ThredUp Announces Third Quarter 2024 Results
ThredUp (TDUP) reported Q3 2024 results with total revenue of $73.0 million, down 11% year-over-year. U.S. revenue was $61.5 million, declining 10%. Gross margin improved to 71.2% from 69.0% in Q3 2023. Net loss widened to $24.8 million, including a $9.8 million impairment related to European operations. Active Buyers decreased 7% to 1.632 million, while Orders fell 14% to 1.553 million. The company signed a non-binding term sheet for a management buyout of its European business and raised Q4 and FY 2024 guidance for U.S. operations.
ThredUp (TDUP) ha riportato i risultati del terzo trimestre 2024 con un fatturato totale di 73,0 milioni di dollari, in calo dell'11% rispetto all'anno precedente. Il fatturato negli Stati Uniti è stato di 61,5 milioni di dollari, con un decremento del 10%. Il margine lordo è migliorato al 71,2% rispetto al 69,0% del terzo trimestre 2023. La perdita netta è aumentata a 24,8 milioni di dollari, includendo un'eventuale svalutazione di 9,8 milioni di dollari legata alle operazioni europee. Gli acquirenti attivi sono diminuiti del 7% a 1,632 milioni, mentre gli ordini sono scesi del 14% a 1,553 milioni. L'azienda ha firmato un contratto preliminare non vincolante per un'acquisizione della sua attività europea e ha alzato le previsioni per il quarto trimestre e per l'intero anno fiscale 2024 per le operazioni statunitensi.
ThredUp (TDUP) informó los resultados del tercer trimestre de 2024 con ingresos totales de 73,0 millones de dólares, una caída del 11% en comparación con el año anterior. Los ingresos en EE. UU. fueron de 61,5 millones de dólares, disminuyendo un 10%. El margen bruto mejoró al 71,2% desde el 69,0% en el tercer trimestre de 2023. La pérdida neta se amplió a 24,8 millones de dólares, que incluye una disminución de valor de 9,8 millones de dólares relacionada con las operaciones europeas. Los compradores activos disminuyeron un 7% a 1,632 millones, mientras que los pedidos cayeron un 14% a 1,553 millones. La empresa firmó un acuerdo de términos no vinculante para una compra por parte de la dirección de su negocio europeo y elevó las previsiones para el cuarto trimestre y para el año fiscal 2024 en las operaciones de EE. UU.
ThredUp (TDUP)는 2024년 3분기 실적을 보고하며 총 수익이 7300만 달러로 전년 대비 11% 감소했다고 발표했습니다. 미국 수익은 6150만 달러로 10% 하락했습니다. 총 마진은 2023년 3분기 69.0%에서 71.2%로 개선되었습니다. 순손실은 2480만 달러로 확대되었으며, 여기에는 유럽 사업과 관련된 980만 달러의 자산 손상비용이 포함됩니다. 활성 구매자는 7% 감소하여 163만 2000명이 되었고, 주문량은 14% 감소하여 155만 3000건이 되었습니다. 회사는 유럽 사업에 대한 경영진 인수 계약을 위한 비구속적 조건서를 체결했으며, 미국 사업의 4분기 및 2024 회계연도 전망을 상향 조정했습니다.
ThredUp (TDUP) a publié les résultats du troisième trimestre 2024 avec un chiffre d'affaires total de 73,0 millions de dollars, en baisse de 11% par rapport à l'année précédente. Les revenus aux États-Unis étaient de 61,5 millions de dollars, en baisse de 10%. La marge brute s'est améliorée à 71,2% contre 69,0% au troisième trimestre 2023. La perte nette s'est élargie à 24,8 millions de dollars, y compris une dépréciation de 9,8 millions de dollars liée aux opérations européennes. Le nombre d'acheteurs actifs a diminué de 7% pour atteindre 1,632 million, tandis que le nombre de commandes a chuté de 14% à 1,553 million. L'entreprise a signé une lettre d'intention non contraignante pour un rachat par la direction de son activité européenne et a relevé ses prévisions pour le quatrième trimestre et l'exercice 2024 pour les opérations américaines.
