ATRenew (RERE) Q3 2024 earnings summary

Executive summary

• Total revenue for Q3 2024 reached RMB 4,051.2 million, up 24.4% year-over-year, driven by strong growth in pre-owned consumer electronics, core recycling, and multi-category services.

• Achieved first-ever positive GAAP operating income of RMB 24.9 million, with non-GAAP operating income at RMB 104 million and nine consecutive quarters of non-GAAP profitability.

• Multi-category recycling business saw transaction value increase 270% year-over-year, with service revenue up over 400% and significant expansion in direct-to-consumer sales.

• Store network expanded to 1,637 locations, including 769 self-operated and 868 joint-operated stores.

• Repurchased over $12 million of shares in Q3 2024, with $20.1 million returned to shareholders as of September 2024.

Financial highlights

• Product revenue increased 25.6% year-over-year to RMB 3,672.2 million, mainly from online and offline sales of pre-owned electronics.

• Service revenue rose 13.9% to RMB 379 million, with a take rate of 5.34% and multi-category recycling contributing nearly 9% of service revenue.

• Gross margin improved to 20% from 19.8% a year ago; 1P business gross margin rose to 11.7% from 10.7%.

• Non-GAAP operating profit grew 40.9% year-over-year; margin increased to 2.6% from 2.3%.

• Cash and equivalents, restricted cash, short-term investments, and funds receivable totaled RMB 2,350.5 million as of September 30, 2024.

Outlook and guidance

• Q4 2024 revenue is expected between RMB 4,740 million and RMB 4,840 million, up 22.4% to 24.9% year-over-year.

• Focus on expanding multi-category recycling, store openings, and enhancing profitability through technology and service diversity.

• Continued investment in automation and operational efficiency to reduce fulfillment expenses as a percentage of revenue.