ThredUp Inc. (TDUP), a leading online resale platform, reported modest revenue growth in its first-quarter earnings call for the year 2024. The company announced a 5% year-over-year increase in revenue, reaching $79.6 million, and a significant gross margin of 69.5%.
ThredUp also shared its strategic shift towards becoming an AI-powered resale company, with the expectation of positive adjusted EBITDA in Q2 and a triple increase in full-year adjusted EBITDA results.
Despite a GAAP net loss of $16.6 million, ThredUp is focused on achieving profitability and free cash flow within the year. The company emphasized its progress in Europe, the expansion of its Resale-as-a-Service (RaaS) business, and continued advocacy for sustainable fashion.
Key Takeaways
- ThredUp’s Q1 2024 revenue rose to $79.6 million, a 5% increase year-over-year.
- The company achieved a record high gross margin in the US at 80.1%.
- Active buyers and orders both saw growth, with a 4% and 9% increase year-over-year, respectively.
- ThredUp plans to focus on AI-driven resale experiences and tools for consumers.
- The company expects a positive adjusted EBITDA in Q2 and a substantial increase in full-year adjusted EBITDA.
- ThredUp is making strides in Europe and is expanding its Resale-as-a-Service business.
Company Outlook
- Q2 revenue is projected to be between $81 million and $83 million with a gross margin of 71% to 73%.
- Full-year 2024 revenue is expected to be in the range of $328 million to $338 million, with a gross margin of approximately 71% to 72%.
- The company is investing in new product experiences, processing operations, and marketing while keeping profitability in mind.
- ThredUp is cautious about the uncertain consumer environment, monitoring inflation, and interest rates closely.
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Bearish Highlights
- Product revenue declined by 38% year-over-year.
- ThredUp reported a GAAP net loss of $16.6 million and an adjusted EBITDA loss of $736,000 for Q1 2024.
- The company has reduced its global corporate workforce by 20% to save costs.
- ThredUp is cautious about sales value and premium customers in the US due to recent business changes.
Bullish Highlights
- Consignment revenue grew by 32% year-over-year.
- The company is confident in its profitability and free cash flow for the year.
- Structural changes have been made to support AI-driven strategic priorities, expecting higher gross margins.
- ThredUp anticipates double-digit growth…
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