EX-99.2 3 exhibit992supplementalfina.htm EX-99.2 Document

Exhibit 99.2
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ThredUp Inc.
Third Quarter 2022 Supplemental Financials
Key Financial Metrics for the Quarter
•Revenue of $67.9 million
◦vs. $63.3 million in 3Q21
◦Growth of 7.4% YoY
•Gross profit of $44.5 million
◦vs. $46.1 million in 3Q21
◦Decline of 3.5% YoY
•Gross margin of 65.5%
◦vs. 72.8% in 3Q21
•GAAP net loss of $23.7 million
◦vs. net loss of $14.7 million in 3Q21
•Adjusted EBITDA loss of $11.0 million
◦vs. loss of $7.8 million in 3Q21
•Adjusted EBITDA loss margin of 16.2%
◦vs. loss margin of 12.4% in 3Q21
•Cash, cash equivalents, restricted cash and short-term marketable securities were $130.6 million at the quarter end
•Total quarter Active Buyers of 1.694 million
◦vs. 1.439 million in 3Q21
◦An increase of 17.7% YoY
•Total Orders of 1.618 million
◦vs. 1.300 million in 3Q21
◦An increase of 24.5% YoY
Conference Call and Webcast
•The live call is accessible at: https://event.loopup.com/SelfRegistration/registration.aspx?booking=cLxjdNsWn3NsASUiYTFOUWiYSEPmkD8Dci5Q30o6Hps=&b=2389e96d-457b-46a8-bebb-fec356d5b03
•The live and archived webcast and all related earnings materials will be available at thredUP’s investor relations website: ir.thredup.com.








Financial Outlook
For fourth quarter 2022, thredUP expects:
•Revenue in the range of $62 million to $64 million
•Gross margin in the range of 62.0% to 64.0%
•Adjusted EBITDA loss margin in the range of 16.5% to 14.5%
•Depreciation and amortization of approximately $3.6 million
•Stock-based compensation of approximately $6.2 million
•Weighted-average shares of approximately 100 million
For fiscal year 2022, thredUP expects:
•Revenue in the range of $279 million to $281 million
•Gross margin in the range of 66.5% to 67.0%
•Adjusted EBITDA loss margin in the range of 17.0% to 16.5%
•Depreciation and amortization of approximately $13.9 million
•Stock-based compensation of approximately $27.0 million
•Weighted-average shares of approximately 100 million
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ThredUp Inc.
Condensed Consolidated Statements of Operations
(in thousands, except percentages, unaudited)
Three Months EndedSeptember 30,
2020		December 31,
2020		March 31,
2021		June 30,
2021		September 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022
Revenue:
Consignment$33,657 $34,211 $44,688 $48,597 $48,071 $44,758 $47,435 $48,536 $41,553 
Product13,275 9,222 10,992 11,362 15,203 28,121 25,260 27,885 26,392 
Total revenue46,932 43,433 55,680 59,959 63,274 72,879 72,695 76,421 67,945 
Cost of revenue:
Consignment7,984 9,087 10,832 10,687 10,080 10,257 10,049 10,218 9,087 
Product6,172 4,611 5,130 5,140 7,100 14,434 12,418 13,555 14,362 
Total cost of revenue14,156 13,698 15,962 15,827 17,180 24,691 22,467 23,773 23,449 
Gross profit32,776 29,735 39,718 44,132 46,094 48,188 50,228 52,648 44,496 
Gross margin % of revenue69.8 %68.5 %71.3 %73.6 %72.8 %66.1 %69.1 %68.9 %65.5 %
Operating expenses:
Operations, product and technology25,856 27,928 28,312 31,062 32,081 36,624 39,161 43,961 38,702 
Marketing10,614 10,252 15,446 15,957 16,941 15,281 16,978 19,640 14,752 
Sales, general and administrative6,891 7,802 10,638 10,999 12,569 14,608 14,664 17,380 15,232 
Total operating expenses43,361 45,982 54,396 58,018 61,591 66,513 70,803 80,981 68,686 
Operating expenses % of revenue92.4 %105.9 %97.7 %96.8 %97.3 %91.3 %97.4 %106.0 %101.1 %
Operating loss(10,585)(16,247)(14,678)(13,886)(15,497)(18,325)(20,575)(28,333)(24,190)
Operating loss % of revenue(22.6)%(37.4)%(26.4)%(23.2)%(24.5)%(25.1)%(28.3)%(37.1)%(35.6)%
Interest and other expense (income), net419 698 1,466 480 (799)(437)120 57 (521)
Loss before provision for income taxes(11,004)(16,945)(16,144)(14,366)(14,698)(17,888)(20,695)(28,390)(23,669)
Provision for income taxes— 56 27 13 17 23 13 9 9 
Net loss$(11,004)$(17,001)$(16,171)$(14,379)$(14,715)$(17,911)$(20,708)$(28,399)$(23,678)
Net loss margin(23.4)%(39.1)%(29.0)%(24.0)%(23.3)%(24.6)%(28.5)%(37.2)%(34.8)%
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ThredUp Inc.
