10-Q Filing

THEREALREAL, INC. CIK: 1573221 Q1 2021

Filing Information

Form Type	10-Q
Accession Number	`0001564590-21-026114`
Period End Date	20210331
Filing Date	20210510
Fiscal Year	2021
Fiscal Period	Q1
XBRL Instance	real-10q_20210331_htm.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 60 Income Statement 31 Cash Flow Statement 68 Stockholders Equity 19 Comprehensive Income 6

Balance Sheet 60 line items

Line Item	Tag	Value	Unit	Period
Common stock, par value	`CommonStockParOrStatedValuePerShare`	-	USD	Point-in-time
Common stock, par value	`CommonStockParOrStatedValuePerShare`	-	USD	Point-in-time
Common stock, shares authorized	`CommonStockSharesAuthorized`	500.00M	shares	Point-in-time
Common stock, shares authorized	`CommonStockSharesAuthorized`	500.00M	shares	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$350.85M	USD	Point-in-time
Common stock, shares issued	`CommonStockSharesIssued`	89.30M	shares	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$547.86M	USD	Point-in-time
Common stock, shares issued	`CommonStockSharesIssued`	90.68M	shares	Point-in-time
Common stock, shares, outstanding	`CommonStockSharesOutstanding`	89.30M	shares	Point-in-time
Short-term investments	`AvailableForSaleSecuritiesDebtSecuritiesCurrent`	$4.02M	USD	Point-in-time
Common stock, shares, outstanding	`CommonStockSharesOutstanding`	90.68M	shares	Point-in-time
Accounts receivable, net	`AccountsReceivableNetCurrent`	$7.21M	USD	Point-in-time
Accounts receivable, net	`AccountsReceivableNetCurrent`	$5.99M	USD	Point-in-time
Inventory	`InventoryNet`	$49.50M	USD	Point-in-time
Inventory	`InventoryNet`	$42.32M	USD	Point-in-time
Prepaid expenses and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$15.27M	USD	Point-in-time
Prepaid expenses and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$17.07M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$421.47M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$618.62M	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$66.64M	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$63.45M	USD	Point-in-time
Operating lease right-of-use assets	`OperatingLeaseRightOfUseAsset`	$118.14M	USD	Point-in-time
Operating lease right-of-use assets	`OperatingLeaseRightOfUseAsset`	$143.33M	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$2.16M	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$2.05M	USD	Point-in-time
Total assets	`Assets`	$830.75M	USD	Point-in-time
Total assets	`Assets`	$605.11M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$9.26M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$14.35M	USD	Point-in-time
Accrued consignor payable	`AccruedLiabilitiesCurrent`	$57.05M	USD	Point-in-time
Accrued consignor payable	`AccruedLiabilitiesCurrent`	$54.48M	USD	Point-in-time
Operating lease liabilities, current portion	`OperatingLeaseLiabilityCurrent`	$15.28M	USD	Point-in-time
Operating lease liabilities, current portion	`OperatingLeaseLiabilityCurrent`	$15.00M	USD	Point-in-time
Other accrued and current liabilities	`OtherAccruedAndCurrentLiabilities`	$61.86M	USD	Point-in-time
Other accrued and current liabilities	`OtherAccruedAndCurrentLiabilities`	$63.39M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$142.41M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$148.26M	USD	Point-in-time
Operating lease liabilities, net of current portion	`OperatingLeaseLiabilityNoncurrent`	$115.08M	USD	Point-in-time
Operating lease liabilities, net of current portion	`OperatingLeaseLiabilityNoncurrent`	$140.78M	USD	Point-in-time
Convertible senior notes, net	`ConvertibleDebtNoncurrent`	$336.11M	USD	Point-in-time
Convertible senior notes, net	`ConvertibleDebtNoncurrent`	$149.19M	USD	Point-in-time
Other noncurrent liabilities	`OtherLiabilitiesNoncurrent`	$1.28M	USD	Point-in-time
Other noncurrent liabilities	`OtherLiabilitiesNoncurrent`	$1.54M	USD	Point-in-time
Total liabilities	`Liabilities`	$620.84M	USD	Point-in-time
Total liabilities	`Liabilities`	$413.82M	USD	Point-in-time
Commitments and contingencies (Note 9)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Commitments and contingencies (Note 9)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Common stock, $0.00001 par value; 500,000,000 shares authorized as of March 31, 2021 and December 31, 2020; 90,675,268 and 89,301,664 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively	`CommonStockValue`	$1.00K	USD	Point-in-time
Common stock, $0.00001 par value; 500,000,000 shares authorized as of March 31, 2021 and December 31, 2020; 90,675,268 and 89,301,664 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively	`CommonStockValue`	$1.00K	USD	Point-in-time
Additional paid-in capital	`AdditionalPaidInCapital`	$723.30M	USD	Point-in-time
Additional paid-in capital	`AdditionalPaidInCapital`	$797.92M	USD	Point-in-time
Accumulated other comprehensive income	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$11.00K	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-532.02M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-588.01M	USD	Point-in-time
Total stockholders equity	`StockholdersEquity`	$191.29M	USD	Point-in-time
Total stockholders equity	`StockholdersEquity`	$209.91M	USD	Point-in-time
Total stockholders equity	`StockholdersEquity`	$306.56M	USD	Point-in-time
Total stockholders equity	`StockholdersEquity`	$338.93M	USD	Point-in-time
Total liabilities and stockholders equity	`LiabilitiesAndStockholdersEquity`	$605.11M	USD	Point-in-time
Total liabilities and stockholders equity	`LiabilitiesAndStockholdersEquity`	$830.75M	USD	Point-in-time

