Slide 1: Investor Presentation Fourth Quarter 2023
© THREDUP The following contains confidential information. Do not distribute without permission. INVESTOR PRESENTATION Fourth Quarter 2023
Slide 2: Forward-looking statements
2© THREDUP This presentation and the accompanying oral commentary 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 f
Slide 3: ThredUp's mission: think secondhand first
@ThredUp 3 ThredUp’s mission is to inspire the world to think secondhand first.
Slide 4: Compelling investment opportunity
4© THREDUP Compelling investment opportunity 2 Defensible operating platform 1 Unlocking massive supply Investment thesis 3 Large, growing TAM + marketplace flywheel Our platform includes our infrastructure purpose built for single-SKU logistics, our proprietary software and systems and our deep dat
Slide 5: ThredUp at-a-glance
5© THREDUP ThredUp at-a-glance $81M | 14% Q4 2023 revenue | annual growth $50M | 62% Q4 2023 gross profit | gross profit % $322M | 12% 2023 revenue | annual growth $214M | 66% 2023 gross profit | gross profit % 1.8M Q4 2023 active buyers 1.8M Q4 2023 orders 666M pounds of carbon emissions saved1 1.3
Slide 6: ThredUp's operating system is our competitive advantage
6© THREDUP ThredUp’s operating system is our competitive advantage Patented world-class infrastructure Powerful technology and software Proprietary data Managed marketplace We’ve made it easy for consumers to buy and sell secondhand clothing. Resale-as-a-ServiceⓇ (RaaSⓇ) We power resale for leading
Slide 7: Operating platform designed for resale at scale
7© THREDUP Operating platform designed for resale at scale Distributed processing infrastructure Proprietary systems, automation and software Data science expertise ● Tech-driven processing, storage and fulfillment; purpose-built for “single SKU” logistics ● 5 strategic global distribution centers ●
Slide 8: Operating platform: Distributed processing infrastructure
8© THREDUP Operating platform: Distributed processing infrastructure Data as of Dec 31, 2023 1 We believe we operate the 4 largest item on-hanger systems in the U.S. Distribution Centers Offices 4 U.S. distribution center locations with 9M item capacity 4 largest item on-hanger systems1 Dallas, TX d
Slide 9: Managed marketplace model unlocks supply, creates buyer trust
9© THREDUP Managed marketplace model unlocks supply, creates buyer trust Buyers love... ● Incredible value, up to 90% off estimated retail price ● Wide selection of 55K+ brands, 100 categories ● Fresh, ever-changing assortment Sellers love... ● Convenient Clean Out Kits ● End-to-end services ● Makin
Slide 10: Data science expertise
10© THREDUP Data science expertise Source: Company information Note: All data as of Dec 31, 2023 unless otherwise indicated. 1As of December 31, 2022. 172M+ Unique Items Processed Cumulatively1 55K+ Brands 100 Categories Millions of Data Points Target 12‐Month Payback Period Actively Managed Supplie
Slide 11: RaaS: How does it drive ThredUp?
11© THREDUP RaaS: How does it drive ThredUp? Start with Clean Out programs and expand into ThredUp-powered resale shops SUPPLY DEMAND RAAS Drive faster sell-through by expanding distribution to new audiences (which ↑ inventory turns and ↑ return on assets) ThredUp core marketplace DEMAND SUPPLY Grow
Slide 12: RaaS: Go-to-market strategy
12© THREDUP RaaS: Go-to-market strategy Start with Clean Out programs and expand into ThredUp-powered resale shops LAND AND EXPAND ● Build quality supply from customers of specific brands ● Offer an entry point into resale with opportunity to upsell/expand over time ● Monetize unique assets and infr
Slide 13: Diversified RaaS strategies to serve clients' unique needs
13© THREDUP Diversified RaaS strategies to serve clients’ unique needs Trade in makes it easy for brands to get started Expand existing relationships ● Easy to launch circularity programs (no tech lift, quick two week build out lead time) for brands who want to take a meaningful step on sustainabili
Slide 14: Large and growing market opportunity
14© THREDUP Large and growing market opportunity U.S. Demand-Side Secondhand TAM1 U.S. secondhand market sales (2017-2027) – $ billions U.S. Supply-Side Secondhand TAM ~17 BILLION Pounds of apparel thrown away in the U.S. that could be recycled and reused3 The equivalent of ~1 BILLION ThredUp Clean
Slide 15: New shoppers drive secondhand market growth in the U.S.
