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thredUP Announces Fourth Quarter and Full Year 2022 Results

March 6, 2023 4:06 PM

OAKLAND, Calif., March 06, 2023 (GLOBE NEWSWIRE) -- ThredUp Inc. (Nasdaq: TDUP), one of the largest online resale platforms for apparel, shoes, and accessories, today announced its financial results for the fourth quarter and full year ended December 31, 2022.

“We are proud to deliver strong Q4 results in what continues to be a highly competitive environment,” said thredUP CEO and co-founder James Reinhart. “By investing in growth and rigorously managing expenses, we believe we're well positioned to capture an apparel market recovery as the consumer continues to seek value in 2023.”

Fourth Quarter 2022 Financial Highlights

Full Year 2022 Financial Highlights

Recent Business Highlights

Financial Outlook

For the first quarter 2023, thredUP expects:

For the full fiscal year 2023, thredUP expects:

Conference Call and Webcast Information

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.
Consolidated Balance Sheets
(unaudited)

December 31,
2022 2021
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents $38,029 $84,550
Marketable securities 66,902 121,277
Accounts receivable, net 4,669 4,136
Inventory 17,519 9,825
Other current assets 7,076 8,625
Total current assets 134,195 228,413
Operating lease right-of-use assets 46,153 39,340
Property and equipment, net 92,482 55,466
Goodwill 11,592 12,238
Intangible assets 10,499 13,854
Other assets 7,027 11,515
Total assets $301,948 $360,826
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $7,800 $13,336
Accrued and other current liabilities 50,155 45,253
Seller payable 16,166 19,125
Operating lease liabilities, current 6,413 3,931
Current portion of long-term debt 3,879 7,768
Total current liabilities 84,413 89,413
Operating lease liabilities, non-current 48,727 36,997
Long-term debt, net of current portion 25,788 27,559
Other non-current liabilities 3,019 1,123
Total liabilities 161,947 155,092
Commitments and contingencies
Stockholders’ equity:
Common stock 10 10
Additional paid-in capital 551,852 522,161
Accumulated other comprehensive loss (4,234) (1,094)
Accumulated deficit (407,627) (315,343)
Total stockholders’ equity 140,001 205,734
Total liabilities and stockholders’ equity $301,948 $360,826


ThredUp Inc.
Consolidated Statements of Operations
(unaudited)

Three Months Ended Year Ended
December 31,
2022		 December 31,
2021		 December 31,
2022		 December 31,
2021
(in thousands, except per share amounts)
Revenue:
Consignment $37,470 $44,758 $174,994 $186,114
Product 33,848 28,121 113,385 65,678
Total revenue 71,318 72,879 288,379 251,792
Cost of revenue:
Consignment 7,661 10,257 37,015 41,856
Product 18,691 14,434 59,026 31,804
Total cost of revenue 26,352 24,691 96,041 73,660
Gross profit 44,966 48,188 192,338 178,132
Operating expenses:
Operations, product and technology 33,818 36,624 155,642 128,079
Marketing 12,999 15,281 64,369 63,625
Sales, general and administrative 14,538 14,608 61,814 48,814
Total operating expenses 61,355 66,513 281,825 240,518
Operating loss (16,389) (18,325) (89,487) (62,386)
Interest expense 41 524 805 2,275
Other expense (income), net 3,065 (961) 1,957 (1,565)
Loss before provision for income taxes (19,495) (17,888) (92,249) (63,096)
Provision for income taxes 4 23 35 80
Net loss attributable to common stockholders $(19,499) $(17,911) $(92,284) $(63,176)
Loss per share attributable to common stockholders, basic and diluted $(0.19) $(0.18) $(0.92) $(0.82)
Weighted-average shares used in computing loss per share attributable to common stockholders, basic and diluted 101,027 97,802 99,817 77,092


ThredUp Inc.
Consolidated Statements of Comprehensive Loss
(unaudited)

Three Months Ended Year Ended
December 31,
2022		 December 31,
2021		 December 31,
2022		 December 31,
2021
(in thousands)
Net loss attributable to common stockholders $(19,499) $(17,911) $(92,284) $(63,176)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments 2,840 (729) (2,418) (729)
Unrealized gain (loss) on available-for-sale securities 562 (337) (722) (365)
Total other comprehensive income (loss) 3,402 (1,066) (3,140) (1,094)
Total comprehensive loss attributable to common stockholders $(16,097) $(18,977) $(95,424) $(64,270)


