Rent the Runway Reports Strong Q2 Performance with Revenue at $75.7 Million
New York-based fashion rental platform, Rent the Runway, has announced its second-quarter results, showcasing resilience and growth. Despite a challenging market, the company reported revenues of $75.7 million for the quarter, demonstrating its ability to adapt and thrive.
Steady Subscriber Growth
Rent the Runway experienced a remarkable 11% increase in active subscribers, with a total of 137,566 individuals engaging with the platform during the three months ending July 31. The company’s total subscriber base also expanded, reaching 184,389, reflecting a 6% growth during the same period.
Progress Towards Profitability
In a notable achievement, Rent the Runway significantly reduced its net losses during the quarter, with losses narrowing to $26.8 million compared to $33.9 million in the second quarter of fiscal year 2022. This demonstrates the company’s commitment to its long-term financial health and profitability.
Jennifer Hyman, co-founder and CEO of Rent the Runway, expressed her optimism: «For some time, we have been focused on taking decisive actions with the goal of bringing Rent the Runway to profitability. We made significant progress in Q2, exceeding our profitability guidance, and achieving a historic high in adjusted EBITDA margins at 10.2%.»
She continued, «Our strategic approach prioritizes the medium and long-term health of the business over short-term revenue gains and lower-margin customers. We are empowering our leaders to make the right decisions in pursuit of this goal, serving both our customers and investors. We eagerly anticipate seizing the substantial market opportunities that lie ahead.»
Rent the Runway is poised for continued success in the fiscal year 2023, with a forecasted revenue target of at least $296.4 million. The company’s growth trajectory and commitment to profitability underscore its resilience and dedication to delivering value to its customers and shareholders.