TheRealReal, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>TheRealReal, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

TheRealReal, Inc. (REAL) filed a Annual Report (10-K) with the SEC on March 1, 2024. TheRealReal, Inc. filed its 2023 Form 10-K on March 1, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 55 Francisco Street, Suite 400, San Francisco, CA 94133. The company's IRS number is 451234222. The company is incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking TheRealReal, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of TheRealReal's financial health, operational strategies, and risk factors for the fiscal year 2023, which is crucial for investors to assess the company's performance and future outlook. As a public company, TheRealReal is required to disclose detailed financial information and business operations annually, making this filing a key source of information for market participants, analysts, and potential investors.

Risk Assessment

Risk Level: — TheRealReal, Inc. shows moderate risk based on this filing. The company's financial performance and ability to achieve profitability are subject to market demand for luxury goods and competitive pressures, as indicated by its ongoing operations and reporting requirements.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand TheRealReal's operational performance and strategic direction for 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-01 — Filing Date (Date of submission)
• 001-38953 — SEC File Number (Company's SEC file number)

Key Players & Entities

• TheRealReal, Inc. (company) — Filer name
• 55 Francisco Street, Suite 400, San Francisco, CA 94133 (address) — Business address
• 451234222 (identifier) — IRS number
• DE (state) — State of incorporation
• James Miller (person) — Executive name

FAQ

Industry Context

TheRealReal operates in the retail sector, specifically focusing on the resale of luxury goods. This sector is characterized by brand value, consumer trends, and online marketplace dynamics.

Regulatory Implications

As a publicly traded company, TheRealReal is subject to the reporting requirements of the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the consolidated financial statements for the fiscal year ended December 31, 2023.
2. Analyze the Management's Discussion and Analysis of Financial Condition and Results of Operations for insights into performance drivers.
3. Examine the Risk Factors section for potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-01: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing is the annual 10-K report for the fiscal year 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.00001 — ange on which registered Common stock, $0.00001 par value REAL The Nasdaq Global Select

Filing Documents

• real-20231231.htm (10-K) — 1795KB
• real-20231231xex1041.htm (EX-10.41) — 109KB
• real-20231231xex1042.htm (EX-10.42) — 1137KB
• real-20231231xex1043.htm (EX-10.43) — 312KB
• real-20231231xex231.htm (EX-23.1) — 2KB
• real-20231231xex311.htm (EX-31.1) — 9KB
• real-20231231xex312.htm (EX-31.2) — 9KB
• real-20231231xex321.htm (EX-32.1) — 4KB
• real-20231231xex322.htm (EX-32.2) — 5KB
• real-20231231xex97.htm (EX-97) — 37KB
• image_0a.jpg (GRAPHIC) — 1KB
• image_1a.jpg (GRAPHIC) — 2KB
• image_2a.jpg (GRAPHIC) — 2KB
• image_3a.jpg (GRAPHIC) — 2KB
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• real-20231231_g1.jpg (GRAPHIC) — 169KB
• real-20231231_g2.jpg (GRAPHIC) — 148KB
• real-20231231_g3.jpg (GRAPHIC) — 56KB
• real-20231231_g4.jpg (GRAPHIC) — 44KB
• 0001573221-24-000030.txt (&nbsp;) — 11355KB
• real-20231231.xsd (EX-101.SCH) — 59KB
• real-20231231_cal.xml (EX-101.CAL) — 94KB
• real-20231231_def.xml (EX-101.DEF) — 273KB
• real-20231231_lab.xml (EX-101.LAB) — 829KB
• real-20231231_pre.xml (EX-101.PRE) — 530KB
• real-20231231_htm.xml (XML) — 997KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 30 I tem 1C. Cyber security 30 Item 2.

Properties

Properties 31 Item 3.

Legal Proceedings

Legal Proceedings 31 Item 4. Mine Safety Disclosures 32 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6. Reserved 33 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 49 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 49 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 49 Item 9A.

Controls and Procedures

Controls and Procedures 49 Item 9B. Other Information 50 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 50 PART III Item 10. Directors, Executive Officers and Corporate Governance 51 Item 11.

Executive Compensation

Executive Compensation 51 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 51 Item 13. Certain Relationships and Related Transactions, and Director Independence 51 Item 14. Principal Accounting Fees and Services 51 PART IV Item 15. Exhibits, Financial Statement Schedules 52 Item 16 . Form 10-K Summary 52 Unless the context suggests otherwise, references in this Annual Report on Form 10-K (the "Annual Report") to "The RealReal," the "Company," "we," "us" and "our" refer to The RealReal, Inc. ii Table of C ontents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact contained in this Annual Report on Form 10-K, including statements regarding our future results of operations and financial position, business strategy and plans, objectives of management for future operations, long term operating expenses, the opening of additional retail stores in the future, the development of our automation technology, expectations for capital requirements and the use of proceeds from our initial public offering, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements in this Annual Report on Form 10-K are only predictions. We have based these forward-looking statements

Business

Item 1. Business. Overview The RealReal is the world's largest online marketplace for authenticated, resale luxury goods. We are revolutionizing luxury resale by providing an end-to-end service that unlocks supply and creates a trusted, curated online marketplace for buyers globally. Since our inception, we have cultivated a loyal and engaged consignor and buyer base through continuous investment in our technology platform, logistics infrastructure and people. We offer a wide selection of authenticated, primarily pre-owned luxury goods on our online marketplace bearing the brands of thousands of luxury and premium designers. The top-selling luxury designers on our online marketplace include Cartier, Chanel, Christian Louboutin, Gucci, Herms, Louis Vuitton, Prada, Rolex, Tiffany & Co. and Valentino. We offer products across multiple categories including women's fashion, men's fashion, jewelry and watches. We have built a vibrant online marketplace that we believe expands the overall luxury market, promotes the recirculation of luxury goods and contributes to a more sustainable world. A strong network effect drives the growth of our online marketplace. As we bring more consignors onto our platform, we unlock more high-quality, luxury supply, which increases our merchandise assortment and attracts more buyers. This, in turn, increases sales velocity and commissions for our consignors. In addition, a meaningful share of our consignors are buyers and vice versa, which creates a differentiated flywheel that enhances the network effect of our online marketplace. We also operate retail stores, including our smaller footprint neighborhood retail stores, or Neighborhood Stores. Our Neighborhood Stores are typically 1,800 to 3,500 square feet with items for sale reflecting a selection of the Company's online assortment and are located in areas we have identified as having a large amount of potential customers. In addition, we operate several larger footprint flagship sto

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