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 ...

Market Overview - The Nasdaq has officially entered bear market territory, falling over 20% from its December peak, with a weekly decline of 8.6% [1] - The Fidelity NASDAQ Composite Index ETF (ONEQ) has slumped 19.1% year-to-date and is down 4% over the past year [1][2] Investor Sentiment - A survey by the American Association of Individual Investors indicates that 62% of respondents expect market declines over the next six months, marking the most pessimistic outlook in over a year [2] Technology Sector Performance - Technology stocks have been significantly impacted, with Apple (AAPL) down 7% on April 4, totaling a 13% loss for the week; NVIDIA (NVDA) also fell 7%, and Tesla (TSLA) dropped 10% [3] - These companies, heavily exposed to China, faced challenges due to retaliatory tariffs from Beijing [3] AI Investment Concerns - There are growing concerns that the investment boom in AI by Big Tech is outpacing demand, exacerbated by competition from Chinese startup DeepSeek, which released a low-cost AI model [4][5] Standout Stocks in Bear Market - Despite the bear market, several stocks in the Nasdaq Composite have shown strong performance: - ThredUp (TDUP) has a year-to-date price change of +86.5% and a one-month change of +11.4% [6][7] - 908 Devices (MASS) has a year-to-date price change of +73.9% and a one-month change of +38% [7][8] - Logility Supply Chain Solutions Inc. (LGTY) has a year-to-date price change of +29.9% [8] - Palomar Holdings (PLMR) has a year-to-date price change of +27.7% and a one-month change of +4.5% [9] - EZCORP (EZPW) has a year-to-date price change of +25.7% and a one-month change of +14.2% [10]

Core Insights - ThredUp Inc. reported a year-over-year revenue increase in Q4 2024, meeting the Zacks Consensus Estimate, but the bottom line showed a decline, missing the Consensus Estimate [1][3]. Financial Performance - Revenue for Q4 2024 increased by 9.5% year over year to $67.3 million, driven by marketing investments, AI enhancements, and a renewed focus on core business post-European divestiture [4]. - Consignment revenues grew by 16.6% to $64.6 million, while product revenues fell by 55.8% to $2.7 million [5]. - Active buyers decreased by 6% year over year to 1.3 million, but order growth increased by 2% to 1.2 million [5]. - Gross profit rose by 14% year over year to $54.1 million, with a gross margin of 80.4%, reflecting a 290-basis-point increase [6]. - Operating expenses increased by 10.7% to $62.3 million compared to the prior year [6]. - Adjusted EBITDA for Q4 2024 was $5 million, doubling from $2.5 million in the prior year, with an adjusted EBITDA margin of 7.4% [7]. Cash Flow and Capital Expenditures - The company ended the quarter with cash and cash equivalents of $31.9 million and total stockholders' equity of $56.3 million [8]. - Net cash provided by operating activities was $4.9 million for the 52-week period ending December 31, 2024, with total capital expenditures of $2.5 million for the quarter [8]. Future Guidance - For Q1 2025, ThredUp expects revenue between $67.5 million and $69.5 million, indicating a 6% year-over-year increase at the mid-point, with a gross margin between 77% and 79% [11]. - For the full year 2025, projected revenues are between $270 million and $280 million, also implying a 6% year-over-year increase at the mid-point, with an adjusted EBITDA margin expected to remain flat at 3.3% [12].

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]