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Rent the Runway, Inc. (RENT) Reports Q3 Earnings: What Key Metrics Have to Say

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Rent the Runway, Inc. (RENT - Free Report) reported $72.5 million in revenue for the quarter ended October 2023, representing a year-over-year decline of 6.3%. EPS of -$0.45 for the same period compares to -$0.47 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $73.16 million, representing a surprise of -0.90%. The company delivered an EPS surprise of -7.14%, with the consensus EPS estimate being -$0.42.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Rent the Runway, Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Active subscribers (at the end of period): 131,725 compared to the 131,018 average estimate based on three analysts.
  • Revenue- Other revenue: $7.80 million versus $9.19 million estimated by four analysts on average.
  • Revenue- Subscription and Reserve rental revenue: $64.70 million versus $64 million estimated by four analysts on average.
View all Key Company Metrics for Rent the Runway, Inc. here>>>

Shares of Rent the Runway, Inc. have returned +24.2% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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