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, 2021.
“Third-quarter marked another quarter of exceptional financial
performance, with our platform demonstrating strong resilience
amidst headwinds posed by the pandemic,” said James Reinhart, CEO
and co-founder at thredUP. “Supply continues to appear endless,
demand for secondhand is increasing with more first-time buyers
trying thredUP, and we’re doubling down on infrastructure
investments so we can continue providing our buyers with a vast and
ever-changing selection of great brands at great prices.”
Third Quarter 2021 Financial
Highlights
-
Revenue: Third quarter total revenue of $63.3
million, an increase of 35% year-over-year.
- Gross Profit and Gross
Margin: Gross profit totaled $46.1 million representing
growth of 41% year-over-year. Gross margin expanded to 73% from 70%
in the comparable quarter last year.
- Net Loss: The GAAP
net loss was $14.7 million, or 23% of revenue, for the third
quarter 2021, compared to a GAAP net loss of $11.0 million, or 23%
of revenue, for the third quarter 2020.
- Adjusted EBITDA and EBITDA
Margin: The Adjusted EBITDA loss was $7.8 million, or 12%
of revenue, for the third quarter 2021, compared to the Adjusted
EBITDA loss of $7.5 million, or 16% of revenue, for the third
quarter 2020.
- Active Buyers and
Orders: Active Buyers of 1.4 million and Orders of 1.3
million growing 14% and 28%, respectively, over the comparable
quarter last year.
- New
Distribution Center outside Dallas, Texas: This four-level
facility, which will be thredUP’s largest and most-automated
distribution center to-date, is expected to boost our total
distribution network capacity to 16.5 million items when fully
operational, more than doubling our current capacity.
Recent Business Highlights
- Closed the Remix Acquisition: Acquisition
closed in October (Q4), kickstarting our international
expansion.
-
Resale-as-a-Service® (RaaS®):
thredUP announced new RaaS programs with adidas, Crocs, and Michael
Stars and expanded its ongoing partnership with Madewell by
launching “A Circular Store” in Brooklyn, NY.
- Strategic Investment in Latin America: thredUP
completed a strategic investment in Vopero, a resale marketplace
serving Latin America.
Remix Acquisition Closes
thredUP closed the acquisition of Remix in early
October. The transaction marks thredUP’s official entry into
Europe.
CEO and co-founder James Reinhart further
commented, “thredUP is thrilled to bring our proprietary resale
infrastructure and technology to Remix. We’re starting to integrate
our proprietary software and systems into their existing operating
platform and believe this will elevate the resale experience for
buyers and sellers in Central and Eastern Europe.”
Financial Outlook
Guidance for the fourth quarter 2021 includes
estimates for the Remix acquisition, which closed on October 7.
For the fourth quarter 2021, thredUP
expects:
- Revenue in the
range of $69 million to $71 million
- Gross margin in the range of 65% to
67%
- Adjusted EBITDA
margin loss in the range of 17.0% to 15.0%
For the full fiscal year 2021, thredUP
expects:
- Revenue in the
range of $248 million to $250 million
- Gross margin of approximately
71%
- Adjusted EBITDA
margin loss of approximately 15%
Conference Call and Webcast Information
- Conference
Call: The live call is accessible in the U.S. and Canada
at +1 800-353-6461 (code 3975322) and outside of the U.S. and
Canada at +1 334-323-0501 (code 3975322).
-
Webcast: The live and archived webcast and related
earnings materials will be available at thredUP’s investor
relations website: ir.thredup.com.
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 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. In 2018, we expanded our platform with
thredUP's Resale-as-a-Service (RaaS®), which facilitates modern
resale for a number of the world's leading brands and retailers.
thredUP has processed over 125 million unique secondhand items from
35,000 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 2021; 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 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 or investments; the success 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 in the
sections entitled “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations'' in the
final prospectus for our initial public offering filed on March 26,
2021 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 ir.thredup.com or the SEC's website
at www.sec.gov.
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 in our marketplace. 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 marketplace, including through our
RaaS® partners, 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 it provides consistency and
comparability with past financial performance and assists 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 is 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 a similarly-titled non-GAAP measure
used by other companies.
A reconciliation is provided below 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,
acquisition and offering related expenses, interest expense, 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 2021 and full year 2021,
depreciation and amortization is expected to be $2.7 million and
$8.9 million, respectively. In addition, for the fourth quarter of
2021 and full year 2021, stock-based compensation expense is
expected to be $3.0 million and $12.4 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.
