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 robust growth in product and service revenues, including pre-owned electronics and multi-category recycling.

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

• Multi-category recycling value increased 270% year-over-year, with service revenue up over 400% and significant expansion in direct-to-consumer and refurbished device sales.

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

• Number of consumer products transacted increased to 9.1 million from 8.2 million year-over-year.

Financial highlights

• Product revenue increased 25.6% to RMB 3,672.2 million, and service revenue rose 13.9% to RMB 379 million year-over-year.

• Gross margin improved to 20% from 19.8% year-over-year; 1P business gross margin rose to 11.7%.

• Non-GAAP operating income grew 40.9% year-over-year to RMB 104 million; Non-GAAP operating margin increased to 2.6%.

• Net income was RMB 17.9 million, compared to a net loss of RMB 44.2 million in Q3 2023; adjusted net income (non-GAAP) was RMB 90.1 million.

• 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 to be RMB 4,740–4,840 million, representing 22.4%–24.9% year-over-year growth.

• Continued acceleration in store openings, expansion of multi-category recycling services, and investment in automation and operational efficiency planned for the next 2–3 years.