The RealReal, Inc. (REAL) 28 Feb 232022 Q4 Earnings call transcript

Good day and thank you for standing by. Welcome to The RealReal's Q4 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please

hand to Caitlin, Caitlin would have like Head over now to Relations. I Howe, it of floor. the you Investor

Thank you, operator.

ended discuss Operating Chief Rati Levesque; Officer; for today President Financial Officer, our Chief Julian. me XXXX, are to the Joining period Robert December and XX, and results

are have Also joining of today earlier RealReal, on Koryl. John call month The the this new company to our us is on very and board. we John him the Officer Chief excited joined Executive

Before we like unknown would involve forward-looking I during today's to and that begin, statements remind call, risks known make you and uncertainties. we will which

Our actual from those may materially suggested in differ such statements. results

results more risks, recent about these most find quarterly factors Form uncertainties XX-K can and that on information the our in Form XX-Q. subsequent company's other You operating reports and could affect

non-GAAP in include have measures, both Today's measures GAAP to certain and will reconciliations release. financial provided financial presentation historical for we forward-looking, our press measures, earnings comparable which most also historical the

addition on we today, are the which a website. of both stockholder letter available earlier In press Investor issued earnings Relations our release, to

Q&A business I RealReal finally, a Koryl, it introduce of like Officer Chief and John? to and go The Rati and John session. to our would over update over his John the Executive we to an turn the provide background. of on brief now pass overview himself Then to call will into for Robert will

Caitlin Thanks to everyone call. and welcome the

some As insight background. few to into Caitlin moments introduce myself mentioned, I further and provide to wanted a take my

demographics, within company tailwinds about with customer I The an ESG I'm breadth have our second to excited and approach, none. RealReal, authentic along in consumer company's start digital luxury me saying are by joined let to trends of growth first resale First, and story. terms with brand recognition am the thrilled

encountered is bright inspiring. for the I at I the most so that business. future have and Perhaps a see importantly, far talent The RealReal

a finding company's profitable profitability at the the and focus. career XX-year at moment, valuation is under built know e-commerce and we achieving driving company's efficiencies the have is As all pressure businesses. growth I

I Let few through me give Canadian Most growth. a a Tires business of period substantial led examples. online you recently,

through demand disruptions a during new pandemic, operational to unit We amid customers. our operations. the experience economics of with and improving for the of COVID-XX cost accomplished reductions, particular surge We growth my at in our the excellence improvements e-commerce digital store site massive emphasis business demonstrated Marcus, improve drove We service of Neiman levels millions marketing while omnichannel fulfillment Similarly, vehicles, marketing and efficiencies. through on platform digital a and considerable we efficiency. tenure our significant

This delivering growth possible. this significant most results. during in doing efficient with focusing the way the of right small to to testing and and on lots them We quickly scaling profitability right the marketing balanced period, so customers, wins experience, takes produce

within company have that energy. The have experience a to I environment process. accomplishments lead time of retail minimal illusions effort. only these be both through I take types no achieved profitability knowledge the overnight, effectively Now with will and to this I or believe Rather, tech RealReal's the and path

energized on am life team I achieve near analysts the to research my equity relentlessly RealReal, the can investors at profitability to look we as experience know consignor pursue support I've mission us. in the forward of also luxury. our getting we I I in future. continue our up-level of to extending month Based to who and what first confident The am the work seen to with

Rati trends to update give you, now on I over look initiatives. Thank forward I'll business key an speaking our to pass it again and in and May. you to

results full-year XXXX. Today, financial quarter fourth the solid John. for Thanks, we and reported

our of EBITDA adjusted fourth the midpoint the both revenue and For quarter, in guidance. came than better

the improved For more a believe to and challenging have adjusted full-year environment, business loss made better XXXX, EBITDA I necessary our compared we the margin we Despite prior-year. changes adjusted EBITDA deliver to results.

