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Dec 31, 2024

ThredUp Q4 2024 Earnings Report

Expected Revenue:$68.6M
-14.6% YoY
Expected EPS:-$0.15
15.4% YoY

Key Takeaways

ThredUp's Q4 2024 revenue increased 9% year-over-year to $67.3 million, with a record gross margin of 80.4%. The company reported a net loss of $8.1 million, an improvement from the previous year. Adjusted EBITDA more than doubled to $5.0 million. Active buyers declined 6%, while orders grew 2% year-over-year.

Revenue grew 9% YoY to $67.3 million.

Gross margin reached a record 80.4%.

Adjusted EBITDA improved to $5.0 million.

Net loss narrowed to $8.1 million from $8.5 million YoY.

Total Revenue
$67.3M
Previous year: $81.4M
-17.4%
EPS
$0
Previous year: -$0.14
-100.0%
Gross Margin
80.4%
Previous year: 61.9%
+29.9%
Active Buyers
1.27M
Previous year: 1.8M
-29.1%
Orders
1.23M
Previous year: 1.81M
-32.2%
Gross Profit
$54.1M
Previous year: $50.4M
+7.4%
Cash and Equivalents
$31.9M
Previous year: $56.1M
-43.2%
Free Cash Flow
-$1.68M
Previous year: -$3.09M
-45.6%
Total Assets
$171M
Previous year: $250M
-31.5%

ThredUp

ThredUp

ThredUp Revenue by Segment

Forward Guidance

ThredUp anticipates continued revenue growth in 2025, with gross margins remaining strong. The company expects moderate profitability improvements but warns of potential market headwinds.

Positive Outlook

  • Revenue expected to grow 6% YoY in Q1 2025.
  • Full-year 2025 revenue projected between $270M-$280M.
  • Gross margin forecasted to remain strong between 77%-79%.
  • Customer acquisition trends remain positive with record new buyer conversions.
  • Continued expansion of Resale-as-a-Service partnerships.

Challenges Ahead

  • Active buyer count declined 6% YoY, posing potential growth risks.
  • Profitability improvements remain gradual and uncertain.
  • Stock-based compensation expenses expected to increase.
  • Macroeconomic conditions could impact consumer spending.
  • Higher investment in technology and infrastructure may weigh on near-term margins.