10-Q Filing

THEREALREAL, INC. CIK: 1573221 Q1 2023

Filing Information

Form Type	10-Q
Accession Number	`0001573221-23-000048`
Period End Date	20230331
Filing Date	20230509
Fiscal Year	2023
Fiscal Period	Q1
XBRL Instance	real-20230331_htm.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 58 Income Statement 38 Cash Flow Statement 72 Stockholders Equity 15

Balance Sheet 58 line items

Line Item	Tag	Value	Unit	Period
Common stock, par value (in dollars per share)	`CommonStockParOrStatedValuePerShare`	-	USD	Point-in-time
Common stock, par value (in dollars per share)	`CommonStockParOrStatedValuePerShare`	-	USD	Point-in-time
Common stock, shares authorized (in shares)	`CommonStockSharesAuthorized`	500.00M	shares	Point-in-time
Common stock, shares authorized (in shares)	`CommonStockSharesAuthorized`	500.00M	shares	Point-in-time
Common stock, shares issued (in shares)	`CommonStockSharesIssued`	99.09M	shares	Point-in-time
Common stock, shares issued (in shares)	`CommonStockSharesIssued`	100.15M	shares	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$247.15M	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$293.79M	USD	Point-in-time
Common stock, shares, outstanding (in shares)	`CommonStockSharesOutstanding`	100.15M	shares	Point-in-time
Common stock, shares, outstanding (in shares)	`CommonStockSharesOutstanding`	99.09M	shares	Point-in-time
Accounts receivable, net	`AccountsReceivableNetCurrent`	$8.94M	USD	Point-in-time
Accounts receivable, net	`AccountsReceivableNetCurrent`	$12.21M	USD	Point-in-time
Inventory, net	`InventoryNet`	$42.97M	USD	Point-in-time
Inventory, net	`InventoryNet`	$30.84M	USD	Point-in-time
Prepaid expenses and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$24.20M	USD	Point-in-time
Prepaid expenses and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$23.29M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$311.13M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$372.26M	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$112.68M	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$101.88M	USD	Point-in-time
Operating lease right-of-use assets	`OperatingLeaseRightOfUseAsset`	$127.95M	USD	Point-in-time
Operating lease right-of-use assets	`OperatingLeaseRightOfUseAsset`	$95.59M	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$3.16M	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$2.75M	USD	Point-in-time
Total assets	`Assets`	$615.64M	USD	Point-in-time
Total assets	`Assets`	$511.75M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$11.90M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$8.87M	USD	Point-in-time
Accrued consignor payable	`AccruedLiabilitiesCurrent`	$72.11M	USD	Point-in-time
Accrued consignor payable	`AccruedLiabilitiesCurrent`	$81.54M	USD	Point-in-time
Operating lease liabilities, current portion	`OperatingLeaseLiabilityCurrent`	$20.78M	USD	Point-in-time
Operating lease liabilities, current portion	`OperatingLeaseLiabilityCurrent`	$20.69M	USD	Point-in-time
Other accrued and current liabilities	`OtherLiabilitiesCurrent`	$82.27M	USD	Point-in-time
Other accrued and current liabilities	`OtherLiabilitiesCurrent`	$93.29M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$207.51M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$183.94M	USD	Point-in-time
Operating lease liabilities, net of current portion	`OperatingLeaseLiabilityNoncurrent`	$125.12M	USD	Point-in-time
Operating lease liabilities, net of current portion	`OperatingLeaseLiabilityNoncurrent`	$117.55M	USD	Point-in-time
Convertible senior notes, net	`ConvertibleDebtNoncurrent`	$449.85M	USD	Point-in-time
Convertible senior notes, net	`ConvertibleDebtNoncurrent`	$450.48M	USD	Point-in-time
Other noncurrent liabilities	`OtherLiabilitiesNoncurrent`	$3.25M	USD	Point-in-time
Other noncurrent liabilities	`OtherLiabilitiesNoncurrent`	$3.30M	USD	Point-in-time
Total liabilities	`Liabilities`	$785.73M	USD	Point-in-time
Total liabilities	`Liabilities`	$755.27M	USD	Point-in-time
Commitments and contingencies (Note 11)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Commitments and contingencies (Note 11)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Common stock, $0.00001 par value; 500,000,000 shares authorized as of March 31, 2023 and December 31, 2022; 100,152,432 and 99,088,172 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	`CommonStockValue`	$1.00K	USD	Point-in-time
Common stock, $0.00001 par value; 500,000,000 shares authorized as of March 31, 2023 and December 31, 2022; 100,152,432 and 99,088,172 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	`CommonStockValue`	$1.00K	USD	Point-in-time
Additional paid-in capital	`AdditionalPaidInCapital`	$781.06M	USD	Point-in-time
Additional paid-in capital	`AdditionalPaidInCapital`	$790.13M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-951.15M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-1.03B	USD	Point-in-time
Total stockholders equity (deficit)	`StockholdersEquity`	$-69.32M	USD	Point-in-time
Total stockholders equity (deficit)	`StockholdersEquity`	$-243.52M	USD	Point-in-time
Total stockholders equity (deficit)	`StockholdersEquity`	$73.13M	USD	Point-in-time
Total stockholders equity (deficit)	`StockholdersEquity`	$-170.09M	USD	Point-in-time
Total liabilities and stockholders equity (deficit)	`LiabilitiesAndStockholdersEquity`	$511.75M	USD	Point-in-time
Total liabilities and stockholders equity (deficit)	`LiabilitiesAndStockholdersEquity`	$615.64M	USD	Point-in-time

