The net loss narrowed to $26.8 million, a significant improvement from a net loss of $33.9 million reported in Q2 FY22. This translated to a net loss as a percentage of revenue of 35.4 per cent, down from 44.3 per cent in the corresponding quarter of the last fiscal, the company said in a press release.
The adjusted EBITDA was noted at $7.7 million, a substantial increase from $1.8 million in Q2 FY22. The adjusted EBITDA margin stood at a healthy 10.2 per cent, up from 2.4 per cent in the previous year’s quarter.
Rent the Runway reported a 1 per cent YoY decrease in Q2 FY23 revenue, recording 75.7 million dollars.
Despite the revenue dip, gross profit rose by 2.5 per cent to 33.2 million dollars compared to Q2 FY22.
The firm also saw growth in subscriber metrics, with ending active subscribers up by 11 per cent and average active subscribers growing by 9 per cent.
Rent the Runway observed growth in its subscriber metrics, with ending active subscribers tallying at 137,566, up 11 per cent YoY from 124,131 in Q2 FY22. The average active subscribers too saw a boost, increasing by 9 per cent YoY to 141,393 from 129,565 during the same period last year. The total ending subscribers were 184,389, representing a 6 per cent growth YoY from 173,321 in the second quarter of the fiscal 2022.
For Q3 FY23, the company expects revenue to fall in the range of $72 million to $74 million and forecasts an adjusted EBITDA margin between 3 per cent and 4 per cent.
Extending the projections to the fiscal 2023, Rent the Runway anticipates achieving at least $296.4 million in revenue, equating to the total revenue of the fiscal 2022. The adjusted EBITDA margin is projected to be between 7 per cent and 8 per cent.
“For some time, we have been focused on taking decisive actions with the goal to bring Rent the Runway to profitability, and we believe now is the right time to accelerate our efforts. We made significant progress in Q2 across the bottom line, exceeding our profitability guidance, and with Adjusted EBITDA margins hitting a historic high at 10.2 per cent,” said Jennifer Hyman, co-founder and CEO, Rent the Runway.
Fibre2Fashion News Desk (DP)