The RealReal Earnings: What To Look For From REAL

Adam Hejl /
2022/08/08 4:18 am EDT
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Secondhand luxury marketplace The RealReal (NASDAQ: REAL) will be announcing earnings results tomorrow after market close. Here's what to look for.

Last quarter The RealReal reported revenues of $146.7 million, up 48.4% year on year, beating analyst revenue expectations by 7.59%. It was a very strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates. The company reported 828 thousand paying users, up 20.5% 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 46.7% year on year to $153.9 million, slowing down from the 83.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.45 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 three times over the last two years.

Looking at The RealReal's peers in the consumer internet segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Etsy delivered top-line growth of 10.6% year on year, beating analyst estimates by 5.06% and Airbnb reported revenues up 57.5% year on year, missing analyst estimates by 0.04%. Etsy traded up 3.68% on the results, and Airbnb was down 10%. Read our full analysis of Etsy's results here and Airbnb's results here.

There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 19.6% over the last month. The RealReal is up 13.8% during the same time, and is heading into the earnings with analyst price target of $8.7, compared to share price of $2.98.

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.