Kunal Madhukar's questions to RealReal Inc (REAL) leadership • Q4 2024
Question
Kunal Madhukar from Water Tower Research inquired about the contribution of direct revenue to the 2025 growth forecast and questioned the size of the fixed G&A cost base, asking about potential leverage opportunities.
Answer
CFO Ajay Gopal stated that direct revenue has been rightsized to about 10-15% of total revenue and is expected to remain stable with gross margins around 15%. Regarding G&A, he clarified that the fixed cost base includes corporate functions and public company costs. He emphasized that this infrastructure is now built and will be a significant source of operating leverage as the business scales without requiring major new investment.