the to different on and to past in the profitability. business six identified I push reach levers Over and months, started Robert

and end, this be to on we initiatives, call. we last on key continue To the have out been focused which four earnings laid

the continue our on sellers efficiencies adjust for our commission finally, to capitalize TRR; pricing First, seller and costs; to our potential optimize revenue structure; product streams. third, in second, reduce drive and further price get new best

the we items. increase update value in to lower our and were of to November of items first The take consignment key The commission optimize rate, higher-value which goals of XXXX. implemented initiative supply the was structure, limit

our We are impacts results. are the early by monitoring encouraged the we of closely recent and changes,

faster have seen with growing than We aligned changes. units, goal of to is the value in which is come intended and supply the continue

the enhance we the the The rate experience. take profile. few to consignor to two will Over next our and can data ways commissions consignor we analyze included also months, our improve elements identify continue to updates

website tool potential in our calculate allow a to added transparency process. we to their consignment to enhancing First, dynamic earnings, the consignors

each service the Additionally, which indicate small consignor consignor Early experience. Concierge Promoter consignor experts. we pairs out new dedicated results a increase overall faster, our Net that Score consignor to the and team issues helping began team our of with is resolve team, Concierge rolling improve us consignment customer

enhance our structure the and Going will experience. approach to further forward, to assess optimize we commission customer continue

initiative cutting Regarding of employee workforce rationalization improving footprint. total estate the and base the we and our costs, in recently announced a X% real our approximately a efficiencies around of second of reduction

consignment closed part our action, to fleet thoughtfully retail As to optimize we continue assess and two stores, footprint. We two the will closure we this store flagship neighborhood our two announced of underperforming stores, luxury and of stores offices.

scale brand brick-and-mortar supply optimistic as a channel as an continue as efficiently about to We retail be to outstanding well offer presentation.

efficiently opening be base. However, manage disciplined closing to our we will cost stores in and

managing was in prior-year, fourth marketing has Another spend. down of XX% our effectively our XXXX quarter. been buyer active QX efficiencies cost our while was buyers QX XX% area marketing to the acquisition of in costs, in compared the up

identify continue business. the drive We and to in efficiencies will

initiative The good pricing our showing third further to dynamic optimize is product progress.

We drive algorithm pricing are prices. initial using our to higher

by of of anticipate inventory our algorithm, our year-end quarter we'll covered was we QX, approximately have XXXX, and coverage. all one XX% that by During to closer new

As know, directly pricing sellers well profitability. impacts our our as product as you

move combination, up we evolution. the of to next initiatives these these the financial this will fast be we moving urgency, we year. will their be are The to but with move the meaningfully not get until and key take not In and We will our meaningful, RealReal's initiatives believe excited business chapter John half time second reflected and in confident to into help impact are Furthermore, profitability. are key speed of results

to results. it our I'll over discuss and now quarter pass to fourth Robert full-year XXXX

Rati. Thanks,

progress We the pleased are financial with made throughout XXXX. we

made results. year are and in during especially particular, fourth growing direct profitable business consignment our business the encouraged the we shrinking We in that quarter were the the changes evident

fourth XX% gross growing and improvement profitable in revenue combination direct important grew total XX%, XX% and that revenue growth to note was to the GMV in XXXX. grew margin shrinking prior-year. consignment a our the During significant in our a compared XX%. It's resulted revenue unprofitable of QX quarter, the revenue This

of margin During the XXX our gross the was fourth prior-year. points and basis to increase an XX.X% compared quarter,

gross million gross our QX, margins profit that same XX% $XX to compared In increased or in expect will improve XXXX. the the quarter We to continue prior-year. in

of minus EBITDA a quarter equivalents of cash We cash XX% $XXX minus hand. XX% million loss in adjusted on fourth revenue XXXX loss the prior-year. million the of or quarter $XX to million fourth ended XXXX and was with of a revenue compared or $XX of the of of For

prior-year. compared the quarter in XXXX. At cash of in use million the trend $XX hand, $X fourth prior decrease of compared to a a million compared of inventory use The to and of is decrease the XXXX of million of $XX million. we the the cash quarter half $XX of the the through to $XXX This net QX, significant of end had end first million a change on was of end of the

We expect in our that decline continue will balance XXXX. inventory to

providing first guidance. quarter Today, XXXX we are

time, role, at in guidance. that John will is new providing we full-year not, Given XXXX his this be

next in we call earnings during financial May. providing However, full-year anticipate our targets

of in range project and range $XXX be to million. EBITDA be $XXX adjusted million minus first the of project $XXX we million, minus project $XXX million $XX million. to the in We of GMV we the in the For million to QX of QX be to $XX XXXX, quarter to range revenue to

a is reminder, seasonally us. QX volume lower quarter As a for

our sequential for Additionally, loyalty a accrual increase a guidance QX includes in accrual onetime our bonus the in and program. change

sequential XXXX. a create adjusted comparison and to QX flat in decline EBITDA these together, compared Taken a year-over-year our

to targets. Turning longer-term

We continue to that basis EBITDA will in an full-year on adjusted be The RealReal XXXX. profitable project

we move updating We to financially We specific XXXX. will time our look progress committing as and our assess business more John targets XXXX. beyond financial operationally to to you on give forward through before

very our will much now attention, for your go session. we into Thanks and Q&A

will we [Operator conduct time, question-and-answer Instructions]. this At a session. you. Thank

you Andreeva. question Our comes first Anna, have Anna from the line the floor. of

