Online resale platform ThredUp reported first quarter revenue of 79.6 million dollars, an increase of 5 percent year-over-year.
Gross profit for the quarter totaled 55.3 million dollars, up 8 percent, while gross margin rose to 69.5 percent. Net loss contracted to 16.6 million dollars or a negative 20.8 percent, while adjusted EBITDA loss improved to 0.7 million dollars or a negative 0.9 percent of revenue.
“We delivered another quarter of strong financial performance, demonstrating healthy gross profit growth and bottom-line leverage. Looking ahead, we are focused on reshaping ThredUp into an AI-powered resale company by increasing investments in product, operations, and marketing, while reducing operating expenses and accelerating our path to free cash flow,” said ThredUp CEO and co-founder James Reinhart.
Highlights of ThreadUp’s first quarter developments
During the quarter, the company reduced its annualised operating expenses by approximately 17 million dollars and its global corporate headcount by approximately 20 percent. As a result, the company will invest more in AI product developments, boost processing in its distribution centres, and increase marketing spend.
ThredUp launched a new AI search experience, as well as two new AI-powered tools that allow customers to thrift any style that inspires them and launched a new online concept store that provides a first look at new and upcoming product features and enhancements in its marketplace.
The company appointed Florin Filote as the company’s general manager of Europe to oversee the European business operations, which currently span nine countries in Central and Eastern Europe.
ThredUp continued to grow its RaaS client roster, launching eight new resale programs with brands including Eloquii, Veda and Goldie.
The company’s 12th annual resale report in partnership with GlobalData, revealed that the US secondhand market grew 7 times faster than the broader retail clothing market in 2023 and is set to reach 73 billion dollars by 2028.
ThreadUp forecasts FY24 revenue to range between 328 to 338 million dollars
For the second quarter 2024, ThredUp expects revenue in the range of 81 million dollars to 83 million dollars, gross margin in the range of 71 percent to 73 percent, representing gross profit dollar growth of 6 percent at the midpoint of revenue and gross margin guidance and adjusted EBITDA margin in the range of 1 percent to 3 percent.
For the full fiscal year 2024, ThredUp expects revenue in the range of 328 million dollars to 338 million dollars, gross margin in the range of 71 percent to 72 percent, representing gross profit dollar growth of 11 percent year over year at the midpoint of revenue and gross margin guidance and adjusted EBITDA margin in the range of 2 percent to 4 percent.