ThredUp Inc.Condensed
Consolidated Balance Sheets (in
thousands) (unaudited)
| |
September 30, |
|
December 31, |
| |
2021 |
|
2020 |
| |
|
|
|
| Assets |
|
|
|
| Current assets |
|
|
|
|
Cash and cash equivalents |
$ |
160,912 |
|
|
$ |
64,485 |
|
|
Marketable securities |
100,762 |
|
|
— |
|
|
Accounts receivable, net |
1,895 |
|
|
1,823 |
|
|
Inventory, net |
4,106 |
|
|
3,519 |
|
|
Other current assets |
7,773 |
|
|
5,332 |
|
|
Total current assets |
275,448 |
|
|
75,159 |
|
| Operating lease right-of-use
assets |
20,455 |
|
|
23,656 |
|
| Property and equipment,
net |
49,451 |
|
|
41,131 |
|
| Other assets |
4,864 |
|
|
2,965 |
|
|
Total assets |
$ |
350,218 |
|
|
$ |
142,911 |
|
|
Liabilities, Convertible Preferred Stock and Stockholders’
Equity |
| Current liabilities |
|
|
|
|
Accounts payable |
$ |
8,407 |
|
|
$ |
9,386 |
|
|
Accrued and other current liabilities |
46,427 |
|
|
32,541 |
|
|
Seller payable |
18,306 |
|
|
13,724 |
|
|
Operating lease liabilities, current |
2,757 |
|
|
3,643 |
|
|
Current portion of long-term debt |
7,757 |
|
|
3,270 |
|
|
Total current liabilities |
83,654 |
|
|
62,564 |
|
| Operating lease liabilities,
non-current |
19,225 |
|
|
21,574 |
|
| Long-term debt |
29,478 |
|
|
31,190 |
|
| Other non-current
liabilities |
2,187 |
|
|
2,719 |
|
|
Total liabilities |
134,544 |
|
|
118,047 |
|
| Convertible preferred
stock |
— |
|
|
247,041 |
|
| Stockholders’ equity: |
|
|
|
|
Common stock |
10 |
|
|
1 |
|
|
Additional paid-in capital |
513,124 |
|
|
29,989 |
|
|
Accumulated other comprehensive loss |
(28 |
) |
|
— |
|
|
Accumulated deficit |
(297,432 |
) |
|
(252,167 |
) |
|
Total stockholders’ equity (deficit) |
215,674 |
|
|
(222,177 |
) |
|
Total liabilities, convertible preferred stock and stockholders’
equity |
$ |
350,218 |
|
|
$ |
142,911 |
|
| |
|
|
|
ThredUp Inc.Condensed
Consolidated Statements of Operations(in
thousands, except share and per share
data)(unaudited)
| |
Three months ended September 30, |
|
Nine months ended September 30, |
| |
2021 |
|
2020 |
|
2021 |
|
2020 |
| Revenue: |
|
|
|
|
|
|
|
|
Consignment |
$ |
48,071 |
|
|
$ |
33,657 |
|
|
$ |
141,356 |
|
|
$ |
103,885 |
|
|
Product |
15,203 |
|
|
13,275 |
|
|
37,557 |
|
|
38,697 |
|
|
Total revenue |
63,274 |
|
|
46,932 |
|
|
178,913 |
|
|
142,582 |
|
| Cost of revenue: |
|
|
|
|
|
|
|
|
Consignment |
10,080 |
|
|
7,984 |
|
|
31,599 |
|
|
25,097 |
|
|
Product |
7,100 |
|
|
6,172 |
|
|
17,370 |
|
|
19,072 |
|
|
Total cost of revenue |
17,180 |
|
|
14,156 |
|
|
48,969 |
|
|
44,169 |
|
|
Gross profit |
46,094 |
|
|
32,776 |
|
|
129,944 |
|
|
98,413 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
Operations, product and technology |
32,081 |
|
|
25,856 |
|
|
91,455 |
|
|
73,480 |
|
|
Marketing |
16,941 |
|
|
10,614 |
|
|
48,344 |
|
|
34,513 |
|
|
Sales, general and administrative |
12,569 |
|
|
6,891 |
|
|
34,206 |
|
|
20,762 |
|
|
Total operating expenses |
61,591 |
|
|
43,361 |
|
|
174,005 |
|
|
128,755 |
|
|
Operating loss |
(15,497 |
) |
|
(10,585 |
) |
|
(44,061 |
) |
|
(30,342 |
) |
| Interest and other (expense)
income, net |
799 |
|
|
(419 |
) |
|
(1,147 |
) |
|
(534 |
) |
|
Loss before provision for income taxes |
(14,698 |
) |
|
(11,004 |
) |
|
(45,208 |
) |
|
(30,876 |
) |
| Provision for income
taxes |
17 |
|
|
— |
|
|
57 |
|
|
— |
|
|
Net loss |
$ |
(14,715 |
) |
|
$ |
(11,004 |
) |
|
$ |
(45,265 |
) |
|
$ |
(30,876 |
) |
| Net loss per share
attributable to common stockholders, basic and diluted |
$ |
(0.15 |
) |
|
$ |
(0.93 |
) |
|
$ |
(0.65 |
) |
|
$ |
(2.77 |
) |
| Weighted-average shares used
in computing net loss per share attributable to common
stockholders, basic and diluted |
96,348,658 |
|
|
