ThredUp, Inc., the online resale platform for apparel, shoes and accessories, is reporting that preliminary unaudited financial results for the fourth quarter ended December 31, 2024, reveal the company posting total revenue growth in the U.S. market increased 9 percent year-over-year, compared to company guidance of a decline of 6 percent to 2 percent for the period.
The company projects an Adjusted EBITDA margin of 6.4 percent to 6.9 percent of total revenue for the fourth quarter, compared to its previous forecast for Adjusted EBITDA margin to be in the range of 0.0 percent to 2.0 percent of total revenue for the period.
“I am encouraged by our preliminary fourth-quarter results that exceeded all elements of our guidance and the return to solid growth in our core business,” said ThredUp Co-Founder and CEO James Reinhart. “The exclusive focus on our U.S. business, along with the growing impact of the AI-driven enhancements to our product experience, helped to accelerate momentum throughout the quarter. At the same time, leverage on our many years of infrastructure and marketplace investments drove meaningfully higher margins. We look forward to sustaining this momentum as we turn the page to 2025.”
U.S. Market Preliminary Q4 Results
The preliminary results for total revenue, gross margin, net loss as a percent of total revenue, and Adjusted EBITDA margin for the fourth quarter in the following table only reflect the company’s ongoing U.S. operations.
Total revenue, gross margin and adjusted EBITDA margin are said to be above the company’s previously issued guidance for the United States.
Consolidated U.S. and Europe Preliminary Q4 Results
The preliminary combined results in the following table include the company’s European business Remix Global EAD until the November 30, 2024 divestiture. These results are compared to previously issued consolidated guidance, which included Remix through December 31, 2024, and do not effect the Remix Divestiture.
Following the Remix Divestiture, ThredUp no longer operates in Europe and will no longer report combined results or provide a combined outlook. ThredUp expects to report Remix’s results as a discontinued operation for full-year 2024.
Adjusted EBITDA margin, combined revenue, combined gross margin, and combined adjusted EBITDA margin are non-GAAP financial measures.
The company cautioned that it has not completed its reporting process for the quarterly period and year ended December 31, 2024, and the preliminary financial data outlined was not audited or reviewed by the company’s independent registered public auditing firm. The company also noted that it based its preliminary results on its reasonable estimates and the information available to it at this time and because of its preliminary nature, the company has provided ranges rather than specific amounts.
Image, data and tables courtesy ThredUp Inc.
