put
undue reliance on any forward-looking statements. Forward-looking
statements should not be read as a guarantee of future performance
or results and will not necessarily be accurate indications of the
times at, or by, which such performance or results will be
achieved, if at all. Forward-looking statements are based on
information available at the time those statements are made and
were based on current expectations, estimates, forecasts, and
projections as well as the beliefs and assumptions of management as
of that time with respect to future events. These statements are
subject to risks and uncertainties, many of which involve factors
or circumstances that are beyond our control, that could cause
actual performance or results to differ materially from those
expressed in or suggested by the forward-looking statements. In
light of these risks and uncertainties, the forward-looking events
and circumstances discussed in this press release may not occur and
actual results could differ materially from those anticipated or
implied in the forward-looking statements. These risks and
uncertainties include our ability to manage our growth effectively;
the highly competitive and rapidly changing nature of the global
fashion industry; risks related to the macroeconomic environment;
our ability to cost-effectively grow our customer base; any failure
to retain customers; our ability to accurately forecast customer
demand, manage our offerings effectively and plan for future
expenses; risks arising from the restructuring of our operations;
our reliance on the effective operation of proprietary technology
systems and software as well as those of third-party vendors and
service providers; risks related to shipping, logistics and our
supply chain; our ability to remediate our material weaknesses in
our internal control over financial reporting; laws and regulations
applicable to our business; our reliance on the experience and
expertise of our senior management and other key personnel;
compliance with data privacy, data security, data protection and
consumer protection laws and industry standards; risks associated
with our brand and manufacturing partners; our reliance on third
parties for elements of the payment processing infrastructure
underlying our business; our dependence on online sources to
attract consumers and promote our business which may be affected by
third-party interference or cause our customer acquisition costs to
rise; failure by us, our brand partners, or third party
manufacturers to comply with our vendor code of conduct or other
laws; risks related to the Company's debt, including the Company's
ability to comply with covenants in the Company's credit facility;
risks related to our compliance with Nasdaq's continued listing
requirements and other Nasdaq rules; risks related to our Class A
capital stock and ownership structure; and risks related to future
pandemics or public health crises.
Additional information regarding these and other
risks and uncertainties that could cause actual results to differ
materially from the Company’s expectations is included in our
Quarterly Report on Form 10-Q for the quarter ended October 31,
2023, as will be updated in our Annual Report on Form 10-K for the
year ended January 31, 2024. Except as required by law, we do
not undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments, or otherwise.
Key Business and Financial
Metrics
Active Subscribers is defined as the number of
subscribers with an active membership as of the last day of any
given period and excludes paused subscribers.
Average Active Subscribers is defined as the mean
of the beginning of quarter and end of quarter Active Subscribers
for a quarterly period; and for other periods, represents the mean
of the Average Active Subscribers of every quarter within that
period.
Gross Profit is defined as total revenue less costs
related to activities to fulfill customer orders and rental product
acquisition costs, presented as fulfillment and rental product
depreciation and revenue share, respectively, on the consolidated
statement of operations. We depreciate owned apparel assets over
three years and owned accessory assets over two years, net of 20%
and 30% salvage values, respectively, and recognize the
depreciation on a straight line basis and remaining cost of items
when sold or retired on our consolidated statement of operations.
Rental product depreciation expense is time-based and reflects all
rental product items we own. We use Gross Profit and Gross Profit
as a percentage of revenue, or Gross Margin, to measure the
continued efficiency of our business after the cost of our products
and fulfillment costs are included.
Non-GAAP Financial Measures
This press release and the accompanying tables
contain the non-GAAP financial measures of Adjusted EBITDA,
Adjusted EBITDA margin, free cash flow, and free cash flow margin.
In addition to our results determined in accordance with GAAP, we
believe that Adjusted EBITDA and Adjusted EBITDA margin are useful
in evaluating our performance and free cash flow and free cash flow
margin are useful in evaluating our performance and liquidity.
Adjusted EBITDA is a key performance measure used by management to
assess our operating performance and the operating leverage of our
business prior to capital expenditures. These non-GAAP financial
metrics are not meant to be considered as indicators of our
financial performance in isolation from or as a substitute for our
financial information prepared in accordance with GAAP and should
be read only in conjunction with financial information presented on
a GAAP basis. There are limitations to the use of the non-GAAP
financial metrics presented in this press release. For example, our
non-GAAP financial metrics may not be comparable to similarly
titled measures of other companies. Other companies, including
companies in our industry, may calculate non-GAAP financial metrics
differently than we do, limiting the usefulness of those measures
for comparative purposes.