11,810,075 |
|
|
70,112,601 |
|
|
11,144,362 |
|
ThredUp Inc.Condensed
Consolidated Statements of Cash Flows(in
thousands)(unaudited)
| |
Nine months ended September 30, |
| |
2021 |
|
2020 |
| Cash flows from
operating activities |
|
|
|
|
Net loss |
$ |
(45,265 |
) |
|
$ |
(30,876 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
6,147 |
|
|
3,868 |
|
|
Stock-based compensation expense |
9,389 |
|
|
5,057 |
|
|
Reduction in the carrying amount of right-of-use assets |
3,201 |
|
|
2,882 |
|
|
Changes in fair value of convertible preferred stock warrants and
others |
1,768 |
|
|
166 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable, net |
(72 |
) |
|
1,032 |
|
|
Inventory, net |
(587 |
) |
|
31 |
|
|
Other current and non-current assets |
(4,720 |
) |
|
(176 |
) |
|
Accounts payable |
574 |
|
|
6,029 |
|
|
Accrued and other current liabilities |
14,082 |
|
|
4,252 |
|
|
Seller payable |
4,582 |
|
|
4,023 |
|
|
Operating lease liabilities |
(3,235 |
) |
|
(2,851 |
) |
|
Other non-current liabilities |
4 |
|
|
1,700 |
|
|
Net cash used in operating activities |
(14,132 |
) |
|
(4,863 |
) |
| Cash flows from
investing activities |
|
|
|
|
Purchases of marketable securities |
(102,715 |
) |
|
— |
|
|
Maturities of marketable securities |
1,600 |
|
|
— |
|
|
Purchase of property and equipment |
(15,207 |
) |
|
(14,359 |
) |
|
Net cash used in investing activities |
(116,322 |
) |
|
(14,359 |
) |
| Cash flows from
financing activities |
|
|
|
|
Proceeds from debt issuance, net of issuance costs |
4,625 |
|
|
13,427 |
|
|
Repayment of debt |
(2,000 |
) |
|
(1,190 |
) |
|
Proceeds from issuance of Class A common stock upon initial public
offering and the follow-on offering, net of underwriting discounts
and commissions |
226,905 |
|
|
— |
|
|
Proceeds from exercise of common stock options and withholding
taxes for the net share settlement of restricted stock units |
3,753 |
|
|
1,810 |
|
|
Payment of costs for the initial public offering and the follow-on
offering |
(4,251 |
) |
|
(651 |
) |
|
Net cash provided by financing activities |
229,032 |
|
|
13,396 |
|
|
Net increase (decrease) in cash, cash equivalents and restricted
cash and cash equivalents |
98,578 |
|
|
(5,826 |
) |
|
Cash, cash equivalents and restricted cash and cash
equivalents |
|
|
|
| Beginning of period |
67,539 |
|
|
87,853 |
|
| End of period |
$ |
166,117 |
|
|
$ |
82,027 |
|
ThredUp
Inc.Reconciliation of GAAP to Non-GAAP Financial
Measures(in thousands, except
percentages)(unaudited)
| |
Three months ended September 30, |
|
Nine months ended September 30, |
| |
2021 |
|
2020 |
|
2021 |
|
2020 |
| Adjusted EBITDA
Reconciliation: |
|
|
|
|
|
|
|
|
Net loss |
$ |
(14,715 |
) |
|
|
$ |
(11,004 |
) |
|
|
$ |
(45,265 |
) |
|
|
$ |
(30,876 |
) |
|
|
Depreciation and amortization |
2,248 |
|
|
|
1,425 |
|
|
|
6,147 |
|
|
|
3,868 |
|
|
|
Stock-based compensation expense |
2,995 |
|
|
|
1,649 |
|
|
|
9,389 |
|
|
|
5,057 |
|
|
|
Acquisition and offering related expenses |
1,020 |
|
|
|
— |
|
|
|
1,020 |
|
|
|
— |
|
|
|
Interest expense |
619 |
|
|
|
368 |
|
|
|
1,751 |
|
|
|
865 |
|
|
|
Change in fair value of convertible preferred stock warrant
liability |
— |
|
|
|
89 |
|
|
|
930 |
|
|
|
(84 |
) |
|
|
Provision for income taxes |
17 |
|
|
|
— |
|
|
|
57 |
|
|
|
— |
|
|
| Adjusted EBITDA |
$ |
(7,816 |
) |
|
|
$ |
(7,473 |
) |
|
|
$ |
(25,971 |
) |
|
|
$ |
(21,170 |
) |
|
| Adjusted EBITDA margin % |
(12.4 |
) |
% |
|
(15.9 |
) |
% |
|
(14.5 |
) |
% |
|
(14.8 |
) |
% |
Mediamedia@thredup.com
Investorsir@thredup.com
ThredUp (NASDAQ:TDUP)
Historical Stock Chart
From Mar 2024 to Apr 2024
ThredUp (NASDAQ:TDUP)
Historical Stock Chart
From Apr 2023 to Apr 2024
