RealReal Inc (NASDAQ:REAL) Q3 2019 Earnings Conference Call - Final Transcript

Nov 04, 2019 • 05:00 pm ET

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RealReal Inc (NASDAQ:REAL) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the RealReal's Third Quarter 2019 Financial Results Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Paul Bieber, Head of Investor Relations. Thank you. Please go ahead, sir.

Executive
Paul Bieber

Thank you. Good afternoon and welcome to the the RealReal's earnings call for the quarter ended September 30th,2019. I'm Paul Bieber Head of Investor Relations at The RealReal, joining me today to discuss the RealReal's results; our Founder and CEO, Julie Wainwright; and Chief Financial Officer, Matt Gustke.

Julie will provide an update on our business, including progress on a few key initiatives. And then Matt will review our Q3 financial results and provide a financial outlook. This conference call will be available via webcast on our Investor Relations website at investor.therealreal.com.

I'd like to take this opportunity to remind you, that during this call, we'll be making forward-looking statements including statements relating to the expected performance of our business, future financial results, strategy, long-term growth and the overall future prospects.

These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those projected or implied during this call. In particular, those described in our Risk Factors included in our final prospectus for our initial public offering filed with SEC on June 27th, 2019, and the Risk Factors included in our Form 10-Q that was filed with our second quarter results and the Form 10-Q that will be filed with our third quarter results.

You should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of today, and we undertake no obligation to update them except as required by applicable law.

Our discussion today will include non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. A reconciliation of GAAP to non-GAAP results may be found in our Earnings Release and Supplemental Materials, which is furnished with our Form 8-K filed today with SEC and may also be found on our Investor Relations website.

I would now like to turn the conference call over to the RealReal's Founder and CEO, Julie Wainwright. Julie?

Executive
Julie Wainwright

Thanks, Paul and good afternoon and thank you for joining us for our third quarter earnings call. We are once again excited to share our progress with you and provide you with details on our third quarter financial performance. Before I proceed, I'd like to take this opportunity to thank our consigners, our buyers and our employees for helping make the RealReal into the world's largest online marketplace for consigned luxury goods. Q3 was a very strong quarter and speaks to the health and vibrancy of our marketplace. We generated GMV of $252.8 million, up 48% year-on-year increase and revenue up $80.5 million, up 55% year-on-year increase. Importantly