Income Statement 31 line items

Line Item	Tag	Value	Unit	Period
Total revenue	`RevenueFromContractWithCustomerExcludingAssessedTax`	$98.82M	USD	1 Quarter
Total revenue	`RevenueFromContractWithCustomerExcludingAssessedTax`	$78.03M	USD	1 Quarter
Total cost of revenue	`CostOfRevenue`	$40.48M	USD	1 Quarter
Total cost of revenue	`CostOfRevenue`	$29.04M	USD	1 Quarter
Gross profit	`GrossProfit`	$58.34M	USD	1 Quarter
Gross profit	`GrossProfit`	$48.99M	USD	1 Quarter
Marketing	`MarketingExpense`	$15.56M	USD	1 Quarter
Marketing	`MarketingExpense`	$12.92M	USD	1 Quarter
Operations and technology	`OperationsAndTechnologyExpense`	$51.93M	USD	1 Quarter
Operations and technology	`OperationsAndTechnologyExpense`	$40.74M	USD	1 Quarter
Selling, general and administrative	`SellingGeneralAndAdministrativeExpense`	$35.10M	USD	1 Quarter
Selling, general and administrative	`SellingGeneralAndAdministrativeExpense`	$43.62M	USD	1 Quarter
Total operating expenses	`OperatingExpenses`	$88.76M	USD	1 Quarter
Total operating expenses	`OperatingExpenses`	$111.11M	USD	1 Quarter
Loss from operations	`OperatingIncomeLoss`	$-52.77M	USD	1 Quarter
Loss from operations	`OperatingIncomeLoss`	$-39.78M	USD	1 Quarter
Interest income	`InvestmentIncomeInterest`	$1.29M	USD	1 Quarter
Interest income	`InvestmentIncomeInterest`	$87.00K	USD	1 Quarter
Interest expense	`InterestExpense`	$20.00K	USD	1 Quarter
Interest expense	`InterestExpense`	$3.30M	USD	1 Quarter
Other income (expense), net	`OtherNonoperatingIncomeExpense`	$17.00K	USD	1 Quarter
Other income (expense), net	`OtherNonoperatingIncomeExpense`	$8.00K	USD	1 Quarter
Loss before provision for income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-55.97M	USD	1 Quarter
Loss before provision for income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-38.50M	USD	1 Quarter
Provision (benefit) for income taxes	`IncomeTaxExpenseBenefit`	$28.00K	USD	1 Quarter
Net loss attributable to common stockholders	`NetIncomeLossAvailableToCommonStockholdersBasic`	$-55.99M	USD	1 Quarter
Net loss attributable to common stockholders	`NetIncomeLossAvailableToCommonStockholdersBasic`	$-38.50M	USD	1 Quarter
Net loss per share attributable to common stockholders, basic and diluted	`EarningsPerShareBasicAndDiluted`	$-0.44	USD	1 Quarter
Net loss per share attributable to common stockholders, basic and diluted	`EarningsPerShareBasicAndDiluted`	$-0.62	USD	1 Quarter
Shares used to compute net loss per share attributable to common stockholders, basic and diluted	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	86.59M	shares	1 Quarter
Shares used to compute net loss per share attributable to common stockholders, basic and diluted	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	90.04M	shares	1 Quarter

