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Sep 30, 2023

ThredUp Q3 2023 Earnings Report

ThredUp reported strong financial performance with revenue increase and gross profit growth.

Key Takeaways

ThredUp reported a 21% year-over-year increase in revenue, reaching $82.0 million for Q3 2023. The company's gross profit increased by 27% year-over-year, with a gross margin of 69.0%. Active buyers and orders both saw increases, and the U.S. business achieved adjusted EBITDA breakeven.

Revenue increased by 21% year-over-year, reaching $82.0 million.

Gross profit increased by 27% year-over-year, with a gross margin of 69.0%.

Active Buyers and Orders increased by 4% and 11% year-over-year, respectively, both reaching 1.8 million.

U.S. business reached quarterly adjusted EBITDA breakeven for the first time.

Total Revenue
$82M
Previous year: $67.9M
+20.8%
EPS
-$0.17
Previous year: -$0.24
-29.2%
Gross Margin
69%
Previous year: 65.5%
+5.3%
Active Buyers
1.8M
Previous year: 1.7M
+5.9%
Orders
1.8M
Previous year: 1.6M
+12.5%
Gross Profit
$56.6M
Previous year: $44.5M
+27.3%
Cash and Equivalents
$68.6M
Previous year: $36.7M
+86.7%
Free Cash Flow
-$1.26M
Previous year: -$23.8M
-94.7%
Total Assets
$265M
Previous year: $320M
-17.0%

ThredUp

ThredUp

ThredUp Revenue by Segment

Forward Guidance

For the fourth quarter 2023, thredUP expects revenue in the range of $79.0 million to $81.0 million, gross margin in the range of 61.0% to 63.0%, and adjusted EBITDA loss margin in the range of 2.0% to 0.0%.

Positive Outlook

  • Revenue is expected to be between $79.0 million and $81.0 million.
  • Gross margin is expected to be between 61.0% and 63.0%.
  • Adjusted EBITDA loss margin is expected to be between 2.0% and 0.0%.
  • Full year revenue is expected to be between $319.5 million and $321.5 million.
  • Full year gross margin is expected to be between 66.2% and 66.7%.

Challenges Ahead

  • Revenue is only expected to increase to a maximum of $81 million
  • Gross margin expected to decrease to a range of 61.0% to 63.0%.
  • Adjusted EBITDA loss margin expected to remain negative, between 2.0% and 0.0%.
  • The guidance is based on current market conditions and expectations, which are subject to change.
  • The forward-looking statements are subject to risks and uncertainties.

Revenue & Expenses

Visualization of income flow from segment revenue to net income