thredUP Announces Second Quarter 2023 Results

• Quarterly revenue of $82.7 million, representing an increase of 8% year-over-year.
• Second quarter gross margin of 67.4% and an increase in gross profit of 6% year-over-year.
• Active Buyers of 1.7 million and Orders of 1.8 million in Q2 2023, representing a decrease of 0.8% and an increase of 5%, respectively, year-over-year.
• Continued to grow its Resale-as-a-Service (RaaS) offering, launching a dozen new resale programs in Q2 with brands including American Eagle, TOMS, and The Container Store.
• Published second annual Impact Report for 2022, outlining the company’s environmental, social, and governance strategy and progress made against ESG initiatives.

OAKLAND, Calif., Aug. 08, 2023 (GLOBE NEWSWIRE) -- ThredUp Inc. ( TDUP) (LTSE: TDUP), one of the largest online resale platforms for apparel, shoes, and accessories, announced today its financial results for the second quarter ended June 30, 2023.

"As we enter our third year as a public company, we're proud of our strong Q2 results," said thredUP CEO and co-founder James Reinhart. "Our performance demonstrates both the management team’s ability to forecast and manage the business amid a dynamic consumer environment as well as the sound strategy behind key company initiatives that have powered our growth and margin expansion."

Second Quarter 2023 Financial Highlights

• Revenue: Total revenue of $82.7 million, an increase of 8% year-over-year.
• Gross Profit and Gross Margin: Gross profit totaled $55.7 million, representing an increase of 6% year-over-year. Gross margin was 67.4% as compared to 68.9% for the second quarter 2022.
• Net Loss: Net loss was $18.8 million, or a negative 22.7% of revenue, for the second quarter 2023, compared to a net loss of $28.4 million, or a negative 37.2% of revenue, for the second quarter 2022.
• Adjusted EBITDA Loss and EBITDA Loss Margin¹: Adjusted EBITDA loss was $5.0 million, or a negative 6.1% of revenue, for the second quarter 2023, compared to an Adjusted EBITDA loss of $13.5 million, or a negative 17.7% of revenue, for the second quarter 2022.
• Active Buyers and Orders: Active Buyers of 1.7 million and Orders of 1.8 million, representing a decrease of 0.8% and an increase of 5%, respectively, over the comparable quarter last year.
  

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1} Adjusted EBITDA loss and Adjusted EBITDA loss margin are non-GAAP measures. See “Reconciliation of GAAP to Non-GAAP Financial Measures” for a detailed reconciliation of Adjusted EBITDA loss to the most directly comparable GAAP measure and “Non-GAAP Financial Measures” for a discussion of why we believe these non-GAAP measures are useful.

Recent Business Highlights

• Resale-as-a-Service^® (“RaaS^®”): thredUP continued to grow its RaaS client roster, launching a dozen new resale programs in Q2 with brands including American Eagle, TOMS, and The Container Store.
• Published Second Annual Impact Report: thredUP released its second annual Impact Report in July 2023. The report outlines the company's business and brand-aligned environmental, social, and governance (ESG) strategy and details the progress made across initiatives in 2022 against SASB and GRI disclosure frameworks. Read the report here https://ir.thredup.com/impact-at-thredUp
• Announced dual-listing on LTSE: thredUP announced that it listed its Class A common stock on the Long-Term Stock Exchange (LTSE) in a dual listing. LTSE’s principles-based listing standards require listed companies to detail and publish policies on their website that offer stakeholders insight into how a company builds its business for the long term. By listing on LTSE, thredUP is affirming its strategic alignment with long-term shareholders, employees, customers, and communities within a public market designed to promote sustainability, resilience, and long-term value creation.
• Named to TIME100's Most Influential Companies of 2023: thredUP was recognized for its impact by being named to TIME100's Most Influential Companies of 2023, which highlights companies making an extraordinary impact.
• Partnered with "Barbie" Costume Designer: thredUP partnered with "Barbie" costume designer Jacqueline Durran to launch an exclusive shopping experience that makes it easy for #Barbiecore fans to participate in summer's hottest trend in a more sustainable way.
  

Financial Outlook

For the third quarter 2023, thredUP expects:

• Revenue in the range of $82.0 million to $84.0 million
• Gross margin in the range of 66.5% to 68.5%
• Adjusted EBITDA loss margin in the range of 6.5% to 4.5%
  

For the fourth quarter 2023, thredUP expects:

• Revenue in the range of $84.5 million to $86.5 million
• Gross margin in the range of 64.5% to 66.5%
• Breakeven Adjusted EBITDA margin
  

For the full fiscal year 2023, thredUP expects:

• Revenue in the range of $325.0 million to $329.0 million
• Gross margin in the range of 66.5% to 67.5%
• Adjusted EBITDA loss margin in the range of 5.5% to 4.5%
  

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.