Thredup Inc. · NASDAQ:TDUP

Thredup — Q1 2025 Earnings Presentation

33 slides from Thredup's earnings presentation, May 5, 2025

  1. Slide 1: Investor Presentation First Quarter 2025

    INVESTOR PRESENTATION First Quarter 2025 The following contains confidential information. © THREDUP Do not distribute without permission.

  2. Slide 2: Safe harbor

    Safe harbor 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

  3. Slide 3: ThredUp's mission is to inspire the world to think secondhand first

    ThredUp’s mission is to inspire the world to think secondhand first. @ThredUp 3

  4. Slide 4: ThredUp at-a-glance

    ThredUp at-a-glance1 Founded in 2009 $71M | 10% 1.4M | 6% Q1 2025 Revenue | YoY growth Q1 2025 active buyers | YoY growth Headquartered in Oakland, CA $56M | 79% 1.4M | 16% Q1 2025 Gross profit | gross profit % 55K+ brands Q1 2025 orders | YoY growth 100 different categories $4M | 5% Q1 2025 Adj. EB

  5. Slide 5: Investment thesis

    Investment thesis ● Our platform provides an ever-widening moat as we leverage multi-year infrastructure ● Defensible supply advantage investments purpose built for ● Reverse logistics supply chain 1 2 single-SKU logistics at scale provides sellers with an Unlocking Leverage ● Operating platform inc

  6. Slide 6: Marketplace Model

    MARKETPLACE MODEL © THREDUP 6

  7. Slide 7: ThredUp's operating system is our competitive advantage

    ThredUp’s operating system is our competitive advantage Multi-year infrastructure investments scaffold ThredUp’s managed marketplace and create significant barriers to entry Patented world-class Powerful technology Proprietary data feeds processing and software AI-powered systems infrastructure Mana

  8. Slide 8: Buyers love...

    VALUE PROPOSITION • BUYER EXPERIENCE Buyers love... Incredible value, up to 90% off estimated retail price Fresh, ever-changing assortment with approximately 50K+ new listings every day Wide selection of 55K+ brands and 100 categories, with one-cart checkout AI-powered search for easy-to-use discove

  9. Slide 9: Sellers love...

    VALUE PROPOSITION • SELLER EXPERIENCE Sellers love... Solves clean out Convenient Making money by problem with Easy processing Clean Out Kits doing good end-to-end service ● Unique seller offering, ● Earn cash or credit to ● 73% of apparel is sent to ● Easy to order and send end-to-end service for p

  10. Slide 10: Accelerating the Marketplace Flywheel

    Accelerating the Marketplace Flywheel Operations Processing High Quality Supply Increasingly automated inbound and outbound processing leverages years Sourcing regular, premium and RAAS of infrastructure investment to drive bags from suppliers drive new listings velocity, delight customers listings

  11. Slide 11: Operating platform: Distributed processing infrastructure

    Operating platform: Distributed processing infrastructure Multi-year infrastructure investments are a core competitive advantage AI-driven processing, storage and fulfillment designed for resale at scale; purpose-built for “single SKU” logistics 4 U.S. distribution center locations with 9M item capa

  12. Slide 12: Data Science Expertise

    Data Science Expertise Proprietary data has been at the center of everything we do since inception Inventory Acceptance Item Supply Actively Managed Based on Historical Acceptance Acquisition Supplier Experience Selling Data 172M+ Unique Items Processed Cumulatively1 Personalization Maximizes & Cura

  13. Slide 13: AI Search Tools Transform Online Resale Customer Experience

    AI Search Tools Transform Online Resale Customer Experience Named “Best Inventions of 2024” by TIME Magazine, ThredUp’s AI-Powered shopping tools aid in discovery of 4M+ unique items AI Powered Search Image Search Chat Search ● Customers can use natural language to ● Customers can upload a photo, sn

  14. Slide 14: RaaS: How does it drive ThredUp?

    RaaS: How does it drive ThredUp? “Resale As A Service” Partner Clean Out programs provide premium supply that drives our marketplace flywheel RAAS ThredUp core 1 1. Grow targeted supply DEMAND marketplace by leveraging clients’ channels SUPPLY (in-store Clean Out Kits) DEMAND 2 2. Drive faster sell-

  15. Slide 15: Large and Growing Market Opportunity

    Large and Growing Market Opportunity 2024-2029: U.S. Secondhand apparel market is expected to grow at a 9% CAGR U.S. Demand-Side Secondhand TAM1 U.S. Supply-Side U.S. secondhand market gross merchandise value (2019-2029) – $ billions Secondhand TAM ~17 BILLION The U.S. secondhand apparel market grew

  16. Slide 16: ThredUp's Competitive Advantage and Landscape

    ThredUp’s Competitive Advantage and Landscape Managed marketplace MASS ● End-to-end processing infrastructure, unlocks supply ● Creates data-driven, liquid market ● Platform extensibility ● “Management” of supply chain enables Resale-as-a-Service MANAGED PEER TO PEER MARKETPLACE Mass fashion ● U.S.

