ThredUp, the US version of Xianyu, is dual-listed, with Q1 revenue exceeding expectations and net losses narrowing

It is learned that recently, ThredUp, an online resale platform in the United States, announced its first quarter financial results as of March 31, 2023. At the same time, the company announced that its shares were dual-listed on the Long-Term Stock Exchange (LTSE). Previously (in March 2021), ThredUp was listed on the Nasdaq in the United States.

The financial report shows that ThredUp's revenue in the first quarter increased by 4% year-on-year to US$75.9 million; the gross profit margin was 67.3%, slightly lower than 69.1% in the same period last year; the adjusted EBITDA loss was US$6.6 million, while the adjusted EBITDA loss in the same period last year was US$1,300; the operating loss was US$19.8 million, also lower than US$2,070 in the same period last year.

In the first quarter, the number of active buyers on the ThredUp platform was 1.7 million, a year-on-year decrease of 3%, and the total order volume was 1.5 million, a year-on-year decrease of 8%.

“These metrics demonstrate the strength and flexibility of our marketplace model, and we are very proud of our first quarter results,” said James Reinhart, CEO and co-founder of ThredUP. “Even as the consumer environment remains challenging, we believe we were able to flexibly execute on our marketplace, invest in strategic growth opportunities, and make progress toward profitability.”

Prior to disclosing its financial results, the company also announced that its shares would be dual-listed on the Long-Term Stock Exchange (LTSE). The LTSE's mission is to create a "market that reduces short-term pressures" and aims to develop rules that encourage listed companies and investors to make decisions that are more conducive to the long-term development of companies.

It is learned that currently, customers with tight budgets account for about one-third of ThredUp's customers. James Reinhart said that "the number of these groups has been greatly reduced in the sharply challenging macro environment."

ThredUp is making up for that shortfall by boosting spending among wealthy consumers and in its European business, where it expects customers to return once discounts offered by other stores taper off.

Looking ahead, ThredUp expects revenue in the range of $80 million to $82 million, gross margin in the range of 64.5% to 66.5%, and adjusted EBITDA loss margin in the range of 9.5% to 7.5% for the second quarter of 2023.

For the full year 2023, thredUP expects revenue to be between $320 million and $330 million, gross margin to be between 65.0% and 67.0%, and adjusted EBITDA loss margin to be between 7.5% and 5.5%.

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