OAKLAND, Calif., April 07, 2025 (GLOBE NEWSWIRE) -- ThredUp (NASDAQ: TDUP, LTSE: TDUP), one of the largest online resale platforms for apparel, shoes, and accessories, announced today that its financial results for the first quarter ended March 31, 2025 will be released on Monday, May 5, 2025 after the close of the U.S. markets. ThredUp will host a conference call and live webcast that day at 1:30 p.m. PT / 4:30 p.m. ET. The live and archived webcast and all related earnings materials will be available at T ...

ThredUp Inc. (TDUP) reported fourth-quarter 2024 results, wherein the top line increased year over year and met the Zacks Consensus Estimate. However, the bottom line decreased year over year, missing the Consensus Estimate.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the fourth quarter, ThredUp completed the divestiture of 91% of its European business and Bulgarian subsidiary, Remix Global EAD ("Remix"), meeting the necessary criteria to report Remix as a discontinued operati ...

Financial Data and Key Metrics Changes - For Q4 2024, revenue totaled $67.3 million, an increase of 9.5% year over year, driven by marketing investments and AI upgrades [33] - Gross margin was 80.4%, a 290 basis point increase from the same quarter last year, attributed to a higher percentage of sales from consignment [34] - Adjusted EBITDA was $5 million, representing 7.4% of revenue, doubling from the previous year and showing a 330 basis point margin improvement [35] Business Line Data and Key Metrics Changes - Active buyers reached 1.3 million, a decline of 6% year over year, while order growth reaccelerated to 1.2 million, an increase of 2% year over year [33] - Fresh listings increased by 9% year over year, indicating a growing supply of high-quality apparel [13] Market Data and Key Metrics Changes - 51% of consumers indicated that inflation impacts their spending on apparel, while 62% expressed concern about new government policies affecting apparel prices [25][26] - The company noted that secondhand goods could become more attractive to consumers seeking affordable options due to rising prices in new apparel [26] Company Strategy and Development Direction - The company aims to accelerate growth while maintaining adjusted EBITDA margins, focusing on customer acquisition and fresh listings [38] - Investments in generative AI are expected to enhance the secondhand shopping experience, with advancements in AI search functionality driving higher conversion rates [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum from Q4 2024 continuing into Q1 2025, despite some uncertainty in consumer behavior [52] - The company plans to reach positive free cash flow on an annual basis in 2025, indicating a strong financial position [42] Other Important Information - The company completed the divestiture of Remix in November 2024, focusing exclusively on its US operations [6] - The company plans to reduce stock-based compensation by over 40% in 2025 to mitigate share dilution [43] Q&A Session Summary Question: Revenue, gross margin, and EBITDA pacing through the year - Management indicated that revenue growth is expected to accelerate from Q1 to Q2, with Q4 showing growth but at a lower rate [50][52] Question: Marketing spend and stock-based compensation outlook - Marketing spend is projected to be about 19% of revenue quarterly, with a focus on improving returns on that spend [61] Question: Image search technology and its impact on conversion - Management highlighted that image search technology has significantly improved conversion rates by providing more relevant results based on visual shopping preferences [68][70] Question: Impact of tariffs on advertising costs and pricing algorithms - Management noted that tariffs could lead to lower advertising costs and potentially increase the attractiveness of secondhand goods, with dynamic pricing algorithms in place to adjust to market conditions [77][80]

INVESTOR PRESENTATION Fourth Quarter 2024 © THREDUP The following contains confidential information. Do not distribute without permission. Safe harbor This presentation and the accompanying oral commentary 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 forwa ...

Financial Performance - As of December 31, 2024, the company had cash and cash equivalents of $31.9 million and marketable securities of $12.3 million, primarily consisting of money market funds and U.S. treasury securities[305]. - Inflation has significantly increased in recent months, affecting the company's gross margin and operating expenses, potentially slowing revenue growth[307]. - The Term Loan carries variable interest rates tied to the prime rate, with a floor of 4.75%, exposing the company to interest rate risk[306]. Competition - The company faces intense competition from various retailers, including secondhand marketplaces and large online retailers, impacting its market position[32]. Workforce and Diversity - The company employs 1,630 individuals, including 1,424 distribution center employees, and maintains good relations with its workforce[42]. - The company is committed to cultivating a diverse workforce and has a majority female and underrepresented minority staff[44]. Intellectual Property - The company has issued patents in the United States to protect its proprietary inventions and is actively pursuing additional patent protection[35]. - The company’s proprietary algorithm technologies are protected by trade secret laws, in addition to its patents and trademarks[34]. Compliance and Privacy - The company’s privacy policies are designed to comply with various laws regarding consumer information, which could pose compliance challenges[39]. Business Operations - On November 30, 2024, the company divested 91.0% of the common stock of Remix US Holdings Inc., resulting in the discontinuation of its European operations[31].