ThredUp (TDUP) hat die Ergebnisse des dritten Quartals 2024 mit einem Gesamtumsatz von 73,0 Millionen Dollar veröffentlicht, was einem Rückgang von 11% im Vergleich zum Vorjahr entspricht. Der Umsatz in den USA betrug 61,5 Millionen Dollar, ein Rückgang von 10%. Die Bruttomarge verbesserte sich auf 71,2% von 69,0% im dritten Quartal 2023. Der Nettoverlust erweiterte sich auf 24,8 Millionen Dollar, einschließlich einer Abwertung von 9,8 Millionen Dollar in Bezug auf europäische Geschäfte. Die aktiven Käufer sanken um 7% auf 1,632 Millionen, während die Bestellungen um 14% auf 1,553 Millionen fielen. Das Unternehmen hat ein unverbindliches Vertragsangebot für einen Managementbuyout seines europäischen Geschäfts unterzeichnet und die Prognosen für das vierte Quartal und das Geschäftsjahr 2024 für die US-Operations angehoben.
- Gross margin improved to 71.2% from 69.0% year-over-year
- U.S. Adjusted EBITDA improved to $0.7 million (1.1% margin) from $0.1 million
- Raised Q4 and FY 2024 guidance for U.S. business
- U.S. Gross margin increased to 79.3% from 78.5% year-over-year
- Total revenue declined 11% year-over-year to $73.0 million
- Net loss increased to $24.8 million from $18.1 million year-over-year
- Active Buyers decreased 7% to 1.632 million
- Orders declined 14% to 1.553 million
- $9.8 million impairment charge for European operations
Insights
ThredUp's Q3 results reveal significant challenges with revenue declining 11% YoY to
The company's gross margin improvement to
The resale market dynamics reflect in ThredUp's performance metrics. The decline in active buyers and orders suggests shifting consumer behavior in the secondhand apparel sector. The AI implementation showing
The strategic exit from Europe through management buyout aligns with industry trends of focusing on core markets during challenging periods. The company's involvement in circular economy legislation (SB707) positions it favorably for long-term market development, though near-term growth challenges persist in the primary U.S. market.
- Third quarter Total revenue of
$73.0 million , a decrease of11% year-over-year.- U.S. Total revenue of
$61.5 million , a decrease of10% year-over-year.
- U.S. Total revenue of
- Third quarter Gross margin of
71.2% and a decrease in Gross profit of8% year-over-year.- U.S. Gross margin of
79.3% and a decrease in U.S. Gross profit of9% year-over-year.
- U.S. Gross margin of
- Active Buyers of 1.632 million and Orders of 1.553 million in Q3 2024, representing decreases of
7% and14% , respectively, year-over-year.- U.S. Active Buyers of 1.248 million and Orders of 1.172 million in Q3 2024, representing a decrease of
7% and a decrease of10% , respectively, year-over-year.
- U.S. Active Buyers of 1.248 million and Orders of 1.172 million in Q3 2024, representing a decrease of
- ThredUp has signed a non-binding term sheet for a management buyout of its European business.
- Raising Q4 and FY 2024 guidance for the U.S. business.
OAKLAND, Calif., Nov. 04, 2024 (GLOBE NEWSWIRE) -- ThredUp Inc. (Nasdaq: TDUP, LTSE: TDUP), one of the largest online resale platforms for apparel, shoes, and accessories, announced today its financial results for the third quarter ended September 30, 2024 and updated full year 2024 financial outlook.
“Though we know there is still work ahead, we have made clear progress in course-correcting in the U.S. since last quarter,” said ThredUp CEO and co-founder James Reinhart. “With momentum in our marketplace, we are pleased to be raising our U.S. Q4 and 2024 revenue outlook and are excited for the opportunities in front of us."
Third Quarter 2024 Financial Highlights1
- Revenue: Total revenue of
$73.0 million , a decrease of11% year-over-year.- U.S. Total revenue of
$61.5 million , a decrease of10% year-over-year.