Cash Flow Statement 68 line items

Line Item	Tag	Value	Unit	Period
Net loss	`ProfitLoss`	$-55.99M	USD	1 Quarter
Net loss	`ProfitLoss`	$-38.50M	USD	1 Quarter
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$5.43M	USD	1 Quarter
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$4.14M	USD	1 Quarter
Stock-based compensation expense	`ShareBasedCompensation`	$3.41M	USD	1 Quarter
Stock-based compensation expense	`ShareBasedCompensation`	$10.92M	USD	1 Quarter
Reduction of operating lease right-of-use assets	`ReductionOfOperatingLeaseRightOfUseAssets`	$4.12M	USD	1 Quarter
Reduction of operating lease right-of-use assets	`ReductionOfOperatingLeaseRightOfUseAssets`	$4.75M	USD	1 Quarter
Bad debt expense	`ProvisionForDoubtfulAccounts`	$455.00K	USD	1 Quarter
Accrued interest on convertible notes	`AccruedInterestOnConvertibleNotes`	$1.47M	USD	1 Quarter
Accretion of debt discounts and issuance costs	`AccretionOfDebtDiscountsAndIssuanceCosts`	$1.81M	USD	1 Quarter
Other adjustments	`OtherOperatingActivitiesCashFlowStatement`	$-184.00K	USD	1 Quarter
Other adjustments	`OtherOperatingActivitiesCashFlowStatement`	$5.00K	USD	1 Quarter
Accounts receivable, net	`IncreaseDecreaseInAccountsReceivable`	$-4.24M	USD	1 Quarter
Accounts receivable, net	`IncreaseDecreaseInAccountsReceivable`	$-1.22M	USD	1 Quarter
Inventory	`IncreaseDecreaseInInventories`	$7.18M	USD	1 Quarter
Inventory	`IncreaseDecreaseInInventories`	$1.11M	USD	1 Quarter
Prepaid expenses and other current assets	`IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets`	$-2.36M	USD	1 Quarter
Prepaid expenses and other current assets	`IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets`	$-1.77M	USD	1 Quarter
Other assets	`IncreaseDecreaseInOtherCurrentAssets`	$106.00K	USD	1 Quarter
Other assets	`IncreaseDecreaseInOtherCurrentAssets`	$365.00K	USD	1 Quarter
Operating lease liability	`IncreaseDecreaseInOperatingLeaseLiability`	$3.98M	USD	1 Quarter
Operating lease liability	`IncreaseDecreaseInOperatingLeaseLiability`	$2.72M	USD	1 Quarter
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$-2.21M	USD	1 Quarter
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$-5.07M	USD	1 Quarter
Accrued consignor payable	`IncreaseDecreaseInAccruedConsignorPayable`	$-2.57M	USD	1 Quarter
Accrued consignor payable	`IncreaseDecreaseInAccruedConsignorPayable`	$-19.33M	USD	1 Quarter
Other accrued and current liabilities	`IncreaseDecreaseInOtherAccruedLiabilities`	$-8.87M	USD	1 Quarter
Other accrued and current liabilities	`IncreaseDecreaseInOtherAccruedLiabilities`	$-547.00K	USD	1 Quarter
Other noncurrent liabilities	`IncreaseDecreaseInOtherNoncurrentLiabilities`	$-412.00K	USD	1 Quarter
Other noncurrent liabilities	`IncreaseDecreaseInOtherNoncurrentLiabilities`	$257.00K	USD	1 Quarter
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-54.97M	USD	1 Quarter
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-47.81M	USD	1 Quarter
Purchases of short-term investments	`PaymentsToAcquireShortTermInvestments`	$73.28M	USD	1 Quarter
Proceeds from maturities of short-term investments	`ProceedsFromMaturitiesPrepaymentsAndCallsOfShorttermInvestments`	$114.02M	USD	1 Quarter
Proceeds from maturities of short-term investments	`ProceedsFromMaturitiesPrepaymentsAndCallsOfShorttermInvestments`	$4.00M	USD	1 Quarter
Capitalized proprietary software development costs	`PaymentsForSoftware`	$1.48M	USD	1 Quarter
Capitalized proprietary software development costs	`PaymentsForSoftware`	$2.40M	USD	1 Quarter
Purchases of property and equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	$5.92M	USD	1 Quarter
Purchases of property and equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	$6.49M	USD	1 Quarter
Net cash provided by (used in) investing activities	`NetCashProvidedByUsedInInvestingActivities`	$32.77M	USD	1 Quarter
Net cash provided by (used in) investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-4.33M	USD	1 Quarter
Proceeds from issuance of 2028 convertible senior notes, net of issuance costs	`ProceedsFromConvertibleDebt`	$278.84M	USD	1 Quarter
Purchase of capped calls	`PurchaseOfCappedCalls`	$33.67M	USD	1 Quarter
Proceeds from exercise of stock options	`ProceedsFromStockOptionsExercised`	$2.56M	USD	1 Quarter
Proceeds from exercise of stock options	`ProceedsFromStockOptionsExercised`	$3.97M	USD	1 Quarter
Taxes paid related to restricted stock vesting	`PaymentsRelatedToTaxWithholdingForRestrictedStockVesting`	$151.00K	USD	1 Quarter
Net cash provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$249.15M	USD	1 Quarter
Net cash provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$2.41M	USD	1 Quarter
Net increase (decrease) in cash, cash equivalents and restricted cash	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect`	$197.01M	USD	1 Quarter
Net increase (decrease) in cash, cash equivalents and restricted cash	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect`	$-19.78M	USD	1 Quarter
Beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations`	$350.85M	USD	Point-in-time
Beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations`	$154.45M	USD	Point-in-time
Beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations`	$134.66M	USD	Point-in-time
Beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations`	$547.86M	USD	Point-in-time
End of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations`	$350.85M	USD	Point-in-time
End of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations`	$154.45M	USD	Point-in-time
End of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations`	$134.66M	USD	Point-in-time
End of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations`	$547.86M	USD	Point-in-time
Cash paid for interest	`InterestPaidNet`	$4.00K	USD	1 Quarter
Cash paid for interest	`InterestPaidNet`	$7.00K	USD	1 Quarter
Property and equipment additions not yet paid in cash	`CapitalExpendituresIncurredButNotYetPaid`	$2.43M	USD	1 Quarter
Property and equipment additions not yet paid in cash	`CapitalExpendituresIncurredButNotYetPaid`	$2.27M	USD	1 Quarter
Capitalized proprietary software development costs additions not yet paid in cash	`CapitalizedProprietarySoftwareDevelopmentCostsAdditionsNotYetPaidInCash`	$756.00K	USD	1 Quarter
Capitalized proprietary software development costs additions not yet paid in cash	`CapitalizedProprietarySoftwareDevelopmentCostsAdditionsNotYetPaidInCash`	$430.00K	USD	1 Quarter
Issuance costs associated with issuance of 2025 and 2028 convertible senior notes included in other accrued and current liabilities	`IssuanceCostsAssociatedWithIssuanceOfConvertibleSeniorNotesIncludedInOtherAccruedAndCurrentLiabilities`	$1.17M	USD	1 Quarter
Stock-based compensation capitalized to proprietary software development costs	`StockBasedCompensationCapitalizedToProprietarySoftwareDevelopmentCosts`	$359.00K	USD	1 Quarter
Stock-based compensation capitalized to proprietary software development costs	`StockBasedCompensationCapitalizedToProprietarySoftwareDevelopmentCosts`	-	USD	1 Quarter

