On November 6, 2023, ThredUp Inc (TDUP, Financial), one of the largest online resale platforms for apparel, shoes, and accessories, announced its financial results for the third quarter ended September 30, 2023. The company reported a 21% year-over-year increase in revenue, reaching $82.0 million. This quarter also marked the first time the company achieved quarterly adjusted EBITDA breakeven.
Financial Highlights
ThredUp Inc (TDUP, Financial) reported a gross profit of $56.6 million, representing a 27% YoY increase. The gross margin was 69.0% compared to 65.5% for the third quarter of 2022. The company recorded a net loss of $18.1 million, or a negative 22.0% of revenue, for the third quarter of 2023, compared to a net loss of $23.7 million, or a negative 34.8% of revenue, for the third quarter of 2022.
The company reported an adjusted EBITDA loss of $3.6 million, or a negative 4.4% of revenue, for the third quarter of 2023, compared to an adjusted EBITDA loss of $11.0 million, or a negative 16.2% of revenue, for the third quarter of 2022. Active buyers and orders both stood at 1.8 million, representing an increase of 4% and 11%, respectively, over the comparable quarter last year.
Business Highlights
ThredUp Inc (TDUP, Financial) continued to grow its Resale-as-a-Service (RaaS) client roster, launching new resale programs with Beyond Yoga, Smartwool, and Journeys. The company was recognized as one of TIME 100's Most Influential Companies of 2023 and received Digiday's WorkLife 50 Awards.
Financial Outlook
For the fourth quarter of 2023, ThredUp Inc (TDUP, Financial) expects revenue in the range of $79.0 million to $81.0 million, a gross margin in the range of 61.0% to 63.0%, and an adjusted EBITDA loss margin in the range of 2.0% to 0.0%. For the full fiscal year 2023, the company expects revenue in the range of $319.5 million to $321.5 million, a gross margin in the range of 66.2% to 66.7%, and an adjusted EBITDA loss margin in the range of 5.3% to 4.7%.
Balance Sheet and Cash Flow
As of September 30, 2023, ThredUp Inc (TDUP, Financial) had cash and cash equivalents of $68.6 million. The company's total assets stood at $265.4 million, while total liabilities were $155.8 million. For the nine months ended September 30, 2023, the net cash used in operating activities was $14.6 million.
ThredUp Inc (TDUP, Financial)'s CEO and co-founder James Reinhart commented on the results,
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."
Explore the complete 8-K earnings release (here) from ThredUp Inc for further details.