ThredUp (TDUP) Q4 2024 earnings summary

Executive summary

• Achieved first full year of adjusted EBITDA profitability in 2024, with Q4 results exceeding expectations and strong momentum into 2025.

• 2024 revenue reached $260M, with annual growth flat at 1% compared to 2023; Q4 revenue was $67.3M, up 9% year-over-year.

• Gross profit for 2024 was $207M, with a gross margin of 80%; Q4 gross margin reached a record 80.4%.

• Adjusted EBITDA for 2024 was $8.7M (3.3% margin), with Q4 Adjusted EBITDA at $5M (7.4% margin), both positive versus prior year losses.

• Divested European Remix business in Q4 2024, now focused exclusively on U.S. operations.

Financial highlights

• Q4 2024 revenue was $67.3M, up 9.5% year-over-year; order growth re-accelerated to 1.2M, up 2% year-over-year.

• Gross margin for Q4 was 80.4%, a 290 basis point increase year-over-year, driven by higher consignment sales.

• Adjusted EBITDA for Q4 was $5M (7.4% of revenue), doubling dollars year-over-year and improving margin by 330 basis points.

• Ended Q4 with $52.8M in cash and investments, after $4.2M in cash usage including CapEx, debt repayment, and final Remix funding.

• Net loss from continuing operations narrowed to $40M in 2024 from $52M in 2023.

Outlook and guidance

• Q1 2025 revenue expected between $67.5M–$69.5M (6% growth at midpoint), gross margin 77–79%, adjusted EBITDA 2.5–3.5% of revenue.

• Full year 2025 revenue guidance of $270–$280M (6% growth at midpoint), gross margin 77–79%, adjusted EBITDA approximately flat to 2024's 3.3%.

• Maintenance CapEx expected at ~$8M for 2025; stock-based compensation to decrease by over 40% to $14.5M.

• Marketing spend to be about 19% of revenue quarterly, reflecting strong LTV/CAC ratios and improved returns.

• Expect to reach positive free cash flow on an annual basis in 2025.