Mon, May 5, 8:34 PM (10 days ago)
**ThredUp Inc. (TDUP) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $71.3 million, up 10.5% year-over-year (YoY). - **Gross Profit:** $56.4 million, up 9.0% YoY. - **Gross Margin:** 79.1%, down 100 basis points YoY due to higher shipping, labor, and packaging costs. - **Operating Loss:** $5.2 million, improved from $12.2 million in Q1 2024. - **Non-GAAP Adjusted EBITDA:** $3.8 million, up 101.7% YoY. - **Active Buyers:** 1.4 million, up 5.7% YoY. - **Orders:** 1.4 million, up 16.1% YoY. **Cash Flow:** - **Operating Cash Flow:** $5.7 million, up 74.7% YoY. - **Investing Cash Flow:** $5.1 million, a significant improvement from a $5.3 million outflow in Q1 2024. - **Financing Cash Flow:** -$1.6 million, relatively stable compared to -$1.5 million in Q1 2024. **Liquidity and Capital Resources:** - **Cash and Equivalents:** $55.4 million. - **Term Loan Availability:** $22.5 million. - **Debt Compliance:** Fully compliant with debt covenants. **Trends and Uncertainties:** - **Revenue Growth:** Driven by increased active buyers, orders, and average order value. - **Cost Management:** Reduced operations, product, and technology expenses by 5.4% YoY. - **Marketing Investment:** Increased marketing expenses by 21.1% YoY to support future growth. - **Inflation Impact:** Elevated inflation levels affecting gross margin and operating expenses. - **Future Operations:** Expect continued operating losses in 2025 due to growth investments. **Future Outlook:** - **Capital Expenditures:** Expected to remain modest for the remainder of 2025. - **Liquidity:** Existing cash and marketable securities sufficient for at least the next 12 months. - **Growth Plans:** Focus on expanding marketplaces, introducing new offerings, and attracting RaaS clients. **Risk Factors:** - **Market Risks:** Interest rate and inflation risks. - **Operational Risks:** Dependence on technology, supply chain disruptions, and competitive pressures. - **Financial Risks:** Need for additional capital to support growth, potential dilution of existing stockholders. **Conclusion:** ThredUp Inc. showed improved financial performance in Q1 2025 with increased revenue, active buyers, and orders. However, the company continues to face challenges from inflation and increased costs. The focus remains on growth investments and managing operational efficiencies to drive future profitability.