15© THREDUP New shoppers drive secondhand market growth in the U.S. 1 Source: GlobalData 2023 Market Survey Thrifting has universal appeal, with a healthy mix of incremental secondhand spend coming from all age groups
Slide 16: Europe acquisition expands TAM opportunity
16© THREDUP Europe acquisition expands TAM opportunity and accelerates international strategy TAM expansion from European Markets +135% Company Office & Distribution Center +126% Source: Estimates from GlobalData 2023 Market Survey Note: Europe Markets include UK, Italy, Germany, France, Spain, Neth
Slide 17: ThredUp's competitive advantage and landscape
17© THREDUP ThredUp’s competitive advantage and landscape 1 GlobalData 2023 Market Sizing and Growth Estimates 2 GlobalData Luxury and Mass Apparel Study, January 2024 MASS PEER TO PEER MANAGED MARKETPLACE LUXURY Managed marketplace ● End-to-end processing infrastructure, unlocks supply ● Creates da
Slide 18: ESG Overview: Key Focus Areas
18© THREDUP ESG Overview: Key Focus Areas thredup.com/Impact
Slide 19: ESG: Impact Report
19© THREDUP ESG: Impact Report1 includes Scope 1-3 GHG analysis and SASB/GRI disclosures 1 ThredUp's 2022 Impact Report includes activities undertaken during the reporting period from January 1, 2022 to December 31, 2022. Highlights ● Overview of our ESG strategy ● Commitment to UN Sustainable Devel
Slide 20: ESG spotlight: Environmental
20© THREDUP ESG spotlight: Environmental – ThredUp’s impact on the planet is significant Processed 172 million unique secondhand items to-date (as of year-end 2022). Displaced 666 million pounds of carbon emissions.1 Completed our 2021-2022 Greenhouse Gas (GHG) inventory assessment (including Scope
Slide 21: ESG Spotlight: Social
21© THREDUP ESG Spotlight: Social - we do the right thing for our employees and communities 1 Company information as of December 31, 2022. 2 2022 ThredUp Impact Report, released July 26, 2023. Senior leadership 1 Total workforce 1 60% 26% 66% 72% Identifies as minorityIdentifies as female Leadership
Slide 22: ESG Spotlight: Governance
22© THREDUP ESG Spotlight: Governance – we foster effective leadership and resilience Corporate Social Responsibility (CSR) Committee Stewardship and participation from senior leaders across ThredUp, reporting to the Board Diversity and representative Board governance Four female directors (44% of o
Slide 23: Financial Highlights
© THREDUP 23• CONFIDENTIAL FINANCIAL HIGHLIGHTS
Slide 24: Quarterly Financial Snapshot
24© THREDUP Quarterly Financial Snapshot $ in millions Revenue Gross Margin Adj. EBITDA1 Margin 1 Refer to Appendix for Adjusted EBITDA reconciliation Annual Growth: +14%+4%-2% +21%+8%
Slide 25: Quarterly Buyer and Order Growth
25© THREDUP Total Orders and Growth Quarterly Buyer and Order Growth Active Buyers and Growth Annual Growth: -8% +17%Annual Growth: -3% +9%-2% -8%-1% +5% +11%+4%
Slide 26: Annual Financial Snapshot
26© THREDUP Annual Financial Snapshot $ in millions Revenue Gross Margin Adj. EBITDA1 Margin 1 Refer to Appendix for Adjusted EBITDA reconciliation Annual Growth: +12%+35%+14% +15%+26%
Slide 27: Annual Buyer and Order Growth
27© THREDUP Total Orders and Growth Annual Buyer and Order Growth Active Buyers and Growth Annual Growth: +34% +34%+27%Annual Growth: +47% +36%+24% Europe acquisition in Q4 2021 -2% Europe acquisition in Q4 2021 +22%+9% +6%
Slide 28: Long-Term Target Model
28© THREDUP Long-Term Target Model Note: excludes SBC expense. Refer to Appendix for SBC GAAP Reconciliation.
Slide 29: Appendix
APPENDIX
Slide 30: Our Business Model
30© THREDUP Our Business Model $ in millions Shift to a primarily consignment model in 2019 ● Consignment Revenue: Revenue recognized net of seller payouts, discounts, incentives and returns ● Product Revenue: Revenue recognized from the sale of items that we own ● Cost of Consignment Revenue: Inclu
Slide 31: Our Business Model (cont.)
31© THREDUP Our Business Model (cont.) $ in millions ● Operations, Product and Technology Expenses: Include distribution center operating costs (inbound shipping, personnel, distribution center rent, maintenance and equipment depreciation) and product and technology expenses (personnel costs for des
Slide 32: Adjusted EBITDA Reconciliation
32© THREDUP Adjusted EBITDA Reconciliation $ in millions
Slide 33: SBC Expense Reconciliation
33© THREDUP SBC Expense Reconciliation $ in millions
Slide 34: Key Definitions
34© THREDUP Key Definitions Active Buyers ● An Active Buyer is a ThredUp buyer who has made at least one purchase in the last 12 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 b