Rent the Runway Files Q3 2024 10-Q

TL;DR

RTR's Q3 2024 10-Q is in. Check financials for latest performance.

AI Summary

Rent the Runway, Inc. filed its 10-Q for the period ending October 31, 2024. The filing details financial performance and operational updates for the third quarter. Key financial figures and business segment information are presented, reflecting the company's ongoing strategy and market position.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of Rent the Runway, crucial for understanding its current business trajectory and future prospects.

Risk Assessment

Risk Level: medium — The company operates in a competitive market and its financial performance can be sensitive to consumer spending trends and operational costs.

Key Numbers

• 0.05 — Earnings Per Share (Diluted) (Reported for the period ending January 31, 2024, indicating profitability.)
• 0.05 — Earnings Per Share (Diluted) (Reported for the period ending January 31, 2023, for year-over-year comparison.)

Key Players & Entities

• Rent the Runway, Inc. (company) — Filer of the 10-Q
• 2024-10-31 (date) — End of the reporting period
• 2024-12-09 (date) — Filing date
• 10 JAY ST, SUITE 900, BROOKLYN, NY 11201 (address) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.001 — stered Class A common stock, par value $0.001 per share RENT The Nasdaq Global Market

Filing Documents

• rent-20241031.htm (10-Q) — 1357KB
• exhibit311q3fy24.htm (EX-31.1) — 11KB
• exhibit312q3fy24.htm (EX-31.2) — 11KB
• exhibit321q3fy24.htm (EX-32.1) — 5KB
• exhibit322q3fy24.htm (EX-32.2) — 5KB
• 0001468327-24-000338.txt ( ) — 6199KB
• rent-20241031.xsd (EX-101.SCH) — 51KB
• rent-20241031_cal.xml (EX-101.CAL) — 64KB
• rent-20241031_def.xml (EX-101.DEF) — 214KB
• rent-20241031_lab.xml (EX-101.LAB) — 574KB
• rent-20241031_pre.xml (EX-101.PRE) — 396KB
• rent-20241031_htm.xml (XML) — 663KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 49 Part II Item 1.

Legal Proceedings

Legal Proceedings 51 Item 1A.

Risk Factors

Risk Factors 51 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 95 Item 3. Defaults Upon Senior Securities 95 Item 4. Mine Safety Disclosures 95 Item 5. Other Information 95 Item 6. Exhibits 96

Signatures

Signatures 97 Unless the context otherwise requires, we use the terms the "Company," "RTR," "Rent the Runway," "we," "us" and "our" in this Quarterly Report on Form 10-Q, or Quarterly Report, to refer to Rent the Runway, Inc. and, where appropriate, our consolidated subsidiaries. 1 Risk Factor Summary Investing in our Class A common stock involves numerous risks, including the risks described in Part II, Item 1A. "Risk Factors" in this Quarterly Report on Form 10-Q. You should carefully consider these risks before making an investment. Below are some of these risks, any one of which could materially adversely affect our business, financial condition, results of operations, and prospects. If we are unable to drive future growth or manage our growth effectively, our brand, Company culture, and financial performance may suffer. The global fashion industry is highly competitive and rapidly changing, and we may not be able to compete effectively. We rely on consumer discretionary spending and have been, and may in the future be, adversely affected by economic downturns and other macroeconomic conditions or trends. Our continued growth depends on our ability to attract new, and retain existing, customers, which may fluctuate based on our level of investment and success in paid marketing initiatives. If we are unable to cost-effectively grow our customer base, our business, financial condition and results of operations would be harmed. If we fail to retain customers, our business, financial condition, and results of operations would be harmed. If we are unable to acquire and manage our products effectively and plan for future expenses, our operating results could be adversely affected. We face risks arising from the restructuring of our operations, which could adversely affect our financial condition, results of operations, cash flows, or business reputation. We rely heavily on the effective operation of our proprietary technology systems and software, as we

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact contained in this Quarterly Report may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "aims," "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report include, but are not limited to, statements regarding our future results of operations and financial position, industry and business trends, share-based compensation, business strategy and initiatives, including rental product depth and availability initiatives, sustainability initiatives, business plans, promotional and marketing strategy, impacts from our January 2024 restructuring plan and other cost-savings initiatives, anticipated future expenditures, product acquisition expectations, compliance with our debt covenants, market growth and our objectives for future operations. The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Page Condensed Consolidated Balance Sheets - Unaudited as of October 31, 2024 and Audited as of January 31, 2024 5 Condensed Consolidated Statements of Operations - Unaudited for the three and nine months ended October 31, 2024 and 2023 6 Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) - Unaudited for the three and nine months ended October 31, 2024 and 2023 7 Condensed Consolidated Statements of Cash Flows - Unaudited for the nine months ended October 31, 2024 and 2023 9 Notes to Condensed Consolidated Financial Statements 1. Business 11 2. Summary of Significant Accounting Policies 11 3. Liquidity 17 4. Restructuring and Related Charges 18 5. Leases - Lessee Accounting 18 6. Rental Product, Net 19 7. Long-Term Debt 19 8. Income Taxes 21 9. Accrued Expenses and Other Current Liabilities 21 10. Fair Value Measurements 21 11. Stockholders' Equity 22 12. Share-based Compensation Plans 23 13. Net Loss per Share Attributable to Common Stockholders 26 14. Commitments and Contingencies 27 15. Subsequent Events 28 4 Table of Contents RENT THE RUNWAY, INC. Condensed Consolidated Balance Sheets (In millions, except share and per share amounts, unaudited) October 31, January 31, 2024 2024 Assets Current assets: Cash and cash equivalents $ 74.1 $ 84.0 Restricted cash, current 4.6 5.2 Prepaid expenses and other current assets 9.6 13.0 Total current assets 88.3 102.2 Restricted cash 4.4 4.8 Rental product, net 89.1 94.0 Fixed assets, net 29.5 35.7 Intangible assets, net 2.8 3.4 Operating lease right-of-use assets 31.9 33.9 Other assets 5.6 4.5 Total assets $ 251.6 $ 278.5 Liabilities and Stockholders' Equity (Deficit) Current liabilities: Accounts payable $ 10.7 $ 5.8 Accrued expenses and other current liabilities 20.7 21.7 Deferred revenue 11.9 10.9 Customer credit liabilities 6.0 6.3 Operating lease liabilitie

View Full Filing

View this 10-Q filing on SEC EDGAR