At ThredUp, losses narrow and revenue increases amid ‘record orders’

Resale platform ThredUp has posted strong financials for the fourth quarter of 2023, with revenue rising by 14 percent year-over-year to 81.4 million dollars.

The company further reported that its gross profit came to 50.4 million dollars YoY, up 12 percent, while its gross margin dropped from 61.9 percent to 63.1 percent in the same period, reflecting a 1.9 million dollar inventory write-off in Europe.

Net loss also narrowed during the final quarter, totalling 14.6 million dollars, or a negative 18 percent of revenue, compared to 19.5 million dollars in the same period prior.

Its adjusted EBITDA loss, meanwhile, came to 2.1 million dollars, compared to its previously reported 5.8 million dollars, while its active buyers rose 9 percent to 1.8 million.

For the full financial year of 2023, ThredUp also saw revenues rise by 12 percent YoY to 322 million dollars, with gross profits totalling 213.8 million dollars, representing an 11 percent YoY increase.

Its net loss for the year dropped from the previous 92.3 million dollars to 71.2 million dollars, while adjusted EBITDA loss came to 17.4 million dollars.

The company further reported “record orders” for the period, rising 6 percent to 6.9 million for the full year.

Outlook: Adjusted EBITDA to breakeven in 2024

In a release, ThredUp CEO and co-founder, James Reinhart, said: “We closed out 2023 with another quarter of strong financial performance, demonstrating healthy top-line growth and bottom-line leverage.

“Looking ahead, we are confident that by focusing on strategic growth drivers in the US and applying our proven resale playbook in Europe, we can deliver adjusted EBITDA breakeven on an annual basis in 2024.”

For the first quarter of 2024, ThredUp said it expects revenue to be in the range of 79 million dollars to 81 million dollars, while its gross margin is forecast to be between 68.5 percent to 70.5 percent.

For the full fiscal year, the company is further expecting to see revenues in the range of 340 to 350 million dollars, with gross margin between 69.5 and 71.5 percent.