Company Overview - ThredUp is one of the largest online resale platforms for apparel, shoes, and accessories, transforming resale with technology and a mission to inspire the world to think secondhand first [3] - The company has processed over 200 million unique secondhand items from 60,000 brands across 100 categories, promoting a more sustainable future for the fashion industry [3] Financial Results Announcement - ThredUp will release its financial results for the second quarter ended June 30, 2025, on August 4, 2025, after the close of U.S. markets [1] - A conference call and live webcast will be held on the same day at 1:30 p.m. PT / 4:30 p.m. ET [1] Investor Relations - Live and archived webcasts, along with all related earnings materials, will be available on ThredUp's investor relations website [2]

Core Viewpoint - Purcell & Lefkowitz LLP is investigating ThredUp Inc. to determine if its directors breached fiduciary duties related to recent corporate actions [1] Group 1 - The investigation is on behalf of ThredUp Inc.'s shareholders [1] - Shareholders interested in their rights and options can contact Purcell & Lefkowitz LLP for more information [1] - The law firm specializes in representing shareholders affected by securities fraud and corporate misconduct [2]

ThredUp (TDUP) FY Conference Summary Company Overview - **Company**: ThredUp - **Industry**: Secondhand clothing marketplace focusing on women's and kids' apparel - **Business Model**: Operates a consignment model where sellers send in clothing, which is processed and sold online, with sellers receiving payouts upon sale [2][3][5] Key Points and Arguments Competitive Advantages - **Marketplace Connection**: ThredUp connects buyers and sellers in a unique marketplace [5] - **Innovative Supply Chain**: The company has developed a new supply chain for secondhand clothing, described as a "reverse logistics business" [5][6] - **Proprietary Data**: ThredUp utilizes a proprietary data set to value clothing based on supply and demand, enhancing its competitive edge [6][7] Market Positioning - **Target Market**: Focuses on the mass market rather than luxury, claiming this segment is six times larger and less competitive [15] - **Consumer Behavior**: The CEO believes consumers are becoming increasingly lazy, which ThredUp addresses by simplifying the selling process [9][11] Industry Growth and Trends - **Growth Rate**: The company estimates a reasonable industry growth rate in the low double digits [17] - **Secondhand Shopping Trends**: Younger generations are increasingly shopping secondhand, indicating a long-term trend rather than a fad [19][20] Business Performance - **US Business Focus**: After divesting from a European business that was not performing well, ThredUp has been able to reinvest in its US operations, leading to improved financial performance [23][24][25] - **Cash Flow and EBITDA**: The US business has shown positive EBITDA and cash flow, allowing for reinvestment in growth [25][28] Product and Technology Enhancements - **AI Infrastructure**: ThredUp has rebuilt its product technology with an AI-driven backend, significantly improving search functionality and user experience [92][93] - **New Features**: Introduced features like image search and Style Chat to enhance customer engagement and shopping experience [95][97] Financial Metrics - **Contribution Margin**: The contribution margin has improved to the low forties, indicating better profitability [70] - **Customer Acquisition Costs (CAC)**: CACs are decreasing due to improved conversion rates, while lifetime value (LTV) is increasing [71][72] Customer Growth - **New Customer Acquisition**: The company reported a record number of new customers in Q1, with April being the best month ever for new customer acquisition [116] - **Retention Strategy**: ThredUp aims to improve customer retention through better product offerings rather than discounts [121][122] Market Outlook - **Guidance and Consumer Sentiment**: The company is cautiously optimistic about future growth, particularly among younger consumers, despite some negative sentiment in the broader market [128][129] Additional Important Insights - **Operational Efficiency**: The company has room for growth in its automated distribution centers, currently operating at two-thirds capacity [71][85] - **Investment in Growth**: ThredUp plans to reinvest profits into marketing and product development to sustain growth [80][81] - **Unique Selling Proposition**: The integration of social media insights into the shopping experience is seen as a significant innovation [98][100] This summary encapsulates the key points discussed during the ThredUp FY Conference, highlighting the company's strategic advantages, market positioning, and future growth potential.