Adjusted EBITDA Reconciliation
(in thousands, except percentages, unaudited)
Three Months EndedSeptember 30,
2020		December 31,
2020		March 31,
2021		June 30,
2021		September 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022
Net loss$(11,004)$(17,001)$(16,171)$(14,379)$(14,715)$(17,911)$(20,708)$(28,399)$(23,678)
Interest expense368 440 559 573 619 524 423 238 103 
Provision for income taxes— 56 27 13 17 23 13 9 9 
Depreciation and amortization1,425 1,713 2,038 1,861 2,248 3,008 3,271 3,407 3,539 
Stock-based compensation expense1,649 2,279 3,498 2,896 2,995 3,570 3,523 10,058 7,177 
Acquisition and offering-related expenses— — — — 1,020 251 204 70 — 
Restructuring charges— — — — — — 311 1,076 1,809 
Change in fair value of convertible preferred stock warrant liability89 285 930 — — — — — — 
Adjusted EBITDA loss$(7,473)$(12,228)$(9,119)$(9,036)$(7,816)$(10,535)$(12,963)$(13,541)$(11,041)
Adjusted EBITDA loss margin(15.9)%(28.2)%(16.4)%(15.1)%(12.4)%(14.5)%(17.8)%(17.7)%(16.2)%
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ThredUp Inc.
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
(in thousands, except percentages, unaudited)
Three Months EndedSeptember 30,
2020		December 31,
2020		March 31,
2021		June 30,
2021		September 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022
Operations, product and technology$25,856 $27,928 $28,312 $31,062 $32,081 $36,624 $39,161 $43,961 $38,702 
Marketing10,614 10,252 15,446 15,957 16,941 15,281 16,978 19,640 14,752 
Selling, general and administrative6,891 7,802 10,638 10,999 12,569 14,608 14,664 17,380 15,232 
Total operating expenses43,361 45,982 54,396 58,018 61,591 66,513 70,803 80,981 68,686 
Less: Stock-based compensation expense(1,649)(2,279)(3,498)(2,896)(2,995)(3,570)(3,523)(10,058)(7,177)
Total non-GAAP operating expenses$41,712 $43,703 $50,898 $55,122 $58,596 $62,943 $67,280 $70,923 $61,509 
Non-GAAP operating expenses % of revenue88.9 %100.6 %91.4 %91.9 %92.6 %86.4 %92.6 %92.8 %90.5 %

ThredUp Inc.
Stock-Based Compensation Expense Details
(in thousands, unaudited)
Three Months EndedSeptember 30,
2020		December 31,
2020		March 31,
2021		June 30,
2021		September 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022
Operations, product and technology$987 $1,167 $1,350 $984 $1,024 $883 $1,392 $3,970 $2,480 
Marketing278 332 437 289 341 338 333 1,226 818 
Selling, general and administrative384 780 1,711 1,623 1,630 2,349 1,798 4,862 3,879 
Total stock-based compensation expense$1,649 $2,279 $3,498 $2,896 $2,995 $3,570 $3,523 $10,058 $7,177 
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ThredUp Inc.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
September 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022
Assets:
Current assets:
Cash and cash equivalents$160,912 $84,550 $68,597 $52,197 $36,713 
Marketable securities100,762 121,277 115,189 96,326 86,501 
Accounts receivable, net1,895 4,136 2,971 3,368 3,175 
Inventory, net4,106 9,825 12,025 13,941 15,003 
Other current assets7,773 8,625 9,634 11,862 10,126 
Total current assets275,448 228,413 208,416 177,694 151,518 
Operating lease right-of-use assets20,455 39,340 42,937 49,420 46,760 
Property and equipment, net49,451 55,466 73,132 84,045 89,529 
Goodwill— 12,238 12,043 11,312 10,645 
Intangible assets— 13,854 12,942 11,522 10,242 
Other assets4,864 11,515 11,558 11,905 10,896 
Total assets$350,218 $360,826 $361,028 $345,898 $319,590 
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable$8,407 $13,336 $19,529 $16,183 $8,642 
Accrued and other current liabilities46,427 45,253 50,970 48,590 53,365 
Seller payable18,306 19,125 20,640 22,564 18,690 
Operating lease liabilities, current2,757 3,931 4,433 5,014 4,931 
Current portion of long-term debt7,757 7,768 7,780 7,791 3,881 
Total current liabilities83,654 89,413 103,352 100,142 89,509 
Operating lease liabilities, non-current19,225 36,997 42,030 51,497 50,623 
Long-term debt, net of current portion29,478 27,559 25,634 23,705 26,859 
Other non-current liabilities2,187 1,123 2,324 2,625 2,904 
Total liabilities134,544 155,092 173,340 177,969 169,895 
Commitments and contingencies
Stockholders’ equity:
Common stock10 10 10 10 10 
Additional paid-in capital513,124 522,161 526,533 537,760 545,449 
