ThredUp Inc. reported a modest increase in revenue for the fiscal year ending December 31, 2024, with total revenue reaching $260.0 million, up 0.6% from $258.5 million in 2023. The growth was primarily driven by a 15.5% increase in consignment revenue, which accounted for 94.7% of total revenue, while product revenue saw a significant decline of 69.5%, reflecting a strategic shift towards a consignment model. The company recorded a gross profit of $207.1 million, resulting in a gross margin of 79.7%, an increase from 76.8% in the previous year.
Despite the revenue growth, ThredUp continued to experience losses, reporting a loss from continuing operations of $40.0 million, an improvement from the $52.4 million loss in 2023. The company’s non-GAAP Adjusted EBITDA from continuing operations was $8.7 million, compared to a loss of $5.3 million in the prior year. Active buyers decreased by 6.1% to 1.3 million, and total orders fell slightly by 0.6% to 4.9 million, indicating challenges in customer retention and engagement.
In terms of strategic developments, ThredUp divested 91% of its European business, Remix, on November 30, 2024, which has been classified as a discontinued operation. This divestiture resulted in a loss of $11.3 million, impacting the overall financial results. The company has also focused on enhancing its Resale-as-a-Service (RaaS) offerings, which are expected to drive future growth by allowing brands to leverage ThredUp's platform for resale services.
Operationally, ThredUp maintained a workforce of 1,630 employees as of December 31, 2024, with a significant portion dedicated to distribution centers. The company operates four distribution centers across the U.S., which are crucial for processing and shipping secondhand items. ThredUp's liquidity position remains stable, with cash and cash equivalents totaling $31.9 million, alongside a term loan facility that provides additional financial flexibility. Looking ahead, ThredUp anticipates continued investment in its infrastructure and technology to support growth, although it expects to incur operating losses in the near term as it navigates market conditions and strategic transitions.
About ThredUp Inc.
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