We define Adjusted EBITDA as net loss, adjusted to
exclude interest expense, rental product depreciation, other
depreciation and amortization, share-based compensation expense,
write-off of liquidated rental product assets, certain
non-recurring or one-time costs (see below footnotes to the
reconciliation table), non-ordinary course legal expenses,
restructuring charges, loss on asset impairment related to
restructuring, income tax (benefit) expense, warrant liability
revaluation gains / losses, debt extinguishment gains / losses,
other income and expense, and other gains / losses. Adjusted EBITDA
margin is defined as Adjusted EBITDA calculated as a percentage of
total revenue, net for a period.
We define free cash flow as net cash used in
operating activities and net cash used in investing activities on a
combined basis. Free cash flow margin is defined as free cash flow
as a percentage of revenue.
The reconciliation of presented non-GAAP financial
metrics to the most directly comparable GAAP financial measure is
presented below. We encourage reviewing the reconciliation in
conjunction with the presentation of the non-GAAP financial metrics
for each of the periods presented. In future periods, we may
exclude similar items, may incur income and expenses similar to
these excluded items, and may include other expenses, costs and
non-recurring items. Reconciliation of Adjusted EBITDA, Adjusted
EBITDA margin and free cash flow expectations for Q1 2024 and
fiscal year 2024 (as applicable) to the closest corresponding GAAP
measure is not available without unreasonable efforts on a
forward-looking basis due to the high variability, complexity, and
low visibility with respect to the charges excluded from these
non-GAAP measures, in particular, share-based compensation expense,
and non-recurring expenses, which can have unpredictable
fluctuations based on unforeseen activity that is out of our
control and/or cannot reasonably be predicted.
Investor ContactInvestor Relations
investors@renttherunway.com
Media
ContactPresspress@renttherunway.com
Rent the Runway,
Inc.Consolidated Balance
Sheets(in millions)
|
January 31, |
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
84.0 |
|
|
$ |
154.5 |
|
Restricted cash, current |
|
5.2 |
|
|
|
3.1 |
|
Prepaid expenses and other current assets |
|
13.0 |
|
|
|
14.5 |
|
Total current assets |
|
102.2 |
|
|
|
172.1 |
|
Restricted cash |
|
4.8 |
|
|
|
6.0 |
|
Rental product, net |
|
94.0 |
|
|
|
78.7 |
|
Fixed assets, net |
|
35.7 |
|
|
|
44.7 |
|
Intangible assets, net |
|
3.4 |
|
|
|
4.1 |
|
Operating
lease right-of-use assets |
|
33.9 |
|
|
|
26.7 |
|
Other assets |
|
4.5 |
|
|
|
3.9 |
|
Total assets |
$ |
278.5 |
|
|
$ |
336.2 |
|
Liabilities and
Stockholders’ Equity (Deficit) |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
5.8 |
|
|
$ |
12.4 |
|
Accrued expenses and other current liabilities |
|
21.7 |
|
|
|
24.4 |
|
Deferred revenue |
|
10.9 |
|
|
|
12.0 |
|
Customer credit liabilities |
|
6.3 |
|
|
|
6.8 |
|
Operating lease liabilities |
|
3.4 |
|
|
|
4.4 |
|
Total current liabilities |
|
48.1 |
|
|
|
60.0 |
|
Long-term debt, net |
|
306.7 |
|
|
|
272.5 |
|
Operating lease
liabilities |
|
45.3 |
|
|
|
38.3 |
|
Other liabilities |
|
0.7 |
|
|
|
0.7 |
|
Total liabilities |
|
400.8 |
|
|
|
371.5 |
|
|
|
|
|
Stockholders’ equity