ThredUp (TDUP) FY Conference Summary Company Overview - **Company**: ThredUp (TDUP) - **Industry**: Resale and second-hand apparel market - **Founded**: February 2009 - **CEO**: James Reinhart Key Financial Metrics - **Q1 Revenue**: $71 million - **Gross Margins**: 79% - **EBITDA Margin**: 5% - **Stock Performance**: Up over 400% year-to-date [3][14][15] Core Business Insights - ThredUp aims to transform the resale sector by leveraging technology to create the world's largest resale platform for apparel, shoes, and accessories [2][3]. - The company has processed over 200 unique second-hand items, indicating a significant scale in operations [3]. - ThredUp has achieved seven consecutive quarters of EBITDA positivity and has been cash generative for several quarters [14][15]. Market Dynamics - The resale industry has seen a shift from growth at all costs to a more disciplined approach focusing on profitability [11][14]. - The second-hand market is expected to grow at strong double-digit rates, driven by changing consumer behaviors, particularly among younger generations who view second-hand shopping as a norm [42][43]. - The company has positioned itself to benefit from potential increases in new apparel prices due to tariffs, making ThredUp a more attractive option for consumers [39][40]. Competitive Landscape - ThredUp competes with off-price retailers like TJ Maxx, but there are no current merger plans [20][21]. - The company has established itself as a marketplace rather than a traditional retailer, which provides competitive advantages [62][64]. - The rise of peer-to-peer platforms may lead to a race to zero in seller fees, impacting the overall market dynamics [48][50]. Technological Advancements - ThredUp has invested heavily in AI to improve product discoverability and customer experience, resulting in significant improvements in conversion rates [27][29][55]. - The implementation of AI-driven search capabilities has allowed for better tagging and personalization of products, enhancing the shopping experience [27][29]. - The company has seen a 95% year-over-year growth in new customer acquisition, indicating successful marketing and product strategies [18][19]. Consumer Behavior Trends - Consumers are increasingly seeking convenience, leading to a preference for platforms that simplify the selling and buying process [35][51]. - The company anticipates that the trend of laziness among consumers will continue, necessitating a focus on making the resale process as easy as possible [35][51]. Challenges and Future Outlook - The CEO acknowledges the challenges faced in the past, particularly with international operations, but is optimistic about focusing on the U.S. market moving forward [79][80]. - ThredUp's future growth will depend on its ability to leverage technology and maintain a competitive edge in the evolving resale market [80]. Additional Insights - The company has been a pioneer in the "resale as a service" (RAS) model, collaborating with various brands to enhance its market presence [24][25]. - ThredUp's efforts to destigmatize second-hand shopping have contributed to its growth and acceptance in the mainstream market [25][26]. This summary encapsulates the key points discussed during the ThredUp FY Conference, highlighting the company's performance, market dynamics, technological advancements, and future outlook.

Core Insights - ThredUp (NASDAQ: TDUP) is leveraging AI to enhance its business operations, resulting in a significant stock price increase of approximately 1,000% in less than a year, with expectations to double again in the near future [1][2][9] Company Overview - ThredUp is not primarily a technology or AI company, but it exemplifies the potential of AI in business [1] - The company has divested over 90% of its European operations to concentrate on the U.S. market, positioning itself as a tariff beneficiary [6] AI Integration - ThredUp employs AI for automating backend processes, improving inspection, and enhancing customer engagement through tools like Image Search, Virtual Stylist, and Personalized Recommendations [2][3] - The Image Search feature allows users to upload images to find similar fashion items, while the Virtual Stylist offers personalized recommendations based on user input [3] Financial Performance - In Q1, ThredUp's headline revenue decreased by 10% year-over-year, but the core business grew by 10%, surpassing expectations [7] - Active buyers increased by 6%, orders rose by 16%, and new active buyers surged by 95%, setting a company record [8] - The gross margin remains strong at nearly 80%, and the adjusted EBITDA margin improved by 240 basis points, indicating enhanced core profitability [8] Future Outlook - Comprehensive losses have contracted by over 65%, with the company on track to achieve GAAP profitability before the end of the decade [9] - ThredUp has raised its guidance for the year, forecasting 10% growth for Q2 and beyond, driven by AI's impact on customer engagement [9] Analyst Sentiment - Analyst interest in ThredUp has been revitalized, with positive revisions following the FQ1 release, indicating a potential upgrade cycle [10] - Analysts have set a target price of approximately $7 for the stock, suggesting a fair value relative to recent price points [11]

OAKLAND, Calif., May 20, 2025 (GLOBE NEWSWIRE) -- ThredUp Inc. (Nasdaq: TDUP, LTSE: TDUP), one of the largest online resale platforms for apparel, shoes, and accessories, announced today that CEO and co-founder James Reinhart and CFO Sean Sobers will participate in the following investor conferences: TD Cowen 9th Annual Future of the Consumer ConferenceTuesday, June 3, 20251:15 PM - 1:45 PM PT / 4:15 PM - 4:45 PM ET William Blair 45th Annual Growth Stock ConferenceWednesday, June 4, 20251:20 PM - 1:50 PM PT ...

