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Mar 31, 2023

ThredUp Q1 2023 Earnings Report

Reported a 4% increase in revenue year-over-year, with a gross margin of 67.3% and a decrease in active buyers and orders.

Key Takeaways

ThredUp Inc. announced its Q1 2023 financial results, reporting a 4% increase in revenue to $75.9 million. The company's gross margin was 67.3%, with a net loss of $19.8 million. Active Buyers and Orders decreased by 3% and 8% respectively.

Revenue increased by 4% year-over-year, reaching $75.9 million.

Gross margin was 67.3%, with gross profit increasing by 2% year-over-year.

Net loss was $19.8 million, an improvement compared to Q1 2022.

Active Buyers and Orders decreased by 3% and 8% year-over-year, respectively.

Total Revenue
$75.9M
Previous year: $72.7M
+4.4%
EPS
-$0.19
Previous year: -$0.21
-9.5%
Gross Margin
67.3%
Active Buyers
1.7M
Previous year: 1.7M
+0.0%
Orders
1.5M
Previous year: 1.5M
+0.0%
Gross Profit
$51.1M
Previous year: $50.2M
+1.7%
Cash and Equivalents
$50.7M
Previous year: $68.6M
-26.0%
Free Cash Flow
-$10.1M
Previous year: -$19.3M
-47.5%
Total Assets
$295M
Previous year: $361M
-18.4%

ThredUp

ThredUp

ThredUp Revenue by Segment

Forward Guidance

For the second quarter 2023, thredUP expects revenue in the range of $80 million to $82 million, gross margin in the range of 64.5% to 66.5%, and Adjusted EBITDA loss margin in the range of 9.5% to 7.5%. For the full fiscal year 2023, thredUP expects revenue in the range of $320 million to $330 million, gross margin in the range of 65.0% to 67.0%, and Adjusted EBITDA loss margin in the range of 7.5% to 5.5%.

Positive Outlook

  • Revenue in the range of $80 million to $82 million for Q2 2023
  • Gross margin in the range of 64.5% to 66.5% for Q2 2023
  • Adjusted EBITDA loss margin in the range of 9.5% to 7.5% for Q2 2023
  • Revenue in the range of $320 million to $330 million for full year 2023
  • Gross margin in the range of 65.0% to 67.0% for full year 2023

Challenges Ahead

  • Adjusted EBITDA loss margin in the range of 7.5% to 5.5% for full year 2023
  • Uncertainty in the consumer environment
  • Impact of inflationary pressures on consumer behavior
  • Increased interest rates affecting business
  • General global economic uncertainty

Revenue & Expenses

Visualization of income flow from segment revenue to net income