By Davit Kirakosyan
Rent the Runway Inc (NASDAQ:RENT) shares dropped more than 14% after-hours following the company’s reported Q2 results. While EPS of ($0.53) and revenue of $76.5 million came in better than the consensus estimates of ($0.65) and $73.57 million, respectively, the guidance was disappointing.
The company ended the quarter with 124,131 Active Subscribers, which represents a 27% year-over-year increase. Ending Total Subscribers were 173,321, up 37% year-over-year.
“We achieved two significant milestones in Q2, with both record quarterly revenue and positive Adjusted EBITDA, ahead of the timeline we had outlined, and despite an uncertain environment,” said Jennifer Hyman, CEO and Co-Founder of Rent the Runway.
The company also announced a restructuring plan to reduce costs, streamline its organizational structure and drive operational efficiencies. It primarily includes total workforce reductions of approximately 24% of corporate employees, reorganizing certain functions and reallocating resources to continue to focus on customer experience and growth initiatives.
The company expects Q3/22 revenue in the range of $72-74 million, compared to the consensus estimate of $79.7 million. For the full 2022-year, the company expects revenue in the range of $285-290 million, compared to the consensus estimate of $303.84 million.