(deficit) |
|
|
|
Class A common stock |
|
— |
|
|
|
— |
|
Class B common stock |
|
— |
|
|
|
— |
|
Preferred stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
930.8 |
|
|
|
904.6 |
|
Accumulated deficit |
|
(1,053.1 |
) |
|
|
(939.9 |
) |
Total stockholders’ equity
(deficit) |
|
(122.3 |
) |
|
|
(35.3 |
) |
Total liabilities and
stockholders’ equity (deficit) |
$ |
278.5 |
|
|
$ |
336.2 |
|
|
|
|
|
|
|
|
|
Rent the Runway,
Inc.Consolidated Statements of
Operations(in millions, except share and per share
amounts)
|
Three Months Ended January
31, |
|
Years Ended January 31, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
Subscription and Reserve rental revenue |
$ |
65.4 |
|
|
$ |
68.4 |
|
|
$ |
264.9 |
|
|
$ |
268.6 |
|
Other revenue |
|
10.4 |
|
|
|
7.0 |
|
|
|
33.3 |
|
|
|
27.8 |
|
Total revenue, net |
|
75.8 |
|
|
|
75.4 |
|
|
|
298.2 |
|
|
|
296.4 |
|
Costs and expenses: |
|
|
|
|
|
|
|
Fulfillment |
|
20.1 |
|
|
|
22.7 |
|
|
|
86.0 |
|
|
|
92.2 |
|
Technology |
|
11.0 |
|
|
|
12.8 |
|
|
|
49.1 |
|
|
|
55.4 |
|
Marketing |
|
6.6 |
|
|
|
7.7 |
|
|
|
31.2 |
|
|
|
35.1 |
|
General and administrative |
|
24.8 |
|
|
|
24.9 |
|
|
|
101.6 |
|
|
|
109.0 |
|
Rental product depreciation and revenue share |
|
25.8 |
|
|
|
19.4 |
|
|
|
92.5 |
|
|
|
84.2 |
|
Other depreciation and amortization |
|
3.7 |
|
|
|
3.8 |
|
|
|
14.7 |
|
|
|
16.4 |
|
Restructuring charges |
|
2.0 |
|
|
|
0.4 |
|
|
|
2.0 |
|
|
|
2.4 |
|
Loss on asset impairment related to restructuring |
|
1.1 |
|
|
|
1.5 |
|
|
|
1.1 |
|
|
|
5.3 |
|
Total costs and expenses |
|
95.1 |
|
|
|
93.2 |
|
|
|
378.2 |
|
|
|
400.0 |
|
Operating loss |
|
(19.3 |
) |
|
|
(17.8 |
) |
|
|
(80.0 |
) |
|
|
(103.6 |
) |
Interest income / (expense), net |
|
(5.4 |
) |
|
|
(8.6 |
) |
|
|
(33.7 |
) |
|
|
(36.8 |
) |
Other income / (expense), net |
|
0.4 |
|
|
|
0.1 |
|
|
|
0.7 |
|
|
|
1.5 |
|
Net loss before income tax benefit / (expense) |
|
(24.3 |
) |
|
|
(26.3 |
) |
|
|
(113.0 |
) |
|
|
(138.9 |
) |
Income tax benefit / (expense) |
|
(0.5 |
) |
|
|
0.1 |
|
|
|
(0.2 |
) |
|
|
0.2 |
|
Net loss |
$ |
(24.8 |
) |
|
$ |
(26.2 |
) |
|
$ |
(113.2 |
) |
|
$ |
(138.7 |
) |
Net loss per share
attributable to common stockholders, basic and diluted |
$ |
(7.02 |
) |
|
$ |
(8.07 |
) |
|
$ |
(33.12 |
) |
|
$ |
(43.17 |
) |
Weighted-average shares used
in computing net loss per share attributable to common
stockholders, basic and diluted |
|
3,530,973 |
|
|
|
3,248,278 |
|
|
|
3,418,382 |
|
|
|
3,212,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent the Runway,
Inc.Consolidated Statements of Cash
Flow(in millions)
|
Years Ended January 31, |
|
|
2024 |
|
|
|
2023 |
|
OPERATING ACTIVITIES |
|
|
|
Net loss |
$ |
(113.2 |
) |
|
$ |
(138.7 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by
operating activities: |
|
|
|
Rental product depreciation and write-offs |
|
44.0 |
|
|
|
46.2 |
|
Write-off of rental product sold |
|
13.1 |
|
|
|
6.7 |
|
Other depreciation and amortization |
|
14.7 |
|
|
|
16.4 |
|
Loss from lease termination and write-off of fixed and intangible
assets |
|
0.3 |
|
|
|
0.6 |
|
Loss on asset impairment related to restructuring |
|
1.0 |
|
|
|
4.9 |
|
Proceeds from rental product sold |
|
(23.3 |
) |
|
|
(17.9 |
) |
(Gain) / loss from liquidation of rental product |
|
(1.0 |
) |
|
|
(2.7 |