- U.S. Total revenue of
- Gross Profit and Gross Margin: Gross profit totaled
$52.0 million , a decrease of8% year-over-year. Gross margin was71.2% as compared to69.0% for the third quarter 2023.- U.S. Gross profit of
$48.8 million , a decrease of9% year-over-year. U.S. Gross margin was79.3% as compared to78.5% for the third quarter 2023.
- U.S. Gross profit of
- Net Loss: Net loss was
$24.8 million , or a negative33.9% of Total revenue, for the third quarter 2024, compared to a net loss of$18.1 million , or a negative22.0% of Total revenue, for the third quarter 2023. Net loss for the third quarter of 2024 included an impairment of long-lived assets related to our European operations of$9.8 million .- U.S. Net loss was
$9.9 million , or a negative16.0% of revenue, for the third quarter 2024, compared to a U.S. Net loss of$12.5 million , or a negative18.3% of U.S. Total revenue, for the third quarter 2023.
- U.S. Net loss was
- Adjusted EBITDA Loss and Adjusted EBITDA Loss Margin: Adjusted EBITDA loss was
$2.5 million , or a negative3.4% of Total revenue, for the third quarter 2024, compared to an Adjusted EBITDA loss of$3.6 million , or a negative4.4% of Total revenue, for the third quarter 2023.- U.S. Adjusted EBITDA was
$0.7 million , or a1.1% of U.S. Total revenue, for the third quarter 2024, compared to U.S. Adjusted EBITDA of$0.1 million , or a0.2% of U.S. Total revenue, for the third quarter 2023.
- U.S. Adjusted EBITDA was
- Active Buyers and Orders: Active Buyers of 1.632 million and Orders of 1.553 million, representing decreases of
7% and14% , respectively, over the third quarter 2023.- U.S. Active Buyers of 1.248 million and Orders of 1.172 million, representing decreases of
7% and10% , respectively, over the third quarter 2023.
- U.S. Active Buyers of 1.248 million and Orders of 1.172 million, representing decreases of
__________________________
1 U.S. Total revenue, U.S. Gross profit, U.S. Gross margin, Adjusted EBITDA loss, Adjusted EBITDA loss margin, U.S. Adjusted EBITDA and U.S. Adjusted EBITDA margin are non-GAAP measures. See “Reconciliation of GAAP to Non-GAAP Financial Measures” in this earnings release and "Reconciliation of U.S. Financial Information to Condensed Consolidated Statement of Operations" in the Supplemental Financial Information for a detailed reconciliation of these non-GAAP measures to the most directly comparable GAAP measures and “Non-GAAP Financial Measures” for a discussion of why we believe these non-GAAP measures are useful.
Recent Business Highlights
- Europe Divestiture: On October 31, 2024, ThredUp signed a non-binding term sheet for a management buyout of Remix by Florin Filote (Remix’s current General Manager) and the Remix management team. Both parties are working toward the closing of this transaction by the end of 2024.
- AI Update: ThredUp launched its suite of AI tools in August. Since its launch last quarter, more than
60% of searches lead to item exploration, and the diversity of search terms have more than doubled. Additionally, TIME Magazine recognized the tech in its 2024 Best Inventions list. - Shaping Legislation: ThredUp launched the Sales and Use Tax petition in partnership with the circular coalition group American Circular Textiles (ACT) and its members. Through its public policy efforts, ThredUp also helped shape a California-statewide bill (SB707) aiming to minimize landfill disposal and environmental impacts, which was signed and approved in September 2024.
Financial Outlook
For the fourth quarter 2024, ThredUp expects:
- Total revenue in the range of
$67.2 million to$69.2 million .- U.S. Total revenue in the range of
$58.0 million to$60.0 million .
- U.S. Total revenue in the range of
- Gross margin in the range of
72.3% to73.3% .- U.S. Gross margin in the range of
78.5% to79.5% .
- U.S. Gross margin in the range of
- Adjusted EBITDA loss margin in the range of (4.7)% to (2.7)%.