Income Statement 38 line items

Line Item	Tag	Value	Unit	Period
Total revenue	`RevenueFromContractWithCustomerExcludingAssessedTax`	$146.70M	USD	1 Quarter
Total revenue	`RevenueFromContractWithCustomerExcludingAssessedTax`	$141.90M	USD	1 Quarter
Total cost of revenue	`CostOfRevenue`	$51.92M	USD	1 Quarter
Total cost of revenue	`CostOfRevenue`	$68.08M	USD	1 Quarter
Gross profit	`GrossProfit`	$78.62M	USD	1 Quarter
Gross profit	`GrossProfit`	$89.98M	USD	1 Quarter
Marketing	`MarketingExpense`	$17.96M	USD	1 Quarter
Marketing	`MarketingExpense`	$17.52M	USD	1 Quarter
Operations and technology	`OperationsAndTechnologyExpense`	$68.03M	USD	1 Quarter
Operations and technology	`OperationsAndTechnologyExpense`	$67.10M	USD	1 Quarter
Selling, general and administrative	`SellingGeneralAndAdministrativeExpense`	$48.26M	USD	1 Quarter
Selling, general and administrative	`SellingGeneralAndAdministrativeExpense`	$49.84M	USD	1 Quarter
Restructuring charges	`RestructuringCharges`	-	USD	1 Quarter
Restructuring charges	`RestructuringCharges`	$36.39M	USD	1 Quarter
Total operating expenses	`OperatingExpenses`	$133.32M	USD	1 Quarter
Total operating expenses	`OperatingExpenses`	$171.78M	USD	1 Quarter
Loss from operations	`OperatingIncomeLoss`	$-81.80M	USD	1 Quarter
Loss from operations	`OperatingIncomeLoss`	$-54.71M	USD	1 Quarter
Interest income	`InvestmentIncomeInterest`	$98.00K	USD	1 Quarter
Interest income	`InvestmentIncomeInterest`	$2.05M	USD	1 Quarter
Interest expense	`InterestExpense`	$2.66M	USD	1 Quarter
Interest expense	`InterestExpense`	$2.67M	USD	1 Quarter
Other income (expense), net	`OtherNonoperatingIncomeExpense`	-	USD	1 Quarter
Other income (expense), net	`OtherNonoperatingIncomeExpense`	$-139.00K	USD	1 Quarter
Loss before provision for income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-82.41M	USD	1 Quarter
Loss before provision for income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$-57.41M	USD	1 Quarter
Provision for income taxes	`IncomeTaxExpenseBenefit`	-	USD	1 Quarter
Provision for income taxes	`IncomeTaxExpenseBenefit`	$86.00K	USD	1 Quarter
Net loss attributable to common stockholders	`NetIncomeLossAvailableToCommonStockholdersBasic`	$-57.41M	USD	1 Quarter
Net loss attributable to common stockholders	`NetIncomeLossAvailableToCommonStockholdersBasic`	$-82.50M	USD	1 Quarter
Net loss per share attributable to common stockholders, basic (in dollars per share)	`EarningsPerShareBasic`	$-0.83	USD	1 Quarter
Net loss per share attributable to common stockholders, basic (in dollars per share)	`EarningsPerShareBasic`	$-0.61	USD	1 Quarter
Net loss per share attributable to common stockholders, diluted (in dollars per share)	`EarningsPerShareDiluted`	$-0.83	USD	1 Quarter
Net loss per share attributable to common stockholders, diluted (in dollars per share)	`EarningsPerShareDiluted`	$-0.61	USD	1 Quarter
Shares used to compute net loss per share attributable to common stockholders, basic (in shares)	`WeightedAverageNumberOfSharesOutstandingBasic`	99.61M	shares	1 Quarter
Shares used to compute net loss per share attributable to common stockholders, basic (in shares)	`WeightedAverageNumberOfSharesOutstandingBasic`	93.48M	shares	1 Quarter
Weighted-average common shares outstanding used to calculate net loss per share attributable to common stockholders, diluted (in shares)	`WeightedAverageNumberOfDilutedSharesOutstanding`	93.48M	shares	1 Quarter
Weighted-average common shares outstanding used to calculate net loss per share attributable to common stockholders, diluted (in shares)	`WeightedAverageNumberOfDilutedSharesOutstanding`	99.61M	shares	1 Quarter

