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thredUP Announces Third Quarter 2022 Results

  • Quarterly revenue of $67.9 million, representing 7% growth year-over-year.
  • Third quarter gross margin of 65.5% and gross profit decline of 3% year-over-year.
  • Active Buyers of 1.7 million and Orders of 1.6 million in Q3 2022, representing year-over-year growth of 18% and 24%, respectively.
  • Released our inaugural Impact Report for 2021, reaffirming the company's commitment to environmental, social, and governance (ESG) initiatives and highlighting its impact on our people, our communities, and our planet.

OAKLAND, Calif., Nov. 14, 2022 (GLOBE NEWSWIRE) -- ThredUp Inc. (Nasdaq: TDUP), one of the largest online resale platforms for women’s and kids’ apparel, shoes, and accessories, announced today its financial results for the third quarter ended September 30, 2022.

“We are proud to deliver strong Q3 results in what continues to be a highly dynamic environment," said thredUP CEO and co-founder James Reinhart. “Even as the retail landscape becomes increasingly competitive and our customer is faced with economic uncertainty, we remain confident in our ability to flex our marketplace model and make progress towards profitability.”

Third Quarter 2022 Financial Highlights

  • Revenue: Total revenue of $67.9 million, an increase of 7% year-over-year.
  • Gross Profit and Gross Margin: Gross profit totaled $44.5 million, representing a decline of 3% year-over-year. Gross margin was 65.5% as compared to 72.8% in the third quarter last year.
  • Net Loss: Net loss was $23.7 million, or a negative 34.8% of revenue, for the third quarter 2022, compared to a net loss of $14.7 million, or a negative 23.3% of revenue, for the third quarter 2021.
  • Adjusted EBITDA and EBITDA Margin1: Adjusted EBITDA loss was $11.0 million, or a negative 16.2% of revenue, for the third quarter 2022, compared to an Adjusted EBITDA loss of $7.8 million, or a negative 12.4% of revenue, for the third quarter 2021.
  • Active Buyers and Orders: Active Buyers of 1.7 million and Orders of 1.6 million growing 18% and 24%, respectively, over the comparable quarter last year.

Recent Business Highlights

  • Resale-as-a-Service® (“RaaS®”): thredUP continues to expand its RaaS program with new clients, including Hot Topic and Francesca’s, and the expansion of its Athleta and Vera Bradley relationships.
  • Released Inaugural Impact Report: thredUP released its inaugural Impact Report, which outlines the company's business and brand-aligned environmental, social, and governance (ESG) strategy and details the progress made across initiatives in 2021 against SASB and GRI disclosure frameworks.
  • Winner of the “People Vision” Award: People success platform Lattice announced that thredUP is the 2022 winner of their “People Vision of the Year” award, recognizing thredUP as a top place to work for our investment in professional development and our innovations in work-life integration. 

Financial Outlook

For the fourth quarter 2022, thredUP expects:

  • Revenue in the range of $62 million to $64 million
  • Gross margin in the range of 62.0% to 64.0%
  • Adjusted EBITDA loss margin in the range of 16.5% to 14.5%

For the full fiscal year 2022, thredUP expects:

  • Revenue in the range of $279 million to $281 million
  • Gross margin in the range of 66.5% to 67.0%
  • Adjusted EBITDA loss margin in the range of 17.0% to 16.5%

Conference Call and Webcast Information

  • Conference Call: The live call is accessible at:
  • Webcast: The live and archived webcast and related earnings materials will be available at thredUP’s investor relations website:


1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. See “Reconciliation of GAAP to Non-GAAP Financial Measures” for a detailed reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure and “Non-GAAP Financial Measures” for a discussion of why we believe these non-GAAP measures are useful.

ThredUp Inc.
Condensed Consolidated Balance Sheets

  September 30,
 December 31,
  (in thousands)
Current assets:    
Cash and cash equivalents $36,713  $84,550 
Marketable securities  86,501   121,277 
Accounts receivable, net  3,175   4,136 
Inventory, net  15,003   9,825 
Other current assets  10,126   8,625 
Total current assets  151,518   228,413 
Operating lease right-of-use assets  46,760   39,340 
Property and equipment, net  89,529   55,466 
Goodwill  10,645   12,238 
Intangible assets  10,242   13,854 
Other assets  10,896   11,515 
Total assets $319,590  $360,826 
Current liabilities:    
Accounts payable $8,642  $13,336 
Accrued and other current liabilities  53,365   45,253 
Seller payable  18,690   19,125 
Operating lease liabilities, current  4,931   3,931 
Current portion of long-term debt  3,881   7,768 
Total current liabilities  89,509   89,413 
Operating lease liabilities, non-current  50,623   36,997 
Long-term debt, net of current portion  26,859   27,559 
Other non-current liabilities  2,904   1,123 
Total liabilities  169,895   155,092 
Commitments and contingencies    
Stockholders’ equity:    
Common stock  10   10 
Additional paid-in capital  545,449   522,161 
Accumulated other comprehensive loss  (7,636)  (1,094)
Accumulated deficit  (388,128)  (315,343)
Total stockholders’ equity  149,695   205,734 
Total liabilities and stockholders’ equity $319,590  $360,826 

