ThredUp Inc, a prominent online resale platform specializing in women’s and kids’ apparel, shoes, and accessories, faced a turbulent start to the trading week as its stock saw a notable decline. Despite delivering a promising financial results for the fourth quarter (Q4) and full year of 2023, the ThredUp Inc’s shares experienced downward pressure, opening at $2.06 on Tuesday, marking a significant drop from the previous day’s close of $2.36.
At the time of this publication, ThredUp Inc stock (TDUP) has witnessed a decline.
ThredUp Inc
Current Price: $1.86
Change : -0.50
Change (%): (-21.19%)
Volume: 1.9M
Source: Tomorrow Events Market Data
Financial Q4 Results of ThredUP
ThredUp Inc. reported a commendable 14% increase in quarterly revenue, reaching $81.4 million, with a 12% rise in full-year revenue, totaling $322.0 million. However, the company’s gross margin for Q4 dipped slightly to 61.9%, primarily due to a $1.9 million inventory write-off in Europe. Nonetheless, the full-year gross margin remained robust at 66.4%, showcasing an 11% year-over-year growth in gross profit.
Operational Highlights and Future Outlook:
Despite the stock market’s reaction, ThredUp Inc. highlighted operational achievements, including record active buyers and orders for both the fourth quarter and full year. The company attributed this success to AI innovation and customer experience enhancements, such as expedited shipping, leading to decreased return rates and improved operational efficiency.
Looking forward, ThredUp Inc. expressed optimism, projecting revenue between $340.0 million to $350.0 million for 2024, with a gross margin expected to range from 69.5% to 71.5%. CEO James Reinhart emphasized the company’s strategic focus on growth drivers in the U.S. market and the implementation of its resale playbook in Europe, aiming for adjusted EBITDA breakeven in the upcoming year.
ThredUp Q4 Results – Balance Sheet and Cash Flow Statements:
While ThredUp Inc.’s balance sheet showed a decrease in total assets, the company witnessed a rise in cash and cash equivalents, standing at $56.1 million by the end of 2023. Furthermore, operating activities improved significantly, with $22.6 million used compared to $52.1 million in 2022, indicating enhanced financial efficiency.
Despite the stock market’s initial reaction, ThredUp Inc’s latest Q4 financial results reflects a company poised for growth in the competitive online resale sector. With a strategic focus on technology, customer experience, and a positive outlook for 2024, ThredUp Inc. presents an enticing opportunity for value investors and those interested in the evolving retail landscape.
