ThredUp: ThredUp Announces Fourth Quarter and Full Year 2024 Results

All results reported are continuing operations, unless otherwise noted Quarterly revenue of $67.3 million, representing an increase of 9% year-over-year. Record fourth quarter gross margin of 80.4%. Record full year revenue of $260.0 million, representing 1% growth year-over-year. Record full year gross margin of 79.7%. Active Buyers of 1,274 thousand and Orders of 1,226 thousand in Q4 2024, representing year-over-year decrease of 6% and increase of 2%, respectively. OAKLAND, Calif., March 03, 2025 (GLOBE NEWSWIRE) -- ThredUp Inc. (Nasdaq: TDUP, LTSE: TDUP), one of the largest online resale platforms for apparel, shoes, and accessories, today announced its financial results for the fourth quarter and full year ended December 31, 2024. "We are proud to have closed out 2024 with a definitive return to growth, while also delivering strong bottom-line results," said ThredUp CEO and co-founder James Reinhart. "In 2025, we look forward to leveraging our multi-year infrastructure and technology investments to accelerate growth while making steady progress towards our long-term profitability targets." During the fourth quarter of 2024, we divested 91% of our European business and Bulgarian subsidiary, Remix Global EAD ("Remix"), meeting the requirements for reporting Remix as a discontinued operation. Accordingly, our unaudited condensed consolidated financial statements reflect Remix's business as a discontinued operation for all periods presented. Unless otherwise noted, amounts and disclosures below relate to our continuing operations. Fourth Quarter 2024 Financial Highlights Revenue: Total revenue of $67.3 million, an increase of 9% year-over-year. Gross Profit and Gross Margin: Gross profit totaled $54.1 million, representing an increase of 14% year-over-year. Gross margin was 80.4% as compared to 77.5% in the fourth quarter last year. Loss from Continuing Operations : Loss from continuing operations was $8.1 million, or a negative 12.0% of revenue, for the fourth quarter 2024, compared to a loss of $8.5 million, or a negative 13.8% of revenue, for the fourth quarter 2023. Adjusted EBITDA from Continuing Operations and Adjusted EBITDA from Continuing Operations Margin 1 : Adjusted EBITDA from continuing operations was $5.0 million, or a 7.4% of revenue, for the fourth quarter 2024. This is compared to an Adjusted EBITDA from continuing operations of $2.5 million, or a 4.1% of revenue, for the fourth quarter 2023. Active Buyers and Orders: Active Buyers of 1,274 thousand and Orders of 1,226 thousand for the fourth quarter 2024, representing a decrease of 6% and an increase of 2%, respectively, year-over-year. Full Year 2024 Financial Highlights Revenue: Total revenue of $260.0 million, an increase of 1% year-over-year. Gross Profit and Gross Margin: Gross profit totaled $207.1 million, representing an increase of 4% year-over-year. Gross margin was 79.7% compared to 76.8% last year. Loss from Continuing Operations: Loss from continuing operations was $40.0 million, or a negative 15.4% of revenue, for the full year 2024, compared to a loss of $52.4 million, or a negative 20.3% of revenue, for the full year 2023. Adjusted EBITDA (Loss) from Continuing Operations and Adjusted EBITDA (Loss) from Continuing Operations Margin 1 : Adjusted EBITDA from continuing operations was $8.7 million, or a 3.3% of revenue, for the full year 2024, compared to the Adjusted EBITDA (loss) from continuing operations of $(5.3) million, or a negative 2.1% of revenue, for the full year 2023. Orders: Orders of 4,850 thousand for the full year 2024, a decrease of 1% year-over-year. ________________________ 1 Adjusted EBITDA (loss) from continuing operations and Adjusted EBITDA (loss) from continuing operations margin are non-GAAP measures. See "Reconciliation of GAAP to Non-GAAP Financial Measures" for a detailed reconciliation of Adjusted EBITDA from continuing operations to the most directly comparable GAAP measure and "Non-GAAP Financial Measures" for a discussion of why we believe these non-GAAP measures are useful. Recent Business Highlights Customer Experience Updates Drive Improved Site Metrics: Customer experience updates generated encouraging results in Q4. The quarter delivered ThredUp's strongest Q4 for new buyer acquisition in its history. Notably, new buyer conversion rates reached all-time highs bolstered by Image Search, which drives 85% higher conversion and more than double the variety of search terms than standard search. Completed Divestiture of European Business: ThredUp completed the transaction to divest its European business, Remix, in