John. welcome, you and me? Congrats Can hear

Yes, hear we you, can Anna.

thank Great, had to would much. RealReal. wanted welcome guidance. questions. and so We say John the two you joining follow-up congrats to on I I

changes the for guide you changes from that? Thank a just less take to I'm then the a that flat Robert, by of just what's Is think that? color? more mentioned the on mix. but sequentially mentioned you smaller down. assuming also to in reconcile much. bit decline sales program, get direct? all off, the weighted Can being percentage was mix just to first on business. so is wanted the profitable the I hoping [indiscernible] loyalty rate talk bigger EBITDA secondly, So primarily direct business driving you you I is the despite greater lower And more to

on others I'll well. the start and Anna. in thing, Sure as that let chime

business for that very impacted direct I and in that of is of seeing year-over-year, QX business, result versus of Anna, we're growth So our consignment the bifurcate direct about to actually good But that now that the between revenue the grow in We would actually question, in minus how the XX% our business to flat think range, growth 'XX significantly results declined that you've revenue and consigned guidance our gross the what X% profitable it and year-over-year overall business the seeing of happy the QX margin. in 'XX. it our asked talked terms We're our continuing of business. QX like because I'm business. about folks

its of percentage You direct in in may total absolute peaked business recall QX it of revenue revenue terms of our of QX total in of both was of XXXX, dollars that XX% terms and in XXXX. our

good why rate business overall the the growth a consigned is very healthily really and direct impact on to is profitable stories. growing The more which is profitable to consigned question, gross project which shrinking. unprofitable second adjusted have different is your and so such two you're It to brings does business, business, decline there improve. the if -- consigned our you're shrinking me very business, significant continue we margin, EBITDA? But a the unprofitable the it And in growing business sequentially your

biggest impact is And really, the volume.

there's million the mentioned leave create annual guidance You in decline. the sequentially headwind a be explained. what's accrual, a at itself in frankly, that significant does prior-year, half further a actions overall a an in a would revenue. we sequential our it pay GMV of of can say decline decline bonus by taken bonus that roughly creates in accrued is in not not offsetting is in commission. Maybe EBITDA. did which pure million comments on of opening midpoint a to our would $XX somewhat couple And our the the I by offset that decline. that and gap million And there $XX see which needs would volume dollar But It we've adjusted accrual, that be

requires is increase marketing in beginning this hardly loyalty XXXX, customers is an this on service of up it built little as another be we customer of sequential sheet bit consignors expense well. an QX somewhat additional little increase program. it's some a dollar a on XXXX of million our front there worth to loyalty and a And of accrual has changed We of which that also activity in program, the is actually in of mentioning the as and decline. There's bit, work balance couple so loaded adding to continue And on. and

So you that's decline see QX. why the sequential to QX

little less in do you a that. to add always is QX. soft see retail, to to color quarter for In just QX of a us. volume just And comparison bit

pause a because Robert said, seeing mentioned addition a we and accrual the investment, healthy smaller in everything Score concierge like in to news then result the is of he So good that. onetime Net in with Promoter are

helpful. right. you All It Well, it. much. is thank so very Appreciate

Thanks, Anna.

with Altschwager RW from Mark comes Baird. question next Our

on a seeing just really about more Thanks and out we've stress they they my you. trend consumer I or aspirational for that to and Do consumer views value happen you're the guess back. hearing to Thank curious level as your the should seek these pulling are RealReal on pull build? what back of on impact your higher question. continues updated been And to it taking going platform categories start with, the then seek altogether?

you. could acquisition then the ways real drive just of more and on physical thirdly, Thank finding -- you was you your important broadly hoping touch I forward? locations strategy. And are the in estate acquisition? Or for are restructuring, light supply guess important I of efficient how assessment to driving customer that these more what is how maybe moving

and I'll Thanks, those, take team Mark. I'll if add the let Yes. needed.

seller top strong. the traffic we've is mentioned, at starts all the up of XX% to buyers, the Active quite side, On funnel, similar year-over-year. and is it healthy consumer the

