ThredUp Shares Surge 10% After Beating Revenue Expectations and Upgraded Outlook

NEW YORK - Shares of second-hand online sales platform ThredUp Inc. (NASDAQ:TDUP) rose 10% in after-hours trading on Monday following the company’s announcement of third-quarter revenue that exceeded expectations and an upward revision of its annual forecasts.
ThredUp reported $73 million in revenue for the quarter, surpassing analysts’ estimates of $70.14 million. However, the company's adjusted loss of $0.22 per share was higher than the $0.15 loss projected by analysts.
Despite the mixed results, investors reacted positively to ThredUp's upgraded annual outlook. The company now expects its 2024 revenue to be between $300 million and $302 million, above its previous forecasts and the consensus estimate of $300 million.
ThredUp CEO James Reinhart stated, "While we know there is still work to be done, we have made clear progress in correcting our course in the U.S. since last quarter."
The company reported 1.63 million active buyers in the third quarter, a 7% decline compared to the same period last year. Total orders fell 14% to 1.55 million.
ThredUp also announced that it has signed a non-binding agreement for the acquisition of management of its European business to focus on growth opportunities in the U.S. market.
Although revenue fell 11% year-over-year to $73 million, ThredUp's gross margin increased from 69% last year to 71.2%. The company’s adjusted EBITDA in the U.S. turned positive at $0.7 million.
ThredUp, gaining momentum in its core marketplace, appears to be well-positioned for better performance as the holiday season approaches and into 2025.