ATRenew (RERE) Q4 2023 earnings summary

Executive summary

• FY23 revenue rose 31.4% YoY to RMB12,965.8 million; adjusted operating income reached RMB251.7 million versus RMB6.9 million in FY22.

• Q4 revenue grew 29.9% YoY to RMB3,873.6 million; adjusted operating income was RMB81.6 million, and GAAP operating loss narrowed to RMB16.7 million.

• Growth drivers included trade-in solutions, multi-category recycling, refined pricing and operational efficiency; 2024 priorities include supply-chain capability and efficiency.

Financial highlights

• FY23 product revenue rose 34.4% to RMB11,658.3 million and service revenue rose 9.6% to RMB1,307.5 million; Q4 product revenue grew 31.1% to RMB3,522.5 million and service revenue 19.7% to RMB351.1 million.

• FY23 operating loss was RMB173.3 million versus RMB2,623.4 million in FY22; Q4 operating loss was RMB16.7 million versus RMB2,151.2 million in Q4 2022.

• FY23 net loss was RMB156.3 million versus RMB2,467.9 million; adjusted net income was RMB225.2 million versus RMB50.8 million. Q4 net income was RMB2.8 million and adjusted net income RMB91.0 million.

• Non-GAAP operating margin was 1.9% for FY23 versus 0.1% in FY22, and 2.1% in Q4 versus 1.2% in Q4 2022.

Outlook and guidance

• Q1 2024 revenue is forecast at RMB3,550–3,650 million, up 23.6%–27.1% YoY; the preliminary outlook may change with market and operating conditions.

• 2024 priorities include strengthening supply-chain capability and efficiency, improving service quality and customer mindshare, and offering attractive recycling pricing.

• New-category recycling priorities include improving user experience, developing a structured product catalog and strengthening pricing capabilities.