ThredUp Q2 2023 Results Sees Revenue Bump
On Tuesday, online resale marketplace ThredUp released its second-quarter results, which exceeded guidance.
In the second quarter ended June 30, ThredUp exceeded expectations with total revenue of $82.7 million (up from $76.4 million the year prior). The company reported 8 percent growth year-over-year. ThredUp’s net loss narrowed to $18.8 million compared to $28.4 million for the second quarter of 2022.
“As we enter our third year as a public company, we’re proud of our strong Q2 results,” chief executive officer and ThredUp cofounder James Reinhart said in a press statement. “Our performance demonstrates both the management team’s ability to forecast and manage the business amid a dynamic consumer environment as well as the sound strategy behind key company initiatives that have powered our growth and margin expansion.”
Last month, ThredUp released its annual impact report detailing environmental gains and nuance in the aftermarket. The business is seeing continued traction with more users opting for closet cleanout. The reseller reported half-a-million clean-out kits ordered to date via its resale as a service, or RaaS, partnerships. Per its annual report, the company also proudly noted it has processed 172.3 million items to date. And earlier this year, ThredUp put its stake in the ground for a long-term resale outlook by joining the Long-Term Stock Exchange, a subsidiary of LTSE Group. The dual listing was meant to be a signal of the reseller’s environment, social and corporate governance aims and how it is reframing financial growth.
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ThredUp’s plan is to reach an adjusted earnings before interest, taxes, depreciation and amortization loss breakeven in the fourth quarter of 2023, which the company said it is still on track for. Adjusted EBITDA loss was $5 million for the second quarter of 2023, compared to $13.5 million a year prior.
To achieve this breakeven, the reseller plans to lower costs across technology and customer acquisition. ThredUp noted improvements in its clean-out service and “thrift guarantee” returns incentive that coaxes customers into credits for low-cost items (those not worth the restocking effort). The thrift guarantee is a commitment to eliminate any source of friction for newcomer thrifters. It’s really more a “thrift promise,” per an interview with Reinhart, or a “unifying force” that is unique to ThredUp. He noted there is a “positive adoption” to consignment in Europe too. Betting on the strength of the resale market, ThredUp predicts a rise in revenue to land in the range of $325 million to $329 million for the full fiscal year 2023.
Today, ThredUp counts 1.7 million active buyers and orders of 1.8 million, representing a decrease of 0.8 percent for buyers and an increase of 5 percent for orders, over the comparable quarter last year.
This story was reported by WWD and originally appeared on WWD.com.