Core Insights - ThredUP reported better-than-expected first-quarter earnings, indicating a growing consumer preference for secondhand clothing, with CEO James Reinhart suggesting that proposed tariffs on Chinese imports could further enhance this trend [1][3]. Financial Performance - ThredUP's revenue for Q1 reached $71.3 million, a 10.5% increase year-over-year and approximately 4% above Wall Street estimates [2] - The gross margin remained strong at 79%, with an adjusted EBITDA profit of $3.8 million, a significant improvement from the previous year's losses [2] - The net loss narrowed to $5.2 million, or $0.04 per share, and the company raised its full-year sales outlook to about $286 million, up from $275 million [2] Market Dynamics - The tightening of the "de minimis" exemption and potential broader apparel tariffs could increase the cost of new clothing, making ThredUP's secondhand offerings more attractive to consumers [3] - Higher import duties may also create a more competitive marketing environment, as major advertisers like Shein and Temu have reduced spending, leading to lower customer-acquisition costs for ThredUP [4] User Engagement - ThredUP experienced a 6% increase in active buyers, reaching 1.37 million, with new-buyer additions surging by 95%, marking the best quarter in the company's history [5] - The implementation of AI search tools, including "Shop Similar" and visual-search features, has improved conversion rates and enhanced the shopping experience [5] Market Reaction - Following the positive earnings report, ThredUP's shares rose nearly 16% in after-hours trading, reflecting investor optimism [6]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 totaled $71.3 million, representing a year-over-year increase of 10.5% [25] - Adjusted EBITDA was $3.8 million, or 5.3% of revenue, doubling the adjusted EBITDA dollars compared to the previous year [26] - Gross margin was 79.1%, a decrease of 100 basis points year-over-year due to higher incentives for new buyers [26] - Active buyers increased by 5.7% year-over-year, totaling 1.4 million for the trailing twelve months [25] Business Line Data and Key Metrics Changes - New buyer acquisition surged by 95% year-over-year, marking the strongest quarter for new buyer acquisition in the company's history [25] - Orders increased by 16.1% year-over-year, reaching 1.4 million [26] - Premium items processed contributed 60% higher margins compared to regular items [18] Market Data and Key Metrics Changes - The company noted that the closure of the de minimis loophole and potential tariff impacts could enhance the value proposition for used clothing [11][12] - The advertising market has become less competitive, allowing for potentially lower customer acquisition costs [12] Company Strategy and Development Direction - The company aims to maintain gross margin and bottom line efficiency while reinvesting in acquiring new buyers and sellers [9] - ThredUP is focusing on enhancing its AI-driven product experience and expanding its resale as a service (RAS) strategy [19][21] - The company is open-sourcing its technology to help brands build scalable circularity business models [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum, citing strong new buyer acquisition and operational improvements [37] - The company remains cautious about the consumer environment but is optimistic about revenue growth for the remainder of the year [28] - Management highlighted that the business was accelerating before recent trade disruptions, indicating a fundamentally improving growth profile [12] Other Important Information - The company generated $2.6 million in cash during the quarter, ending with $55.4 million in cash and securities [27] - Free cash flow reached a record level of $3.9 million for the quarter [27] Q&A Session Summary Question: What is driving the buyer and revenue outperformance? - Management noted that the momentum seen in Q4 continued into Q1, driven by new buyer acquisition and supply-side improvements [36] Question: Are there expectations for Q3 to accelerate from Q2 in revenue? - Management confirmed expectations for revenue acceleration from Q2 to Q3, with Q3 projected to be the high point for EBITDA margin [40] Question: What demographics are being targeted for new customers? - Management indicated that new customers are primarily middle to upper-income individuals, consistent with trends observed post-pandemic [46] Question: How is the marketing spend expected to maintain momentum? - Management plans to continue spending on marketing as long as paybacks remain attractive, with recent trends indicating strong customer acquisition [47] Question: What trends are observed on the seller side of the business? - Management reported good momentum in the seller side, particularly in the consignment premium offering, which has better contribution margins [77] Question: Is there any pricing pressure observed? - Management clarified that the decline in average revenue per order is due to the mix of new buyers rather than pricing pressure [78]

