Q1 2024 ThredUp Inc Earnings Call Transcript
Key Points
- ThredUp Inc (TDUP) reported a revenue of $79.6 million, marking a year-over-year increase of 5%.
- Consolidated gross margin reached 69.5%, with an 8% gross profit growth year over year, driven by the company's transition to consignment.
- Active buyers increased to 1.7 million, up 4% year over year, with orders growing 9% compared to the same period last year.
- ThredUp Inc (TDUP) expects to achieve positive adjusted EBITDA in Q2 and nearly triple its full-year adjusted EBITDA results compared to the last outlook.
- The company has made significant AI investments, launching new AI-powered tools and features to enhance the customer experience and drive long-term growth.
- Adjusted EBITDA for Q1 was negative $736,000, or -0.9% of revenue, reflecting ongoing challenges despite improvements.
- Despite revenue growth, product revenue shrank by 38% due to the ongoing transition to a consignment model.
- The transition to consignment, while beneficial for gross margins, is expected to slightly mute revenue growth due to its accounting treatment.
- ThredUp Inc (TDUP) incurred approximately $3 million of nonrecurring charges in Q1 due to a 20% reduction in its global corporate workforce.
- The company expressed caution regarding the consumer environment, noting challenges such as inflation and higher interest rates, which could impact future performance.
Good day, everyone, and welcome to today's thredUP Q1 2024 earnings call. At this time, all participants are in a listen only mode. Later, you had the opportunity to ask questions during the question and answer session. You may register your question at any time by pressing the star and one on your telephone keypad. You may withdraw yourself from the queue.
At any time by pressing star two. Please note this call is being recorded. I will be standing by if you should need any assistance is now my pleasure to turn the conference over to Lauren fresh, Head of Investor Relations. Please go ahead.
Good afternoon, and thank you for joining us on today's conference call to discuss UPS First Quarter 2024 financial results. With me are James Reinhart, CEO and Co-Founder, and Sharon Silvers, CFO. We posted our press release and supplemental financial information on our Investor Relations website at ir dot ReddyIce.com. This call is being webcast on our IR website and a replay of this call will be available on the site
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