ThredUp Inc. (NASDAQ:TDUP) Q1 2023 Results Conference Call May 9, 2023 4:30 PM ET Company Participants Lauren Frasch - Head, IR James Reinhart - CEO and Co-Founder Sean Sobers - CFO Conference Call Participants Ike Boruchow - Wells Fargo Tom Nikic - Wedbush Dylan Carden - William Blair Anna Andreeva - Needham & Company Alexandra Steiger - Goldman Sachs Trevor Young - Barclays Rick Patel - Raymond James Ed Yruma - Piper Sandler Lauren Schenk - Morgan Stanley Operator Good afternoon, ladies and gentlemen, and ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission File Number: 001-40249 ThredUp Inc. (Exact name of registrant as specified in its charter) Indicate by ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (415) 402-5202 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on whi ...

thredUp Inc. (NASDAQ:TDUP) Q4 2022 Earnings Conference Call March 6, 2023 4:30 PM ET Company Participants Lauren Frasch - Head, Investor Relations James Reinhart - Co-Founder and CEO Sean Sobers - Chief Financial Officer Conference Call Participants Trevor Young - Barclays Kate Fitzsimons - Wells Fargo Anna Andreeva - Needham & Company Dylan Carden - William Blair Alexandra Steiger - Goldman Sachs Tom Nikic - Wedbush Securities Rick Patel - Raymond James Blake Anderson - Jefferies Ed Yruma - Piper Sandler D ...

Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $67.9 million, representing a 7% year-over-year increase [38] - Active buyers rose 18% year-over-year to 1.7 million, while orders increased 24% year-over-year to 1.6 million [41] - GAAP net loss for Q3 2022 was $23.7 million, compared to a net loss of $14.7 million in the same quarter last year [43] - Adjusted EBITDA loss was $11 million, primarily due to planned investments in operating infrastructure and technology [11][43] Business Line Data and Key Metrics Changes - Consignment revenue decreased year-over-year, while product revenue grew by 74%, driven by the growth of the RaaS supply and the European acquisition [39] - Gross margin for U.S. operations declined slightly to 72.4%, a 40 basis point decrease year-over-year [41] - Consolidated gross margin was 65.5%, a 740 basis point decline due to the consolidation of the lower-margin European business [42] Market Data and Key Metrics Changes - The company observed a deterioration in consumer health towards the end of Q2, which continued into Q3, impacting revenue [12] - The promotional environment in Q4 is expected to be highly competitive, affecting revenue projections [48] Company Strategy and Development Direction - The company aims to reach adjusted EBITDA breakeven in the second half of 2023, assuming quarterly revenue of $80 million to $85 million [45] - Investments are being made to improve the buying experience and enhance the RaaS business model, which is expected to drive long-term profitability [30][27] - The company is focusing on expense management and reducing operating costs while maintaining strong unit economics [25][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenging consumer environment and believes that the resale market will gain share as retail inventory positions improve [15][36] - The company anticipates that the hyper-promotional landscape will subside, allowing it to compete effectively once again [51] - Management noted that consumer behavior is changing, with a growing expectation for lower prices, which could benefit resale in the long term [15] Other Important Information - The company is making significant improvements to its infrastructure, including a new high-tech processing and distribution center in Bulgaria [28] - The company released its inaugural impact report, highlighting its commitment to environmental, social, and governance (ESG) initiatives [32] Q&A Session Summary Question: What macro expectations underpin the view of flat growth in the first half of 2023? - Management indicated that the plan assumes the extreme promotional environment and inventory excess will have subsided [54] Question: How have budget value consumers trended in Q4? - Management noted that both budget and premium shoppers are currently sitting out, impacted by early promotions and a competitive environment [57] Question: What is the outlook for return rates in Q4? - Management expects return rates to remain elevated, similar to Q3, which negatively impacted revenue by approximately $3 million [71] Question: What are the expectations for the RaaS business in 2023? - Management is optimistic about RaaS growth, expecting more retailers to consider circular economy strategies as inventory positions improve [74] Question: How is the marketing budget planned for next year? - Management sees attractive acquisition costs and plans to ramp up marketing efforts in Q1 after the holiday season [82]

Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $76.4 million, a 27% increase year-over-year, despite a slowdown in demand towards the end of the quarter [11][31] - Gross profit reached $52.6 million, representing a 19% year-over-year growth, with gross margins at 68.9% overall and 74.2% in the U.S. [11][34] - Adjusted EBITDA loss was $13.5 million, which is a decline compared to the adjusted EBITDA loss of $9 million in Q2 2021 [35][39] Business Line Data and Key Metrics Changes - Consignment revenue remained flat year-over-year, while product revenue grew by 145%, driven by the European acquisition and growth in the Resale-as-a-Service (RaaS) channel [31][32] - Active buyers increased by 29% to 1.7 million, and orders rose by 40% year-over-year, totaling 1.7 million [31][33] Market Data and Key Metrics Changes - The consumer environment has deteriorated, particularly affecting budget consumers, who make up a significant portion of the customer base [9][12] - The average order value for discount shoppers declined by 7%, while upscale shoppers saw a 15% increase in average order value [13] Company Strategy and Development Direction - The company aims to reach adjusted EBITDA breakeven by managing costs and adjusting its business model to adapt to changing consumer behavior [10][20] - Investments are being made in customer experience and operational improvements, including the launch of new features and tools to enhance the shopping experience [20][21] - The company is focusing on its marketplace model's flexibility to adjust pricing and inventory based on consumer demand [15][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by inflation and changing consumer habits, particularly among budget consumers [9][12] - The company expects to maintain strong gross margins and is prepared to adjust pricing and promotions to remain competitive [19][65] - There is a cautious outlook for the second half of 2022, with expectations that current trends will persist without significant recovery [59][60] Other Important Information - The company has made significant cost-cutting measures, including layoffs and reducing discretionary spending, to position itself for profitability [18][40] - The European business is expected to contribute more significantly in Q4, with higher average selling prices and gross margins [83] Q&A Session Summary Question: What needs to go right for breakeven in 2H 2023? - Management expects current trends to persist, with no significant recovery anticipated in the near term [59] Question: Are trends stabilizing or deteriorating? - Trends are stabilizing at lower levels, with management projecting to operate at these levels for some time [63] Question: Are customer acquisition costs coming down? - There is a noted decrease in advertising costs, which may allow for more customer acquisition opportunities [71] Question: What level of promotional activity is assumed in the outlook? - A highly competitive environment is anticipated, with adjustments in pricing and promotions expected [76] Question: How did Remix perform during the quarter? - Remix performed well and is expected to have its strongest quarter in Q4 due to seasonal trends [83] Question: What are the trends in merchandise and pricing adjustments? - Discount shoppers are trading down to cheaper items, while upscale shoppers are buying more expensive items [91]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to __________ Commission file number: 001-40249 ThredUp Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

Company Overview - thredUP's Q1 2022 revenue reached $73 million, representing a year-over-year (YoY) growth of 31%[16] - The company's gross profit for Q1 2022 was $50 million, a 26% increase YoY[16] - thredUP's revenue for 2021 was $252 million, a 35% increase YoY[16] - Gross profit for 2021 was $178 million, a 39% increase YoY[16] - The platform has 17 million active buyers[16] - thredUP facilitated 16 million orders in Q1 2022[16] RaaS (Resale-as-a-Service) - Madewell resale shop listings increased by over 500% after expanding into a broader range of categories[26] Sustainability Impact - thredUP estimates it has saved 11 billion pounds of carbon emissions[16] - The company estimates it has saved 20 billion kWh of energy[16] - thredUP estimates it has saved 44 billion gallons of water[16] - Buying used clothing instead of new reduces carbon footprint by 82%[57]

Financial Data and Key Metrics Changes - Revenue for Q1 2022 reached $73 million, a 31% increase year-over-year, while gross profits grew 26% to a record $50 million [10] - Gross margins were reported at 69.1%, reflecting a 300 basis point improvement over Q4 2021 [10] - Adjusted EBITDA loss was $13 million, with a margin of 17.8% of revenue, compared to a loss of $9.1 million or 16.4% of revenue in Q1 2021 [41][42] Business Line Data and Key Metrics Changes - Consignment revenue increased by 6% year-over-year, while product revenue surged by 130% [38] - Active buyers rose by 33% to 1.7 million, and orders increased by 45% to 1.6 million [39] Market Data and Key Metrics Changes - The U.S. gross margins expanded to 74.1%, a 280 basis point increase from the same quarter last year [39] - The European business contributed to a consolidated gross margin of 69.1%, which was a 220 basis point decline year-over-year due to lower-margin operations [40] Company Strategy and Development Direction - The company is focused on long-term growth, investing in infrastructure and technology to support future revenue growth and widen its competitive moat [15][47] - ThredUp is expanding its Resale-As-A-Service (RaaS) platform, expecting to onboard approximately 40 brands by year-end [20] - The company is also building a new processing facility in Bulgaria to enhance its European operations and capture market share [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of rising consumer prices and inflation on consumer spending, noting a general softening across the market [11][12] - Despite near-term uncertainties, management remains confident in the long-term retail opportunity and the company's path to profitability [16][47] Other Important Information - The company is investing in four new facilities in 2022, which will significantly increase processing capacity [26][27] - The company is also focusing on improving its pricing and payout systems to expand margins and enhance customer acquisition [30] Q&A Session Summary Question: Revenue outlook and customer cohort pressures - Management noted no significant warning signs from customers but acknowledged a general softening in consumer behavior [56] Question: Freight component of guidance - Freight impact increased from an expected $6 million to $9 million year-over-year [57] Question: RaaS business potential - RaaS is currently small but has the potential to grow significantly with many enterprise clients expected [61] Question: Impact of macroeconomic conditions on consumer spending - Management indicated that while inflation is affecting consumer spending, resale may perform well as consumers trade down [62] Question: Marketing growth expectations - Marketing spend was moderated in Q1 due to processing constraints but is expected to increase in the back half of the year [75] Question: Inventory levels and concerns - Elevated inventory levels are primarily related to European operations, with no concerns about carryover in the U.S. [76] Question: Gross margin guidance increase - Gross margin guidance was raised due to improved shipment consolidation and automation [96]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ FORM 10-Q ______________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40249 ThredUp Inc. ______________________ (Exact name of registrant as specified i ...