ThredUp, Inc. (NASDAQ:TDUP) Q1 2021 Earnings Conference Call May 12, 2021 4:30 PM ET Company Participants Lana Adair - IR James Reinhart - Co-Founder, CEO & Director Sean Sobers - CFO Conference Call Participants Ross Sandler - Barclays Bank Ralph Schackart - William Blair & Company Erinn Murphy - Piper Sandler & Co. Irwin Boruchow - Wells Fargo Securities Edward Yruma - KeyBanc Capital Markets Dana Telsey - Telsey Advisory Group Operator Ladies and gentlemen, thank you for your patience in holding, and wel ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents ThredUp Inc's unaudited condensed consolidated financial statements for the quarter ended March 31, 2021, detailing the company's financial position, performance, and cash flows [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Financials | March 31, 2021 | December 31, 2020 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $246,514 | $64,485 | +$182,029 | | Total assets | $323,770 | $142,911 | +$180,859 | | **Liabilities & Equity** | | | | | Total liabilities | $132,343 | $118,047 | +$14,296 | | Convertible preferred stock | $— | $247,041 | -$247,041 | | Total stockholders' equity (deficit) | $191,427 | $(222,177) | +$413,604 | | Total liabilities, convertible preferred stock and stockholders' equity | $323,770 | $142,911 | +$180,859 | - Total Assets increased significantly from **$142.9 million** at December 31, 2020, to **$323.8 million** at March 31, 2021, primarily driven by a substantial increase in cash and cash equivalents[16](index=16&type=chunk) - Stockholders' Equity (Deficit) shifted from a deficit of **$(222.2) million** to a positive equity of **$191.4 million**, largely due to the IPO proceeds and conversion of preferred stock[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Revenue Performance (Three months ended March 31) | Metric | 2021 (in thousands) | 2020 (in thousands) | Change (YoY) | | :---------------- | :------------------- | :------------------- | :------------ | | Consignment Revenue | $44,688 | $35,314 | +26.5% | | Product Revenue | $10,992 | $13,001 | -15.5% | | **Total Revenue** | **$55,680** | **$48,315** | **+15.2%** | - Gross Profit increased from **$32.6 million** in Q1 2020 to **$39.7 million** in Q1 2021, a **21.7% increase**[17](index=17&type=chunk) - Net Loss increased from **$(13.2) million** in Q1 2020 to **$(16.2) million** in Q1 2021[17](index=17&type=chunk) - Net Loss Per Share (Basic and Diluted) decreased from **$(1.23)** in Q1 2020 to **$(0.86)** in Q1 2021, despite a higher net loss, due to an increase in weighted-average shares outstanding[17](index=17&type=chunk) [Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Convertible%20Preferred%20Stock%20and%20Stockholders'%20Equity) - All **65,970,938 shares of convertible preferred stock** were converted to Class B common stock immediately prior to the IPO, eliminating the preferred stock balance[18](index=18&type=chunk)[29](index=29&type=chunk) - The initial public offering resulted in the sale of **13,800,000 Class A common stock shares**, adding **$175.5 million** to additional paid-in capital[18](index=18&type=chunk)[27](index=27&type=chunk) - Additional Paid-in Capital increased significantly from **$29.9 million** at December 31, 2020, to **$459.8 million** at March 31, 2021, primarily due to the IPO and preferred stock conversion[18](index=18&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Cash Flow Summary (Three months ended March 31) | Activity | 2021 (in thousands) | 2020 (in thousands) | Change (YoY) | | :------------------------------------------------ | :------------------- | :------------------- | :------------ | | Net cash provided by (used in) operating activities | $1,077 | $(9,102) | +$10,179 | | Net cash used in investing activities | $(4,099) | $(4,673) | +$574 | | Net cash provided by (used in) financing activities | $185,051 | $(785) | +$185,836 | | **Net increase (decrease) in cash, cash equivalents and restricted cash** | **$182,029** | **$(14,560)** | **+$196,589** | - Operating Activities shifted from **$(9.1) million** used in Q1 2020 to **$1.1 million** provided in Q1 2021, primarily due to a **$9.3 million** net change in operating assets and liabilities, partially offset by a net loss of **$16.2 million**[123](index=123&type=chunk) - Financing Activities provided **$185.1 million** in Q1 2021, mainly from **$180.3 million** in IPO proceeds (net of underwriting discounts) and **$4.6 million** in debt financing[129](index=129&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - ThredUp's IPO was declared effective on March 25, 2021, with Class A common stock trading on Nasdaq from March 26, 2021; the company sold **13.8 million shares** at **$14.00 per share**, generating **$175.5 million** in net proceeds[27](index=27&type=chunk)[75](index=75&type=chunk) - Immediately prior to the IPO, **65,970,938 shares of convertible preferred stock** and **164,973 convertible preferred stock warrants** were converted into Class B common stock and Class B common stock warrants, respectively[29](index=29&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) - Total stock-based compensation expense was **$3.5 