  17. Slide 17: Impact

    IMPACT © THREDUP 17

  18. Slide 18: The Impact Report includes comprehensive view of ThredUp's ESG strategy

    The Impact Report1 includes comprehensive view of ThredUp’s ESG strategy Highlights ● Overview of our ESG strategy ● Commitment to UN Sustainable Development Goals ● Coverage of 12 material ESG factors ● Snapshot of our Public Policy efforts Links ● Full Report ● SASB & GRI Disclosures thredup.com/i

  19. Slide 19: ThredUp's impact on the planet is significant

    ESG SPOTLIGHT: ENVIRONMENTAL ThredUp’s impact on the planet is significant 1 As of December 31, 2023. Sustainability estimates based in part on information provided by GreenStory Inc. and represent a comparison between new and secondhand apparel carbon emission estimates. © THREDUP 19

  20. Slide 20: ThredUp advocates for circular textile policy

    ESG SPOTLIGHT: ENVIRONMENTAL ThredUp advocates for circular textile policy ThredUp is proud to be a founding member of the American Circular Textiles (ACT) policy group, whose mission is to advance circular textile policy. 2023 Advocacy Highlights: The coalition published a policy paper to highlight

  21. Slide 21: ThredUp fosters an inclusive workforce and gives back to its community

    ESG SPOTLIGHT: SOCIAL ThredUp fosters an inclusive workforce and gives back to its community 2023 Diversity in Leadership & Workforce 1 Employee Satisfaction ● We believe that a unique perspective is critical to ● 90% of employees say their proud to tell others solving complex problems and inspiring

  22. Slide 22: We foster effective leadership and governance

    ESG SPOTLIGHT: GOVERNANCE We foster effective leadership and governance Board-level oversight of ESG strategy We embedded board-level oversight of ESG into our Nominating and ESG Committee charter Board independence All directors, other than CEO, independent according to Nasdaq listing standards Uph

  23. Slide 23: Financial Highlights

    FINANCIAL HIGHLIGHTS © THREDUP 23

  24. Slide 24: Quarterly Financial Snapshot

    Quarterly Financial Snapshot1 $ in millions Revenue Gross Margin Adj. EBITDA2 Margin Annual +12% +4% +0% -10% +9% Growth: 1 Unless otherwise noted, amounts and disclosures herein relate to our continuing U.S only operations following the fourth quarter 2024 divestment of our European business. 2 Ref

  25. Slide 25: Quarterly Buyer and Order Growth

    Quarterly Buyer and Order Growth1 Active Buyers and Growth Total Orders and Growth Annual Annual -3% -6% -7% -6% +6% +7% +0% -10% +2% +16% Growth: Growth: 1 Unless otherwise noted, amounts and disclosures herein relate to our continuing U.S only operations following the fourth quarter 2024 divestmen

  26. Slide 26: Annual Financial Snapshot

    Annual Financial Snapshot1 $ in millions Revenue Gross Margin Adj. EBITDA1 Margin Annual Growth: +14% +29% +0% +7% +1% 1 Unless otherwise noted, amounts and disclosures herein relate to our continuing U.S only operations following the fourth quarter 2024 divestment of our European business. 2 Refer

  27. Slide 27: Annual Buyer and Order Growth

    Annual Buyer and Order Growth1 Active Buyers and Growth Total Orders and Growth Annual Annual +26% +20% -9% +0% -6% +27% +24% -5% +5% -1% Growth: Growth: 1 Unless otherwise noted, amounts and disclosures herein relate to our continuing U.S only operations following the fourth quarter 2024 divestment

  28. Slide 28: Long-Term Target Model

    Long-Term Target Model Note: excludes SBC and Severance expense. Refer to Appendix for non-GAAP Reconciliation. © THREDUP 28

  29. Slide 29: Appendix

    APPENDIX

  30. Slide 30: Our Business Model

    Our Business Model1 $ in millions 1 Unless otherwise noted, amounts and disclosures herein relate to our continuing U.S only operations following the fourth quarter 2024 divestment of our European business. © THREDUP 30

  31. Slide 31: Our Business Model

    Our Business Model1 $ in millions Key Definitions Operating Expenses2 ● 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 (person

  32. Slide 32: Non GAAP Expense Reconciliation

    Non GAAP Expense Reconciliation1 $ in millions 1 Unless otherwise noted, amounts and disclosures herein relate to our continuing U.S only operations following the fourth quarter 2024 divestment of our European business. © THREDUP 32

  33. Slide 33: Key Definitions

    Key Definitions ● 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 Active Buyers our RaaS clients. ● A ThredUp buyer is identified by a unique e

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