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The RealReal Earnings: What To Look For From REAL


Adam Hejl /
2022/02/22 6:25 am EST

Secondhand luxury marketplace The RealReal (NASDAQ: REAL) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter The RealReal reported revenues of $118.8 million, up 52.7% year on year, beating analyst revenue expectations by 4.85%. It was an impressive quarter for the company, with an exceptional revenue growth and growing number of users. The company reported 772 thousand paying users, up 25.1% year on year.

Is The RealReal buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting The RealReal's revenue to grow 56.4% year on year to $134.9 million, improving on the 6.27% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.39 per share.

The RealReal Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates four times over the last two years.

Looking at The RealReal's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Angi (NASDAQ:ANGI) delivered top-line growth of 15.7% year on year, beating analyst estimates by 0.12%. Angi traded down 9.9% on results. Read our full analysis of Angi's results here.

Tech stocks have had a rocky start in 2022 and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 7.04% over the last month. The RealReal is down 16.3% during the same time, and is heading into the earnings with analyst price target of $21.8, compared to share price of $8.11.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.