EX-99.2 3 exhibit992supplementalfina.htm EX-99.2 Document

Exhibit 99.2
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ThredUp Inc.
Fourth Quarter and Full Year 2022 Supplemental Financials

Key Financial Metrics for the Quarter
•Revenue of $71.3 million
◦vs. $72.9 million in 4Q21
◦Decline of 2.1% YoY
•Gross profit of $45.0 million
◦vs. $48.2 million in 4Q21
◦Decline of 6.7% YoY
•Gross margin of 63.1%
◦vs. 66.1% in 4Q21
•GAAP net loss attributable to common stockholders of $19.5 million
◦vs. net loss attributable to common stockholders of $17.9 million in 4Q21
•Adjusted EBITDA loss of $5.8 million
◦vs. loss of $10.5 million in 4Q21
•Adjusted EBITDA loss margin of 8.2%
◦vs. loss margin of 14.5% in 4Q21
•Cash, cash equivalents, restricted cash and short-term marketable securities were $111.0 million at the quarter end
•Total quarter Active Buyers of 1.651 million
◦vs. 1.691 million in 4Q21
◦Decline of 2.4% YoY
•Total Orders of 1.545 million
◦vs. 1.683 million in 4Q21
◦Decline of 8.2% YoY
Key Financial Metrics for the Full Year 2022
•Revenue of $288.4 million
◦vs. $251.8 million in FY 2021
◦Growth of 14.5% YoY
•Gross profit of $192.3 million
◦vs. $178.1 million in FY 2021
◦Growth of 8.0% YoY
•Gross margin of 66.7%
◦vs. 70.7% in FY 2021
•GAAP net loss attributable to common stockholders of $92.3 million
◦vs. net loss attributable to common stockholders of $63.2 million in FY 2021
•Adjusted EBITDA loss of $43.4 million
◦vs. loss of $36.5 million in FY 2021
•Adjusted EBITDA loss margin of 15.0%
◦vs. loss margin of 14.5% in FY 2021
•Total Orders of 6.507 million
◦vs. 5.328 million in FY2021
◦Growth of 22.1% YoY
Conference Call and Webcast
•The live and archived webcast and all related earnings materials will be available at thredUP’s investor relations website: ir.thredup.com/news-events/events-and-presentations.
Financial Outlook
For first quarter 2023, thredUP expects:
•Revenue in the range of $71 million to $73 million
•Gross margin in the range of 66.0% to 68.0%
•Adjusted EBITDA loss margin in the range of 12.0% to 10.0%
•Depreciation and amortization of approximately $4.3 million
•Stock-based compensation of approximately $8.8 million
•Weighted-average shares of approximately 102 million
For fiscal year 2023, thredUP expects:
•Revenue in the range of $310 million to $320 million
•Gross margin in the range of 66.0% to 68.0%
•Adjusted EBITDA loss margin in the range of 8.0% to 6.0%
•Depreciation and amortization of approximately $19.9 million
•Stock-based compensation of approximately $38.8 million
•Weighted-average shares of approximately 105 million
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ThredUp Inc.
Condensed Consolidated Statements of Operations
(in thousands, except percentages, unaudited)
Three Months EndedMarch 31,
2021		June 30,
2021		September 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022
Revenue:
Consignment$44,688 $48,597 $48,071 $44,758 $47,435 $48,536 $41,553 $37,470 
Product10,992 11,362 15,203 28,121 25,260 27,885 26,392 33,848 
Total revenue55,680 59,959 63,274 72,879 72,695 76,421 67,945 71,318 
Cost of revenue:
Consignment10,832 10,687 10,080 10,257 10,049 10,218 9,087 7,661 
Product5,130 5,140 7,100 14,434 12,418 13,555 14,362 18,691 
Total cost of revenue15,962 15,827 17,180 24,691 22,467 23,773 23,449 26,352 
Gross profit39,718 44,132 46,094 48,188 50,228 52,648 44,496 44,966 
Gross margin % of revenue71.3 %73.6 %72.8 %66.1 %69.1 %68.9 %65.5 %63.1 %
Operating expenses:
Operations, product and technology28,312 31,062 32,081 36,624 39,161 43,961 38,702 33,818 
Marketing15,446 15,957 16,941 15,281 16,978 19,640 14,752 12,999 
Sales, general and administrative10,638 10,999 12,569 14,608 14,664 17,380 15,232 14,538 
Total operating expenses54,396 58,018 61,591 66,513 70,803 80,981 68,686 61,355 
Operating expenses % of revenue97.7 %96.8 %97.3 %91.3 %97.4 %106.0 %101.1 %86.0 %
Operating loss(14,678)(13,886)(15,497)(18,325)(20,575)(28,333)(24,190)(16,389)
Operating loss % of revenue(26.4)%(23.2)%(24.5)%(25.1)%(28.3)%(37.1)%(35.6)%(23.0)%
Interest and other expense (income), net1,466 480 (799)(437)120 57 (521)3,106 
Loss before provision for income taxes(16,144)(14,366)(14,698)(17,888)(20,695)(28,390)(23,669)(19,495)
Provision for income taxes27 13 17 23 13 9 9 4 
Net loss attributable to common stockholders$(16,171)$(14,379)$(14,715)$(17,911)$(20,708)$(28,399)$(23,678)$(19,499)
Net loss attributable to common stockholders margin(29.0)%(24.0)%(23.3)%(24.6)%(28.5)%(37.2)%(34.8)%(27.3)%
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ThredUp Inc.