) |
Accrual of paid-in-kind interest |
|
22.5 |
|
|
|
14.3 |
|
Amortization of debt discount |
|
11.7 |
|
|
|
4.3 |
|
Share-based compensation expense |
|
26.2 |
|
|
|
25.4 |
|
Changes in operating assets and liabilities: |
|
|
|
Prepaid expenses and other current assets |
|
1.1 |
|
|
|
(2.8 |
) |
Operating lease right-of-use assets |
|
(7.2 |
) |
|
|
2.0 |
|
Other assets |
|
(1.2 |
) |
|
|
0.9 |
|
Accounts payable, accrued expenses and other current
liabilities |
|
(8.4 |
) |
|
|
(3.9 |
) |
Deferred revenue and customer credit liabilities |
|
(1.6 |
) |
|
|
1.5 |
|
Operating lease liabilities |
|
6.0 |
|
|
|
(4.6 |
) |
Other liabilities |
|
(0.4 |
) |
|
|
(0.3 |
) |
Net cash (used in) provided by operating activities |
|
(15.7 |
) |
|
|
(47.7 |
) |
INVESTING ACTIVITIES |
|
|
|
Purchases of rental product |
|
(77.9 |
) |
|
|
(62.1 |
) |
Proceeds from liquidation of rental product |
|
4.6 |
|
|
|
8.8 |
|
Proceeds from sale of rental product |
|
23.3 |
|
|
|
17.9 |
|
Purchases of fixed and intangible assets |
|
(4.6 |
) |
|
|
(8.9 |
) |
Net cash (used in) provided by investing activities |
|
(54.6 |
) |
|
|
(44.3 |
) |
FINANCING ACTIVITIES |
|
|
|
Proceeds from short-term financing agreements |
|
1.6 |
|
|
|
— |
|
Other financing payments |
|
(0.9 |
) |
|
|
(4.0 |
) |
Net cash provided by (used in) financing activities |
|
0.7 |
|
|
|
(4.0 |
) |
Net (decrease) increase in cash and cash equivalents and restricted
cash |
|
(69.6 |
) |
|
|
(96.0 |
) |
Cash and cash equivalents and restricted cash at beginning of
period |
|
163.6 |
|
|
|
259.6 |
|
Cash and cash equivalents and restricted cash at end of period |
$ |
94.0 |
|
|
$ |
163.6 |
|
|
|
|
|
|
|
|
|
Rent the Runway,
Inc.Consolidated Statements of Cash
Flow(in millions)
|
Years Ended January 31, |
|
|
2024 |
|
|
2023 |
|
RECONCILIATION OF CASH
AND CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED
BALANCE SHEETS: |
|
|
|
Cash and cash equivalents |
$ |
84.0 |
|
$ |
154.5 |
|
Restricted cash, current |
|
5.2 |
|
|
3.1 |
|
Restricted cash, noncurrent |
|
4.8 |
|
|
6.0 |
|
Total cash and cash equivalents and restricted cash |
$ |
94.0 |
|
$ |
163.6 |
|
|
|
|
|
Supplemental Cash Flow
Information: |
|
|
|
Cash payments (receipts)
for: |
|
|
|
Interest paid on loans |
$ |
9.6 |
|
$ |
19.8 |
|
Interest paid on financing leases |
|
0.2 |
|
|
0.1 |
|
Fixed operating lease payments, net |
|
11.1 |
|
|
13.5 |
|
Fixed assets and intangibles received in the prior period |
|
0.1 |
|
|
0.8 |
|
Rental product received in the prior period |
|
5.4 |
|
|
6.5 |
|
Non-cash financing and
investing activities: |
|
|
|
Financing lease right-of-use asset amortization |
$ |
0.6 |
|
$ |
0.5 |
|
ROU assets obtained in exchange for lease liabilities |
|
— |
|
|
1.2 |
|
Adjustments to ROU assets or lease liabilities due to modification
or other reassessment events to operating and finance leases |
|
10.3 |
|
|
(1.2 |
) |
Purchases of fixed assets and intangibles not yet settled |
|
0.3 |
|
|
0.1 |
|
Purchases of rental product not yet settled |
|
3.3 |
|
|
5.4 |
|
Reconciliation of loss on asset impairment: |
|
|
|
Accrued expense related to the loss on asset impairment |
$ |
0.1 |
|
$ |
0.4 |
|
|
|
|
|
|
|
|
Rent the Runway,
Inc.Reconciliation of GAAP to Non-GAAP Financial
Measures(in millions)
The following table presents a reconciliation of
