Rent the Runway doubled its revenue in fiscal Q1
Rent the Runway reported its financial results for the first quarter on Friday. Here are the notable figures.
avatar
Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.
2022-06-10 18:04

Rent the Runway Inc on Friday said it doubled its revenue in the fiscal first quarter. Shares still closed the regular session down roughly 4.0%.
Rent the Runway doubled its revenue in fiscal Q1
Rent the Runway Q1 Financial Highlights
The following results are compared to the first quarter fiscal 2022.

* Reported a revenue of $67.1 million compared to $33.5 million [100% INCREASE]
* Net loss was $42.5 million compared to $42.3 million [0.47% INCREASE]
* Gross profit jumped to $22.5 million compared to $8.1 million [177% INCREASE]
* Adjusted EBITDA upped 41% to $8.8 million

First-quarter loss on a per-share basis was 67 cents versus a loss of $3.75 per share in Q1 last year, CEO and Co-Founder Jennifer Hyman said:

“I’m excited to share that we exceeded our Q1 guidance across all key metrics both on the top and bottom lines, growing revenue 100% YoY and gross margin by 9 points YoY. Our strong performance is evidence of our firm position in the broader experience economy, which has enabled us to make significant progress on our path to profitability and achieve record ending Active Subscribers in the first quarter of 2022.”

Other Prominent Figures
The shared designer closet platform also reported a 70% YoY increase to 177,213 total subscribers. 134,998 active subscribers represent an 82% increase compared to Q1 of fiscal 2021. Gross margin stood at 33.5% versus 24.2% a year ago. The company also launched one new designer and six new Exclusive Designs collections. Wall Street currently rates Rent the Runway at “buy” with an average price target of $11 a share.

Rent the Runway’s Outlook for 2022
For full fiscal 2022, the Nasdaq-listed company forecasts $295.0 million to $305.0 million in revenue on an adjusted EBITDA margin of 6.0% to 5.0%. CFO Scarlet O’Sullivan said:

“Underscoring our confidence in the business, we are reiterating our outlook of 45%-50% YoY revenue growth in fiscal year 2022, and our target of Adjusted EBITDA breakeven in the next 2-4 quarters, while progressing towards our top priority of free cash flow breakeven in the mid-term.”

For the current quarter, the eCommerce platform foresees a revenue of $72.0 to $74.0 million, and the adjusted EBITDA is expected to be $4.0 to $3.0 million. The $217.2 million company is currently down roughly 59% for the year.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2022-06-10 18:04

avatar
About the Author
Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

What on Earth Happened to SVB Financial Group (SIVB)?
What is in Store for Silicon Valley Bank?
By Mike Sakuraba | 1 week ago

2 Tech Stocks to Consider for the Long Term
Even with all of the bearishness in the markets, as investors, we should be looking for quality stocks.
By Mike Sakuraba | 1 week ago

Why Tesla's Recent Event Failed to Deliver
Tesla's recent event failed to meet investors' expectations due to the lack of a Next Generation EV announcement.
By Staff | 2 weeks ago

Qualcomm's partnership with Iridium takes connectivity to new heights
Qualcomm's partnership with Iridium brings satellite-based messaging technology to phones, laptops and other devices, providing new opportunities for connectivity in any location.
By Staff | 2 months ago

Hologic's Fiscal Q1 2023 Earnings: A Ray of Hope in a Stormy Year
Hologic has managed to achieve impressive financial results in Fiscal Q1 2023.
By Staff | 2 months ago

Why Small and Mid-Cap Stocks Deserve Your Attention
Why valuations make small and mid-cap stocks an attractive option in a potential recession.
By Staff | 2 months ago

Get Ready for a Bumpy Year
Despite strong job creation numbers, deeper issues lurk beneath the surface as the Federal Reserve's rate hikes and high inflation threaten to derail the economy.
By Staff | 2 months ago