EX-99.2 3 exhibit992supplementalfina.htm EX-99.2 Document

Exhibit 99.2
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ThredUp Inc.
Second Quarter 2023 Supplemental Financials
Key Financial Metrics for the Quarter
•Revenue of $82.7 million
◦vs. $76.4 million in 2Q22
◦Growth of 8.2% YoY
•Gross profit of $55.7 million
◦vs. $52.6 million in 2Q22
◦Growth of 5.9% YoY
•Gross margin of 67.4%
◦vs. 68.9% in 2Q22
•GAAP net loss of $18.8 million
◦vs. net loss of $28.4 million in 2Q22
•Adjusted EBITDA loss of $5.0 million
◦vs. loss of $13.5 million in 2Q22
•Adjusted EBITDA loss margin of 6.1%
◦vs. loss margin of 17.7% in 2Q22
•Cash, cash equivalents, restricted cash and short-term marketable securities were $83.0 million at the quarter end
•Total quarter Active Buyers of 1.710 million
◦vs. 1.724 million in 2Q22
◦A decrease of 0.8% YoY
•Total Orders of 1.789 million
◦vs. 1.704 million in 2Q22
◦An increase of 5.0% 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 third quarter 2023, thredUP expects:
•Revenue in the range of $82 million to $84 million
•Gross margin in the range of 66.5% to 68.5%
•Adjusted EBITDA loss margin in the range of 6.5% to 4.5%
•Depreciation and amortization of approximately $4.5 million
•Stock-based compensation of approximately $7.3 million
•Weighted-average shares of approximately 106 million

For fourth quarter 2023, thredUP expects:
•Revenue in the range of $84.5 million to $86.5 million
•Gross margin in the range of 64.5% to 66.5%
•Breakeven Adjusted EBITDA margin
•Depreciation and amortization of approximately $4.5 million
•Stock-based compensation of approximately $7.3 million
•Weighted-average shares of approximately 108 million
For fiscal year 2023, thredUP expects:
•Revenue in the range of $325 million to $329 million
•Gross margin in the range of 66.5% to 67.5%
•Adjusted EBITDA loss margin in the range of 5.5% to 4.5%
•Depreciation and amortization of approximately $17.5 million
•Stock-based compensation of approximately $31.6 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 EndedSeptember 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022		March 31,
2023		June 30,
2023
Revenue:
Consignment$48,071 $44,758 $47,435 $48,536 $41,553 $37,470 $46,479 $53,415 
Product15,203 28,121 25,260 27,885 26,392 33,848 29,443 29,243 
Total revenue63,274 72,879 72,695 76,421 67,945 71,318 75,922 82,658 
Cost of revenue:
Consignment10,080 10,257 10,049 10,218 9,087 7,661 9,220 9,580 
Product7,100 14,434 12,418 13,555 14,362 18,691 15,609 17,346 
Total cost of revenue17,180 24,691 22,467 23,773 23,449 26,352 24,829 26,926 
Gross profit46,094 48,188 50,228 52,648 44,496 44,966 51,093 55,732 
Gross margin % of revenue72.8 %66.1 %69.1 %68.9 %65.5 %63.1 %67.3 %67.4 %
Operating expenses:
Operations, product and technology32,081 36,624 39,161 43,961 38,702 33,818 38,347 39,771 
Marketing16,941 15,281 16,978 19,640 14,752 12,999 16,870 18,643 
Sales, general and administrative12,569 14,608 14,664 17,380 15,232 14,538 16,059 16,030 
Total operating expenses61,591 66,513 70,803 80,981 68,686 61,355 71,276 74,444 
Operating expenses % of revenue97.3 %91.3 %97.4 %106.0 %101.1 %86.0 %93.9 %90.1 %
Operating loss(15,497)(18,325)(20,575)(28,333)(24,190)(16,389)(20,183)(18,712)
Operating loss % of revenue(24.5)%(25.1)%(28.3)%(37.1)%(35.6)%(23.0)%(26.6)%(22.6)%
Interest expense619 524 423 238 103 41 77 721 
Other expense (income), net(1,418)(961)(303)(181)(624)3,065 (476)(685)
Loss before provision for income taxes(14,698)(17,888)(20,695)(28,390)(23,669)(19,495)(19,784)(18,748)
Provision for income taxes17 23 13 9 9 4 9 12 
Net loss$(14,715)$(17,911)$(20,708)$(28,399)$(23,678)$(19,499)$(19,793)$(18,760)
Net loss margin(23.3)%(24.6)%(28.5)%(37.2)%(34.8)%(27.3)%(26.1)%(22.7)%
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ThredUp Inc.
