The RealReal

0.2 (1.12%)

NASDAQ:REAL | Last traded on 11-15-2019 4:00 PM

Market Reaction

Offer Price

$19.00

Today Open Price

$18.50

Change Since IPO

Market Cap

$1.5B

Day High

$18.65

Day Low

$17.41

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Featured Analysis

This is a case where grading fatigue is probably affecting my judgement to the extent that, in a sea of poor students, the least poor rise to the top. The company's valuation is not outlandish, and the sales growth is good. I worry that a business like this would tend to be negatively impacted in a recession if we ever have one. I'm really going to rely on comments from others for this one, and I'm going to cop out and give them a 3 Hippo rating because at least they did not have the audacity to price themselves outlandishly.

Company Data

Location

San Francisco, CA

Valuation

$327.7M

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Founded

2011

Total Shares Offered

17,250,000

-

Employees

1,319

IPO Date

2019-06-28

Background Information

The RealReal is the world’s largest online marketplace for authenticated, consigned luxury goods. They provide an end-to-end service that unlocks supply from consignors and creates a trusted online marketplace for buyers globally. Over the past eight years, they have cultivated a consignor and buyer base through continuous investment in their technology platform, logistics infrastructure, and people.

Financial Analysis

Years 2017 2018
Revenue growth -- 55%
Net profit margin -39%-37%
Valuation -- $1.1B
Revenue multiple -- 7.6x
Profit multiple ---21x

Financial Information

Income Statement ($M) 2017 2018
Revenue134207
Cost of goods sold4670
Gross profit88137
Total operating expense139211
EBIT(52)(74)
Pretax profit(52)(76)
Net income(52)(76)
Balance Sheet ($M) 2017 2018
Total current assets4789
Cash and cash equivalents1634
Total assets76135
Total current liabilities6588
Total liabilities8099
Total shareholder equity177258
Total liabilities and equity76135
Cash Flow Statement ($M) 20172018
Net cash from operating activities (39)(47)
Net cash from investing activities (11)(34)
Net cash from financing activities 47106
Net increase in cash and cash equivalents (3)25