Adjusted EBITDA Reconciliation
(in thousands, except percentages, unaudited)
Three Months EndedMarch 31,
2021		June 30,
2021		September 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022
GAAP net loss attributable to common stockholders, as reported$(16,171)$(14,379)$(14,715)$(17,911)$(20,708)$(28,399)$(23,678)$(19,499)
Interest expense559 573 619 524 423 238 103 41 
Provision for income taxes27 13 17 23 13 9 9 4 
Depreciation and amortization2,038 1,861 2,248 3,008 3,271 3,407 3,539 3,816 
Stock-based compensation expense3,498 2,896 2,995 3,570 3,523 10,058 7,177 6,059 
Acquisition and offering-related expenses— — 1,020 251 204 70 — — 
Restructuring charges— — — — 311 1,076 1,809 (14)
Impairment of non-marketable equity investment— — — — — — — 3,750 
Change in fair value of convertible preferred stock warrant liability930 — — — — — — — 
Non-GAAP adjusted EBITDA loss$(9,119)$(9,036)$(7,816)$(10,535)$(12,963)$(13,541)$(11,041)$(5,843)
Non-GAAP adjusted EBITDA loss margin(16.4)%(15.1)%(12.4)%(14.5)%(17.8)%(17.7)%(16.2)%(8.2)%
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ThredUp Inc.
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
(in thousands, except percentages, unaudited)
Three Months EndedMarch 31,
2021		June 30,
2021		September 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022
Operations, product and technology$28,312 $31,062 $32,081 $36,624 $39,161 $43,961 $38,702 $33,818 
Marketing15,446 15,957 16,941 15,281 16,978 19,640 14,752 12,999 
Selling, general and administrative10,638 10,999 12,569 14,608 14,664 17,380 15,232 14,538 
Total operating expenses54,396 58,018 61,591 66,513 70,803 80,981 68,686 61,355 
Less: Stock-based compensation expense(3,498)(2,896)(2,995)(3,570)(3,523)(10,058)(7,177)(6,059)
Total non-GAAP adjusted operating expenses$50,898 $55,122 $58,596 $62,943 $67,280 $70,923 $61,509 $55,296 
Non-GAAP adjusted operating expenses % of revenue91.4 %91.9 %92.6 %86.4 %92.6 %92.8 %90.5 %77.5 %

ThredUp Inc.
Stock-Based Compensation Expense Details
(in thousands, unaudited)
Three Months EndedMarch 31,
2021		June 30,
2021		September 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022
Operations, product and technology$1,350 $984 $1,024 $883 $1,392 $3,970 $2,480 $2,193 
Marketing437 289 341 338 333 1,226 818 767 
Selling, general and administrative1,711 1,623 1,630 2,349 1,798 4,862 3,879 3,099 
Total stock-based compensation expense$3,498 $2,896 $2,995 $3,570 $3,523 $10,058 $7,177 $6,059 
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ThredUp Inc.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022
Assets:
Current assets:
Cash and cash equivalents$68,597 $52,197 $36,713 $38,029 
Marketable securities115,189 96,326 86,501 66,902 
Accounts receivable, net2,971 3,368 3,175 4,669 
Inventory12,025 13,941 15,003 17,519 
Other current assets9,634 11,862 10,126 7,076 
Total current assets208,416 177,694 151,518 134,195 
Operating lease right-of-use assets42,937 49,420 46,760 46,153 
Property and equipment, net73,132 84,045 89,529 92,482 
Goodwill12,043 11,312 10,645 11,592 
Intangible assets12,942 11,522 10,242 10,499 
Other assets11,558 11,905 10,896 7,027 
Total assets$361,028 $345,898 $319,590 $301,948 
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable$19,529 $16,183 $8,642 $7,800 
Accrued and other current liabilities50,970 48,590 53,365 50,155 
Seller payable20,640 22,564 18,690 16,166 
Operating lease liabilities, current4,433 5,014 4,931 6,413 
Current portion of long-term debt7,780 7,791 3,881 3,879 
Total current liabilities103,352 100,142 89,509 84,413 
Operating lease liabilities, non-current42,030 51,497 50,623 48,727 
Long-term debt, net of current portion25,634 23,705 26,859 25,788 
Other non-current liabilities2,324 2,625 2,904 3,019 
Total liabilities173,340 177,969 169,895 161,947 
Commitments and contingencies
Stockholders’ equity:
Common stock10 10 10 10 
Additional paid-in capital526,533 537,760 545,449 551,852 
Accumulated other comprehensive loss(2,804)(5,391)(7,636)(4,234)
Accumulated deficit(336,051)(364,450)(388,128)(407,627)
Total stockholders’ equity187,688 167,929 149,695 140,001 
Total liabilities and stockholders’ equity$361,028 $345,898 $319,590 $301,948 
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ThredUp Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months EndedMarch 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022
Cash flows from operating activities:
Net loss attributable to common stockholders$(20,708)$(28,399)$(23,678)$(19,499)
