ThredUp Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue and an increase in net losses compared to the previous fiscal period. Total revenue for Q3 2024 was $73.0 million, down 11.0% from $82.0 million in Q3 2023. For the nine months, revenue decreased to $232.4 million from $240.6 million, a decline of 3.4%. The decrease in revenue was primarily attributed to a significant drop in product revenue, which fell by $11.0 million (45.6%) in Q3 and $35.5 million (42.8%) over the nine months, partially offset by increases in consignment revenue.
Gross profit for Q3 2024 was $52.0 million, an 8.2% decrease from $56.6 million in the same quarter of 2023, with a gross margin improvement to 71.2% from 69.0%. The nine-month gross profit remained relatively stable at $163.4 million, compared to $163.5 million in 2023. The increase in gross margin was driven by a higher proportion of revenue from the consignment model, despite a decrease in consignment gross margin due to rising shipping and packaging costs.
Net loss for Q3 2024 was $24.8 million, compared to a loss of $18.1 million in Q3 2023. The nine-month net loss improved slightly to $55.3 million from $56.6 million in the prior year. The Q3 loss included a $9.8 million impairment charge related to the company's exit from the European market, which accounted for $5.6 million in property and equipment and $4.2 million in intangible assets.
ThredUp's operational expenses saw a decrease, with marketing expenses down 21.2% in Q3 and 18.5% for the nine months, largely due to reduced personnel-related costs and advertising expenses. The company also reported a decrease in cash and cash equivalents, totaling $43.7 million as of September 30, 2024, down from $56.1 million at the end of 2023.
In terms of strategic developments, ThredUp announced its exit from the European market and is exploring strategic alternatives for its Remix business. The company signed a non-binding term sheet for a proposed buyout of Remix by its management team, with plans to retain a minority interest. Additionally, ThredUp is facing compliance issues with Nasdaq regarding its stock price, which has fallen below the minimum bid requirement.
Overall, ThredUp's financial performance reflects challenges in revenue generation and profitability, alongside significant strategic shifts aimed at restructuring its operations and market presence.
About ThredUp Inc.
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