million** for Q1 2021, up from **$1.4 million** in Q1 2020, with **$20.1 million** of unrecognized expense remaining[66](index=66&type=chunk) - The company previously identified **material weaknesses in internal control** over financial reporting related to accounting and proprietary data systems and the preparation/review of account reconciliations and journal entries; remediation efforts are ongoing[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[148](index=148&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes ThredUp's business, recent developments including its IPO and COVID-19 impact, and financial results for the three months ended March 31, 2021 [Overview](index=19&type=section&id=Overview) - ThredUp is one of the world's largest online resale platforms for women's and kids' apparel, shoes, and accessories, leveraging a custom-built operating platform[73](index=73&type=chunk) - Since 2009, the company has processed over **100 million unique secondhand items** from **35,000 brands**, saving buyers an estimated **$3.3 billion**[73](index=73&type=chunk) - The platform offers a managed marketplace for buyers and provides a convenient "Clean Out Kit" service for sellers[74](index=74&type=chunk) - ThredUp also offers a "Resale-as-a-Service" (RaaS) offering, enabling brands and retailers to participate in the resale economy[74](index=74&type=chunk) [Recent Business Developments](index=19&type=section&id=Recent%20Business%20Developments) - ThredUp completed its IPO on March 25, 2021, selling **13.8 million Class A common stock shares** at **$14.00 per share**, generating **$175.5 million** in net proceeds[75](index=75&type=chunk) - The COVID-19 pandemic led to operational modifications, temporary reductions in marketing spend, and cost-saving measures like retail store closures[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - In Q1 2021, the company experienced increased demand partly due to COVID-19 recovery efforts but also faced increased operating expenses to support demand[83](index=83&type=chunk)[85](index=85&type=chunk) - The number of unprocessed Clean Out Kits declined in Q1 2021 compared to Q4 2020 due to increased processing, leading to a higher volume of new listings[86](index=86&type=chunk) [Current Period Highlights](index=21&type=section&id=Current%20Period%20Highlights) - Total revenue reached a record **$55.7 million**, an increase of **15% year-over-year**[88](index=88&type=chunk) - Gross profit totaled **$39.7 million**, representing growth of **22% year-over-year**, with gross margin expanding from **68% to 71%**[88](index=88&type=chunk) - GAAP net loss was **$16.2 million** for Q1 2021, compared to a GAAP net loss of **$13.2 million** for Q1 2020[88](index=88&type=chunk) - Active Buyers grew **14% to 1.29 million**, and Orders grew **18% to 1.13 million** year-over-year[89](index=89&type=chunk)[91](index=91&type=chunk) [Key Financial and Operating Metrics](index=21&type=section&id=Key%20Financial%20and%20Operating%20Metrics) Key Metrics (Three months ended March 31) | Metric | 2021 (in thousands) | 2020 (in thousands) | YoY Change | | :---------------- | :------------------- | :------------------- | :------------ | | Active Buyers | 1,290 | 1,135 | +13.7% | | Orders | 1,128 | 956 | +18.0% | | Net loss | $(16,171) | $(13,215) | -22.4% | | Adjusted EBITDA | $(9,119) | $(10,427) | +12.6% | - **Active Buyers** are defined as a ThredUp buyer who has made at least one purchase in the last twelve months, serving as a key driver of revenue[92](index=92&type=chunk) - **Adjusted EBITDA** is a non-GAAP measure used to evaluate operating performance, excluding items like depreciation, stock-based compensation, and interest expense[94](index=94&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Revenue (Q1 2021 vs. Q1 2020) | Revenue Type | 2021 (in thousands) | 2020 (in thousands) | Change Amount | Change % | | :------------------- | :------------------- | :------------------- | :-------------- | :------- | | Consignment revenue | $44,688 | $35,314 | $9,374 | 27% | | Product revenue | $10,992 | $13,001 | $(2,009) | (15)% | | **Total revenue** | **$55,680** | **$48,315** | **$7,365** | **15%** | - Total revenue increase was primarily due to an **18% increase in Orders** and **14% growth in Active Buyers**, partially offset by a 2% decrease in revenue per Order[97](index=97&type=chunk) Cost of Revenue & Gross Profit (Q1 2021 vs. Q1 2020) | Cost/Profit Metric | 2021 (in thousands) | 2020 (in thousands) | Change Amount | Change % | | :-------------------------------- | :------------------- | :------------------- | :-------------- | :------- | | Cost of consignment revenue | $10,832 | $8,816 | $2,016 | 23% | | Cost of product revenue | $5,130 | $6,873 | $(1,743) | (25)% | | **Total cost of revenue** | **$15,962** | **$15,689** | **$273** | **2%** | | **Gross profit** | **$39,718** | **$32,626** | **$7,092** | **22%** | | Gross profit margin | 71% | 68% | 3% | | - Total cost of revenue as a percentage of total revenue **decreased by 300 basis points** (from 32% to 29%) due to the mix shift towards higher-margin consignment sales[101](index=101&type=chunk) Operating Expenses (Q1 2021 vs. Q1 2020) | Operating Expense | 2021 (in thousands) | 2020 (in thousands) | Change Amount | Change % | | :-------------------------------- | :------------------- | :------------------- | :-------------- | :------- | | Operations, product and technology | $28,312 | $25,475 | $2,837 | 11% | | Marketing | $15,446 | $13,001 | $2,445 | 19% | | Sales, general and administrative | $10,638 | $7,433 | $3,205 | 43% | | **Total operating expenses** | **$54,396** | **$45,909** | **$8,487** | **18%** | - Sales, general and administrative expenses **increased 43%**, primarily due to investments in scaling the business and public company readiness[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2021, the company had **$246.5 million in cash and cash equivalents** and an accumulated deficit of **$268.3 million**[117](index=117&type=chunk) - Historically, operations were financed through private equity sales and debt; the recent IPO generated **$175.5 million in net proceeds**[117](index=117&type=chunk) - The company expects **continued operating losses** and negative cash flows from operations due to investments in growth and infrastructure[118](index=118&type=chunk) - Existing cash and cash equivalents are believed to be sufficient to fund operations for at least the next twelve months[118](index=118&type=chunk) - Future capital requirements depend on distribution center expansion, marketing, new offerings, and economic conditions, potentially requiring additional financing[120](index=120&type=chunk) [Contractual Obligations and Commitments](index=30&type=section&id=Contractual%20Obligations%20and%20Commitments) - There have been no material changes to contractual obligations since December 31, 2020, other than an additional **$5.0 million term loan** borrowed in February 2021[131](index=131&type=chunk) [Off-Balance Sheet Arrangements](index=30&type=section&id=Off-Balance%20Sheet%20Arrangements) - The company did not have any off-balance sheet financing arrangements or relationships with unconsolidated entities for the periods presented[132](index=132&type=chunk) [Critical Accounting Policies and Estimates](index=30&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There have been no significant changes to critical accounting policies since December 31, 2020[134](index=134&type=chunk) - The preparation of financial statements requires management to make judgments and estimates that affect reported amounts[133](index=133&type=chunk) [Recent Accounting Pronouncements](index=31&type=section&id=Recent%20Accounting%20Pronouncements) - For information on recently issued accounting pronouncements, refer to Note 2 titled "Significant Accounting Policies" in Part 1, Item 1 of this report[135](index=135&type=chunk) [JOBS Act Accounting Election](index=31&type=section&id=JOBS%20Act%20Accounting%20Election) - As an "emerging growth company," ThredUp has elected to use the extended transition period for complying with new accounting standards[136](index=136&type=chunk)[276](index=276&type=chunk) - This election allows the company to delay adopting new accounting standards, which may affect comparability with other public companies[136](index=136&type=chunk)[275](index=275&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses ThredUp's exposure to market risks, primarily focusing on interest rate risk and inflation risk [Interest Rate Risk](index=32&type=section&id=Interest%20Rate%20Risk) - As of March 31, 2021, the company held **$246.5 million in cash and cash equivalents**, primarily in money market funds, with no material risk from interest rate fluctuations to date[137](index=137&type=chunk) - The company's **$40.0 million term loan** has an interest rate tied to the prime rate with a **5.75% floor**; a hypothetical 100 basis point change would not materially impact financials[138](index=138&type=chunk)[139](index=139&type=chunk) [Inflation Risk](index=32&type=section&id=Inflation%20Risk) - Management does not believe inflation has had a material effect on the business, but an inability to offset future inflationary pressures could be harmful[140](index=140&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of disclosure controls, acknowledging a material weakness in internal control but affirming the fair presentation of financial statements [Evaluation of Disclosure Controls and Procedures](index=33&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - As of March 31, 2021, the CEO and CFO concluded that disclosure controls and procedures were **not effective** due to a previously reported material weakness in internal control[142](index=142&type=chunk) - Despite the material weakness, management concluded that the financial statements fairly present the company's financial position in conformity with GAAP[142](index=142&type=chunk) [Previously Reported Material Weaknesses in Internal Control Over Financial Reporting](index=33&type=section&id=Previously%20Reported%20Material%20Weaknesses%20in%20Internal%20Control%20Over%20Financial%20Reporting) - Identified control deficiencies in the design and implementation of internal control for fiscal years 2018-2020, specifically related to accounting and