Revenue Projections - Preliminary total revenue for Q4 2024 is projected to be between $66.7 million and $67.2 million, exceeding previous guidance of $58.0 million to $60.0 million, representing an annual growth of 9%[3] - Combined revenue, including the European business until its divestiture, is projected to be between $74.5 million and $75.0 million, surpassing previous guidance of $67.2 million to $69.2 million[4] Gross Margin Expectations - Gross margin for Q4 2024 is expected to be between 80.2% and 80.4%, higher than the previous guidance of 78.5% to 79.5%[3] - Combined gross margin is expected to be between 75.9% and 76.1%, up from the previous guidance of 72.3% to 73.3%[4] EBITDA and Profitability - Adjusted EBITDA margin for Q4 2024 is anticipated to be between 6.4% and 6.9%, compared to the previous guidance of 0.0% to 2.0%[3] - The company anticipates sustaining its momentum into 2025, with a focus on profitability and positive adjusted EBITDA[15] Net Loss Projection - The net loss as a percentage of total revenue is projected to be between (12.6)% and (12.0)% for Q4 2024[3] Business Strategy and Market Position - Following the divestiture of Remix, ThredUp will no longer report combined results or provide a combined outlook going forward[5] - The company has processed over 200 million unique secondhand items from 60,000 brands across 100 categories, emphasizing its market position[14] - ThredUp's focus on U.S. operations and AI-driven enhancements contributed to solid growth in its core business[2]

Core Insights - ThredUp Inc. reported a return to growth in Q4 2024, with a focus on leveraging technology investments for future profitability [2][5][9] - The company divested 91% of its European business, Remix, which is now classified as a discontinued operation [2][5] Financial Highlights - Q4 2024 revenue reached $67.3 million, a 9% increase year-over-year, with a gross margin of 80.4% [5][6] - Full year 2024 revenue totaled $260.0 million, reflecting a 1% growth year-over-year, with a gross margin of 79.7% [5][6] - Active Buyers decreased by 6% to 1,274 thousand in Q4 2024, while Orders increased by 2% to 1,226 thousand [5][6] Profitability Metrics - Loss from continuing operations for Q4 2024 was $8.1 million, improving from a loss of $8.5 million in Q4 2023 [6] - Adjusted EBITDA from continuing operations was $5.0 million in Q4 2024, compared to $2.5 million in Q4 2023 [6] - For the full year 2024, the loss from continuing operations was $40.0 million, an improvement from $52.4 million in 2023 [6] Business Developments - The company achieved record gross margins for both Q4 and full year 2024, indicating improved operational efficiency [5][6] - Customer experience updates led to the strongest Q4 for new buyer acquisition in ThredUp's history, with new buyer conversion rates at all-time highs [10] Future Outlook - For Q1 2025, ThredUp expects revenue between $67.5 million and $69.5 million, and for the full year 2025, revenue is projected between $270.0 million and $280.0 million [9][10] - The company anticipates maintaining gross margins between 77.0% and 79.0% for both Q1 and full year 2025 [9][10]

The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is ThredUp (TDUP) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question.ThredUp is a member of our Consumer Staples group, which includes 180 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank gauges the s ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: ThredUp (TDUP) - ThredUp currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3][4]. - The stock has shown significant price performance, with a 59.46% increase over the past month, compared to a flat performance in the Zacks Consumer Products - Staples industry [6]. - Over the last three months, ThredUp shares have risen by 151.84%, and by 22.92% over the past year, outperforming the S&P 500, which increased by 5.07% and 22.47% respectively [7]. Trading Volume - ThredUp's average 20-day trading volume is 1,505,121 shares, which is a useful indicator of market interest and can signal bullish or bearish trends [8]. Earnings Outlook - Recent earnings estimate revisions for ThredUp have been positive, with one estimate moving higher in the last two months, raising the consensus estimate from -$0.61 to -$0.56 [10]. - For the next fiscal year, there has been one upward revision with no downward revisions, indicating a stable earnings outlook [10]. Conclusion - Given the positive momentum indicators and earnings outlook, ThredUp is positioned as a strong candidate for investors seeking short-term gains [12].