Oakland, California-based fashion marketplace ThredUp posted a 14% year-on-year (y-o-y) rise in revenue in Q4, taking the indicator to $81.4 million.

The growth came on hikes in the number of active buyers and orders, which both came in at around 1.8 million, following y-o-y gains of 9% and 17%, respectively.

Gross profit totaled $50.4 million, up by 12% y-o-y, with the figure including a $1.9 million inventory write-off in Europe — an impact of 230 basis points to gross margin. The latter came in at 61.9% in Q4 2023, down from 63.1% in Q4 2022.

ThredUp incurred a net loss of $14.6 million, or -18.0% of revenue, in Q4 2023, versus a net loss of $19.5 million, or -27.3% of revenue, in the year-ago period.

Its adjusted EBITDA loss was $2.1 million, or 2.6% of revenue, compared to an adjusted EBITDA loss of $5.8 million, or 8.2% of revenue, in Q4 2022.

“We closed out 2023 with another quarter of strong financial performance, demonstrating healthy top-line growth and bottom-line leverage,” said ThreadUp CEO and co-founder James Reinhart.

“Looking ahead, we are confident that by focusing on strategic growth drivers in the U.S. and applying our proven resale playbook in Europe, we can deliver adjusted EBITDA breakeven on an annual basis in 2024.”

Annual revenue in 2023 stood at $322 million, up 12% on 2022 on the back of record orders of 6.9 million, a gain of 6% from the year-earlier period.

2023 gross profit totaled $214 million, an increase of 11% versus 2022, with the gross margin softening slightly from 66.7% to 66.4%.

The company incurred a net loss of $71.2 million, or 22.1% of revenue, in 2023, compared to a net loss of $92.3 million, or 32.0% of revenue, in 2022.

Its adjusted EBITDA loss was $17.4 million, or 5.4% of revenue, for the full year 2023, compared to an adjusted EBITDA loss of $43.4 million, or 15.0% of revenue, the year before.

Recent business highlights cited by the company include moves in AI: “ThredUp recently debuted an AI-powered search experience that makes it easy and intuitive to find secondhand items in its marketplace.”

“They’ve also begun to leverage generative AI that will soon give customers the ability to create outfits they love and are strategically implementing AI across operations in its distribution center network to enhance inventory management and processing.”

Customer experience improvements included Delivery Promise and Thrift Promise, which aimed to deliver purchase-to-doorstep shipping in three days or less and improve customer satisfaction, respectively.

ThredUp competes against such sites as The RealReal, Poshmark, Grailed and Depop.

Print Friendly, PDF & Email

Related Articles