Our good. repeat looks rate

mentioned the say quarter, people will seeing of brands points where top-tier I bit year, that last that there. maybe next here down less is we stable. What a I were it's of was of trade-down on five I trading to buying and think luxury effect the instead a kind

or we're since QX. So has it since stabilized down, go that seeing up not

side pretty go play as the especially the overall, the both and that uncertain time. and more value So that side we on are good consumer pricing healthy about we and playing really seller, we into into feel on buyer

couple I of specifically next to about want think on real And A there. retail mention and on the I then stores. question estate your things speaking you're restructuring -- strategy,

strategy. that First all, the we're It's looked locations optimizing at as We some always performing our dynamic of well as a maybe of others. fleet. weren't the

our stores were around So consignment where the to concepts They're expensive quite store. supply. offices, less especially and was luxury which flagship run, we focused to flagship drive and really sufficient early

efficient want say supply to say gain our we the never neighborhood finding but really it's I to expect never, way never we're open is -- flagship. So most what don't more say don't And stores. to

where smarter So be consignment contracts that's and office and about these most most it's retail in we're that volume, between and continue we we're seeing and but in we're and our our to in come the targeting. opportunistic getting locations, luxury flagship, with the markets that that value leasing

and you Thank to detail the Great. for welcome John.

Thank you very much.

Please next standby our for question.

comes Anderson with from Blake question Jefferies. Our next

wanted I on the I profitability side. appreciate the question. ask to

initiatives. mentioned You your four key

time much by said how this we some you think I take much should them to meaningful. expect year? become I of contribute how in kick was those profitability wondering should will to to goals next then year? they And

one, I'll start that Blake.

EBITDA think that I of second think of the you that a the pretty full And improvement you're see of our second I many had going really to expect in we half significant impact mentioned year. that in in XXXX. should the adjusted performance initiatives, the these half

going to before, mentioned of full-year I'm And much details not the of as that. we we're not give But guidance. providing too

do significant you XXXX to that sequential it's XXXX, call. guidance confidence think a full-year half trend of change second in our fair EBITDA provide the But every in in and adjusted expect EBITDA of improvements will of to full-year adjusted I XXXX. we quarter leading our be the pretty next we'll positive So in on for

the terms cumulative And But the degrees what the effect really of combination they mentioned that expectation on all improvement. overall strategic we've impact I it's and for been adjusted a talking varying just of all have results. initiatives about, is EBITDA in of our

and progress wanted how your so for Thanks of you your part the with it's key authentication in That's I those your scaling in resonating focus investment business super and that's you. Can process. costs? helpful. on on consumers market much. just talk follow-up I to about know the a that

Yes.

core we're So to authentication doing, looking always really find is and what there. we're to efficiencies

in. talked I all Day think invested about technology the we Investor that we've

than can more authenticate where diamonds handbags are now measure pretty We've authenticated via significantly how learning. we technician specifically, So a to XX% in those of jewelry, now versus we a items. machine gemologist invested authenticate and hire our

to So optimize. we'll continue

of We rigor more the short, authenticating. a to even medium efficiencies offset kind to of long-term roadmap have there find roadmap, and a really

Thank you. Very helpful.

Please standby next for question. our

Our comes Kunal Madhukar have floor. Kunal next the question with UBS. you from

the Hi, I taking Thanks could. Thank you. questions. great. for if couple, A

on about AOV. was that, because you of this like of that year-over-year. kind of that we So is lower your is Can you AOV versus down XXXX? is rest That AOV into said of how low-value selling prices. the one happening items? between AOV was emphasis lower look of X% kind going the And lower talk -- at on how kind one. compensation should And trends

marketing second expenses. And the regarding the is

reported is higher expenses quarter? marketing 'XX as expenses weaker are Cache exactly the that it's greater definitely at to look in marketing on you you the be then side XX% doing marketing is will think XQ efficiency? What why a lower. leading XQ do was you you So 'XX, lower. And when seasonally

Thanks, Yes. first one I'll Kunal. take there. the

the as selling units consider how year-over-year, be Average far is X% per and out we low-value more that's emphasis than price AOV being on driven UPT, of but really mix down, the transaction lower and that. should slightly down As is anything. flat.

the the numbers game in and really to of So we those impacting not it item. AOV, expect numbers. as is commission go direction kind the as are ASP. But changes And all those far UPT right weighing net-net, between yet value just of

the of direction. So again, would get of the going increasing, you're in right ASP that's stay can numbers year. UPT trend AOB to the low-value kind the and you that how back items is net-net, expect lift as see we of that out to But flat. of numbers those all one half $XXX, increasing are in with under the

