Rent the Runway, Inc. (NASDAQ:RENT) Q2 2023 Earnings Conference Call September 8, 2023 8:30 AM ET
Company Participants
Cara Schembri - General Counsel
Jennifer Hyman - CEO and Co-Founder
Sid Thacker - CFO
Conference Call Participants
Rick Patel - Raymond James
Ike Burochow - Wells Fargo
Andrew Boone - JMP Securities
Ross Sandler - Barclays
Nathan Feather - Morgan Stanley
Edward Yruma - Piper Sandler
Dana Telsey - Telsey Advisory Group
Eric Sheridan - Goldman Sachs
Operator
Hello, and welcome to Rent the Runway's Second Quarter 2023 Earnings Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
I'll now turn the call over to Rent the Runway General Counsel, Cara Schembri. Cara, please go ahead.
Cara Schembri
Good morning, everyone, and thanks for joining us to discuss Rent the Runway's second quarter 2023 results. Joining me today to discuss our results for the quarter ended July 31, 2023, our CEO and Co-Founder, Jennifer Hyman, and CFO, Sid Thacker.
During this call, we will make references to our Q2 '23 earnings presentation which can be found in the Events and Presentations section of our Investor Relations website. Before we begin, we would like to remind you that this call will include forward-looking statements. These statements include our future expectations regarding financial results, guidance and targets, market opportunities and our growth. These statements are subject to various risks, uncertainties and assumptions that could cause our actual results to differ materially. These risks, uncertainties and assumptions are detailed in today's press release as well as our filings with the SEC, including our Form 10-Q that will be filed later today. We undertake no obligation to revise or update any forward-looking statements or information, except as required by law.
During this call, we will also reference certain non-GAAP financial information. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliation of the GAAP to non-GAAP measures can be found in our press release slide presentation posted on our investor website and in our SEC filings.
And with that, I'll turn it over to Jen.
Jennifer Hyman
Thanks, Cara, and thank you, everyone, for joining.
I want to start by talking about our progress in Q2, starting with our strong bottom line performance and momentum towards profitability. We're pleased that we exceeded our Q2 profitability guidance by remaining disciplined, adjusted EBITDA margins had a historic high at 10.2% in Q2 driven by fulfillment efficiencies, strong gross margins and fixed cost control. And notably, today, we announced that we have accelerated our plan to be free cash flow breakeven before cash interest expense to full year '24. For some time now, we've been focused on taking decisive actions that the goal to bring Rent the Runway to profitability. And we believe now is the right time to accelerate our efforts.