Pre-register: State of Mobile 2025
Sensor Tower · Abraham Yousef · January 2024
Rent the Runway Fights to Stay on Track
Rent the Runway is facing operational difficulties, as shown by its restructuring plan. Sensor Tower's data on the company's mobile app and digital advertising efforts suggest that revenue and active subscription growth have been underperforming, with little signs of improvement. This is supported by falling downloads and MAUs, indicating a continued decline in the business.
Key Takeaways:
Though Rent the Runway’s reported active subscriptions saw outsized growth in late 2021 and early 2022, active subscription growth has been decelerating after peaking in 3Q21, when it was up 110% YoY. RTR’s downloads followed suit and fell an average of 5% YoY per quarter 2023, per Sensor Tower
RTR’s 4Q23 decline in downloads suggests a further decrease in the company’s active subscriptions, particularly given that this slowdown has been in spite of an increase in advertising spend of over 350% YoY in 2023, according to Pathmatics by Sensor Tower
The fall in active subscriptions has cut into Rent the Runway’s reported revenue growth, which has risen an average of just 1% YoY from 1Q23-3Q23, down from 65% YoY growth over the same period in 2022
RTR’s MAU growth is directionally inline with reported trends and has decelerated significantly, with average MAU growth of 2% YoY per quarter in 2023 compared to 16% YoY in 2022
StitchFix, another subscription service with the option to buy rather than rent clothing, has also struggled. As consumers attempt to manage on tighter budgets, they seem less inclined to maintain these services over the long term
With reported active client growth down an average of 16% YoY in CY 1Q23-3Q23, downloads falling an average of -14% YoY in 2023 and MAUs essentially flat in 2023, it's likely that StitchFix will see ongoing pressure on active client and revenue growth
For more information, request the full report from reports@sensortower.com.
