- Third quarter Total revenue of $73.0 million, a decrease of 11% year-over-year.
- U.S. Total revenue of $61.5 million, a decrease of 10% year-over-year.
- Third quarter Gross margin of 71.2% and a decrease in Gross profit of 8% year-over-year.
- U.S. Gross margin of 79.3% and a decrease in U.S. Gross profit of 9% year-over-year.
- Active Buyers of 1.632 million and Orders of 1.553 million in Q3 2024, representing decreases of 7% and 14%, respectively, year-over-year.
- U.S. Active Buyers of 1.248 million and Orders of 1.172 million in Q3 2024, representing a decrease of 7% and a decrease of 10%, respectively, year-over-year.
- ThredUp has signed a non-binding term sheet for a management buyout of its European business.
- Raising Q4 and FY 2024 guidance for the U.S. business.
"Though we know there is still work ahead, we have made clear progress in course-correcting in the U.S. since last quarter,” said ThredUp CEO and co-founder James Reinhart. "With momentum in our marketplace, we are pleased to be raising our U.S. Q4 and 2024 revenue outlook and are excited for the opportunities in front of us."
Third Quarter 2024 Financial Highlights1
- Revenue: Total revenue of $73.0 million, a decrease of 11% year-over-year.
- U.S. Total revenue of $61.5 million, a decrease of 10% year-over-year.
- Gross Profit and Gross Margin: Gross profit totaled $52.0 million, a decrease of 8% year-over-year. Gross margin was 71.2% as compared to 69.0% for the third quarter 2023.
- U.S. Gross profit of $48.8 million, a decrease of 9% year-over-year. U.S. Gross margin was 79.3% as compared to 78.5% for the third quarter 2023.
- Net Loss: Net loss was $24.8 million, or a negative 33.9% of Total revenue, for the third quarter 2024, compared to a net loss of $18.1 million, or a negative 22.0% of Total revenue, for the third quarter 2023. Net loss for the third quarter of 2024 included an impairment of long-lived assets related to our European operations of $9.8 million.
- U.S. Net loss was $9.9 million, or a negative 16.0% of revenue, for the third quarter 2024, compared to a U.S. Net loss of $12.5 million, or a negative 18.3% of U.S. Total revenue, for the third quarter 2023.
- Adjusted EBITDA Loss and Adjusted EBITDA Loss Margin: Adjusted EBITDA loss was $2.5 million, or a negative 3.4% of Total revenue, for the third quarter 2024, compared to an Adjusted EBITDA loss of $3.6 million, or a negative 4.4% of Total revenue, for the third quarter 2023.
- U.S. Adjusted EBITDA was $0.7 million, or a 1.1% of U.S. Total revenue, for the third quarter 2024, compared to U.S. Adjusted EBITDA of $0.1 million, or a 0.2% of U.S. Total revenue, for the third quarter 2023.
- Active Buyers and Orders: Active Buyers of 1.632 million and Orders of 1.553 million, representing decreases of 7% and 14%, respectively, over the third quarter 2023.
- U.S. Active Buyers of 1.248 million and Orders of 1.172 million, representing decreases of 7% and 10%, respectively, over the third quarter 2023.
1 U.S. Total revenue, U.S. Gross profit, U.S. Gross margin, Adjusted EBITDA loss, Adjusted EBITDA loss margin, U.S. Adjusted EBITDA and U.S. Adjusted EBITDA margin are non-GAAP measures. See "Reconciliation of GAAP to Non-GAAP Financial Measures” in this earnings release and "Reconciliation of U.S. Financial Information to Condensed Consolidated Statement of Operations" in the Supplemental Financial Information for a detailed reconciliation of these non-GAAP measures to the most directly comparable GAAP measures and "Non-GAAP Financial Measures” for a discussion of why we believe these non-GAAP measures are useful.
Recent Business Highlights
- Europe Divestiture: On October 31, 2024, ThredUp signed a non-binding term sheet for a management buyout of Remix by Florin Filote (Remix's current General Manager) and the Remix management team. Both parties are working toward the closing of this transaction by the end of 2024.
- AI Update: ThredUp launched its suite of AI tools in August. Since its launch last quarter, more than 60% of searches lead to item exploration, and the diversity of search terms have more than doubled. Additionally, TIME Magazine recognized the tech in its 2024 Best Inventions list.
- Shaping Legislation: ThredUp launched the Sales and Use Tax petition in partnership with the circular coalition group American Circular Textiles (ACT) and its members. Through its public policy efforts, ThredUp also helped shape a California-statewide bill (SB707) aiming to minimize landfill disposal and environmental impacts, which was signed and approved in September 2024.