Accumulated other comprehensive loss(28)(1,094)(2,804)(5,391)(7,636)
Accumulated deficit(297,432)(315,343)(336,051)(364,450)(388,128)
Total stockholders’ equity215,674 205,734 187,688 167,929 149,695 
Total liabilities and stockholders’ equity$350,218 $360,826 $361,028 $345,898 $319,590 
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ThredUp Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months EndedSeptember 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022
Cash flows from operating activities:
Net loss$(14,715)$(17,911)$(20,708)$(28,399)$(23,678)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization2,248 3,008 3,271 3,407 3,539 
Stock-based compensation expense2,995 3,570 3,523 10,058 7,177 
Reduction in carrying amount of right-of-use assets817 784 1,398 1,507 1,915 
Other589 574 481 657 271 
Changes in operating assets and liabilities:
Accounts receivable, net(350)(1,117)1,143 (461)113 
Inventory, net256 (2,154)(2,313)(2,390)(1,519)
Other current and non-current assets(1,356)(1,606)(2,162)(2,637)3,067 
Accounts payable(2,142)297 1,601 353 (4,954)
Accrued and other current liabilities5,911 (4,831)4,912 (4,163)6,169 
Seller payable1,597 490 1,521 1,944 (3,845)
Operating lease liabilities(892)(729)539 2,063 (206)
Other non-current liabilities— (1,262)115 (95)(153)
Net cash used in operating activities(5,042)(20,887)(6,679)(18,156)(12,104)
Cash flows from investing activities:
Purchases of marketable securities(45,297)(22,502)— (3,475)— 
Maturities of marketable securities1,600 1,200 4,726 21,568 9,536 
Acquisition of business, net of cash acquired— (23,581)— — — 
Purchases of non-marketable equity investment— (3,750)— — — 
Purchases of property and equipment, net(6,208)(4,621)(12,638)(14,945)(11,733)
Net cash provided by (used in) investing activities(49,905)(53,254)(7,912)3,148 (2,197)
Cash flows from financing activities:
Proceeds from debt, net of discount— — — — 491 
Repayment of debt(2,000)(2,000)(2,000)(2,000)(1,333)
Proceeds from issuance of Class A common stock upon initial public offering and the follow-on offering, net of underwriting discounts and commissions46,621 — — — — 
Payment of costs for the initial public offering and follow-on offering(618)(478)— — — 
Proceeds from exercise of stock options and employee stock purchase plan948 2,724 965 2,182 731 
Tax withholding related to vesting of restricted stock units— (318)(156)(1,323)(479)
Net cash provided by (used in) financing activities44,951 (72)(1,191)(1,141)(590)
Effect of exchange rate changes on cash, cash equivalents and restricted cash— (64)(172)(349)(397)
Net change in cash, cash equivalents and restricted cash(9,996)(74,277)(15,954)(16,498)(15,288)
Cash, cash equivalents and restricted cash, beginning of period176,113 166,117 91,840 75,886 59,388 
Cash, cash equivalents and restricted cash, end of period$166,117 $91,840 $75,886 $59,388 $44,100 
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Investors
ir@thredup.com
Media
media@thredup.com
About thredUP
thredUP is transforming resale with technology and a mission to inspire a new generation of consumers to think secondhand first. By making it easy to buy and sell secondhand, thredUP has become one of the world's largest online resale platforms for women's and kids' apparel, shoes and accessories. Sellers love thredUP because we make it easy to clean out their closets and unlock value for themselves or for the charity of their choice while doing good for the planet. Buyers love shopping value, premium and luxury brands all in one place, at up to 90% off estimated retail price. Our proprietary operating platform is the foundation for our managed marketplace and consists of distributed processing infrastructure, proprietary software and systems and data science expertise. With thredUP's Resale-as-a-Service, some of the world's leading brands and retailers are leveraging our platform to deliver customizable, scalable resale experiences to their customers. thredUP has processed over 137 million unique secondhand items from 55,000 brands across 100 categories. By extending the life cycle of clothing, thredUP is changing the way consumers shop and ushering in a more sustainable future for the fashion industry.
