NASDAQ$TDUP

Thredup Inc - Class A · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

ThredUp reported strong financial performance with revenue increase and gross profit growth.

ThredUp reported a 21% year-over-year increase in revenue, reaching $82.0 million for Q3 2023. The company's gross profit increased by 27% year-over-year, with a gross margin of 69.0%. Active buyers and orders both saw increases, and the U.S. business achieved adjusted EBITDA breakeven.

  • Revenue increased by 21% year-over-year, reaching $82.0 million.
  • Gross profit increased by 27% year-over-year, with a gross margin of 69.0%.
  • Active Buyers and Orders increased by 4% and 11% year-over-year, respectively, both reaching 1.8 million.
  • U.S. business reached quarterly adjusted EBITDA breakeven for the first time.

Headline financials

Total Revenue

$82M

Previous: $67.9M+20.8%
EPS (adj)

-$0.17

Previous: -$0.24+29.2%
Gross Margin

69.0%

Previous: 65.5%+5.3%
Active Buyers

1.8M

Previous: 1.7M+5.9%
Orders

1.8M

Previous: 1.6M+12.5%
Adjusted EBITDA

-$3.6M

Previous: -$11M+67.3%
Capital Expenditures

-$13.8M

Previous: -$39.3M+65.0%
Free Cash Flow

-$31.9M

Previous: -$63M+49.4%
Net Income

-$18.1M

Previous: -$23.7M+23.6%
Operating Income

-$18.2M

Previous: -$24.2M+24.8%
Gross Profit

$56.6M

Previous: $44.5M+27.3%
Cash & Equivalents

$68.6M

Previous: $36.7M+86.7%
Total Assets

$265M

Previous: $320M-17.0%
Stock-Based Comp

$7.89M

Previous: $7.18M+9.9%

Revenue & EPS history

ThredUp · Revenue · Quarterly

$82M

Q3 2023+20.8%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

For the fourth quarter 2023, thredUP expects revenue in the range of $79.0 million to $81.0 million, gross margin in the range of 61.0% to 63.0%, and adjusted EBITDA loss margin in the range of 2.0% to 0.0%.

Tailwinds

  • Revenue is expected to be between $79.0 million and $81.0 million.
  • Gross margin is expected to be between 61.0% and 63.0%.
  • Adjusted EBITDA loss margin is expected to be between 2.0% and 0.0%.
  • Full year revenue is expected to be between $319.5 million and $321.5 million.
  • Full year gross margin is expected to be between 66.2% and 66.7%.

Headwinds

  • Revenue is only expected to increase to a maximum of $81 million
  • Gross margin expected to decrease to a range of 61.0% to 63.0%.
  • Adjusted EBITDA loss margin expected to remain negative, between 2.0% and 0.0%.
  • The guidance is based on current market conditions and expectations, which are subject to change.
  • The forward-looking statements are subject to risks and uncertainties.

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 Q3 2023

Historical avgQ3 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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