ThredUp Inc is an online resale platform for women and kids apparel, shoes, and accessories. It generates revenue from items that are sold to buyers through the website, mobile app, and RaaS partners. Geographically, the majority of the company's revenue is generated from the United States.
Performance Overview
ThredUp Inc (TDUP, Financial) reported a revenue of $79.8 million for Q2 2024, representing a 4% year-over-year decrease, falling short of the analyst estimate of $82.48 million. The company posted a net loss of $14.0 million, or a negative 17.5% of revenue, which is an improvement from the net loss of $18.8 million, or a negative 22.7% of revenue, in Q2 2023. The adjusted EBITDA loss was $1.5 million, or a negative 1.9% of revenue, compared to an adjusted EBITDA loss of $5.0 million, or a negative 6.1% of revenue, in the same period last year.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $79.8 million | $82.7 million |
| Gross Profit | $56.1 million | $55.7 million |
| Gross Margin | 70.4% | 67.4% |
| Net Loss | $14.0 million | $18.8 million |
| Adjusted EBITDA Loss | $1.5 million | $5.0 million |
Challenges and Strategic Shifts
ThredUp Inc (TDUP, Financial) faced challenges in both the U.S. and European markets. The company is evaluating strategic alternatives for its European business, which saw a revenue decline of 18% year-over-year. The company plans to exit the European market and focus on its U.S. operations, where revenue remained flat year-over-year at $66.7 million.
“While this quarter presented challenges in both the U.S. and Europe, we have emerged with a renewed focus,” said ThredUp CEO and co-founder James Reinhart. “Looking ahead, we are intent on enhancing our product experience through gen-AI, improving our unit economics and driving process improvements throughout our operations.”
Financial Achievements
Despite the revenue decline, ThredUp Inc (TDUP, Financial) achieved a gross profit increase of 1% year-over-year, reaching $56.1 million. The gross margin improved to 70.4% from 67.4% in Q2 2023. The U.S. gross profit increased by 3% year-over-year to $52.6 million, with a gross margin of 78.8%, up from 76.4% in the previous year.
Income Statement Highlights
ThredUp Inc (TDUP, Financial) reported total operating expenses of $70.4 million, down from $74.4 million in Q2 2023. The company’s operating loss narrowed to $14.3 million from $18.7 million in the same period last year. Interest expense decreased slightly to $652,000, while other income increased to $998,000.
Balance Sheet and Cash Flow
As of June 30, 2024, ThredUp Inc (TDUP, Financial) had total assets of $231.2 million, down from $250.0 million at the end of 2023. The company’s cash and cash equivalents stood at $44.8 million, compared to $56.1 million at the end of 2023. Net cash used in operating activities was $3.6 million for the first half of 2024, a significant improvement from $14.8 million in the same period last year.
Future Outlook
For Q3 2024, ThredUp Inc (TDUP, Financial) expects consolidated revenue in the range of $69 million to $71 million and a consolidated gross margin between 69.8% and 71.8%. For the full fiscal year 2024, the company anticipates consolidated revenue between $298 million and $302 million, with a consolidated gross margin ranging from 69.6% to 70.6%.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from ThredUp Inc for further details.
