Irwin Boruchow's questions to RealReal Inc (REAL) leadership • Q1 2025
Question
Irwin Boruchow of Wells Fargo asked about the potential seasonality of direct revenue as a percentage of total sales and how the improved profitability of this channel might impact the consolidated gross margin outlook.
Answer
CFO Ajay Gopal stated that direct revenue is expected to remain consistently between 10-15% of total revenue without inherent seasonality. He clarified that the 'Get Paid Now' offering is structured to yield higher contribution dollars than consignment on a like-for-like basis and is not expected to put pressure on the company's consolidated gross margin rate.