proprietary data systems[143](index=143&type=chunk)[144](index=144&type=chunk) - Also identified inadequate controls over the preparation and review of account reconciliations and journal entries, including insufficient segregation of duties[145](index=145&type=chunk) [Remediation Plans](index=34&type=section&id=Remediation%20Plans) - The company is actively addressing the material weaknesses by hiring additional personnel, implementing new financial processes, and enhancing system controls[148](index=148&type=chunk) [Changes in Internal Control over Financial Reporting](index=34&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - No material impact to internal controls over financial reporting despite employees working remotely due to the COVID-19 pandemic[149](index=149&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) ThredUp Inc is not currently a party to any material pending legal proceedings, though it may face litigation in the ordinary course of business - The company is not a party to any material pending legal proceedings[152](index=152&type=chunk) - From time to time, the company may be subject to legal proceedings and claims arising in the ordinary course of business[152](index=152&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section outlines the significant risks and uncertainties that could adversely affect ThredUp's business, operations, financial condition, and stock price [Risk Factor Summary](index=36&type=section&id=Risk%20Factor%20Summary) - **Business & Industry Risks** include dependence on attracting buyers/sellers, managing growth, history of losses, distribution center operations, and the impact of COVID-19[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) - **IT, IP, Data Security & Privacy Risks** cover compromises of data security, compliance with privacy laws (e.g, CCPA), and reliance on third-party data centers[158](index=158&type=chunk)[217](index=217&type=chunk)[221](index=221&type=chunk)[226](index=226&type=chunk)[230](index=230&type=chunk)[232](index=232&type=chunk)[237](index=237&type=chunk) - **Legal, Regulatory, Accounting & Tax Risks** involve material weaknesses in internal control, non-compliance with laws, payment fraud, and limitations on NOLs[158](index=158&type=chunk)[242](index=242&type=chunk)[246](index=246&type=chunk)[252](index=252&type=chunk)[255](index=255&type=chunk)[259](index=259&type=chunk)[262](index=262&type=chunk)[266](index=266&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[272](index=272&type=chunk) - **Risks Relating to Ownership of Class A Common Stock** include volatile market price, dual-class structure concentrating voting control, and potential stock price decline[158](index=158&type=chunk)[281](index=281&type=chunk)[285](index=285&type=chunk)[289](index=289&type=chunk)[290](index=290&type=chunk)[292](index=292&type=chunk) [Risks Relating to Our Business and Industry](index=37&type=section&id=Risks%20Relating%20to%20Our%20Business%20and%20Industry) - Continued growth relies on attracting and retaining buyers and sellers and generating a sufficient supply of high-quality secondhand items[157](index=157&type=chunk)[159](index=159&type=chunk) - The business is subject to risks in sourcing, itemizing, warehousing, and shipping, including fluctuations in item quality and potential damage or contamination[160](index=160&type=chunk)[161](index=161&type=chunk) - Rapid growth places significant demands on management and resources; failure to manage growth effectively could harm the business[164](index=164&type=chunk)[165](index=165&type=chunk)[167](index=167&type=chunk) - The **COVID-19 pandemic** continues to have an adverse impact, including operational limitations, increased costs, and shifts in consumer demand[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[195](index=195&type=chunk) [Risks Relating to Information Technology, Intellectual Property, Data Security and Privacy](index=51&type=section&id=Risks%20Relating%20to%20Information%20Technology,%20Intellectual%20Property,%20Data%20Security%20and%20Privacy) - Risk of hacking or other attacks leading to **data breaches** of personal information, which could disrupt operations and harm reputation[217](index=217&type=chunk)[218](index=218&type=chunk) - Subject to evolving state, federal, and international **privacy laws** (e,g, CCPA, CPRA); non-compliance could result in fines and enforcement actions[221](index=221&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk) - Reliance on **third-party data centers (AWS)**, internet providers, and payment processors; service interruptions could disrupt operations[226](index=226&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) - Inability to successfully protect its own **intellectual property** (patents, trademarks) could harm its competitive position and brand recognition[233](index=233&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk)[236](index=236&type=chunk) [Risks Relating to Legal, Regulatory, Accounting and Tax Matters](index=57&type=section&id=Risks%20Relating%20to%20Legal,%20Regulatory,%20Accounting%20and%20Tax%20Matters) - Previously identified **material weaknesses in internal control** over