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The RealReal (REAL) To Report Earnings Tomorrow: Here Is What To Expect

StockStory - Mon May 6, 2:08AM CDT

REAL Cover Image

Secondhand luxury marketplace The RealReal (NASDAQ: REAL) will be announcing earnings results tomorrow after market close. Here's what investors should know.

The RealReal met analysts' revenue expectations last quarter, reporting revenues of $143.4 million, down 10.2% year on year. It was a weak quarter for the company, with a decline in its users and slow revenue growth. It reported 922,000 users, down 7.6% year on year.

Is The RealReal a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting The RealReal's revenue to decline 2% year on year to $139.1 million, improving from the 3.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.15 per share.

The RealReal Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The RealReal has missed Wall Street's revenue estimates three times over the last two years.

Looking at The RealReal's peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. MercadoLibre delivered year-on-year revenue growth of 36%, beating analysts' expectations by 12.1%, and Remitly reported revenues up 32%, falling short of estimates by 1.7%. MercadoLibre traded up 8.2% following the results while Remitly was down 12.2%.

Read our full analysis of MercadoLibre's results here and Remitly's results here.

Investors in the online marketplace segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. The RealReal is up 8.6% during the same time and is heading into earnings with an average analyst price target of $3.4 (compared to the current share price of $3.9).

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