Forward-Looking Statements
This financial supplement contains forward-looking statements within the meaning of the federal securities laws, which are statements that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this financial supplement include, but are not limited to, guidance on financial results for the fourth quarter and full year of 2022; statements about future operating results and our long term growth; the momentum of our business; the growth rates in the markets in which we compete; the impact of the COVID-19 pandemic and its varied social and macroeconomic consequences, inflationary pressures, increased interest rates and general global economic uncertainty on consumer behavior and our business; our investments in technology and infrastructure; our ability to successfully integrate and realize the benefits of our past or future strategic acquisitions, investments or restructuring activities; the success and expansion of our RaaS® model and the timing and plans for future RaaS® clients; and our ability to attract new Active Buyers.
The forward-looking statements contained in this financial supplement are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including, but not limited to, risks detailed in our Annual Report on Form 10-K for the year ended December 31, 2021, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 and in our Quarterly Report on Form 10-Q that will be filed following this financial supplement. The forward-looking statements in this financial supplement are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing thredUP’s views as of any date subsequent to the date of this financial supplement.
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Additional information regarding these and other factors that could affect thredUP's results is included in thredUP’s SEC filings, which may be obtained by visiting our Investor Relations website at ir.thredup.com or the SEC's website at www.sec.gov.
Operating Metrics
An Active Buyer is a thredUP buyer who has made at least one purchase in the last twelve months. A thredUP buyer is a customer who has created an account or purchased in our marketplaces, including through our RaaS® clients. A thredUP buyer is identified by a unique email address and a single person could have multiple thredUP accounts and count as multiple Active Buyers.
Orders are defined as the total number of orders placed by buyers across our marketplaces, including through our RaaS® clients, in a given period, net of cancellations.
Non-GAAP Financial Measures
This financial supplement and the accompanying tables contain non-GAAP financial measures: Adjusted EBITDA and Adjusted EBITDA margin. In addition to our results determined in accordance with GAAP, we believe that Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP measures, are useful in evaluating our operating performance. We use Adjusted EBITDA and Adjusted EBITDA margin to evaluate and assess our operating performance and the operating leverage in our business, and for internal planning and forecasting purposes. We believe that Adjusted EBITDA and Adjusted EBITDA margin, when taken collectively with our GAAP results, may be helpful to investors because they provide consistency and comparability with past financial performance and assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. Adjusted EBITDA and Adjusted EBITDA margin are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly-titled non-GAAP measures used by other companies.
A reconciliation is provided above for Adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with GAAP. We calculate Adjusted EBITDA as net loss adjusted to exclude, where applicable in a given period, depreciation and amortization, stock-based compensation expense, interest expense, acquisition-related expenses, restructuring charges, change in fair value of convertible preferred stock warrant liability and provision for income taxes.
Investors are encouraged to review our results determined in accordance with GAAP and the reconciliation of Adjusted EBITDA to net loss. thredUP is not providing a quantitative reconciliation of forward-looking guidance of Adjusted EBITDA to net loss because certain items are out of thredUP’s control or cannot be reasonably predicted. Historically, these items have included, but are not limited to, depreciation and amortization, stock-based compensation expense, change in fair value of convertible preferred stock warrant liability and provision for income taxes. Accordingly, a reconciliation for Adjusted EBITDA in order to calculate forward-looking Adjusted EBITDA margin is not available without unreasonable effort. However, for the fourth quarter of 2022 and full year 2022, depreciation and amortization is expected to be $3.6 million and $13.9 million, respectively. In addition, for the fourth quarter of 2022 and full year 2022, stock-based compensation expense is expected to be $6.2 million and $27 million, respectively. These items are uncertain, depend on various factors, and could result in projected net loss being materially less than is indicated by the currently estimated Adjusted EBITDA margin.
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