Cash Flow Statement 72 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-82.50M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-57.41M	USD	1 Quarter
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$7.82M	USD	1 Quarter
Depreciation and amortization	`DepreciationDepletionAndAmortization`	$6.36M	USD	1 Quarter
Stock-based compensation expense	`ShareBasedCompensation`	$8.99M	USD	1 Quarter
Stock-based compensation expense	`ShareBasedCompensation`	$12.51M	USD	1 Quarter
Reduction of operating lease right-of-use assets	`ReductionOfOperatingLeaseRightOfUseAssets`	$4.80M	USD	1 Quarter
Reduction of operating lease right-of-use assets	`ReductionOfOperatingLeaseRightOfUseAssets`	$5.17M	USD	1 Quarter
Bad debt expense	`ProvisionForDoubtfulAccounts`	$193.00K	USD	1 Quarter
Bad debt expense	`ProvisionForDoubtfulAccounts`	$651.00K	USD	1 Quarter
Accrued interest on convertible notes	`AccruedInterestOnConvertibleNotes`	$575.00K	USD	1 Quarter
Accrued interest on convertible notes	`AccruedInterestOnConvertibleNotes`	$575.00K	USD	1 Quarter
Accretion of debt discounts and issuance costs	`AccretionOfDebtDiscountsAndIssuanceCosts`	$641.00K	USD	1 Quarter
Accretion of debt discounts and issuance costs	`AccretionOfDebtDiscountsAndIssuanceCosts`	$633.00K	USD	1 Quarter
Loss on disposal of property and equipment and impairment of capitalized proprietary software	`GainLossOnDispositionOfPropertyPlantEquipmentAndImpairmentOfSoftware`	$-36.00K	USD	1 Quarter
Loss on disposal of property and equipment and impairment of capitalized proprietary software	`GainLossOnDispositionOfPropertyPlantEquipmentAndImpairmentOfSoftware`	$-175.00K	USD	1 Quarter
Property, plant, equipment, and right-of-use asset impairments	`AssetImpairmentCharges`	-	USD	1 Quarter
Property, plant, equipment, and right-of-use asset impairments	`AssetImpairmentCharges`	$32.89M	USD	1 Quarter
Provision for inventory write-downs and shrinkage	`InventoryWriteDown`	$1.81M	USD	1 Quarter
Provision for inventory write-downs and shrinkage	`InventoryWriteDown`	$3.45M	USD	1 Quarter
Accounts receivable, net	`IncreaseDecreaseInAccountsReceivable`	$602.00K	USD	1 Quarter
Accounts receivable, net	`IncreaseDecreaseInAccountsReceivable`	$-2.62M	USD	1 Quarter
Inventory, net	`IncreaseDecreaseInInventories`	$4.49M	USD	1 Quarter
Inventory, net	`IncreaseDecreaseInInventories`	$-8.68M	USD	1 Quarter
Prepaid expenses and other current assets	`IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets`	$426.00K	USD	1 Quarter
Prepaid expenses and other current assets	`IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets`	$1.14M	USD	1 Quarter
Other assets	`IncreaseDecreaseInOtherCurrentAssets`	$461.00K	USD	1 Quarter
Other assets	`IncreaseDecreaseInOtherCurrentAssets`	$779.00K	USD	1 Quarter
Operating lease liability	`IncreaseDecreaseInOperatingLeaseLiability`	$-3.65M	USD	1 Quarter
Operating lease liability	`IncreaseDecreaseInOperatingLeaseLiability`	$-6.16M	USD	1 Quarter
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$-1.39M	USD	1 Quarter
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$2.03M	USD	1 Quarter
Accrued consignor payable	`IncreaseDecreaseInAccruedConsignorPayable`	$-2.39M	USD	1 Quarter
Accrued consignor payable	`IncreaseDecreaseInAccruedConsignorPayable`	$-9.43M	USD	1 Quarter
Other accrued and current liabilities	`IncreaseDecreaseInOtherAccruedLiabilities`	$-8.63M	USD	1 Quarter
Other accrued and current liabilities	`IncreaseDecreaseInOtherAccruedLiabilities`	$-894.00K	USD	1 Quarter
Other noncurrent liabilities	`IncreaseDecreaseInOtherNoncurrentLiabilities`	$24.00K	USD	1 Quarter
Other noncurrent liabilities	`IncreaseDecreaseInOtherNoncurrentLiabilities`	$-70.00K	USD	1 Quarter
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-30.43M	USD	1 Quarter
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-49.35M	USD	1 Quarter
Capitalized proprietary software development costs	`PaymentsForSoftware`	$3.30M	USD	1 Quarter
Capitalized proprietary software development costs	`PaymentsForSoftware`	$4.21M	USD	1 Quarter
Purchases of property and equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	$11.71M	USD	1 Quarter
Purchases of property and equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	$5.14M	USD	1 Quarter
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-15.92M	USD	1 Quarter