ThredUp Inc.
Condensed Consolidated Statements of Operations

  Three Months Ended Nine Months Ended
  September 30,
 September 30,
 September 30,
 September 30,
  (in thousands, except per share amounts)
Consignment $41,553  $48,071  $137,524  $141,356 
Product  26,392   15,203   79,537   37,557 
Total revenue  67,945   63,274   217,061   178,913 
Cost of revenue:        
Consignment  9,087   10,080   29,354   31,599 
Product  14,362   7,100   40,335   17,370 
Total cost of revenue  23,449   17,180   69,689   48,969 
Gross profit  44,496   46,094   147,372   129,944 
Operating expenses:        
Operations, product and technology  38,702   32,081   121,824   91,455 
Marketing  14,752   16,941   51,370   48,344 
Sales, general and administrative  15,232   12,569   47,276   34,206 
Total operating expenses  68,686   61,591   220,470   174,005 
Operating loss  (24,190)  (15,497)  (73,098)  (44,061)
Interest expense  103   619   764   1,751 
Other income, net  (624)  (1,418)  (1,108)  (604)
Loss before provision for income taxes  (23,669)  (14,698)  (72,754)  (45,208)
Provision for income taxes  9   17   31   57 
Net loss $(23,678) $(14,715) $(72,785) $(45,265)
Loss per share, basic and diluted $(0.24) $(0.15) $(0.73) $(0.65)
Weighted-average shares used in computing loss per share, basic and diluted  100,253   96,349   99,409   70,113 

ThredUp Inc.
Condensed Consolidated Statements of Comprehensive Loss

  Three Months Ended Nine Months Ended
  September 30,
 September 30,
 September 30,
 September 30,
  (in thousands)
Net loss $(23,678) $(14,715) $(72,785) $(45,265)
Other comprehensive income (loss), net of tax:        
Foreign currency translation adjustments  (2,217)     (5,258)   
Unrealized gain (loss) on available-for-sale securities  (28)  8   (1,284)  (28)
Total other comprehensive income (loss)  (2,245)  8   (6,542)  (28)
Total comprehensive loss $(25,923) $(14,707) $(79,327) $(45,293)

ThredUp Inc.
Condensed Consolidated Statements of Cash Flows

  Nine Months Ended
  September 30,
 September 30,
  (in thousands)
Cash flows from operating activities:    
Net loss $(72,785) $(45,265)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization  10,217   6,147 
Stock-based compensation expense  20,758   9,389 
Reduction in carrying amount of right-of-use assets  4,820   3,201 
Other  1,409   1,768 
Changes in operating assets and liabilities:    
Accounts receivable, net  795   (72)
Inventory, net  (6,222)  (587)
Other current and non-current assets  (1,732)  (4,720)
Accounts payable  (3,000)  574 
Accrued and other current liabilities  6,918   14,082 
Seller payable  (380)  4,582 
Operating lease liabilities  2,396   (3,235)
Other non-current liabilities  (133)  4 
Net cash used in operating activities  (36,939)  (14,132)
Cash flows from investing activities:    
Purchases of marketable securities  (3,475)  (102,715)
Maturities of marketable securities  35,830   1,600 
Purchases of property and equipment, net  (39,316)  (15,207)
Net cash used in investing activities  (6,961)  (116,322)
Cash flows from financing activities:    
Proceeds from debt, net of discount  491   4,625 
Repayment of debt  (5,333)  (2,000)
Proceeds from issuance of Class A common stock, net of underwriting discounts and commissions     226,905 
Payment of costs for the initial public offering and the follow-on offering     (4,251)
Proceeds from exercise of stock options and employee stock purchase plan  3,878   3,782 
Tax withholding related to vesting of restricted stock units  (1,958)  (29)
Net cash provided by (used in) financing activities  (2,922)  229,032 
Effect of exchange rate changes on cash, cash equivalents and restricted cash  (918)   
Net change in cash, cash equivalents and restricted cash  (47,740)  98,578 
Cash, cash equivalents and restricted cash, beginning of period  91,840   67,539 
Cash, cash equivalents and restricted cash, end of period $44,100  $166,117 