For the fourth quarter 2024, ThredUp expects:
- Total revenue in the range of $67.2 million to $69.2 million.
- U.S. Total revenue in the range of $58.0 million to $60.0 million.
- Gross margin in the range of 72.3% to 73.3%.
- U.S. Gross margin in the range of 78.5% to 79.5%.
- Adjusted EBITDA loss margin in the range of (4.7)% to (2.7)%.
- U.S. Adjusted EBITDA margin in the range of 0.0% to 2.0%.
- Total revenue in the range $300 million to $302 million.
- U.S. Total revenue in the range of $250.8 million to $252.8 million.
- Gross margin in the range of 70.8% to 71.0%.
- U.S. Gross margin in the range of 79.2% to 79.4%.
- Adjusted EBITDA loss margin in the range of (2.6)% to (2.2)%.
- U.S. Adjusted EBITDA margin in the range of 1.6% to 2.1%.
Conference Call and Webcast Information
- The live and archived webcast and all related earnings materials will be available at ThredUp's investor relations website: ir.thredup.com/news-events/events-and-presentations.
| ThredUp Inc. Condensed Consolidated Balance Sheets (unaudited) | ||||||||
| September 30,
2024 | December 31, 2023 | |||||||
| (in thousands) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 43,715 | $ | 56,084 | ||||
| Marketable securities | 11,581 | 8,100 | ||||||
| Accounts receivable, net | 5,717 | 7,813 | ||||||
| Inventory | 7,375 | 15,687 | ||||||
| Other current assets | 4,977 | 6,204 | ||||||
| Total current assets | 73,365 | 93,888 | ||||||
| Operating lease right-of-use assets | 44,804 | 42,118 | ||||||
| Property and equipment, net | 76,432 | 87,672 | ||||||
| Goodwill | 12,121 | 11,957 | ||||||
| Intangible assets | 1,995 | 8,156 | ||||||
| Other assets | 6,227 | 6,176 | ||||||
| Total assets | $ | 214,944 | $ | 249,967 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 13,125 | $ | 9,457 | ||||
| Accrued and other current liabilities | 34,170 | 35,934 | ||||||
| Seller payable | 19,802 | 21,495 | ||||||
| Operating lease liabilities, current | 5,455 | 5,949 | ||||||
| Current portion of long-term debt | 3,851 | 3,838 | ||||||
| Total current liabilities | 76,403 | 76,673 | ||||||
| Operating lease liabilities, non-current | 47,147 | 44,621 | ||||||
| Long-term debt, net of current portion | 19,116 | 22,006 | ||||||
| Other non-current liabilities | 3,006 | 2,750 | ||||||
| Total liabilities | 145,672 | 146,050 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Class A and B common stock, $0.0001 par value; 1,120,000 shares authorized as of September 30, 2024 and December 31, 2023; 113,758 and 108,784 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 11 | 11 | ||||||
| Additional paid-in capital | 605,687 | 585,156 | ||||||
| Accumulated other comprehensive loss | (2,272 | ) | (2,375 | ) | ||||
| Accumulated deficit | (534,154 | ) | (478,875 | ) | ||||
| Total stockholders' equity | 69,272 | 103,917 | ||||||
| Total liabilities and stockholders' equity | $ | 214,944 | $ | 249,967 | ||||
| ThredUp Inc. Condensed Consolidated Statements of Operations (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2024 | September 30,
2023 | September 30, 2024 | September 30, 2023 | |||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Revenue: | ||||||||||||||||
| Consignment | $ | 59,850 | $ | 57,838 | $ | 184,930 | $ | 157,732 | ||||||||
| Product | 13,171 | 24,211 | 47,434 | 82,897 | ||||||||||||
| Total revenue | 73,021 | 82,049 | 232,364 | 240,629 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Consignment | 11,354 | 10,131 | 34,122 | 28,931 | ||||||||||||
| Product | 9,687 | 15,291 | 34,816 | 48,246 | ||||||||||||
| Total cost of revenue | 21,041 | 25,422 | 68,938 | 77,177 | ||||||||||||
| Gross profit | 51,980 | 56,627 | 163,426 | 163,452 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Operations, product, and technology | 37,190 | 40,355 | 117,162 | 118,473 | ||||||||||||
| Marketing | 15,299 | 19,406 | 44,765 | 54,919 | ||||||||||||
| Sales, general, and administrative | 14,545 | 15,058 | 47,558 | 47,147 | ||||||||||||
| Impairment of long-lived assets | 9,814 | - | 9,814 |
| ||||||||||||