RENT - Rent the Runway slides after guidance disappoints in the company's first earnings report

Rent the Runway (NASDAQ:RENT) reports revenue increased 66% in Q3 and was up 26% on a sequential basis from Q2. The company ended the quarter with active subscribers up 78% Y/Y to 116,833. Total subscribers were up 45% to 150,075. Gross margin fell in at 33.7% of sales in a dramatic jump from the 6.8% mark a year ago. Adjusted EBITDA was -$5.6M vs. -$5.4M a year ago. Looking ahead, Rent the Runway sees Q4 revenue of $62.8M to $63.3M vs. $66M consensus and active subscribers of 121K to 122K by the end of the quarter. For 2022, RENT expects revenue of $202M to $202.5M vs. $209M consensus. Shares of Rent the Runway (RENT) are down 6.09% in after-hours trading to $10.80 after shedding 10.23% during the regular session. Rent the Runway (RENT) went public about five weeks after pricing its upsized initial public offering at $21. Share price volatility on RENT

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Rent the Runway slides after guidance disappoints in the company's first earnings report