Adjusted EBITDA Reconciliation
(in thousands, except percentages, unaudited)
Three Months EndedSeptember 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022		March 31,
2023		June 30,
2023
Net loss$(14,715)$(17,911)$(20,708)$(28,399)$(23,678)$(19,499)$(19,793)$(18,760)
Interest expense619 524 423 238 103 41 77 721 
Provision for income taxes17 23 13 9 9 4 9 12 
Depreciation and amortization2,248 3,008 3,271 3,407 3,539 3,816 3,681 4,836 
Stock-based compensation expense2,995 3,570 3,523 10,058 7,177 6,059 9,391 7,628 
Acquisition and offering-related expenses1,020 251 204 70 — — — — 
Severance and other— — 311 1,076 1,809 (14)— 551 
Impairment of non-marketable equity investment— — — — — 3,750 — — 
Adjusted EBITDA loss$(7,816)$(10,535)$(12,963)$(13,541)$(11,041)$(5,843)$(6,635)$(5,012)
Adjusted EBITDA loss margin(12.4)%(14.5)%(17.8)%(17.7)%(16.2)%(8.2)%(8.7)%(6.1)%
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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,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022		March 31,
2023		June 30,
2023
Operations, product, and technology$32,081 $36,624 $39,161 $43,961 $38,702 $33,818 $38,347 $39,771 
Marketing16,941 15,281 16,978 19,640 14,752 12,999 16,870 18,643 
Sales, general, and administrative12,569 14,608 14,664 17,380 15,232 14,538 16,059 16,030 
Total operating expenses61,591 66,513 70,803 80,981 68,686 61,355 71,276 74,444 
Less: Stock-based compensation expense(2,995)(3,570)(3,523)(10,058)(7,177)(6,059)(9,391)(7,628)
Total non-GAAP operating expenses$58,596 $62,943 $67,280 $70,923 $61,509 $55,296 $61,885 $66,816 
Non-GAAP operating expenses % of revenue92.6 %86.4 %92.6 %92.8 %90.5 %77.5 %81.5 %80.8 %

ThredUp Inc.
Stock-Based Compensation Expense Details
(in thousands, unaudited)
Three Months EndedSeptember 30,
2021		December 31,
2021		March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022		March 31,
2023		June 30,
2023
Operations, product, and technology$1,024 $883 $1,392 $3,970 $2,480 $2,193 $3,671 $2,913 
Marketing341 338 333 1,226 818 767 1,205 923 
Sales, general, and administrative1,630 2,349 1,798 4,862 3,879 3,099 4,515 3,792 
Total stock-based compensation expense$2,995 $3,570 $3,523 $10,058 $7,177 $6,059 $9,391 $7,628 
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ThredUp Inc.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
September 30,
2022		December 31,
2022		March 31,
2023		June 30,
2023
Assets:
Current assets:
Cash and cash equivalents$36,713 $38,029 $50,739 $51,073 
Marketable securities86,501 66,902 42,733 25,856 
Accounts receivable, net3,175 4,669 4,232 3,782 
Inventory15,003 17,519 20,933 20,362 
Other current assets10,126 7,076 6,338 8,238 
Total current assets151,518 134,195 124,975 109,311 
Operating lease right-of-use assets46,760 46,153 45,180 45,265 
Property and equipment, net89,529 92,482 95,806 93,786 
Goodwill10,645 11,592 11,805 11,756 
Intangible assets10,242 10,499 10,044 9,346 
Other assets10,896 7,027 6,960 6,867 
Total assets$319,590 $301,948 $294,770 $276,331 
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable$8,642 $7,800 $12,747 $8,780 
Accrued and other current liabilities53,365 50,155 47,976 43,334 
Seller payable18,690 16,166 17,868 19,471 
Operating lease liabilities, current4,931 6,413 5,792 5,834 
Current portion of long-term debt3,881 3,879 3,882 3,830 
Total current liabilities89,509 84,413 88,265 81,249 
Operating lease liabilities, non-current50,623 48,727 47,521 47,356 
Long-term debt, net of current portion26,859 25,788 24,831 23,928 
Other non-current liabilities2,904 3,019 3,066 3,200 
Total liabilities169,895 161,947 163,683 155,733 
Commitments and contingencies
Stockholders’ equity:
Common stock10 10 10 11 
Additional paid-in capital545,449 551,852 561,577 569,780 
Accumulated other comprehensive loss(7,636)(4,234)(3,080)(3,013)
Accumulated deficit(388,128)(407,627)(427,420)(446,180)
Total stockholders’ equity149,695 140,001 131,087 120,598 
Total liabilities and stockholders’ equity$319,590 $301,948 $294,770 $276,331 
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ThredUp Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months EndedSeptember 30,