- U.S. Adjusted EBITDA margin in the range of
0.0% to2.0% .
- U.S. Adjusted EBITDA margin in the range of
For the full fiscal year 2024, ThredUp expects:
- Total revenue in the range
$300 million to$302 million .- U.S. Total revenue in the range of
$250.8 million to$252.8 million .
- U.S. Total revenue in the range of
- Gross margin in the range of
70.8% to71.0% .- U.S. Gross margin in the range of
79.2% to79.4% .
- U.S. Gross margin in the range of
- Adjusted EBITDA loss margin in the range of (2.6)% to (2.2)%.
- U.S. Adjusted EBITDA margin in the range of
1.6% to2.1% .
- U.S. Adjusted EBITDA margin in the range of
ThredUp is not providing a quantitative reconciliation of forward-looking guidance of the Non-GAAP measures above, including Adjusted EBITDA margin, U.S. Total Revenue, U.S. Gross Margin and U.S. Adjusted EBITDA margin to their most directly comparable financial measures under GAAP because certain items are out of ThredUp’s control or cannot be reasonably predicted. Historically, these items have included, but are not limited to, stock-based compensation expense, impairment of long-lived assets, depreciation and amortization, severance and other reorganization costs, interest expense, and provision (benefit) for income taxes. Accordingly, a reconciliation for Adjusted EBITDA loss in order to calculate forward-looking Adjusted EBITDA loss margin is not available without unreasonable effort. However, for the fourth quarter of 2024 and full year 2024, Depreciation and amortization is expected to be
Conference Call and Webcast Information
- The live and archived webcast and all related earnings materials will be available at ThredUp’s investor relations website: ir.thredup.com/news-events/events-and-presentations.
| ThredUp Inc. Condensed Consolidated Balance Sheets (unaudited) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| (in thousands) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 43,715 | $ | 56,084 | ||||
| Marketable securities | 11,581 | 8,100 | ||||||
| Accounts receivable, net | 5,717 | 7,813 | ||||||
| Inventory | 7,375 | 15,687 | ||||||
| Other current assets | 4,977 | 6,204 | ||||||
| Total current assets | 73,365 | 93,888 | ||||||
| Operating lease right-of-use assets | 44,804 | 42,118 | ||||||
| Property and equipment, net | 76,432 | 87,672 | ||||||
| Goodwill | 12,121 | 11,957 | ||||||
| Intangible assets | 1,995 | 8,156 | ||||||
| Other assets | 6,227 | 6,176 | ||||||
| Total assets | $ | 214,944 | $ | 249,967 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 13,125 | $ | 9,457 | ||||
| Accrued and other current liabilities | 34,170 | 35,934 | ||||||
| Seller payable | 19,802 | 21,495 | ||||||
| Operating lease liabilities, current | 5,455 | 5,949 | ||||||
| Current portion of long-term debt | 3,851 | 3,838 | ||||||
| Total current liabilities | 76,403 | 76,673 | ||||||
| Operating lease liabilities, non-current | 47,147 | 44,621 | ||||||
| Long-term debt, net of current portion | 19,116 | 22,006 | ||||||
| Other non-current liabilities | 3,006 | 2,750 | ||||||
| Total liabilities | 145,672 | 146,050 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Class A and B common stock, | 11 | 11 | ||||||
| Additional paid-in capital | 605,687 | 585,156 | ||||||
| Accumulated other comprehensive loss | (2,272 | ) | (2,375 | ) | ||||
| Accumulated deficit | (534,154 | ) | (478,875 | ) | ||||
| Total stockholders’ equity | 69,272 | 103,917 | ||||||
| Total liabilities and stockholders’ equity | $ | 214,944 | $ | 249,967 | ||||
| ThredUp Inc. Condensed Consolidated Statements of Operations (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Revenue: | ||||||||||||||||
| Consignment | $ | 59,850 | $ | 57,838 | $ | 184,930 | $ | 157,732 | ||||||||
| Product | 13,171 | 24,211 | 47,434 | 82,897 | ||||||||||||
