(MENAFN- Investor Ideas) Investorideas ( ) Fashion/Tech Stock News Bite - Rent the Runway, Inc. (NASDAQ: RENT ), the world's first and largest shared designer closet platform, made investor and fashion headlines, trading at $18.11, gaining $10.71 for an impressive 144.73% win for investors today, The stock traded even higher in this morning's session, trading at $24.12 at the top.
The stock has higher than normal trading volume of over 29 million shares versus its average volume of 105,000.
Rent the Runway, Inc. reported financial results for the fiscal quarter and fiscal year 2023 ended January 31, 2024, yesterday at market close.
"2023 was a year of significant improvements to the customer experience that we believe have set the foundation for a milestone fiscal year 2024," said Jennifer Hyman, Co-Founder and CEO, Rent the Runway. "We launched a premium personal concierge service to style our customers, made it easier for customers to discover inventory they love, and created a more aspirational product experience. As a result, NPS today is at the highest level in several years, customers have been buying more inventory from us, and customer retention has markedly improved YOY. We believe we are well positioned to re-ignite our marketing and customer acquisition engine to drive growth and FCF breakeven in fiscal 2024."
"We believe fiscal year 2024 will be a transformative year for Rent the Runway," said Sid Thacker, Chief Financial Officer, Rent the Runway. "Over the past several years, we have reduced fixed costs significantly and made considerable progress towards building a more capital-light model. We expect these actions to result in free cash flow breakeven for fiscal year 2024. Importantly, we believe that the cost and capital expenditure decisions that are important components of our free cash flow breakeven plan have already been made. We have conviction that Rent the Runway is poised to exit fiscal year 2024 as a sustainable, growing, and free cash flow breakeven business."
Fourth Quarter 2023 Key Metrics and Financial Highlights
Revenue was $75.8 million, a 0.5% increase year-over-year from $75.4 million in the fourth quarter of fiscal year 2022.
125,954 ending Active Subscribers, representing a change of (1)% year-over-year from 126,712 at the end of the fiscal year 2022.
128,840 Average Active Subscribers representing a change of (1)% year-over-year from 130,476 at the end of the fourth quarter of fiscal year 2022.
173,247 ending Total Subscribers, representing an increase of 1% year-over-year from 171,998 at the end of the fiscal year 2022.
Gross Profit was $29.9 million, representing a decrease of (10.2)% from $33.3 million in the fourth quarter of fiscal year 2022. Gross Margin was 39.4%, as compared to 44.2% in the fourth quarter of fiscal year 2022.
Net Loss was $(24.8) million, as compared to $(26.2) million in the fourth quarter of fiscal year 2022. Net Loss as a percentage of revenue was (32.7)%, as compared to (34.7)% in the fourth quarter of fiscal year 2022.
Adjusted EBITDA was $11.2 million, as compared to $7.1 million in the fourth quarter of fiscal year 2022. Adjusted EBITDA margin was 14.8%, as compared to 9.4% in the fourth quarter of fiscal year 2022.
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