Mon, Mar 3, 9:32 PM (54 days ago)
ThredUp Inc. (TDUP) reported total revenue of $260 million for the fiscal year ending December 31, 2024, representing a slight increase of 0.6% from the previous year. Consignment revenue grew by 15.5% to $246 million, while product revenue fell sharply by 69.5% to $13.8 million due to a strategic shift towards a consignment model. The gross margin improved to 79.7% from 76.8% year-over-year, driven by the higher-margin consignment model. The company incurred a loss from continuing operations of $40 million, an improvement from a loss of $52.4 million in 2023. Non-GAAP Adjusted EBITDA showed a positive shift to $8.7 million compared to a loss of $5.3 million in 2023. Strategically, ThredUp divested 91% of its European operations, leading to a $11.3 million loss on divestiture. The company continues to face risks including economic downturns, competition, and operational challenges associated with sourcing and processing secondhand items. The outlook remains cautious as ThredUp anticipates ongoing operating losses while investing in growth and infrastructure. The company ended the year with $44.2 million in cash and cash equivalents, maintaining compliance with its debt covenants.