Financial Data and Key Metrics Changes - Revenue for Q2 2025 totaled $77.7 million, representing a 16.4% year-over-year increase [23] - Gross margin was 79.5%, a 70 basis point increase compared to the same quarter last year [23] - Adjusted EBITDA was $3 million, or 3.9% of revenue, doubling from the previous year [24] Business Line Data and Key Metrics Changes - New buyer acquisition increased by 74% year-over-year, marking the highest number of new customers in the company's history [7][23] - Active buyers rose to 1.5 million, up 16.5% year-over-year, while orders increased by 20.8% to 1.5 million [23] Market Data and Key Metrics Changes - The company noted that the closure of the de minimis loophole could lead to higher prices for fast fashion goods, potentially benefiting ThredUP [10] - Advertising markets remain dynamic, with fluctuations in spending from competitors impacting customer acquisition [11][82] Company Strategy and Development Direction - The company aims to maintain gross margin and bottom-line efficiency while reinvesting in acquiring new buyers and sellers [8] - ThredUP is focusing on AI-driven product experiences to enhance customer engagement and conversion rates [12][20] - The strategy includes expanding the seller experience to make ThredUP the default platform for selling secondhand clothing online [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite potential macroeconomic uncertainties [42] - The company is optimistic about the long-term potential of the resale market, expecting significant growth in the coming years [99] Other Important Information - The company has invested over $400 million in infrastructure and technology to support its marketplace operations [19] - The introduction of AI-generated images on product pages has shown positive results, particularly for new customers [13][14] Q&A Session Summary Question: What drove the Q2 revenue outperformance and new buyer growth? - Management highlighted a combination of improved product experience, strong operations, and high-quality supply as key drivers [36] Question: Why is the Q4 revenue guidance conservative? - Management noted seasonal trends and uncertainties in the macro environment as reasons for a cautious outlook [41] Question: What factors contributed to the gross margin outperformance? - The growth in premium supply and a focus on customer experience were cited as contributing factors [47] Question: What are the demographics of new buyers? - Management indicated that new buyers resemble previous customers, with a large addressable market for secondhand shoppers [57] Question: What are the dynamics of customer acquisition costs? - Management noted that improved conversion rates have significantly impacted customer acquisition costs, allowing for more effective spending [100]

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]

Core Insights - Investors are optimistic about the impact of new U.S. tariffs on secondhand goods sellers, with shares of ThredUp and Savers Value Village rising by 31% and 22% respectively since the announcement, while the S&P retail select index has declined by 7% [1] Group 1: Market Dynamics - Secondhand sellers are expected to attract bargain-hunting consumers and those looking to sell items for extra cash, as their merchandise is immune from tariffs, allowing them to potentially raise prices in response to increased costs of new imported goods [2] - The secondhand sector typically performs well during economic downturns and has gained popularity among younger consumers [2] Group 2: Company Performance and Expectations - ThredUp projected revenue between $67.5 million and $69.5 million for Q1 and between $270 million and $280 million for the year prior to the tariff announcement [3] - ThredUp's CEO noted that the uncertain consumer environment and tariffs could make secondhand options more attractive [4] - In contrast, Savers Value Village expressed caution regarding the tariff impact, with its CEO stating that the tariff issue complicates the outlook [4][5] Group 3: Consumer Behavior Trends - A report indicated that millennials are increasingly turning to secondhand shopping, with 52% of those who purchased secondhand items in the past year reporting an increase in their resale shopping activities [5]