a management buyout. ThredUp retains a minority interest in the Remix business and prior to the closing of the transaction, paid a final cash investment of $2 million. Financial Outlook For the first quarter 2025, ThredUp expects: Revenue in the range of $67.5 million to $69.5 million, +6% year-over year at the midpoint Gross margin in the range of 77.0% to 79.0% Adjusted EBITDA margin in the range of 2.5% to 3.5% For the full fiscal year 2025, ThredUp expects: Revenue in the range of $270.0 million to $280.0 million, +6% year-over-year at the midpoint Gross margin in the range of 77.0% to 79.0% Adjusted EBITDA margin flat to Full Year 2024's result of 3.3% ThredUp is not providing a quantitative reconciliation of forward-looking guidance of the non-GAAP measure Adjusted EBITDA margin to net loss margin, the most directly comparable financial measure under GAAP, because certain items are out of ThredUp's control or cannot be reasonably predicted. We calculate Adjusted EBITDA as net loss adjusted to exclude, where applicable in a given period, depreciation and amortization, stock-based compensation expense, severance and other reorganization costs, interest expense and provision for income taxes. Adjusted EBITDA margin represents Adjusted EBITDA divided by Total revenue for the same period. Accordingly, a reconciliation for Adjusted EBITDA in order to calculate forward-looking Adjusted EBITDA margin is not available without unreasonable effort. However, for the first quarter of 2025 and full year 2025, depreciation and amortization is expected to be $3.2 million and $12.6 million, respectively. In addition, for the first quarter of 2025 and full year 2025, stock-based compensation expense is expected to be $5.4 million and $14.5 million, respectively. These items are uncertain, depend on various factors, and could result in the projected net loss being materially greater than indicated by the currently estimated Adjusted EBITDA margin. Conference Call and Webcast Information The live and archived webcast and all related earnings materials will be available at ThredUp's investor relations website: ir.thredup.com/news-events/events-and-presentations. Investors ir@thredup.com Media media@thredup.com About ThredUp ThredUp is transforming resale with technology and a mission to inspire the world to think secondhand first. By making it easy to buy and sell secondhand, ThredUp has become one of the world's largest online resale platforms for apparel, shoes and accessories. Sellers enjoy ThredUp because we make it easy to clean out their closets and unlock value for themselves or for the charity of their choice while doing good for the planet. Buyers enjoy shopping value, premium and luxury brands all in one place, at up to 90% off estimated retail price. Our proprietary operating platform is the foundation for our managed marketplace and consists of distributed processing infrastructure, proprietary software and systems, and data science expertise. With ThredUp's Resale-as-a-Service, some of the world's leading brands and retailers are leveraging our platform to deliver customizable, scalable resale experiences to their customers. ThredUp has processed over 200 million unique secondhand items from 60,000 brands across 100 categories. By extending the life cycle of clothing, ThredUp is changing the way consumers shop and ushering in a more sustainable future for the fashion industry. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential", "looking ahead", "looking forward," "seeking" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this release include, but are not limited to, guidance on financial results for the first quarter and full year of 2025; statements about future operating results, capital expenditures and other developments in our business and our long term growth; trends, consumer demand and growth in the online resale markets; the momentum of our business; our investments in technology and infrastructure, including with respect to AI technologies such as AI enabled search features and image search; the success and expansion of our RaaS ® model and the timing and plans for future RaaS ® clients; our ability to attract new Active Buyers, including our efforts to make resale more engaging and accessible to a wider audience through innovative shopping experiences; and our ability to successfully integrate and realize the benefits of our past or future strategic acquisitions, investments or divestitures and legal and regulatory developments. Forward-looking statements are neither historical facts nor assurances of future performance. Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