US' Rent the Runway's revenue soars 46% to $296.4 mn in Q1 FY23

Gross profit in FY22 was $120 million, a 72 per cent increase from $69.7 million in FY21, and the gross margin was 40.5 per cent, compared to 34.3 per cent in FY21. The company's net loss was $138.7 million, as compared to $211.8 million in FY21, and the net loss as a percentage of revenue was 46.8 per cent, as compared to 104.2 per cent in fiscal 2021. Adjusted EBITDA was $6.7 million, compared to minus $19.2 million in FY21, and the adjusted EBITDA margin was 2.3 per cent, compared to minus 9.4 per cent in FY21, the company said in a press release.

For the fourth quarter (Q4) of FY22, Rent the Runway reported revenue of $75.4 million, an 18 per cent increase YoY from $64.1 million in Q4 FY21. The company reported 126,712 ending active subscribers, representing a 10 per cent increase from 115,240 at the end of fiscal 2021. Rent the Runway also announced that as of April 8, 2023, it had reached a record high of 141,205 active subscribers. The company's gross profit was $33.3 million, a 42 per cent increase from $23.5 million in Q4 FY21, and the gross margin was 44.2 per cent, compared to 36.7 per cent in the fourth quarter of 2021.

Rent the Runway's net loss in Q4 FY22 was $26.2 million, as compared to the loss of $39.3 million in Q4 FY21, and the net loss as a percentage of revenue was 34.7 per cent, compared to 61.3 per cent in corresponding period of FY21. Adjusted EBITDA was $7.1 million, compared to minus $5.5 million in the fourth quarter of FY21, and the adjusted EBITDA margin was 9.4 per cent, compared to minus 8.6 per cent in Q4 FY21.

For fiscal 2023, Rent the Runway expects ending active subscriber growth of more than 25 per cent, revenue in the range of $320-330 million, and an adjusted EBITDA margin of 7-8 per cent. The company also expects a YoY reduction in cash consumption by almost 50 per cent. For Q1 FY23, Rent the Runway expects revenue in the range of $72-74 million and an adjusted EBITDA margin of 2-3 per cent, the release added.

"I'm proud that in fiscal 2022, we achieved 46 per cent revenue growth and completed a significant financial transformation, doubling our gross margins compared to 2019, right-sizing our fixed cost base, improving the capital efficiency of our product acquisition and restructuring our debt. These efforts drove progress on our path to FCF profitability, as we posted our first full year and third consecutive quarter of positive adjusted EBITDA ahead of the timeline we outlined at IPO," said Jennifer Hyman, CEO and co-Founder of Rent the Runway.

Fibre2Fashion News Desk (DP)