Stockholders Equity 19 line items

Line Item	Tag	Value	Unit	Period
Beginning balance	`StockholdersEquity`	$191.29M	USD	Point-in-time
Beginning balance	`StockholdersEquity`	$209.91M	USD	Point-in-time
Beginning balance	`StockholdersEquity`	$306.56M	USD	Point-in-time
Beginning balance	`StockholdersEquity`	$338.93M	USD	Point-in-time
Issuance of common stock upon exercise of options	`StockIssuedDuringPeriodValueStockOptionsExercised`	$2.56M	USD	1 Quarter
Issuance of common stock upon exercise of options	`StockIssuedDuringPeriodValueStockOptionsExercised`	$3.97M	USD	1 Quarter
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes	`StockIssuedDuringPeriodValueCommonStockUponVestingOfRestrictedStockUnitsNetOfSharesWithheldForEmployeeTaxes`	$-151.00K	USD	1 Quarter
Stock-based compensation expense	`AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue`	$11.28M	USD	1 Quarter
Stock-based compensation expense	`AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue`	$3.41M	USD	1 Quarter
Purchase of capped calls	`PurchaseOfCappedCalls`	$33.67M	USD	1 Quarter
Equity component of convertible senior notes, net of issuance costs	`AdjustmentsToAdditionalPaidInCapitalEquityComponentOfConvertibleDebt`	$93.03M	USD	1 Quarter
Other comprehensive income (loss)	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$314.00K	USD	1 Quarter
Other comprehensive income (loss)	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$-11.00K	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-55.99M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-38.50M	USD	1 Quarter
Ending balance	`StockholdersEquity`	$191.29M	USD	Point-in-time
Ending balance	`StockholdersEquity`	$209.91M	USD	Point-in-time
Ending balance	`StockholdersEquity`	$306.56M	USD	Point-in-time
Ending balance	`StockholdersEquity`	$338.93M	USD	Point-in-time

Comprehensive Income 6 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-55.99M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-38.50M	USD	1 Quarter
Unrealized gain (loss) on investments	`UnrealizedGainLossOnInvestments`	$-11.00K	USD	1 Quarter
Unrealized gain (loss) on investments	`UnrealizedGainLossOnInvestments`	$314.00K	USD	1 Quarter
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-38.19M	USD	1 Quarter
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-56.00M	USD	1 Quarter

Data is extracted from SEC EDGAR XBRL filings. Values shown are as reported in the filing.