| Total revenue | 73,021 | 82,049 | 232,364 | 240,629 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Consignment | 11,354 | 10,131 | 34,122 | 28,931 | ||||||||||||
| Product | 9,687 | 15,291 | 34,816 | 48,246 | ||||||||||||
| Total cost of revenue | 21,041 | 25,422 | 68,938 | 77,177 | ||||||||||||
| Gross profit | 51,980 | 56,627 | 163,426 | 163,452 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Operations, product, and technology | 37,190 | 40,355 | 117,162 | 118,473 | ||||||||||||
| Marketing | 15,299 | 19,406 | 44,765 | 54,919 | ||||||||||||
| Sales, general, and administrative | 14,545 | 15,058 | 47,558 | 47,147 | ||||||||||||
| Impairment of long-lived assets | 9,814 | — | 9,814 | — | ||||||||||||
| Total operating expenses | 76,848 | 74,819 | 219,299 | 220,539 | ||||||||||||
| Operating loss | (24,868 | ) | (18,192 | ) | (55,873 | ) | (57,087 | ) | ||||||||
| Interest expense | (629 | ) | (732 | ) | (1,958 | ) | (1,530 | ) | ||||||||
| Other income, net | 730 | 845 | 2,573 | 2,006 | ||||||||||||
| Loss before provision for income taxes | (24,767 | ) | (18,079 | ) | (55,258 | ) | (56,611 | ) | ||||||||
| Provision for income taxes | 4 | 3 | 21 | 24 | ||||||||||||
| Net loss | $ | (24,771 | ) | $ | (18,082 | ) | $ | (55,279 | ) | $ | (56,635 | ) | ||||
| Loss per share, basic and diluted | $ | (0.22 | ) | $ | (0.17 | ) | $ | (0.50 | ) | $ | (0.54 | ) | ||||
| Weighted-average shares used in computing loss per share, basic and diluted | 112,854 | 105,898 | 111,054 | 103,918 | ||||||||||||
| ThredUp Inc. Condensed Consolidated Statements of Comprehensive Loss (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Net loss | $ | (24,771 | ) | $ | (18,082 | ) | $ | (55,279 | ) | $ | (56,635 | ) | ||||
| Other comprehensive income (loss), net of tax: | ||||||||||||||||
| Foreign currency translation adjustments | 1,187 | (1,080 | ) | 92 | (772 | ) | ||||||||||
| Unrealized gain on available-for-sale securities | 13 | 152 | 11 | 1,065 | ||||||||||||
| Total other comprehensive income (loss) | 1,200 | (928 | ) | 103 | 293 | |||||||||||
| Total comprehensive loss | $ | (23,571 | ) | $ | (19,010 | ) | $ | (55,176 | ) | $ | (56,342 | ) | ||||
| ThredUp Inc. Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||
| Nine Months Ended | ||||||||
| September 30, 2024 | September 30, 2023 | |||||||
| (in thousands) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (55,279 | ) | $ | (56,635 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation expense | 20,687 | 24,907 | ||||||
| Depreciation and amortization | 14,497 | 13,881 | ||||||
| Impairment of long-lived assets | 9,814 | — | ||||||
| Reduction in carrying amount of right-of-use assets | 4,551 | 4,788 | ||||||
| Other | (595 | ) | 59 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 2,103 | (1,373 | ) | |||||
| Inventory | 8,305 | (873 | ) | |||||
| Other current and non-current assets | 1,769 | 1,055 | ||||||
| Accounts payable | 3,121 | 4,049 | ||||||
| Accrued and other current liabilities | (2,129 | ) | (4,331 | ) | ||||
| Seller payable | (1,711 | ) | 5,358 | |||||
| Operating lease liabilities | (5,205 | ) | (5,426 | ) | ||||
| Other non-current liabilities | (160 | ) | (75 | ) | ||||
| Net cash used in operating activities | (232 | ) | (14,616 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of marketable securities | (24,673 | ) | (9,851 | ) | ||||
| Maturities of marketable securities | 21,600 | 71,979 | ||||||
| Purchases of property and equipment | (5,363 | ) | (13,775 | ) | ||||
| Net cash provided by (used in) investing activities | (8,436 | ) | 48,353 | |||||
| Cash flows from financing activities: | ||||||||
| Repayment of debt | (3,000 | ) | (3,000 | ) | ||||
| Proceeds from issuance of stock-based awards | 2,070 | 3,761 | ||||||
