First quarter revenue of $79.6 million, representing an increase of 5% year-over-year. First quarter gross margin of 69.5% and an increase in gross profit of 8% year-over-year. Active Buyers of 1.7 million and Orders of 1.7 million in Q1 2024, representing an increase of 4% and an increase of 9%, respectively, year-over-year. Issued an updated 2024 financial outlook, including positive adjusted EBITDA margin in the range of 2.0% to 4.0% and positive free cash flow on an annual basis. OAKLAND, Calif., May 06, 2024 (GLOBE NEWSWIRE) -- ThredUp Inc. (NASDAQ:TDUP, LTSE: TDUP)), one of the largest online resale platforms for apparel, shoes, and accessories, announced today its financial results for the first quarter ended March 31, 2024 and updated full year 2024 financial outlook. "We delivered another quarter of strong financial performance, demonstrating healthy gross profit growth and bottom-line leverage," said ThredUp CEO and co-founder James Reinhart. "Looking ahead, we are focused on reshaping ThredUp into an AI-powered resale company by increasing investments in product, operations, and marketing, while reducing operating expenses and accelerating our path to free cash flow." First Quarter 2024 Financial Highlights Revenue: Total revenue of $79.6 million, an increase of 5% year-over-year. Gross Profit and Gross Margin: Gross profit totaled $55.3 million, representing an increase of 8% year-over-year. Gross margin was 69.5% as compared to 67.3% for the first quarter 2023. Net Loss: Net loss was $16.6 million, or a negative 20.8% of revenue, for the first quarter 2024, compared to a net loss of $19.8 million, or a negative 26.1% of revenue, for the first quarter 2023. Adjusted EBITDA Loss and Adjusted EBITDA Loss Margin1: Adjusted EBITDA loss was $0.7 million, or a negative 0.9% of revenue, for the first quarter 2024, compared to an Adjusted EBITDA loss of $6.6 million, or a negative 8.7% of revenue, for the first quarter 2023. Active Buyers and Orders: Active Buyers of 1.729 million and Orders of 1.651 million, representing an increase of 4% and an increase of 9%, respectively, over the first quarter 2023. _________________________1 Adjusted EBITDA loss and Adjusted EBITDA loss margin are non-GAAP measures. See "Reconciliation of GAAP to Non-GAAP Financial Measures" for a detailed reconciliation of Adjusted EBITDA loss and Adjusted EBITDA loss margin to the most directly comparable GAAP measures and "Non-GAAP Financial Measures" for a discussion of why we believe these non-GAAP measures are useful. Recent Business Highlights Reorganization to Support AI-Driven Operating Model: ThredUp reorganized several parts of the business, enabling it to take advantage of the emergent technological shifts in generative AI, which the company believes uniquely benefit its single-SKU model. As part of its strategic realignment, the company reduced its annualized operating expenses by approximately $17 million and its global corporate headcount by approximately 20%. As a result, the company will invest more in AI product developments, boost processing in its distribution centers, and increase marketing spend. AI Innovation: ThredUp launched a new AI search experience, as well as two new AI-powered tools that allow customers to thrift any style that inspires them. Launched Online Concept Store: As ThredUp accelerates its innovation pipeline, the company launched thredup.com/concept, an online concept store that provides a first look at new and upcoming product features and enhancements in its marketplace. Hired a New General Manager in Europe: ThredUp announced the appointment of Florin Filote as the company's General Manager of Europe. Florin brings nearly two decades of experience in retail and ecommerce with an emphasis on building and scaling marketplace businesses and will oversee the company's European business operations, which currently span nine countries in Central and Eastern Europe. Resale-as-a-Service® (RaaS®): ThredUp continued to grow its RaaS client roster, launching eight new resale programs with brands including ELOQUII, Veda, and Goldie. The company is looking to expand its RaaS footprint in Europe. Published 12th Annual Resale Report: In partnership with GlobalData, ThredUp released the results of its 2024 Resale Report, revealing that the U.S. secondhand market grew 7 times faster than the broader retail clothing market in 2023 and is set to reach $73 billion by 2028. The report also includes new insights about trends driving online resale's growth, momentum in branded resale, and a special section about the government's role in reducing fashion's impact. Financial Outlook For the second quarter 2024, ThredUp expects: Revenue in the range of $81.0 million to $83.0 million. Gross margin in the range of 71.0% to 73.0%, representing gross profit dollar growth of 6% year over year at the midpoint of revenue and gross margin guidance. Adjusted EBITDA margin in the range of 1.0% to 3.0%. For the full fiscal year 2024, ThredUp expects: Revenue in the range of $328.0 million to $338.0 million. Gross margin in the range of 71.0% to 72.0%, representing gross profit dollar growth of 11% year over year at the midpoint of revenue and gross margin guidance. Adjusted EBITDA margin in the range of 2.0% to 4.0%. ThredUp is not providing a quantitative reconciliation of forward-looking guidance of the Non-GAAP measure Adjusted EBITDA loss to net loss because certain items are out of ThredUp's control or cannot be reasonably predicted. Historically, these items have included, but are not limited to, stock-based compensation expense, depreciation and amortization, severance and other, interest expense, provision (benefit) for income taxes, acquisition and offering-related expenses, and impairment of non-marketable equity investment. Accordingly, a reconciliation for Adjusted EBITDA loss in order to calculate forward-looking Adjusted EBITDA loss margin is not available without unreasonable effort. However, for the second quarter of 2024 and full year 2024, depreciation and amortization is expected to be $5.0 million and $19.7 million, respectively. In addition, for the second quarter of 2024 and full year 2024, stock-based compensation expense is expected to be $7.2 million and $28.7 million, respectively. These items are uncertain, depend on various factors, and could result in projected net loss being materially less than is indicated by the currently estimated Adjusted EBITDA loss margin. ThredUp is not providing a quantitative reconciliation for free cash flow estimates on a forward-looking basis because it is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of net cash provided by (used in) operating activities and certain reconciling items on a forward-looking basis, which could be significant to the Company's results. Conference Call and Webcast Information The live and archived webcast and all related earnings materials will be available at ThredUp's investor relations website: ir.thredup.com/news-events/events-and-presentations. ThredUp Inc.Condensed Consolidated Balance Sheets(unaudited)       March 31,2024   December 31,2023     (in thousands) ASSETS Current assets:         Cash and cash equivalents   $ 50,112     $ 56,084   Marketable securities     12,399       8,100   Accounts receivable, net     6,929       7,813   Inventory     11,582       15,687   Other current assets     5,834       6,204   Total current assets     86,856       93,888   Operating lease right-of-use assets     47,138       42,118   Property and equipment, net     85,083       87,672   Goodwill     11,677       11,957   Intangible assets     7,329       8,156   Other assets     6,196       6,176   Total assets   $ 244,279     $ 249,967   LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:         Accounts payable   $ 9,133     $ 9,457   Accrued and other current liabilities     37,541       35,934   Seller payable     21,037       21,495   Operating lease liabilities, current     5,517       5,949   Current portion of long-term debt     3,843       3,838   Total current liabilities     77,071       76,673   Operating lease liabilities, non-current     49,750       44,621   Long-term debt, net of current portion     21,044       22,006   Other non-current liabilities     2,884       2,750   Total liabilities     150,749       146,050   Commitments and contingencies         Stockholders' equity:         Class A and B common stock, $0.0001 par value; 1,120,000 shares authorized as of March 31, 2024 and December 31, 2023; 110,217 and 108,784 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively     11       11   Additional paid-in capital     592,193       585,156   Accumulated other comprehensive loss     (3,245 )     (2,375 ) Accumulated deficit     (495,429 )     (478,875 ) Total stockholders' equity     93,530       103,917