Secondhand luxury marketplace The RealReal (NASDAQ: REAL) will be reporting earnings tomorrow after the bell. Here's what to look for.
Last quarter The RealReal reported revenues of $159.7 million, up 10% year on year, beating analyst revenue expectations by 1.53%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and slow revenue growth. The company reported 1 million paying users, up 25.2% 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 decline 2.89% year on year to $142.5 million, a further deceleration on the 48.5% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.43 per share.
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 twice over the last two years.
Looking at The RealReal's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Shutterstock delivered top-line growth of 8.11% year on year, beating analyst estimates by 1.77% and Teladoc reported revenues up 11.3% year on year, exceeding estimates by 1.78%. Shutterstock traded flat on the results, Teladoc was up 4.97%. Read our full analysis of Shutterstock's results here and Teladoc's results here.
The whole tech sector has been facing a sell-off since late last year and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 4.71% over the last month. The RealReal is up 2.59% during the same time, and is heading into the earnings with analyst price target of $2.5, compared to share price of $1.19.
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The author has no position in any of the stocks mentioned.