ThredUp Inc.
Consolidated Statements of Cash Flows
(unaudited)

Year Ended December 31,
2022 2021
(in thousands)
Cash flows from operating activities:
Net loss attributable to common stockholders $(92,284) $(63,176)
Adjustments to reconcile net loss attributable to common stockholders to net cash used in operating activities:
Depreciation and amortization 14,033 9,155
Stock-based compensation expense 26,817 12,959
Reduction in carrying amount of right-of-use assets 6,473 3,985
Other 5,593 2,342
Changes in operating assets and liabilities:
Accounts receivable, net (530) (1,189)
Inventory (7,886) (2,741)
Other current and non-current assets 893 (6,326)
Accounts payable (3,985) 871
Accrued and other current liabilities 1,752 9,251
Seller payable (2,945) 5,072
Operating lease liabilities 924 (3,964)
Other non-current liabilities (960) (1,258)
Net cash used in operating activities (52,105) (35,019)
Cash flows from investing activities:
Purchases of marketable securities (3,475) (125,217)
Maturities of marketable securities 55,650 2,800
Purchase of non-marketable equity investment — (3,750)
Acquisition of business, net of cash acquired — (23,581)
Purchases of property and equipment, net (43,251) (19,828)
Net cash provided by (used in) investing activities 8,924 (169,576)
Cash flows from financing activities:
Proceeds from debt, net of discount 391 4,625
Repayment of debt (6,333) (4,000)
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 — (4,729)
Proceeds from exercise of stock options and employee stock purchase plan 4,202 6,506
Tax withholding related to vesting of restricted stock units (2,196) (347)
Net cash provided by (used in) financing activities (3,936) 228,960
Effect of exchange rate changes on cash, cash equivalents and restricted cash (672) (64)
Net change in cash, cash equivalents and restricted cash (47,789) 24,301
Cash, cash equivalents and restricted cash, beginning of period 91,840 67,539
Cash, cash equivalents and restricted cash, end of period $44,051 $91,840


ThredUp Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)

Three Months Ended Year Ended
December 31,
2022		 December 31,
2021		 December 31,
2022		 December 31,
2021
(in thousands)
GAAP net loss attributable to common stockholders, as reported $(19,499) $(17,911) $(92,284) $(63,176)
Stock-based compensation expense 6,059 3,570 26,817 12,959
Depreciation and amortization 3,816 3,008 14,033 9,155
Impairment of non-marketable equity investment 3,750 — 3,750 —
Restructuring charges (14) — 3,182 —
Interest expense 41 524 805 2,275
Acquisition and offering-related expenses — 251 274 1,271
Provision for income taxes 4 23 35 80
Change in fair value of convertible preferred stock warrant liability — — — 930
Non-GAAP Adjusted EBITDA loss $(5,843) $(10,535) $(43,388) $(36,506)


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Media
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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 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 first quarter and full year of 2023; 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.

More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. 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 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 attributable to common stockholders, the most directly comparable financial measure stated in accordance with GAAP. We calculate Adjusted EBITDA as net loss attributable to common stockholders adjusted to exclude, where applicable in a given period, stock-based compensation expense, depreciation and amortization, impairment of non-marketable equity investment, restructuring charges, interest expense, acquisition-related expenses, provision for income taxes, change in fair value of convertible preferred stock warrant liability.

Investors are encouraged to review our results determined in accordance with GAAP and the reconciliation of Adjusted EBITDA to net loss attributable to common stockholders. thredUP is not providing a quantitative reconciliation of forward-looking guidance of Adjusted EBITDA to net loss attributable to common stockholders 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 first quarter of 2023 and full year 2023, depreciation and amortization is expected to be $4.3 million and $19.9 million, respectively. In addition, for the first quarter of 2023 and full year 2023, stock-based compensation expense is expected to be $8.8 million and $38.8 million, respectively. These items are uncertain, depend on various factors, and could result in projected net loss attributable to common stockholders being materially less than is indicated by the currently estimated Adjusted EBITDA margin.


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