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-8.45M	USD	1 Quarter
Proceeds from exercise of stock options	`ProceedsFromStockOptionsExercised`	-	USD	1 Quarter
Proceeds from exercise of stock options	`ProceedsFromStockOptionsExercised`	$637.00K	USD	1 Quarter
Taxes paid related to restricted stock vesting	`PaymentsRelatedToTaxWithholdingForShareBasedCompensation`	$295.00K	USD	1 Quarter
Taxes paid related to restricted stock vesting	`PaymentsRelatedToTaxWithholdingForShareBasedCompensation`	-	USD	1 Quarter
Net cash (used in) provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$637.00K	USD	1 Quarter
Net cash (used in) provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$-295.00K	USD	1 Quarter
Net decrease in cash and cash equivalents	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect`	$-57.16M	USD	1 Quarter
Net decrease in cash and cash equivalents	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect`	$-46.65M	USD	1 Quarter
Beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$361.01M	USD	Point-in-time
Beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$293.79M	USD	Point-in-time
Beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$418.17M	USD	Point-in-time
Beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$247.15M	USD	Point-in-time
End of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$361.01M	USD	Point-in-time
End of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$293.79M	USD	Point-in-time
End of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$418.17M	USD	Point-in-time
End of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$247.15M	USD	Point-in-time
Cash paid for interest	`InterestPaidNet`	$1.46M	USD	1 Quarter
Cash paid for interest	`InterestPaidNet`	$1.45M	USD	1 Quarter
Cash paid for income taxes	`IncomeTaxesPaidNet`	$3.00K	USD	1 Quarter
Cash paid for income taxes	`IncomeTaxesPaidNet`	$4.00K	USD	1 Quarter
Property and equipment additions not yet paid in cash	`CapitalExpendituresIncurredButNotYetPaid`	$1.91M	USD	1 Quarter
Property and equipment additions not yet paid in cash	`CapitalExpendituresIncurredButNotYetPaid`	$718.00K	USD	1 Quarter
Capitalized proprietary software development costs additions not yet paid in cash	`CapitalizedProprietarySoftwareDevelopmentCostsAdditionsNotYetPaidInCash`	$1.84M	USD	1 Quarter
Capitalized proprietary software development costs additions not yet paid in cash	`CapitalizedProprietarySoftwareDevelopmentCostsAdditionsNotYetPaidInCash`	$1.28M	USD	1 Quarter
Stock-based compensation capitalized to proprietary software development costs	`EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsCapitalizedAmount`	$290.00K	USD	1 Quarter
Stock-based compensation capitalized to proprietary software development costs	`EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsCapitalizedAmount`	$450.00K	USD	1 Quarter

Stockholders Equity 15 line items

Line Item	Tag	Value	Unit	Period
Beginning balance	`StockholdersEquity`	$-69.32M	USD	Point-in-time
Beginning balance	`StockholdersEquity`	$-243.52M	USD	Point-in-time
Beginning balance	`StockholdersEquity`	$73.13M	USD	Point-in-time
Beginning balance	`StockholdersEquity`	$-170.09M	USD	Point-in-time
Issuance of common stock upon exercise of options	`StockIssuedDuringPeriodValueStockOptionsExercised`	$637.00K	USD	1 Quarter
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes	`StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures`	$-208.00K	USD	1 Quarter
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes	`StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures`	$-2.00K	USD	1 Quarter
Stock-based compensation expense	`AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue`	$12.96M	USD	1 Quarter
Stock-based compensation expense	`AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue`	$9.28M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-82.50M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-57.41M	USD	1 Quarter
Ending balance	`StockholdersEquity`	$-69.32M	USD	Point-in-time
Ending balance	`StockholdersEquity`	$-243.52M	USD	Point-in-time
Ending balance	`StockholdersEquity`	$73.13M	USD	Point-in-time
Ending balance	`StockholdersEquity`	$-170.09M	USD	Point-in-time

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