net loss, the most comparable GAAP financial measure, to Adjusted
EBITDA for the periods presented:
|
Three Months Ended January
31, |
|
Years Ended January 31, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in millions) |
Net loss |
$ |
(24.8 |
) |
|
$ |
(26.2 |
) |
|
$ |
(113.2 |
) |
|
$ |
(138.7 |
) |
Interest (income) / expense, net (1) |
|
5.4 |
|
|
|
8.6 |
|
|
|
33.7 |
|
|
|
36.8 |
|
Rental product depreciation |
|
16.7 |
|
|
|
11.9 |
|
|
|
57.1 |
|
|
|
52.9 |
|
Other depreciation and amortization (2) |
|
3.7 |
|
|
|
3.8 |
|
|
|
14.7 |
|
|
|
16.4 |
|
Share-based compensation (3) |
|
5.1 |
|
|
|
6.4 |
|
|
|
26.2 |
|
|
|
25.4 |
|
Write-off of liquidated assets (4) |
|
0.8 |
|
|
|
0.9 |
|
|
|
3.4 |
|
|
|
5.8 |
|
Non-recurring adjustments (5) |
|
1.1 |
|
|
|
— |
|
|
|
1.7 |
|
|
|
1.3 |
|
Non-ordinary course legal fees (6) |
|
0.1 |
|
|
|
0.1 |
|
|
|
0.3 |
|
|
|
0.1 |
|
Restructuring charges (7) |
|
2.0 |
|
|
|
0.4 |
|
|
|
2.0 |
|
|
|
2.4 |
|
Loss on asset impairment related to restructuring (8) |
|
1.1 |
|
|
|
1.5 |
|
|
|
1.1 |
|
|
|
5.3 |
|
Income tax (benefit) / expense |
|
0.5 |
|
|
|
(0.1 |
) |
|
|
0.2 |
|
|
|
(0.2 |
) |
Other (income) / expense, net (9) |
|
(0.4 |
) |
|
|
(0.1 |
) |
|
|
(0.7 |
) |
|
|
(1.5 |
) |
Other (gains) / losses (10) |
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
0.4 |
|
|
|
0.7 |
|
Adjusted EBITDA |
$ |
11.2 |
|
|
$ |
7.1 |
|
|
$ |
26.9 |
|
|
$ |
6.7 |
|
Adjusted EBITDA Margin (11) |
|
14.8 |
% |
|
|
9.4 |
% |
|
|
9.0 |
% |
|
|
2.3 |
% |
(1) Includes debt discount amortization of
$6.5 million in the three months ended January 31, 2024, $1.1
million in the three months ended January 31, 2023, $11.7
million in the year ended January 31, 2024 and $4.3 million in
the year ended January 31, 2023.
(2) Reflects non-rental product depreciation
and capitalized software amortization.
(3) Reflects the non-cash expense for
share-based compensation.
(4) Reflects the write-off of the remaining
book value of liquidated rental product that had previously been
held for sale.
(5) Non-recurring adjustments for the three
months ended January 31, 2024 includes $1.1 million of costs
primarily related to debt refinancing and related fees and the
option exchange. Non-recurring adjustments for the year ended
January 31, 2024 includes $1.7 million of costs primarily
related to debt refinancing and related fees and the option
exchange and for the year ended January 31, 2023 includes $1.3
million of costs related to public company SOX readiness.
(6) Non-ordinary course legal fees for the
year ended January 31, 2024 includes $0.3 million related to a
class action lawsuit. Non-ordinary course legal fees for the three
months ended and year ended January 31, 2023 includes $0.1
million of costs related to a class action lawsuit.
(7) Reflects restructuring charges primarily
related to severance and related costs in connection with the
January 2024 and September 2022 restructuring plans.
(8) Reflects the asset impairment charge
related to the discontinuation of a software implementation project
in connection with the January 2024 restructuring plan and two
warehouse operations projects in connection with the September 2022
restructuring plan.
(9) Primarily includes $1.4 million of
monetized tax credits for the year ended January 31, 2023.