Financial Data and Key Metrics Changes - For Q1 2025, revenue totaled $71.3 million, an increase of 10.5% year over year [23] - Adjusted EBITDA was $3.8 million, or 5.3% of revenue, doubling adjusted EBITDA dollars versus last year [25] - Gross margin was 79.1%, a 100 basis point decrease compared to the same quarter last year [25] - Active buyers grew to 1.4 million, up 5.7% year over year, with orders up 16.1% [24] Business Line Data and Key Metrics Changes - New buyer acquisition increased by 95% year over year, marking the strongest quarter for new buyer acquisition in the company's history [24] - Premium items sold contributed margins that are 60% higher than regular items sold, indicating a shift towards higher-value goods [17] Market Data and Key Metrics Changes - The company noted that the closure of the de minimis loophole and potential tariff impacts could enhance the value proposition for used clothing [9][10] - The advertising market is becoming less competitive, which may lead to lower customer acquisition costs [10] Company Strategy and Development Direction - The company aims to maintain gross margin and bottom line efficiency while reinvesting in acquiring new buyers and sellers [6] - The strategy includes expanding the seller experience and optimizing the marketplace to drive growth [16] - The company is focusing on AI-driven product experiences to enhance customer engagement and conversion rates [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's ability to sustain growth despite macroeconomic uncertainties [36] - The company is cautious but optimistic about the consumer environment, expecting continued positive trends [27] - Management highlighted that the business was accelerating before recent trade disruptions, indicating resilience [10] Other Important Information - The company generated $2.6 million in cash during Q1, with free cash flow reaching a record level of $3.9 million [26] - The company plans to raise its revenue guidance for the full year of 2025, reflecting positive trends observed in Q1 [27] Q&A Session Summary Question: What is driving the buyer and revenue outperformance? - Management noted that the momentum seen in Q4 continued into Q1, driven by new buyer acquisition and supply-side improvements [36] Question: Are there expectations for Q3 to accelerate from Q2 in revenue? - Management confirmed that they expect revenue to accelerate from Q2 to Q3, with Q3 projected to be the high point for EBITDA margin [39] Question: What demographics are being targeted for new customers? - The company is attracting slightly more middle to upper-income customers, consistent with trends observed post-pandemic [46] Question: How does the company plan to maintain marketing momentum? - Management indicated that they will continue to invest in marketing as long as paybacks remain attractive, benefiting from reduced competition in advertising [47] Question: What trends are seen on the seller side of the business? - The company is experiencing good momentum in the seller side, particularly in the consignment premium offering, which has better contribution margins [78] Question: Is there any pricing pressure observed? - Management clarified that the decline in average revenue per order is due to the mix of new buyers versus existing buyers, not due to pricing pressure [79]

Part I. Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company's Q1 2025 unaudited financial statements show revenue growth to **$71.3 million**, a reduced net loss of **$5.2 million**, and stable assets, following the late 2024 divestiture of its European business [Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in thousands) | Balance Sheet Highlights (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $41,057 | $31,851 | | Total current assets | $60,460 | $56,922 | | Total assets | $172,500 | $171,225 | | Total current liabilities | $65,605 | $61,524 | | Total liabilities | $116,417 | $114,924 | | Total stockholders' equity | $56,083 | $56,301 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations (in thousands) | Statement of Operations (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $71,291 | $64,533 | | Gross profit | $56,371 | $51,713 | | Operating loss | $(5,434) | $(12,395) | | Loss from continuing operations | $(5,215) | $(12,190) | | Loss from discontinued operations, net of tax | — | $(4,364) | | Net loss | $(5,215) | $(16,554) | | Total loss per share, basic and diluted | $(0.04) | $(0.15) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (in thousands) | Cash Flow Summary (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by continuing operating activities | $5,743 | $3,288 | | Net cash provided by (used in) continuing investing activities | $5,075 | $(5,291) | | Net cash used in continuing financing activities | $(1,589) | $(1,480) | | Net change in cash, cash equivalents, and restricted cash | $9,229 | $(5,987) | [Notes to Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Remix divestiture as a discontinued operation, reclassification