We're marketing really when know and on find couple say efficiencies, Retail and getting right are they piece, is things. As buy target our the optimization them channels smarter I great about time. we spend. to pretty We're We there. of the a XX% well. to two going down sellers between happening them a year-over-year. ready sell smarter far would when know did then. We're getting as marketing our as back valuable retail when handbag and that's most marketing after yes, different and There's targeting they handbag. at that significant the expenses

buyers. volume have especially We great also that -- of you also you marketing have the really product, lot spend, the helps a have repeat just when and with

other flywheel a getting and -- one is us And helping when to invested I'd then getting really So effect have the moment. are and doing right re-consign. we again our with at the say is then buying and are that knowing thing when people we in them a re-consign to they

I'll from thing I made to said there QX was I the XXXX, EBITDA made change add QX one comments. on, more in Kunal, And some and adjusted comments about we some marketing overall sequential on sequentially about would two not between versus what expense expense that full-year our overall expense marketing means marketing those an quarters. basis make in XXXX. in of assumption I XXXX a XXXX

We mentioned as haven't yet. guidance haven't -- full-year before, we given we

not change aggregate. marketing, So change of change spend trend indicative in may be in full-year the that in sequential on a

you, Thank Robert. Rati. you, Thank

you, Kunal. Thank

standby Please for our next question.

Our have comes Capital floor. of next Noah you Zatzkin question the Noah KeyBanc from Markets.

for Hi, my taking thanks question.

potential in about workforce call Just metros the how modeling estate a next back out you'd on to kind from should just the perspective, are year? rationalization. you. then reduction of How GMV that a real the thinking X% circle short-term looking should be material And we the real housekeeping of kind quick second, into think anything Thank in kind there? about that impact affected, we to of item

first I'll one. the Yes, take

were decided about to the are underperforming comparison we real stores Again, very and we estate careful in As were far real past. the as shut concerned, stores stores that of and to down. rest were these which that estate Again,

assuming changes is let So workforce. That we consumer And in X% that worried that to because we're not do not time. -- something question one. Robert your the not I'll we're at volume or take about this of any then the closures. store about

the our a $X.X how that. on, and take million. or did number X% projections. financially provide the we full-year about full-year force not We of impact because the did We full-year I'll in the we $X.X give we've are reduction between a by savings million that, want XXX again, Sure, elements of a full-year cost impacted of roughly people. all and one the in somewhere didn't not partial of that And many so amount, disclosed is terms on give given to We've that -- a figure guidance. folks severance creates

could for to make loaded of you in roughly and I apply P&L, it guess, relative But to how piece one an least folks, incremental the get fully of you the person you -- much purposes, XXX modeling could full-year I the that is say expected you impact XXXX. assumption would impacts a results think and would at our

Very helpful. Thank you.

Noah. Thanks

Instructions]. [Operator

Fong from comes with Marvin BTIG. question Marvin next you floor. Our have

for Welcome you evening. taking my Thank Good John. aboard, questions.

one me, guess. I Just for

I I but on is have And it rate, should rates. also, changes increased quarter earlier, historically, Just could take -- take take but sequentially. guys think marketplace think rate, I apologize if the those fourth this have -- a was I lower was you rate, I that instituted understand, take asked think, declined

wondering did out it just something occur everything expected? -- Did I could of the walk you to this worth kind past I us if out behave those fell XX.X% or calling you through as dynamics? just Thanks. And kind just quarter? of So was

talk the priced what rate price items much Marvin, we lower mix relatively I that that. basket very that high too a change lower is into effectively there's and rate. see say, the to take of results and in of a in would of or take about always made their too much of of QX are a our that rate would or is rate. to and a And take the not have whether It people it's was things, take the while we commission QX structure result the just higher lag reflected QX just much quarter, rates our was I relatively One have mention in take items putting far

rate take it's that in in items rates, attribute that of anticipate partially and being year-over-year mix I fair sequentially it's change be we items do basket. which folks that So rate a just take high exercise. low take made, structure that on commission take to I intent based in the improvement between think would the in changes an put change that there could rate was their any

if And a different was on maybe there could because to of mix savings it can and of apparel. follow-up and and thereafter, us back give on that among handbags consumption I the the topic I your guess is pandemic how mix, seemed lot more was categories? of like reverting of jewelry trending the then sort Any update you

Yes. that Sure, take one. Marvin. can I

far As out they're ready-to-wear, you concerned, like of rightsizing pre-pandemic stable. as lot that, doing of but categories are pretty all been really And just mentioned, a healthy, has numbers. quite to this actually is driven

people as fine lot more So driven sales out a as back unbranded. seeing out and getting of then are in jewelry, we're ready-to-wear there, well as specifically

is strong that quite has men. other us for category been The

and -- on side. supply on both the the So demand

Okay. Very you. That's great. helpful. Thank

Thank you.