(10) Includes gains / losses recognized in
relation to foreign exchange, operating lease terminations and the
related surrender of fixed assets (see “Note 5 - Leases – Lessee
Accounting” in the Notes to the Consolidated Financial
Statements).
(11) Adjusted EBITDA Margin calculated as
Adjusted EBITDA as a percentage of revenue.
Rent the Runway,
Inc.Reconciliation of GAAP to Non-GAAP Financial
Measures(in millions)
The following table presents a reconciliation of
net cash (used in) provided by operating activities, the most
comparable GAAP financial measure, to Free Cash Flow and Free Cash
Flow Margin for the periods presented:
|
|
Years Ended January 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(in millions) |
Net cash (used in) provided by operating activities |
|
$ |
(15.7 |
) |
|
$ |
(47.7 |
) |
Purchases of rental product |
|
|
(77.9 |
) |
|
|
(62.1 |
) |
Proceeds from liquidation of rental product |
|
|
4.6 |
|
|
|
8.8 |
|
Proceeds from sale of rental product |
|
|
23.3 |
|
|
|
17.9 |
|
Purchases of fixed and intangible assets |
|
|
(4.6 |
) |
|
|
(8.9 |
) |
Free Cash Flow |
|
$ |
(70.3 |
) |
|
$ |
(92.0 |
) |
Free Cash Flow Margin |
|
(23.6)% |
|
(31.0)% |
|
|
|
|
|
Rent the Runway,
Inc.Reconciliation of GAAP to Non-GAAP Financial
Measures(in millions)
The following table presents a reconciliation of
net loss, the most comparable GAAP financial measure, to Free Cash
Flow and Free Cash Flow Margin for the periods presented:
|
|
Years Ended January 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(in millions) |
Net loss |
|
$ |
(113.2 |
) |
|
$ |
(138.7 |
) |
Interest (income) / expense, net |
|
|
33.7 |
|
|
|
36.8 |
|
Rental product depreciation |
|
|
57.1 |
|
|
|
52.9 |
|
Other depreciation and amortization |
|
|
14.7 |
|
|
|
16.4 |
|
Share-based compensation |
|
|
26.2 |
|
|
|
25.4 |
|
Write-off of liquidated assets |
|
|
3.4 |
|
|
|
5.8 |
|
Non-recurring adjustments |
|
|
1.7 |
|
|
|
1.3 |
|
Non-ordinary course legal fees |
|
|
0.3 |
|
|
|
0.1 |
|
Restructuring charges |
|
|
2.0 |
|
|
|
2.4 |
|
Loss on asset impairment related to restructuring |
|
|
1.1 |
|
|
|
5.3 |
|
Income tax (benefit) / expense |
|
|
0.2 |
|
|
|
(0.2 |
) |
Other (income) / expense, net |
|
|
(0.7 |
) |
|
|
(1.5 |
) |
Other (gains) / losses |
|
|
0.4 |
|
|
|
0.7 |
|
Adjusted EBITDA |
|
$ |
26.9 |
|
|
$ |
6.7 |
|
Purchases of rental product |
|
|
(77.9 |
) |
|
|
(62.1 |
) |
Purchases of fixed and intangible assets |
|
|
(4.6 |
) |
|
|
(8.9 |
) |
Cash interest expense |
|
|
(4.7 |
) |
|
|
(20.1 |
) |
Cash interest earned |
|
|
5.2 |
|
|
|
1.9 |
|
Change in assets and liabilities |
|
|
(11.7 |
) |
|
|
(7.2 |
) |
Non-recurring adjustments |
|
|
(1.7 |
) |
|
|
(1.3 |
) |
Non-ordinary course legal fees |
|
|
(0.3 |
) |
|
|
(0.1 |
) |
Restructuring charges |
|
|
(2.0 |
) |
|
|
(2.4 |
) |
Other adjustments (1) |
|
|
0.5 |
|
|
|
1.5 |
|
Free Cash Flow |
|
$ |
(70.3 |
) |
|
$ |
(92.0 |
) |
Free Cash Flow Margin |
|
(23.6)% |
|
(31.0)% |
(1) Other adjustments primarily includes cash tax
adjustments and other cash gains (losses).
Grafico Azioni Rent the Runway (NASDAQ:RENT)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Rent the Runway (NASDAQ:RENT)
Storico
Da Mag 2023 a Mag 2024