of revenue reporting, termination of the customer loyalty program, and compliance with debt covenants - In Q4 2024, the company divested its European business, **Remix**, now reported as a discontinued operation, with all continuing operations discussions excluding Remix results[36](index=36&type=chunk)[82](index=82&type=chunk)[88](index=88&type=chunk) - Beginning in Q1 2025, the company combined consignment and product revenue into a single 'revenue' line item due to the shift to a primarily consignment model[35](index=35&type=chunk)[97](index=97&type=chunk) - The customer loyalty program was discontinued as of **March 31, 2025**, with revenue from this program at **$1.5 million** in Q1 2025, down from **$3.7 million** in Q1 2024[46](index=46&type=chunk) - As of **March 31, 2025**, the company had **$21.3 million** outstanding under its Term Loan and was in compliance with all debt covenants[65](index=65&type=chunk)[67](index=67&type=chunk) [Management's Discussion and Analysis (MD&A)](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights Q1 revenue growth to **$71.3 million**, positive Non-GAAP Adjusted EBITDA of **$3.8 million**, improved operating leverage, and sufficient liquidity for the next 12 months [Key Financial and Operating Metrics](index=23&type=section&id=Key%20Financial%20and%20Operating%20Metrics) Key Metrics (Q1 2025 vs Q1 2024) | Key Metrics (Q1 2025 vs Q1 2024) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Active Buyers (in thousands) | 1,370 | 1,296 | +5.7% | | Orders (in thousands) | 1,371 | 1,181 | +16.1% | | Revenue (in thousands) | $71,291 | $64,533 | +10.5% | | Gross Margin | 79.1% | 80.1% | -100 bps | | Loss from continuing operations (in thousands) | $(5,215) | $(12,190) | -57.2% | | Non-GAAP Adjusted EBITDA (in thousands) | $3,808 | $1,888 | +101.7% | [Results of Operations](index=24&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) Revenue increased **10.5%** to **$71.3 million** driven by buyer and order growth, while gross margin declined and operating expenses decreased due to cost efficiencies - Revenue growth was primarily driven by a **5.7% increase in Active Buyers** and a **16.1% increase in Orders**, reflecting strength in the core marketplace business[98](index=98&type=chunk) - Gross margin decreased to **79.1%** from **80.1%** year-over-year, mainly due to higher outbound shipping, labor, and packaging costs[99](index=99&type=chunk) - Operations, product, and technology expenses decreased by **$2.0 million**, primarily due to a **$1.1 million** decrease in severance costs from the March 2024 workforce reorganization[100](index=100&type=chunk) - Sales, general, and administrative expenses decreased by **$2.6 million**, mainly from a **$3.6 million** reduction in personnel-related costs, including a **$1.2 million** decrease in severance costs from the 2024 reorganization[102](index=102&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company generated **$5.7 million** in positive operating cash flow, holding **$55.4 million** in liquidity, deemed sufficient for at least the next 12 months - The company generated positive cash flows from continuing operations of **$5.7 million** for Q1 2025, an increase from **$3.3 million** in the prior year period[105](index=105&type=chunk)[109](index=109&type=chunk) - As of **March 31, 2025**, the company had cash, cash equivalents, and short-term marketable securities totaling **$55.4 million**[105](index=105&type=chunk) - Management believes existing cash and available credit will be sufficient for at least the next **12 months** and does not anticipate expanding its distribution network in the near term[106](index=106&type=chunk) [Market Risk Disclosures](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include immaterial interest rate exposure and significant inflation risk impacting operating costs and potentially customer spending - The company's Term Loan bears a variable interest rate, but a **1%** change in rates would not materially impact annual interest expense[117](index=117&type=chunk) - Inflation remains a key risk, contributing to rising costs for labor, freight, and other operational expenses, potentially affecting customer purchasing power and revenue growth[118](index=118&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of **March 31, 2025**, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of **March 31, 2025**[120](index=120&type=chunk) - There were no material changes in internal control over financial reporting during the quarter[121](index=121&type=chunk) Part II. Other Information [Legal Proceedings, Risk Factors, and Other Disclosures](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in material legal proceedings, and no material changes occurred to risk factors, unregistered equity sales, or senior security defaults - The company is not currently a party to any material pending legal proceedings[124](index=124&type=chunk) - There have been no material changes to the company's risk factors as disclosed in its Fiscal 2024 10-K[125](index=125&type=chunk)