| Payments of withholding taxes on stock-based awards | (2,995 | ) | (3,744 | ) | ||||
| Net cash used in financing activities | (3,925 | ) | (2,983 | ) | ||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 121 | (230 | ) | |||||
| Net change in cash, cash equivalents, and restricted cash | (12,472 | ) | 30,524 | |||||
| Cash, cash equivalents, and restricted cash, beginning of period | 61,469 | 44,051 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 48,997 | $ | 74,575 | ||||
| ThredUp Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) | ||||||||||||||||
| Adjusted EBITDA Reconciliation | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Net loss | $ | (24,771 | ) | $ | (18,082 | ) | $ | (55,279 | ) | $ | (56,635 | ) | ||||
| Impairment of long-lived assets | 9,814 | — | 9,814 | — | ||||||||||||
| Stock-based compensation expense | 6,467 | 7,888 | 20,687 | 24,907 | ||||||||||||
| Depreciation and amortization | 4,699 | 5,364 | 14,497 | 13,881 | ||||||||||||
| Severance and other reorganization costs | 698 | 507 | 3,562 | 1,058 | ||||||||||||
| Interest expense | 629 | 732 | 1,958 | 1,530 | ||||||||||||
| Provision for income taxes | 4 | 3 | 21 | 24 | ||||||||||||
| Non-GAAP Adjusted EBITDA loss | $ | (2,460 | ) | $ | (3,588 | ) | $ | (4,740 | ) | $ | (15,235 | ) | ||||
| Total revenue | $ | 73,021 | $ | 82,049 | $ | 232,364 | $ | 240,629 | ||||||||
| Non-GAAP Adjusted EBITDA loss margin | (3.4 | )% | (4.4 | )% | (2.0 | )% | (6.3 | )% | ||||||||
| Free Cash Flow Reconciliation | ||||||||
| Nine Months Ended | ||||||||
| September 30, 2024 | September 30, 2023 | |||||||
| (in thousands) | ||||||||
| Net cash used in operating activities | $ | (232 | ) | $ | (14,616 | ) | ||
| Less: Purchases of property and equipment | (5,363 | ) | (13,775 | ) | ||||
| Non-GAAP free cash flow | $ | (5,595 | ) | $ | (28,391 | ) | ||
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About ThredUp
ThredUp is transforming resale with technology and a mission to inspire the world to think secondhand first. By making it easy to buy and sell secondhand, ThredUp has become one of the world's largest online resale platforms for apparel, shoes and accessories. Sellers enjoy ThredUp because we make it easy to clean out their closets and unlock value for themselves or for the charity of their choice while doing good for the planet. Buyers enjoy shopping value, premium and luxury brands all in one place, at up to
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential”, “looking ahead”, “seeking” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this release include, but are not limited to, guidance on financial results for the fourth quarter and full year of 2024; the Company’s intention to exit the European market and to seek strategic alternatives for its European business; statements about future operating results, capital expenditures and other developments in our business, our long term growth and the focus of the Company’s resources and attention in the United States; trends, consumer demand and growth in the global and U.S. online resale markets; the momentum of our business; our investments in technology and infrastructure, including with respect to AI technologies such as AI enabled search features; our ability to successfully integrate and realize the benefits of our past or future strategic acquisitions, investments or reorganization activities, including our intention to reshape ThredUp into an AI-powered resale company; the impact, including on an annualized basis, of our reduction in corporate expenses and headcount; the success and expansion of our RaaS® model and the timing and plans for future RaaS® clients; our ability to attract new Active Buyers and legal and regulatory developments.