financial reporting could lead to inaccurate reporting or sanctions if not remediated[242](index=242&type=chunk)[243](index=243&type=chunk)[245](index=245&type=chunk) - Failure to comply with evolving laws and regulations (e,g, e-commerce, consumer protection) could result in fines or penalties[246](index=246&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk) - Risks from **fraudulent transactions** could lead to losses, lawsuits, and damage to reputation[252](index=252&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk) - Ability to use **net operating loss (NOL) carryforwards** to offset future taxable income may be limited by Section 382 of the Internal Revenue Code[272](index=272&type=chunk) [Risks Relating to Our Indebtedness and Liquidity](index=65&type=section&id=Risks%20Relating%20to%20Our%20Indebtedness%20and%20Liquidity) - The company may require additional financing for business growth, which may not be available on favorable terms or could dilute stockholders[277](index=277&type=chunk) - The loan agreement with Western Alliance Bank imposes **restrictive covenants** that limit the company's ability to incur debt, dispose of property, or pay dividends[278](index=278&type=chunk)[279](index=279&type=chunk) - Past non-compliance with debt covenants required waivers; future failure to comply could lead to an event of default and acceleration of debt[280](index=280&type=chunk) [Risks Relating to Ownership of Our Class A Common Stock](index=66&type=section&id=Risks%20Relating%20to%20Ownership%20of%20Our%20Class%20A%20Common%20Stock) - The market price of Class A common stock may be **highly volatile** and decline regardless of operating performance[281](index=281&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk)[284](index=284&type=chunk) - The **dual-class structure** concentrates **98.3% of voting power** with pre-IPO stockholders, limiting other stockholders' influence on corporate matters[285](index=285&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk) - The dual-class structure may make the company **ineligible for inclusion in certain stock indices** (e,g, S&P 500), potentially affecting the stock price[289](index=289&type=chunk) - Sales of large amounts of Class A common stock, especially after **lock-up restrictions expire**, could cause the market price to decline[292](index=292&type=chunk)[293](index=293&type=chunk) [General Risks](index=72&type=section&id=General%20Risks) - Success relies heavily on executive officers and key employees; loss of these individuals could harm the business[307](index=307&type=chunk)[308](index=308&type=chunk) - Past and future cost-cutting measures may disrupt business and affect employee retention[309](index=309&type=chunk) - Use of social media for marketing carries risks of adverse impact on reputation or fines if laws are not complied with[310](index=310&type=chunk) - The management team has **limited experience managing a public company**, which may strain resources and divert attention[311](index=311&type=chunk)[312](index=312&type=chunk)[314](index=314&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=74&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details unregistered sales of equity securities and confirms the use of IPO proceeds aligns with previously disclosed plans - On March 30, 2021, a warrant was net exercised for **24,837 shares of Class B common stock**[316](index=316&type=chunk) - From January 1 to March 26, 2021, **923,291 Class B common stock options** were granted to directors, employees, and consultants[316](index=316&type=chunk) - During the same period, **1,458,159 Class B common stock shares** were issued through option exercises[317](index=317&type=chunk) - The IPO closed on March 30, 2021, generating net proceeds of **$175.5 million** from the sale of **13.8 million Class A common stock shares**[319](index=319&type=chunk) - There has been no material change in the planned use of proceeds from the IPO[320](index=320&type=chunk) [Item 6. Exhibits](index=75&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including organizational documents, agreements, and certifications - Includes Amended and Restated Certificate of Incorporation and Bylaws as organizational documents[322](index=322&type=chunk) - Features the Tenth Amended and Restated Investors' Rights Agreement and the Amended and Restated Loan and Security Agreement[322](index=322&type=chunk) - Details the 2021 Stock Option and Incentive Plan, 2021 Employee Stock Purchase Plan, and various executive compensation plans[322](index=322&type=chunk) - Contains certifications of the Principal Executive Officer and Principal Financial Officer pursuant to Sarbanes-Oxley Act Sections 302 and 906[322](index=322&type=chunk)[325](index=325&type=chunk) [Signatures](index=77&type=section&id=Signatures) This section contains the official signatures of ThredUp Inc's CEO and CFO, certifying the filing of the Quarterly Report on Form 10-Q - The report is signed by James Reinhart, Chief Executive Officer, and Sean Sobers, Chief Financial Officer[329](index=329&type=chunk) - The signing date for both officers is May 12, 2021[329](index=329&type=chunk)