Rent the Runway Q3 revenue was down 6.3% to $72.5m, while gross profit was down 20.8% to $25.2m and expects Q4 to be at least $74m and expects FY23 to be up 7-8% to $296.4m.
Rent the Runway revenue for Q3 to October 31, 2023 was $72.5m, a 6.3% decrease, while gross profit was $25.2m, down 20.8% and gross margin was 34.8%.
Net loss for the quarter contracted to $31.5m, while adjusted EBITDA dropped to $3.5m and adjusted EBITDA margin to 4.8%.
The company also announced the amendment of its credit facility with the existing lender and administrative agent for the next six fiscal quarters and reduced the minimum liquidity covenant from $50m to $30m.
Commenting on the results Jennifer Hyman, co-founder and CEO, Rent the Runway, said “We believe that the terms that we’ve agreed to with our longtime lender further enable Rent the Runway to achieve significant free cash flow before the debt’s maturity date, helping us to demonstrate the strength of our business model to the market–and, importantly, to grow”.
For Q4, Rent the Runway expects revenue of at least $74m and adjusted EBITDA margin of at least 7%. For FY2023, the company expects revenue of at least $296.4m and adjusted EBITDA margin between 7% to 8%.