2022		December 31,
2022		March 31,
2023		June 30,
2023
Cash flows from operating activities:
Net loss$(23,678)$(19,499)$(19,793)$(18,760)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization3,539 3,816 3,681 4,836 
Stock-based compensation expense7,177 6,059 9,391 7,628 
Reduction in carrying amount of right-of-use assets1,915 1,653 1,207 1,970 
Other271 4,184 41 250 
Changes in operating assets and liabilities:
Accounts receivable, net113 (1,325)1,010 (94)
Inventory(1,519)(1,664)(3,157)487 
Other current and non-current assets3,067 2,625 22 (721)
Accounts payable(4,954)(985)4,102 (3,925)
Accrued and other current liabilities6,169 (5,166)(1,851)101 
Seller payable(3,845)(2,565)1,696 1,605 
Operating lease liabilities(206)(1,472)(2,062)(2,178)
Other non-current liabilities(153)(827)1,255 (1,580)
Net cash used in operating activities(12,104)(15,166)(4,458)(10,381)
Cash flows from investing activities:
Purchases of marketable securities— — — (7,878)
Maturities of marketable securities9,536 19,820 24,579 24,900 
Purchases of property and equipment(11,733)(3,935)(5,679)(6,613)
Net cash provided by (used in) investing activities(2,197)15,885 18,900 10,409 
Cash flows from financing activities:
Proceeds from debt, net of discount491 (100)— — 
Repayment of debt(1,333)(1,000)(1,000)(1,000)
Proceeds from issuance of stock-based awards731 324 446 1,690 
Payment of withholding taxes on stock-based awards(479)(238)(638)(1,247)
Net cash used in financing activities(590)(1,014)(1,192)(557)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(397)246 (540)864 
Net change in cash, cash equivalents, and restricted cash(15,288)(49)12,710 335 
Cash, cash equivalents, and restricted cash, beginning of period59,388 44,100 44,051 56,761 
Cash, cash equivalents, and restricted cash, end of period$44,100 $44,051 $56,761 $57,096 
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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 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 third and fourth quarters 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 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 and 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 loss, Adjusted EBITDA loss margin, and Non-GAAP operating expenses. In addition to our results determined in accordance with GAAP, we believe that Adjusted EBITDA loss, Adjusted EBITDA loss margin, and non-GAAP operating expenses, non-GAAP measures, are useful in evaluating our operating performance. We use Adjusted EBITDA loss, Adjusted EBITDA loss margin, and Non-GAAP 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 loss, Adjusted EBITDA loss margin, and Non-GAAP 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 loss, Adjusted EBITDA loss margin, and Non-GAAP 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 loss to net loss and Non-GAAP operating expenses to reported operating expenses, the most directly comparable financial measures stated in accordance with GAAP. We calculate Adjusted EBITDA loss as net loss adjusted to exclude, where applicable in a given period, interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense, acquisition-related expenses, and severance and other. Non-GAAP operating expenses are 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 loss to net loss. thredUP is not providing a quantitative reconciliation of forward-looking guidance of Adjusted EBITDA loss 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 loss in order to calculate forward-looking Adjusted EBITDA loss margin is not available without unreasonable effort. However, for the third and fourth quarters of 2023 and full year 2023, depreciation and amortization is expected to be $4.5 million, $4.5 million, and $17.5 million, respectively. In addition, for the third and fourth quarters of 2023 and full year 2023, stock-based compensation expense is expected to be $7.3 million, $7.3 million, and $31.6 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 loss margin.
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