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]