Rent Runway : Q1 2024 Earnings Presentation

Q1 2024 Earnings Presentation

June 6, 2024

Forward-Looking Statements Disclaimer

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this presentation that do not relate to maers of historical fact should be considered forward-looking statements. These statements include, but are not limited to, statements regarding Rent the Runway, Inc.'s (the "Company," "our" or "we") future results of operations, financial position, revenue, Adjusted EBITDA Margin and free cash flow, including the trends underlying expected free cash flow breakeven for FY2024; expected operational eiciencies; planned capital expenditures; expected sales growth; marketing initiatives and goals; and other business objectives and strategic initiatives. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements because they contain words such as "aim," "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "toward," "will," or "would," or the negative of these words or other similar terms or expressions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond our control, that could cause actual performance or results to dier materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation may not occur and actual results could dier materially from those anticipated or implied in the forward-looking statements. These risks and uncertainties include our ability to drive future growth or manage our growth eectively; the highly competitive and rapidly changing nature of the global fashion industry; risks related to the macroeconomic environment; our ability to cost-eectively grow our customer base; any failure to retain customers; our ability to accurately forecast customer demand, acquire and manage our oerings eectively and plan for future expenses; risks arising from the restructuring of our operations; our reliance on the eective operation of proprietary technology systems and software as well as those of third-party vendors and service providers; risks related to shipping, logistics and our supply chain; our ability to remediate our material weaknesses in our internal control over financial reporting; laws and regulations applicable to our business; our reliance on the experience and expertise of our senior management and other key personnel; our ability to adequately obtain, maintain, protect and enforce our intellectual property and proprietary rights; compliance with data privacy, data security, data protection and consumer protection laws and industry standards; risks associated with our brand and manufacturing partners; our reliance on third parties to provide payment processing infrastructure underlying our business; our dependence on online sources to aract consumers and promote our business which may be aected by third-party interference or cause our customer acquisition costs to rise; failure by us, our brand partners, or third party manufacturers to comply with our vendor code of conduct or other laws; risks related to our debt, including our ability to comply with covenants in our credit facility; risks related to our Class A capital stock and ownership structure; and risks related to future pandemics/public health crises. Additional information regarding these and other risks and uncertainties that could cause actual results to dier materially from the Company's expectations is included in our Annual Report on Form 10-K for the year ended January 31, 2024, as updated in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2024. Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise. This presentation is a high-levelsummary of our fiscal Q1 financial results. For more information please refer to our press release dated June 6, 2024 and filings with the SEC.

RENT THE RUNWAY

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01 Q1 2024 Summary

1. Recent Business Highlights
2. Q2 + FY2024 Guidance

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Q 1 2024 Summary

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Q1'24 Key Metrics and Financial Highlights

TOTAL REVENUE	ACTIVE SUBSCRIBERS	TOTAL SUBSCRIBERS
$75.0M	145.8K, Up Slightly YoY	185.3K
AVERAGE ACTIVE SUBSCRIBERS
Up 1.1% YoY	135.9K, Relatively Flat YoY	Relatively Flat YoY
GROSS PROFIT / MARGIN	NET LOSS / MARGIN	ADJ. EBITDA / MARGIN
$28.4M / 38%	$(22.0)M / (29)%	$6.5M / 9%
Margin down 4 pts YoY	Margin up 11 pts YoY	Margin up 3 pts YoY

Note: Active Subscribers represent the number of subscribers with an active membership as of the last day of any given period and excludes paused subscribers. Average Active Subscribers represents the mean of the beginning of quarter and end of quarter Active Subscribers for a quarterly period; and for other periods, represents the mean of the Average Active Subscribers of every quarter within that period. Total Subscribers includes both active and paused subscribers.

Q1 2024 ended April 30, 2024.

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Active Subscribers as of April 30, 2024 Up 0.4% YoY

SUBSCRIBERS (IN THOUSANDS)

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YoY Active Subs	40%	80%	78%	110%	82%	27%	15%	10%	8%	11%	(2)%	(1)%	0%
YoY Avg Active Subs	(31)%	60%	79%	93%	94%	51%	20%	12%	9%	9%	4%	(1)%	(0)%
Paused % of Total	29%	23%	22%	28%	24%	28%	24%	26%	22%	25%	25%	27%	21%

Note: Active Subscribers represent the number of subscribers with an active membership as of the last day of any given period and excludes paused subscribers. Total subscribers includes both active and paused
subscribers. Average Active Subscribers represents the mean of the beginning of quarter and end of quarter Active Subscribers for a quarterly period; and for other periods, represents the mean of the Average
Active Subscribers of every quarter within that period.	6
Calculations are based on unrounded figures.

Total Revenue Up 1% YoY in Q1'24

TOTAL REVENUE, NET ($ IN MILLIONS)

Subscriber Highlights

● 88% of revenue from subscribers in Q1'24

● 26% of subscribers added one or more paid items into their subscriptions in Q1'24

YoY
Growth	(44)%	62%	66%	91%	100%	64%	31%	18%	11%	(1)%	(6)%	1%	1%

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Note: FY21 ended January 31, 2022; FY22 ended January 31, 2023; FY23 ended January 31, 2024; Q1'24 ended April 30, 2024.

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Revenue to Gross Profit - Q1'24 and Q1'23

	FISCAL	QUARTER ENDED APRIL 30,	2024
% of Revenue		27%	20%	15%	38%
$ IN MILLIONS
	FISCAL	QUARTER ENDED APRIL 30,	2023
% of Revenue		30%	16%	12%	42%

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Note: Calculations are based on unrounded figures.

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Gross Profit to Adjusted EBITDA - Q1'24 and Q1'23

		FISCAL QUARTER ENDED APRIL 30,	2024
% of Revenue	38%	(12)%	(13)%	(30)%	(4)%	(0)%	4%	24%	0%	2%	9%
$ IN MILLIONS
		FISCAL QUARTER ENDED APRIL 30,	2023
% of Revenue	42%	(13)%	(18)%	(36)%	(5)%	0%	12%	21%	0%	1%	6%

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Note: See GAAP to Non-GAAP Reconciliation in appendix. Calculations based on unrounded figures.
1 Includes $0.2M of Restructuring Charges for Q1'24.	9
2 Addback: Other includes write-os of liquidated assets, non-recurring adjustments, and other adjustments.

Adjusted EBITDA to Free Cash Flow - Q1'24 and Q1'23

FISCAL QUARTER ENDED APRIL 30, 2024

% of Revenue

9%

(17)%

(1)%

1%

7%

0%

(2)%

$ IN MILLIONS

FISCAL QUARTER ENDED APRIL 30, 2023

% of Revenue

6%

(20)%

(1)%

(0)%

(1)%

0%

(16)%

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Note: See GAAP to Non-GAAP Reconciliation in appendix. Free cash flow defined as net cash (used in) provided by operating activities plus net cash (used in) provided by investing activities.	10
Calculations based on unrounded figures. Other adjustments in Q1'23 of $0.1M primarily includes cash tax adjustments and other cash gains (losses).