- Rent the Runway (RENT, Financial) significantly reduced its cash burn from $70.5 million in FY2023 to $6.6 million in FY2024, marking record low cash consumption.
- FY2024 revenue increased by 2.7% to $306.2 million, with an 8% improvement in customer retention.
- The company anticipates double-digit growth in active subscribers for FY2025 along with Q1 2025 revenue projections between $68 million and $70 million.
Rent the Runway, Inc. (NASDAQ: RENT) recently announced its financial results for the fourth quarter and full fiscal year 2024, ending January 31, 2025. The company reported a substantial improvement in cash management, achieving a record low cash consumption by reducing its cash burn from $70.5 million in the previous fiscal year to $6.6 million in FY2024.
The clothing rental service saw its Q4 2024 revenue rise by 0.8% year-over-year to $76.4 million. However, active subscribers decreased by 5% to 119,778, while the company's gross margin was 37.7%, down from 39.4% the previous year. On the upside, net loss improved significantly to $13.4 million compared to $24.8 million in the same period of the previous year.
For the entire fiscal year 2024, Rent the Runway reported a revenue growth of 2.7%, totaling $306.2 million, alongside an 8% enhancement in customer retention. The company has outlined plans for the largest inventory acquisition in its history for FY2025, which is expected to double its new inventory stock.
Looking forward, Rent the Runway projects a robust return to growth with double-digit increases in active subscribers for FY2025. The company has set revenue expectations for the first quarter of 2025 in the range of $68 million to $70 million, indicating a strategic pivot towards growth despite foreseeing a negative free cash flow of $30 to $40 million, as investments in inventory expand.
