ThredUp Inc, a prominent online resale platform specializing in apparel, footwear, and accessories, unveiled its financial results for the third quarter (Q3) ending on September 30, 2023, on November 6, 2023. In the wake of the announcement, ThredUp Inc’s stock experienced a notable downturn today.
At the time of this publication, ThredUp Inc stock (TDUP) has witnessed a decline.
ThredUp Inc
Current Price: $2.29
Change : -1.15
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The company showcased a noteworthy 21% surge in revenue compared to the previous year, culminating in a total of $82.0 million. This quarter marked a significant milestone for ThredUp Inc as it achieved quarterly adjusted EBITDA breakeven for the first time.
ThredUp Q3 2023 Financial Results
In terms of financial highlights, ThredUp Inc reported a gross profit of $56.6 million, signifying a substantial 27% year-over-year increase. The gross margin saw a rise to 69.0%, up from 65.5% in the third quarter of 2022. However, the company recorded a net loss of $18.1 million, or a negative 22.0% of revenue, for the third quarter of 2023. This was in comparison to a net loss of $23.7 million, or a negative 34.8% of revenue, for the same period in 2022.
The company’s adjusted EBITDA loss for the third quarter of 2023 was $3.6 million, or a negative 4.4% of revenue, as opposed to an adjusted EBITDA loss of $11.0 million, or a negative 16.2% of revenue, in the third quarter of 2022. Active buyers and orders both saw a rise, standing at 1.8 million, marking a 4% and 11% increase, respectively, compared to the corresponding quarter last year.
In terms of business accomplishments, ThredUp Inc expanded its Resale-as-a-Service (RaaS) clientele, launching new resale programs in collaboration with Beyond Yoga, Smartwool, and Journeys. The company received accolades, being recognized as one of TIME 100’s Most Influential Companies of 2023 and receiving Digiday’s WorkLife 50 Awards.
Looking ahead to the fourth quarter of 2023, ThredUp Inc anticipates revenue ranging from $79.0 million to $81.0 million, a gross margin ranging from 61.0% to 63.0%, and an adjusted EBITDA loss margin ranging from 2.0% to 0.0%. For the full fiscal year 2023, the company projects revenue in the range of $319.5 million to $321.5 million, with a gross margin of 66.2% to 66.7%, and an adjusted EBITDA loss margin of 5.3% to 4.7%.
As of September 30, 2023, ThredUp Inc, listed on the NASDAQ as TDUP, held cash and cash equivalents totaling $68.6 million. The company’s total assets were valued at $265.4 million, while total liabilities amounted to $155.8 million. For the nine months concluding on September 30, 2023, the net cash used in operating activities was $14.6 million.
James Reinhart, CEO and co-founder of ThredUp Inc, expressed his thoughts on the results, stating, “We achieved another quarter of strong financial performance, in the face of a highly dynamic environment. Despite this backdrop, thredUP is executing at a high level, and we plan to carry that momentum into 2024.”
