Q3 2024 ThredUp Inc Earnings Call Transcript
Key Points
- ThredUp Inc (TDUP) exceeded its own expectations for Q3 and raised estimates for Q4 and the year.
- The company reported its strongest new buyer acquisition quarter in over two years, with improved customer retention metrics.
- Gross margins in the US improved by 70 basis points year-over-year to 79.3%, and the company achieved positive adjusted EBITDA for the fifth consecutive quarter.
- ThredUp Inc (TDUP) is making significant advancements in AI technologies, enhancing the second-hand shopping experience with features like AI search functionality and image search.
- The company is transitioning its US marketplace to a consignment model, which now makes up more than 90% of US revenue, expected to improve cash flow and working capital cycle.
- Consolidated revenue for Q3 2024 decreased by 11% year-over-year, with US revenue down 9.6%.
- US active buyers and orders declined by 7.3% and 10.5%, respectively, compared to the previous year.
- The company reported a consolidated GAAP net loss of $25 million for the third quarter.
- ThredUp Inc (TDUP) had to be more promotional to drive sales, indicating challenges in maintaining pricing power.
- The company is exiting the European market, which has been a distraction and required a final cash investment of approximately $2 million for the divestiture.
Welcome to the ThredUp third-quarter 2024 earnings call. (Operator Instructions) Please note today's call will be recorded and we will be standing by if you should need any assistance.
It is now my pleasure to turn today's conference over to Lauren Frasch. Please go ahead.
Good afternoon, and thank you for joining us on today's conference call to discuss ThredUp's third-quarter 2024 financial results. With me are James Reinhart, ThredUp's CEO and Co-founder, and Sean Sobers, CFO.
We posted our press release and supplemental financial information on our investor relations website at ir.thredup.com. This call is being webcast on our IR website, and a replay of this call will be available on the site shortly.
Before we begin, I'd like to remind you that we will make forward-looking statements during the course of this call, including, but not limited to, statements regarding our earnings guidance for the fourth fiscal quarter and full year of 2024, future financial performance,
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