RealReal Inc (NASDAQ:REAL) Q4 2019 Earnings Conference Call - Final Transcript

Feb 25, 2020 • 05:00 pm ET


RealReal Inc (NASDAQ:REAL) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to The RealReal Fourth Quarter 2019 Financial Results Conference Call. [Operator Instructions]

It is now my pleasure to hand the conference over to Head of Investor Relations, Paul Bieber.

Paul Bieber

Thank you. Good afternoon, and welcome to The RealReal's earnings call for the quarter ended December 31, 2019. I'm Paul Bieber, Head of Investor Relations at The RealReal. Joining me today to discuss The RealReal's results are Founder and CEO, Julie Wainwright; and CFO, Matt Gustke. Julie will provide an update on our business, including key initiatives, and then Matt will review our Q4 financial results and provide a financial outlook.

Before we begin, I'd like to remind you that management will make forward-looking statements during the course of this call, and our actual results could differ materially. Some of the risks and uncertainties that could impact our business are included in our final prospectus for our initial public offering filed with the SEC on June 27, 2019, and the risk factors included in our Form 10-Q that was filed with the third quarter financial results and the Form 10-K that will be filed with our fourth quarter results.

In addition, our presentation will include non-GAAP financial measures, and we have provided reconciliations to the most comparable GAAP measures in our earnings press release, which is available on our Investor Relations website.

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

Julie Wainwright

Thanks, Paul. Good afternoon. Thank you for joining us today to discuss our fourth quarter 2019 financial results. I'm happy to report that in 2019, we generated more than $1 billion in GMV. The RealReal has clearly come a long way from my early days where my COO, Rati Levesque, and I discussed strategy at my kitchen table while we also did all the work, including answering customer service calls, etc, etc, a long way. A big thank you to our consignors and our buyers who helped us achieve this milestone. By recirculating goods, you're creating a more sustainable world by also making money from the luxury items you no longer use. Of course, The RealReal's success is due to the dedication and diligent efforts of our employees. You have made The RealReal the safest and most service-oriented marketplace to buy pre-owned luxury goods. Thank you so much.

Before discussing our financial results, let's take a moment to discuss the RealReal's authentication process. There is no other resale company doing more to remove fakes from the market every day and to put counterfeiters out of business. We believe we have the most rigorous authentication process in the marketplace as we authenticate every item we sell using a combination of technology and trained experts.

On our previous call, we discussed how automation of copywriting and pricing is changing the roles of our teams. In 2020, copywriting and pricing will be mostly automated. The combined impact of automation and leveraging technology has dramatically changed