By 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.
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