Forward-looking statements are neither historical facts nor assurances of future performance. Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that we expect. These risks and uncertainties include, but are not limited to: our ability to exit our European business and identify and execute a strategic alternative for our European business; our ability to attract new users and convert users into buyers and Active Buyers; our ability to achieve profitability; the sufficiency of our cash, cash equivalents and capital resources to meet our liquidity needs; our ability to effectively manage or sustain our growth and to effectively expand our operations; our ability to continue to generate revenue from new RaaS® offerings as sources of revenue; risks from an intensely competitive market; our ability to effectively deploy new and evolving technologies, such as artificial intelligence and machine learning, in our offerings; risks arising from economic and industry trends, including the effects of foreign currency exchange rate fluctuations, inflationary pressures, increased interest rates, changing consumer habits, climate change and general global economic uncertainty; our ability to comply with applicable laws and regulations; and our ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The forward-looking statements in this release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing ThredUp’s views as of any date subsequent to the date of this press release.
Additional information regarding these and other factors that could affect ThredUp's results is included in ThredUp’s SEC filings, which may be obtained by visiting our Investor Relations website at ir.thredup.com or the SEC's website at www.sec.gov.
Channels for Disclosure of Information
ThredUp intends to announce material information to the public through the ThredUp Investor Relations website ir.thredup.com, SEC filings, press releases, public conference calls, and public webcasts. ThredUp uses these channels, as well as social media, to communicate with its investors, customers, and the public about the company, its offerings, and other issues. It is possible that the information ThredUp posts on social media could be deemed to be material information. As such, ThredUp encourages investors, the media, and others to follow the channels listed above, including the social media channels listed on ThredUp’s investor relations website, and to review the information disclosed through such channels.
Non-GAAP Financial Measures and Other Operating and Business Metrics
This press release and the accompanying tables contain non-GAAP financial measures, including: Adjusted EBITDA loss and Adjusted EBITDA loss margin, free cash flow, U.S. Total revenue, U.S. Gross margin, U.S. Adjusted EBITDA, U.S. Adjusted EBITDA margin and other operating and business metrics. We have included the financial measures for our U.S. business above because we believe they may be helpful to investors to understand our U.S. business in light of the proposed divestiture of the Remix business. In addition to our results determined in accordance with GAAP, we believe that these non-GAAP measures and other operating and business metrics, are useful in evaluating our operating performance and enhancing an overall understanding of our financial position. We use these measures and metrics to evaluate and assess our operating performance, and for internal planning and forecasting purposes. We believe that these non-GAAP measures, when taken collectively with our GAAP results, may be helpful to investors because they provide consistency and comparability with past financial performance and assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. Our non-GAAP measures and other operating and business metrics are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly-titled non-GAAP measures and other operating and business metrics used by other companies.
We encourage investors to review our results determined in accordance with GAAP and the accompanying reconciliations for more information.
A reconciliation is provided above for Adjusted EBITDA loss to net loss, the most directly comparable financial measure stated in accordance with GAAP. We calculate Adjusted EBITDA loss as net loss adjusted to exclude, where applicable in a given period, stock-based compensation expense, depreciation and amortization, impairment of long-lived assets, impairment of long-lived assets, severance and other reorganization costs, interest expense, and provision for income taxes. Non-GAAP Adjusted EBITDA loss margin represents Non-GAAP Adjusted EBITDA loss divided by Total revenue for the same period.
A reconciliation is provided above for free cash flow to cash flows from operations, the most directly comparable financial measure stated in accordance with GAAP. We calculate free cash flow as Net cash used in operating activities adjusted to exclude Purchases of property and equipment.
An Active Buyer is a ThredUp buyer who has made at least one purchase in the last twelve months. A ThredUp buyer is a customer who has created an account and purchased in our marketplaces, including through our RaaS® clients, and is identified by a unique email address. A single person could have multiple ThredUp accounts and count as multiple Active Buyers.
Orders are defined as the total number of orders placed by buyers across our marketplaces, including through our RaaS® clients, in a given period, net of cancellations.
FAQ
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