ThredUp Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures

  Three Months Ended Nine Months Ended
  September 30,
 September 30,
 September 30,
 September 30,
  (in thousands)
Net loss, as reported $(23,678) $(14,715) $(72,785) $(45,265)
Interest expense  103   619   764   1,751 
Provision for income taxes  9   17   31   57 
Depreciation and amortization  3,539   2,248   10,217   6,147 
Stock-based compensation expense  7,177   2,995   20,758   9,389 
Acquisition-related expenses     1,020   274   1,020 
Restructuring charges  1,809      3,196    
Change in fair value of convertible preferred stock warrant liability           930 
Adjusted EBITDA loss $(11,041) $(7,816) $(37,545) $(25,971)



About thredUP

thredUP is transforming resale with technology and a mission to inspire a new generation of consumers to think secondhand first. By making it easy to buy and sell secondhand, thredUP has become one of the world's largest online resale platforms for women's and kids' apparel, shoes and accessories. Sellers love thredUP because we make it easy to clean out their closets and unlock value for themselves or for the charity of their choice while doing good for the planet. Buyers love shopping value, premium and luxury brands all in one place, at up to 90% off estimated retail price. Our proprietary operating platform is the foundation for our managed marketplace and consists of distributed processing infrastructure, proprietary software and systems and data science expertise. With thredUP’s Resale-as-a-Service, some of the world's leading brands and retailers are leveraging our platform to deliver customizable, scalable resale experiences to their customers. thredUP has processed over 137 million unique secondhand items from 55,000 brands across 100 categories. By extending the life cycle of clothing, thredUP is changing the way consumers shop and ushering in a more sustainable future for the fashion industry.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this release include, but are not limited to, guidance on financial results for the fourth quarter and full year of 2022; statements about future operating results and our long term growth; the momentum of our business; the growth rates in the markets in which we compete; the impact of the COVID-19 pandemic and its varied social and macroeconomic consequences, inflationary pressures, increased interest rates and general global economic uncertainty on consumer behavior and our business; our investments in technology and infrastructure; our ability to successfully integrate and realize the benefits of our past or future strategic acquisitions, investments or restructuring activities; the success and expansion of our RaaS® model and the timing and plans for future RaaS® clients; and our ability to attract new Active Buyers.

The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including, but not limited to, risks detailed in our Annual Report on Form 10-K for the year ended December 31, 2021, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 and in our Quarterly Report on Form 10-Q that will be filed following this earnings release. The forward-looking statements in this release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing thredUP’s views as of any date subsequent to the date of this press release.

Additional information regarding these and other factors that could affect thredUP's results is included in thredUP’s SEC filings, which may be obtained by visiting our Investor Relations website at or the SEC's website at

Operating Metrics

An Active Buyer is a thredUP buyer who has made at least one purchase in the last twelve months. A thredUP buyer is a customer who has created an account or purchased in our marketplaces, including through our RaaS® clients. A thredUP buyer is identified by a unique email address and a single person could have multiple thredUP accounts and count as multiple Active Buyers.

Orders are defined as the total number of orders placed by buyers across our marketplaces, including through our RaaS® clients, in a given period, net of cancellations.

Non-GAAP Financial Measures

This press release and the accompanying tables contain non-GAAP financial measures: Adjusted EBITDA and Adjusted EBITDA margin. In addition to our results determined in accordance with GAAP, we believe that Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP measures, are useful in evaluating our operating performance. We use Adjusted EBITDA and Adjusted EBITDA margin to evaluate and assess our operating performance and the operating leverage in our business, and for internal planning and forecasting purposes. We believe that Adjusted EBITDA and Adjusted EBITDA margin, when taken collectively with our GAAP results, may be helpful to investors because they provide consistency and comparability with past financial performance and assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. Adjusted EBITDA and Adjusted EBITDA margin are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly-titled non-GAAP measures used by other companies.

A reconciliation is provided above for Adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with GAAP. We calculate Adjusted EBITDA as net loss adjusted to exclude, where applicable in a given period, depreciation and amortization, stock-based compensation expense, interest expense, acquisition-related expenses, restructuring charges, change in fair value of convertible preferred stock warrant liability and provision for income taxes.

Investors are encouraged to review our results determined in accordance with GAAP and the reconciliation of Adjusted EBITDA to net loss. thredUP is not providing a quantitative reconciliation of forward-looking guidance of Adjusted EBITDA 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, depreciation and amortization, stock-based compensation expense, change in fair value of convertible preferred stock warrant liability and provision for income taxes. Accordingly, a reconciliation for Adjusted EBITDA in order to calculate forward-looking Adjusted EBITDA margin is not available without unreasonable effort. However, for the fourth quarter of 2022 and full year 2022, depreciation and amortization is expected to be $3.6 million and $13.9 million, respectively. In addition, for the fourth quarter of 2022 and full year 2022, stock-based compensation expense is expected to be $6.2 million and $27 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 margin. 

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