Rent the Runway Inc Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Boone - JMP Securities - Analyst : Thank you so much for taking my question. Jen, I wanted to ask about marketing. It sounds like you guys have a lot of hiring in the quarter. Can you speak to the opportunity with untapped audiences and increasing awareness just across the entire need of the populations has (inaudible) users? And then Sid, you guys had a bunch of qualitatively positive things as it relates to subscribers per 1Q. Q2 seasonally is typically a step down. Is there any way that we should be thinking about ending active subs for 2Q as it relates to the guide and just the cadence effect for rest of the year? Thank you so much. Jennifer Hyman - Rent the Runway Inc - Chairman of the Board, President, Chief Executive Officer, Co-Founder, Chief Operating Officer Thanks, Andrew. So first, on marketing, there's a huge opportunity to increase, first of all, general awareness for Rent the Runway, our offering that we both do special event rental as well as subscription, and to go broad in terms of the customer demographics that we are going after because over 800 brands that we carry have wide appeal. And given the price point, especially for special event rental where we're renting at between -- or around 10% of the retail price, is the price point that is accessible to the mass market. So you heard that there are multiple engines that we are building out within marketing. Number one, there's the reignition of our brand. And ensuring that our brand is building emotional connections with women, is actually doing things in real life, showing up, events, stores, building back our investor network, all of the things that actually use to drive that organic virality of our business were fueled by actually our brand efforts and by the customer experience that we were delivering. So making a major investment into shifting our dollars away from bottom of funnel, more towards mid-funnel and top of funnel of which brand as an important component is key there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 06, 2024 / 8:30PM, RENT.OQ - Q1 2024 Rent the Runway Inc Earnings Call Creative is critical. We now know that whether it's on a paid channel or whether it's how creative shows up on your app or on your site, that is what is, number one, increasing the efficacy of our ad spend. Number two, actually, putting a stake in the ground as to what our brand stands for and the psychographic that we're going after. So you've seen really what I would call a creative revolution in terms of how we're actually showcasing our inventory to our customers and giving them more inspiration and ideas for how they can actually put together, out that style themselves, et cetera, and really to just cement our position as the premium player in the space. Now even we're making strides on the things that we were doing before, like the pay marketing. By nature of invest changing some of our tactics and strategies on bottom and mid-funnel, we've been able to increase traffic like we were saying by 40% month-over-month. So we're bringing more new customers to the site. We're engaging them across the entire funnel. And you will see a whole host of new partnerships, new in-real-life experiences, new brand networks, new channels, and of course, a tremendous investment into life cycle marketing so that we're really building a very strong relationships with every customer cohort and ensuring that we're driving as much revenue from each customer as possible. So very, very excited by the progress in marketing. And of course, this is the beginning, but I think we'll see a lot of things change in the second half of the year in a positive direction.

Question: Andrew Boone - JMP Securities - Analyst : Thank you.