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Mar 31, 2024
ThredUp Q1 2024 Earnings Report
ThredUp's Q1 2024 financial performance showed revenue growth and improved profitability.
Key Takeaways
ThredUp reported a 5% year-over-year increase in revenue, reaching $79.6 million. The company's gross margin improved to 69.5%, with gross profit increasing by 8% year-over-year. Net loss decreased compared to the previous year, and the company is focusing on becoming an AI-powered resale company.
Revenue increased by 5% year-over-year, reaching $79.6 million.
Gross margin improved to 69.5%, with gross profit up by 8% year-over-year.
Active Buyers and Orders increased by 4% and 9% year-over-year, respectively.
The company is reorganizing to support an AI-driven operating model, reducing operating expenses and investing in AI product developments.
ThredUp
ThredUp
Forward Guidance
For Q2 2024, ThredUp expects revenue in the range of $81.0 million to $83.0 million, gross margin in the range of 71.0% to 73.0%, and Adjusted EBITDA margin in the range of 1.0% to 3.0%. For the full fiscal year 2024, ThredUp expects revenue in the range of $328.0 million to $338.0 million, gross margin in the range of 71.0% to 72.0%, and Adjusted EBITDA margin in the range of 2.0% to 4.0%.
Positive Outlook
- Revenue is expected to be in the range of $81.0 million to $83.0 million for Q2 2024.
- Gross margin is projected to be between 71.0% and 73.0% for Q2 2024.
- Adjusted EBITDA margin is expected to be in the range of 1.0% to 3.0% for Q2 2024.
- Full year revenue is anticipated to be in the range of $328.0 million to $338.0 million.
- Full year gross margin is projected to be between 71.0% and 72.0%.
Challenges Ahead
- The company is not providing a quantitative reconciliation of forward-looking guidance of Adjusted EBITDA loss to net loss.
- Reconciliation for Adjusted EBITDA loss in order to calculate forward-looking Adjusted EBITDA loss margin is not available without unreasonable effort.
- ThredUp is not providing a quantitative reconciliation for free cash flow estimates on a forward-looking basis.
- The forward-looking statements are based on information available as of the date of the release and are subject to risks and uncertainties.
- The company's reorganization actions may not have the desired effects on its business.