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Dec 31, 2023
ThredUp Q4 2023 Earnings Report
Announced fourth quarter and full year 2023 results, demonstrating healthy top-line growth and bottom-line leverage.
Key Takeaways
ThredUp reported a 14% year-over-year increase in revenue for Q4 2023, reaching $81.4 million. The company saw growth in active buyers and orders, with gross profit increasing by 12%. Net loss decreased compared to the previous year, and the adjusted EBITDA loss also improved.
Quarterly revenue increased by 14% year-over-year, reaching $81.4 million.
Gross margin was 61.9%, with gross profit up 12% year-over-year, including a $1.9 million inventory write-off in Europe.
Active Buyers reached 1.8 million, a 9% increase year-over-year, and Orders also hit 1.8 million, up 17% year-over-year.
Net loss improved to $14.6 million, compared to $19.5 million in the fourth quarter of 2022.
ThredUp
ThredUp
Forward Guidance
For the first quarter 2024, ThredUp expects revenue to be in the range of $79.0 million to $81.0 million, gross margin in the range of 68.5% to 70.5%, and adjusted EBITDA loss margin in the range of 3.0% to 1.0%. For the full fiscal year 2024, ThredUp expects revenue to be in the range of $340.0 million to $350.0 million, gross margin in the range of 69.5% to 71.5%, and adjusted EBITDA margin in the range of 0.5% to 1.5%.
Positive Outlook
- Revenue in the range of $79.0 million to $81.0 million for Q1 2024.
- Gross margin in the range of 68.5% to 70.5% for Q1 2024, representing gross profit dollar growth of 9% year over year at the midpoint of revenue and gross margin guidance.
- Adjusted EBITDA loss margin in the range of 3.0% to 1.0% for Q1 2024.
- Revenue in the range of $340.0 million to $350.0 million for FY 2024.
- Gross margin in the range of 69.5% to 71.5% for FY 2024, representing gross profit dollar growth of 14% year over year at the midpoint of revenue and gross margin guidance.
Challenges Ahead
- Adjusted EBITDA loss margin in the range of 3.0% to 1.0% for Q1 2024.
- Uncertainty regarding depreciation and amortization, expected to be $5.0 million for Q1 2024 and $19.8 million for FY 2024.
- Uncertainty regarding stock-based compensation expense, expected to be $7.5 million for Q1 2024 and $33.0 million for FY 2024.
- Projected net loss being materially less than indicated by the currently estimated Adjusted EBITDA loss margin.
- Guidance does not include a quantitative reconciliation of forward-looking guidance of the non-GAAP measure Adjusted EBITDA loss to net loss because certain items are out of ThredUp’s control or cannot be reasonably predicted.