What To Expect From The RealReal’s (REAL) Q2 Earnings

Secondhand luxury marketplace The RealReal (NASDAQ: REAL) will be reporting results tomorrow afternoon. Here's what to look for.

Last quarter The RealReal reported revenues of $141.9 million, down 3.27% year on year, missing analyst expectations by 0.36%. It was a weaker quarter for the company, with full-year revenue guidance missing analysts' expectations and slow revenue growth. The company reported 1.01 million users, up 22.5% year on year.

Is The RealReal buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting The RealReal's revenue to decline 14.7% year on year to $131.8 million, a deceleration on the 47.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.36 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at The RealReal's peers in the consumer internet segment, only PlayStudios has so far reported results, delivering top-line growth of 13.8% year on year, and beating analyst estimates by 0.68%. The stock was down 2.81% on the results. Read our full analysis of PlayStudios's earnings results here.

There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 4.95% over the last month. The RealReal is up 6.79% during the same time, and is heading into the earnings with analyst price target of $2.5, compared to share price of $2.36.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.