NASDAQ$TDUP

Thredup Inc - Class A · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

ThredUp's Q2 2023 financial results were announced, showcasing revenue growth and improved profitability.

ThredUp reported an 8% year-over-year increase in revenue, reaching $82.7 million. The company's gross margin was 67.4%, with gross profit increasing by 6% year-over-year. Net loss improved to $18.8 million, and the adjusted EBITDA loss was $5.0 million.

  • Revenue increased by 8% year-over-year, reaching $82.7 million.
  • Gross margin was 67.4%, with gross profit up by 6% year-over-year.
  • Active Buyers totaled 1.7 million, while Orders reached 1.8 million.
  • Expanded Resale-as-a-Service (RaaS) offering with a dozen new resale programs.

Headline financials

Total Revenue

$82.7M

Previous: $76.4M+8.2%
EPS (adj)

-$0.18

Previous: -$0.29+37.9%
Gross Margin

67.4%

Previous: 68.9%-2.2%
Active Buyers

1.7M

Previous: 1.7M+0.0%
Orders

1.8M

Previous: 1.7M+5.9%
Adjusted EBITDA

-$5.01M

Previous: -$13.5M+62.9%
Capital Expenditures

-$12.3M

Previous: -$27.6M+55.4%
Free Cash Flow

-$31.1M

Previous: -$56M+44.5%
Net Income

-$18.8M

Previous: -$28.4M+33.9%
Operating Income

-$18.7M

Previous: -$28.3M+34.0%
Gross Profit

$55.7M

Previous: $52.6M+5.9%
Cash & Equivalents

$51.1M

Previous: $52.2M-2.2%
Total Assets

$276M

Previous: $346M-20.1%
Stock-Based Comp

$7.63M

Previous: $10.1M-24.2%

Revenue & EPS history

ThredUp · Revenue · Quarterly

$82.7M

Q2 2023+8.2%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

For the third quarter 2023, thredUP expects: Revenue in the range of $82.0 million to $84.0 million, Gross margin in the range of 66.5% to 68.5%, Adjusted EBITDA loss margin in the range of 6.5% to 4.5%. For the fourth quarter 2023, thredUP expects: Revenue in the range of $84.5 million to $86.5 million, Gross margin in the range of 64.5% to 66.5%, Breakeven Adjusted EBITDA margin. For the full fiscal year 2023, thredUP expects: Revenue in the range of $325.0 million to $329.0 million, Gross margin in the range of 66.5% to 67.5%, Adjusted EBITDA loss margin in the range of 5.5% to 4.5%.

Tailwinds

  • Revenue in the range of $82.0 million to $84.0 million for Q3 2023.
  • Gross margin in the range of 66.5% to 68.5% for Q3 2023.
  • Adjusted EBITDA loss margin in the range of 6.5% to 4.5% for Q3 2023.
  • Revenue in the range of $84.5 million to $86.5 million for Q4 2023.
  • Breakeven Adjusted EBITDA margin for Q4 2023.

Headwinds

  • Adjusted EBITDA loss margin in the range of 6.5% to 4.5% for Q3 2023.
  • Revenue in the range of $325.0 million to $329.0 million for the full fiscal year 2023.
  • Gross margin in the range of 66.5% to 67.5% for the full fiscal year 2023.
  • Adjusted EBITDA loss margin in the range of 5.5% to 4.5% for the full fiscal year 2023.
  • Uncertainty in predicting depreciation and amortization, stock-based compensation expense, and provision for income taxes.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+2.3%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+11.8%

Avg return

30 days after

48%

12 / 25 earnings

Positive

+53.1%

Q4 2022

Best reaction

-64.9%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.5%+7.8%+2.2%
Q4 2025-23.7%-27.1%-32.9%
Q3 2025-7.5%-6.9%-6.6%
Q1 2025+48.2%+40.3%+69.1%
Q4 2024+7.2%+5.8%+13.0%
Q3 2024+51.3%+68.7%+198.4%
Q2 2024-64.9%-65.9%-51.5%
Q1 2024+8.3%+12.8%+7.2%
Q4 2023-6.6%-15.6%-11.8%
Q3 2023-38.1%-46.2%-39.7%
Q2 2023+14.7%+18.6%-3.8%
Q1 2023+4.4%-11.1%-24.4%
Q4 2022+53.1%+33.8%+36.3%
Q3 2022+30.4%+29.3%+117.4%
Q2 2022+11.5%-15.6%-5.0%
Q1 2022-16.6%-22.5%-31.8%
Q4 2019-1.0%-2.1%+5.5%
Q4 2021+6.7%+7.1%+8.4%
Q3 2020-0.6%+7.1%-21.0%
Q3 2021+3.2%+6.2%-15.9%
Q2 2020+7.1%+6.3%-14.3%
Q2 2021-4.7%+4.3%-17.8%
Q4 2020-9.3%-2.5%+36.1%
Q1 2020-9.3%-2.5%+36.1%
Q1 2021-4.2%-2.1%+41.2%

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