ATRenew (RERE) Q2 2024 earnings summary

Executive summary

• Achieved 27.4% year-over-year growth in total net revenues to RMB3,776.7 million in Q2 2024, driven by recycling, value-for-money retail, and strategic partnerships, despite cautious consumer spending.

• Non-GAAP income from operations rose 81% year-over-year to RMB94.1 million, with operating margin improving to 2.5%.

• Expanded offline presence to 1,516 stores in 260 cities, reinforcing position as China's largest pre-owned electronics platform.

• Refurbished device sales exceeded RMB580 million in 1H24; new category recycling GMV surpassed RMB1.5 billion in 1H24.

• Renewed strategic partnership with JD.com, introducing new trade-in methods and expanding service offerings.

Financial highlights

• Total revenue reached RMB3,776.7 million, up 27.4% year-over-year, surpassing guidance.

• Product revenue was RMB3,401.8 million, up 29% year-over-year; service revenue grew 14.6% to RMB374.9 million.

• Non-GAAP operating income was RMB94.1 million, up from RMB52.0 million year-over-year; non-GAAP operating margin improved to 2.5%.

• Group gross margin was 20.8%; product revenue gross margin rose to 12.1%, up 1.2 percentage points sequentially.

• Cash, equivalents, restricted cash, short-term investments, and funds receivable totaled RMB2,768.7 million as of June 30, 2024.

Outlook and guidance

• Q3 2024 revenue expected between RMB3,970.0 million and RMB4,070.0 million, up 21.9% to 25% year-over-year.

• Ongoing policy support and consumer awareness expected to drive further growth in recycling and trade-in services.

• Focus on expanding high-margin service categories and direct-to-consumer refurbished device sales.

• Continued investment in automation and technology to drive cost efficiency and margin improvement.

• Plans to further leverage asset-light business models and broaden in-store recycling categories.