Adjustments to reconcile net loss attributable to common stockholders to net cash used in operating activities:
Depreciation and amortization3,271 3,407 3,539 3,816 
Stock-based compensation expense3,523 10,058 7,177 6,059 
Reduction in carrying amount of right-of-use assets1,398 1,507 1,915 1,653 
Other481 657 271 4,184 
Changes in operating assets and liabilities:
Accounts receivable, net1,143 (461)113 (1,325)
Inventory(2,313)(2,390)(1,519)(1,664)
Other current and non-current assets(2,162)(2,637)3,067 2,625 
Accounts payable1,601 353 (4,954)(985)
Accrued and other current liabilities4,912 (4,163)6,169 (5,166)
Seller payable1,521 1,944 (3,845)(2,565)
Operating lease liabilities539 2,063 (206)(1,472)
Other non-current liabilities115 (95)(153)(827)
Net cash used in operating activities(6,679)(18,156)(12,104)(15,166)
Cash flows from investing activities:
Purchases of marketable securities— (3,475)— — 
Maturities of marketable securities4,726 21,568 9,536 19,820 
Purchases of property and equipment, net(12,638)(14,945)(11,733)(3,935)
Net cash provided by (used in) investing activities(7,912)3,148 (2,197)15,885 
Cash flows from financing activities:
Proceeds from debt, net of discount— — 491 (100)
Repayment of debt(2,000)(2,000)(1,333)(1,000)
Proceeds from exercise of stock options and employee stock purchase plan965 2,182 731 324 
Tax withholding related to vesting of restricted stock units(156)(1,323)(479)(238)
Net cash used in financing activities(1,191)(1,141)(590)(1,014)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(172)(349)(397)246 
Net change in cash, cash equivalents and restricted cash(15,954)(16,498)(15,288)(49)
Cash, cash equivalents and restricted cash, beginning of period91,840 75,886 59,388 44,100 
Cash, cash equivalents and restricted cash, end of period$75,886 $59,388 $44,100 $44,051 
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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 first quarter and full year of 2023; 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.
More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. 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, Adjusted EBITDA margin, and Adjusted operating expenses. In addition to our results determined in accordance with GAAP, we believe that Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted operating expenses, non-GAAP measures, are useful in evaluating our operating performance. We use Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted operating expenses 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, Adjusted EBITDA margin, and Adjusted operating expenses, 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, Adjusted EBITDA margin, and Adjusted operating expenses 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 attributable to common stockholders and Adjusted operating expenses to reported operating expenses, the most directly comparable financial measures stated in accordance with GAAP. We calculate Adjusted EBITDA as net loss attributable to common stockholders adjusted to exclude, where applicable in a given period, stock-based compensation expense, depreciation and amortization, impairment of non-marketable equity investment, restructuring charges, interest expense, acquisition-related expenses, provision for income taxes, change in fair value of convertible preferred stock warrant liability. We calculate Adjusted operating expenses as operating expenses adjusted to exclude stock-based compensation expense.

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Investors are encouraged to review our results determined in accordance with GAAP and the reconciliation of Adjusted EBITDA to net loss attributable to common stockholders and Adjusted operating expenses to operating expenses. thredUP is not providing a quantitative reconciliation of forward-looking guidance of Adjusted EBITDA to net loss attributable to common stockholders or Adjusted operating expenses to operating expenses 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 first quarter of 2023 and full year 2023, depreciation and amortization is expected to be $4.3 million and $19.9 million, respectively. In addition, for the first quarter of 2023 and full year 2023, stock-based compensation expense is expected to be $8.8 million and $38.8 million, respectively. These items are uncertain, depend on various factors, and could result in projected net loss attributable to common stockholders being materially less than is indicated by the currently estimated Adjusted EBITDA margin.
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