NEW YORK - Rent the Runway Inc. (NASDAQ:RENT) shares were down 2.4% in Monday after posting third-quarter results.
The fashion rental company posted revenue of $75.9 million for the quarter ended October 31, up 4.7% year-over-year. Adjusted EBITDA came in at $9.3 million, compared to $3.5 million in the same quarter last year.
Rent the Runway reported a net loss of $18.9 million, or $4.94 per share, narrowing from a loss of $31.5 million, or $9.09 per share, in the year-ago quarter.
The company ended the quarter with 132,518 active subscribers, up 1% year-over-year. However, average active subscribers declined 3% to 130,796.
"Rent the Runway's underlying business trends have continued to improve in Q3 2024," said CFO Sid Thacker. "Revenue growth improved for the fourth consecutive quarter and ending Active Subscribers returned to year over year growth."
For the fourth quarter, Rent the Runway expects revenue between $74.4 million and $80.3 million. The company reiterated its expectation to reach free cash flow breakeven for fiscal year 2024.
CEO Jennifer Hyman said the company is "laser focused on achieving free cash flow breakeven" and has driven growth in its Reserve and Resale offerings while reducing customer acquisition costs.
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