NEW YORK – Shares of ThredUp Inc. (NASDAQ:TDUP) soared 10% in after-hours trading on Monday after the online resale platform reported better-than-expected third-quarter revenue and raised its full-year guidance.
ThredUp posted revenue of $73 million for the quarter, surpassing analyst estimates of $70.14 million. However, the company’s adjusted loss per share of $0.22 was wider than the $0.15 loss analysts had projected.
Despite the mixed results, investors cheered ThredUp’s raised outlook for the full year. The company now expects 2024 revenue between $300 million and $302 million, up from its previous forecast and above the $300 million consensus estimate.
“Though we know there is still work ahead, we have made clear progress in course-correcting in the U.S. since last quarter,” said ThredUp CEO James Reinhart in a statement.
The company reported 1.63 million active buyers in Q3, down 7% YoY. Total orders declined 14% to 1.55 million.
ThredUp also announced it has signed a non-binding term sheet for a management buyout of its European business as it looks to focus on growth opportunities in the U.S. market.
While revenue declined 11% YoY to $73 million, ThredUp’s gross margin expanded to 71.2% from 69% a year ago. The company’s U.S. adjusted EBITDA turned positive at $0.7 million.
With momentum building in its core marketplace, ThredUp appears positioned for improved performance heading into the holiday season and 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
