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Rent the Runway Inc. (RENT+0.38%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing reports total revenue of $75.9 million for the quarter, an increase from $72.5 million in the same quarter of the previous year. This growth was driven by higher Reserve revenue and increased average revenue per subscriber.
Subscription and Reserve rental revenue amounted to $66.3 million, up from $64.7 million in the prior year. Other revenue increased to $9.6 million from $7.8 million, primarily due to higher average selling prices and an increase in units purchased per subscriber.
Total costs and expenses decreased to $89.6 million from $94.4 million, reflecting cost savings from restructuring, lower share-based compensation, and improved warehouse labor productivity, partially offset by higher rental product depreciation and revenue share expenses.
The company reported an operating loss of $13.7 million, an improvement from a loss of $21.9 million in the previous year. Net loss for the quarter was $18.9 million, compared to $31.5 million in the prior year.
Adjusted EBITDA for the quarter was $9.3 million, up from $3.5 million, with an Adjusted EBITDA Margin of 12.3% compared to 4.8% in the previous year.
As of October 31, 2024, Rent the Runway held $74.1 million in cash and cash equivalents, with total debt of $326.7 million under its credit facility.
The company continues to focus on enhancing its customer experience, expanding its product offerings, and improving operational efficiencies to drive future growth and profitability.
Rent the Runway has identified material weaknesses in its internal control over financial reporting, which it is working to remediate. The company is implementing measures to address these weaknesses, including improving control frameworks and IT general controls.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Rent the Runway Inc. quarterly 10-Q report dated December 9, 2024. To report an error, please email earnings@qz.com.