Morgan Schenk Lauren Lauren you Our have next from question comes with Stanley. floor. the

This for is on Feather Schenk. Lauren Nathan

seeing supply on consigning I some divergence price only like note, consigning dig the And more bit Did trends in those demand you raising you're provide color on take the the trends after you. a lower-value in value quarter-to-date? just see between points? Thank items across a those what you're and behavior different various a just So seeing on to supplier lower items. rates

Yes.

side, and mentioned, we're seeing what we the is come I is changes news that good doing value, the made commission wanted in. structure on like we on So What to. the supply it

under minimizing One was of $XXX our lower-value objectives items, so million. specifically the items

pretty price especially read high but are we and sure. So for that that And rest happen still the of mid-tier the the is value strong. in a seeing there, it's as early quite points, results

us tranches and every You we making the the to the our We're needed we're that may the accordingly. mix We're we way optimizing week. analyzing it. coming structure are sure commission tweak way really to. see watching want in price all We're it it

items on under million we $XXX want internally what how it's So. and a quite low-value doing to that is especially again, mid we and doing well. then identify high low,

But divergence? buyer monitor Is that. to around the for behavior, a commission in no based the change sorry, changes except side relation or the the on being coming quite the pre-COVID the we there the see you anything in something behavior. buyer buyer expect categories, the said asked side. commission changes. to continue ready-to-wear strong versus to in about numbers. supplier I on we'll wouldn't I'm So on And changes supply And No what

Great. Thank you.

question with next Sandler. the from you comes Our have Piper Edward Yruma Edward floor.

Hey, picture John, just a question. bigger

you at giving I appreciate As apart guidance top-line as a you yet. peel this cost problem and kind you're P&L, join or RealReal path to it and you profitability? looked the of fundamentally a do financial not Real opportunity there has about problem think does think But that have you of

right? heard getting authenticated and it RealReal time what get to And that it. by the spend in Edward, we is we And We our to space. that thank do processed getting refine us you to Rati guys, for of have Robert sure job, time we all it's be is is way, to defined right the supply the can shipping operationally, have you've addressing these is it as make those in question. from supply, The reason things, of way, frankly, get So I joined, the profitable in have quite that better more specifically, right? a the the right efficiently. some

the with side But demand supply commission the been is right RealReal. has mix we that challenge and always to to business. balance. at finding can not that had problem right the rates so the same The find adjust The we that the time, grow

mission, inventory permission away right consigners for the and to of, because joined It's right; quite their So get model. the having B, sale A, here, and the from again, direct work I buy ourselves. the the wonderful with frankly, to display

myself find very I And bullish.

Number those of how the of in excited the do I benefit possible And I do How do we is And then for it think the do is possible our make best manner. I about it for what the I'm a each one, and part. the buyer? win-win? ways. three that team in sort of consigner finding most make it best how addressing consistent benefit

to -- tearing buyer part. as do look of the do we literally well. commission we're apart have what every So right our P&L value the do the we we at How aspect make do say, proposition that sure to we where do

So there many silver past quite testing There to so big Robert implement they've just commend that I are bullets. are learn, the lot need different answers. works Rati there things we wins and easy things. test, are to out no a the all and lead of few in no small that And done increment and results. There months and getting really with frankly,

ready Now to and steps we're digesting the next profitability. make terms of in some

So one it's line, a again, answer. multi-lane not

you. Thank

concludes Rati Levesque our remarks. back like would to it over That for now closing turn Q&A. I to

All right. today. for joining you us Thank

we the the acknowledge the and want to process. take this I of want Before changes several the call, team. commitment undergone have flexibility throughout to gratitude that past to express to many our a deepest moment close Each impressive demonstrated over RealReal organization has We you months.

luxury keep our RealReal, the the the appreciate you. about passion. direction the excited you of business, your resale to and with tireless and forward a difference planet. To look We making people we for at in are energy thank and to We effort, partnering

are I'd luxury the than sustainable. extend you. Finally, Thank members goods on make our to cycle fashion more our more who thank XX of and million to like us joining mission life

today's does Thank in you your conclude program. This the participation for conference.

disconnect. now may You