ThredUp Inc. posted revenue of $82.7 million in the second quarter, representing an increase of 8 percent year-over-year. The company reported 1.7 million Active Buyers and Orders of 1.8 million in the second quarter, representing a decrease of 0.8 percent and an increase of 5 percent, respectively, year-over-year.

The Resale-as-a-Service (RaaS) offering reportedly continued to grow in the quarter, as the company launched a dozen new resale programs in Q2 with brands including American Eagle, Toms, and The Container Store.

“As we enter our third year as a public company, we’re proud of our strong Q2 results,” said ThredUp Inc. CEO and Co-Founder James Reinhart. “Our performance demonstrates both the management team’s ability to forecast and manage the business amid a dynamic consumer environment as well as the sound strategy behind key company initiatives that have powered our growth and margin expansion.”

Second quarter gross margin was 67.4 percent of sales, down 150 basis points from Q2 last year. Gross profit totaled $55.7 million, representing an increase of 6 percent year-over-year.

The net loss for the quarter was $18.8 million, or a negative 22.7 percent of revenue, compared to a net loss of $28.4 million, or a negative 37.2 percent of revenue, for the second quarter 2022.

Adjusted EBITDA loss was $5.0 million, or a negative 6.1 percent of revenue, for the second quarter 2023, compared to an Adjusted EBITDA loss of $13.5 million, or a negative 17.7 percent of revenue, for the second quarter 2022.

Looking ahead, ThredUp expects the following for the third quarter:

  • Revenue in the range of $82.0 million to $84.0 million
  • Gross margin in the range of 66.5 percent to 68.5 percent
  • Adjusted EBITDA loss margin in the range of 6.5 percent to 4.5 percent

For the fourth quarter 2023, ThredUp expects:

  • Revenue in the range of $84.5 million to $86.5 million
  • Gross margin in the range of 64.5 percent to 66.5 percent
  • Breakeven Adjusted EBITDA margin

For the full fiscal year 2023, ThredUp expects:

  • Revenue in the range of $325.0 million to $329.0 million
  • Gross margin in the range of 66.5 percent to 67.5 percent
  • Adjusted EBITDA loss margin in the range of 5.5 percent to 4.5 percent

Photo courtesy ThredUp