Earnings To Watch: The RealReal (REAL) Reports Q3 Results Tomorrow
Secondhand luxury marketplace The RealReal (NASDAQ: REAL) will be announcing earnings results tomorrow after the bell. Here's what to look for.
Last quarter The RealReal reported revenues of $130.9 million, down 15.3% year on year, missing analyst expectations by 0.7%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter. The company reported 985,000 users, up 10.8% 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 12.3% year on year to $125.2 million, a deceleration on the 20.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.26 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 three times over the last two years.
Looking at The RealReal's peers in the online marketplace segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Teladoc delivered top-line growth of 8% year on year, missing analyst estimates by 0.4% and Airbnb reported revenues up 17.8% year on year, exceeding estimates by 0.8%. Teladoc traded down 4.3% on the results, Airbnb was down 3.4%.
Read our full analysis of Teladoc's results here and Airbnb's results here.
There has been positive sentiment among investors in the online marketplace segment, with the stocks up on average 2.4% over the last month. The RealReal is down 3.8% during the same time, and is heading into the earnings with analyst price target of $2.9, compared to share price of $1.54.
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The author has no position in any of the stocks mentioned.
