Jay [Analyst]'s questions to RealReal Inc (REAL) leadership • Q3 2024
Question
Jay from UBS requested clarification on the primary initiatives that drove the outperformance and subsequent guidance raise, comparing the current situation to expectations at the start of the year.
Answer
CFO Ajay Gopal attributed the outperformance primarily to three factors: higher-than-expected volume from the 'growth playbook,' a record-high gross margin of 74.9% due to a favorable mix shift to consignment, and strong bottom-line performance from a continued focus on operational excellence, leading to positive adjusted EBITDA in a non-seasonal peak quarter.