Q1 2025 ThredUp Inc Earnings Call Transcript
Key Points
- ThredUp Inc (TDUP) achieved a 10.5% year-over-year revenue growth in Q1 2025, marking a significant acceleration in their US marketplace.
- The company reported a 95% increase in new buyers compared to Q1 2024, with April being the strongest month for new customer acquisition in its history.
- ThredUp Inc (TDUP) generated $2.6 million in cash and achieved an adjusted EBITDA of 5.3%, demonstrating strong financial performance.
- The company is leveraging AI-driven product experiences to enhance customer engagement, resulting in a 64% higher conversion rate for sessions using the updated 'shop similar' feature.
- ThredUp Inc (TDUP) is making substantial investments in the seller experience, with premium items contributing 60% higher margins than regular items.
- Gross margin decreased by 100 basis points to 79.1% due to higher incentives required for new buyer conversions.
- The company faces potential challenges from macroeconomic factors, such as tariffs and the closure of the de minimis loophole, which could impact pricing and competitiveness.
- Despite strong Q1 performance, ThredUp Inc (TDUP) remains cautious about the volatile and uncertain consumer environment for the remainder of 2025.
- The average revenue per order declined by about 5%, attributed to the mix of new buyers who typically have lower net revenue per order due to promotional offers.
- ThredUp Inc (TDUP) anticipates maintaining profitability expectations for the rest of the year, focusing on driving growth rather than immediate profit maximization.
Good afternoon, ladies and gentlemen, and welcome to the ThredUp first-quarter 2025 earnings conference call. (Operator Instructions) This call is being recorded on Monday, May 5, 2025.
I would now like to turn the conference over to Lauren Frasch. Please go ahead.
Good afternoon, everyone, and thank you for joining us on today's conference call to discuss ThredUp's first-quarter 2025 financial results. With me are James Reinhart, ThredUp CEO and Co-Founder; and Sean Sobers, CFO. We posted our press release and supplemental financial information on our Investor Relations website at ir.thredup.com. This call is being webcast on our IR website, and a replay of this call will be available on the site shortly.
Before we begin, I'd like to remind you that we will make forward-looking statements during the course of this call. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual
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