The RealReal, Inc. (REAL) 10-Q 9 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-38953
Entity Registrant Name	TheRealReal, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-1234222
Entity Address, Address Line One	55 Francisco Street
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94133
City Area Code	855
Local Phone Number	435-5893
Title of 12(b) Security	Common stock, $0.00001 par value
Trading Symbol	REAL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		100,174,285
Entity Central Index Key	0001573221
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 247,145	$ 293,793
Accounts receivable, net	8,941	12,207
Inventory, net	30,843	42,967
Prepaid expenses and other current assets	24,202	23,291
Total current assets	311,131	372,258
Property and equipment, net	101,876	112,679
Operating lease right-of-use assets	95,587	127,955
Other assets	3,160	2,749
Total assets	511,754	615,641
Current liabilities
Accounts payable	8,867	11,902
Accrued consignor payable	72,114	81,543
Operating lease liabilities, current portion	20,691	20,776
Other accrued and current liabilities	82,271	93,292
Total current liabilities	183,943	207,513
Operating lease liabilities, net of current portion	117,553	125,118
Convertible senior notes, net	450,481	449,848
Other noncurrent liabilities	3,297	3,254
Total liabilities	755,274	785,733
Commitments and contingencies (Note 11)
Stockholders’ equity (deficit):
Common stock, $0.00001 par value; 500,000,000 shares authorized as of March 31, 2023 and December 31, 2022; 100,152,432 and 99,088,172 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	1	1
Additional paid-in capital	790,132	781,060
Accumulated deficit	(1,033,653)	(951,153)
Total stockholders’ equity (deficit)	(243,520)	(170,092)
Total liabilities and stockholders’ equity (deficit)	$ 511,754	$ 615,641

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	100,152,432	99,088,172
Common stock, shares, outstanding (in shares)	100,152,432	99,088,172

Condensed Statements of Operati

Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue:
Total revenue	$ 141,904	$ 146,700
Cost of revenue:
Total cost of revenue	51,921	68,083
Gross profit	89,983	78,617
Operating expenses:
Marketing	17,518	17,961
Operations and technology	68,032	67,101
Selling, general and administrative	49,845	48,262
Restructuring charges	36,388	0
Total operating expenses	171,783	133,324
Loss from operations	(81,800)	(54,707)
Interest income	2,053	98
Interest expense	(2,667)	(2,664)
Other income (expense), net	0	(139)
Loss before provision for income taxes	(82,414)	(57,412)
Provision for income taxes	86	0
Net loss attributable to common stockholders	$ (82,500)	$ (57,412)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.83)	$ (0.61)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.83)	$ (0.61)
Shares used to compute net loss per share attributable to common stockholders, basic (in shares)	99,608,071	93,476,106
Weighted-average common shares outstanding used to calculate net loss per share attributable to common stockholders, diluted (in shares)	99,608,071	93,476,106
Consignment revenue
Revenue:
Total revenue	$ 102,643	$ 83,989
Cost of revenue:
Total cost of revenue	15,529	13,733
Direct revenue
Revenue:
Total revenue	24,953	48,823
Cost of revenue:
Total cost of revenue	25,030	40,034
Shipping services revenue
Revenue:
Total revenue	14,308	13,888
Cost of revenue:
Total cost of revenue	$ 11,362	$ 14,316

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2021			92,960,066
Beginning balance at Dec. 31, 2021	$ 73,128	$ (98,632)	$ 1	$ 841,255	$ (112,052)	$ (768,128)	$ 13,420
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options (in shares)			417,428
Issuance of common stock upon exercise of options	637			637
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes (in shares)			922,610
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes	(2)			(2)
Stock-based compensation expense	12,964			12,964
Net loss	(57,412)					(57,412)
Ending balance (in shares) at Mar. 31, 2022			94,300,104
Ending balance at Mar. 31, 2022	(69,317)		$ 1	742,802		(812,120)
Beginning balance (in shares) at Dec. 31, 2022			99,088,172
Beginning balance at Dec. 31, 2022	(170,092)		$ 1	781,060		(951,153)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes (in shares)			1,064,260
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for employee taxes	(208)			(208)
Stock-based compensation expense	9,280			9,280
Net loss	(82,500)					(82,500)
Ending balance (in shares) at Mar. 31, 2023			100,152,432
Ending balance at Mar. 31, 2023	$ (243,520)		$ 1	$ 790,132		$ (1,033,653)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (82,500)	$ (57,412)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	7,821	6,364
Stock-based compensation expense	8,991	12,514
Reduction of operating lease right-of-use assets	5,172	4,797
Bad debt expense	651	193
Accrued interest on convertible notes	575	575
Accretion of debt discounts and issuance costs	633	641
Loss on disposal of property and equipment and impairment of capitalized proprietary software	36	175
Property, plant, equipment, and right-of-use asset impairments	32,891	0
Provision for inventory write-downs and shrinkage	3,446	1,809
Changes in operating assets and liabilities:
Accounts receivable, net	2,615	(602)
Inventory, net	8,678	(4,492)
Prepaid expenses and other current assets	(1,139)	(426)
Other assets	(461)	(779)
Operating lease liability	(6,158)	(3,655)
Accounts payable	(1,385)	2,030
Accrued consignor payable	(9,429)	(2,389)
Other accrued and current liabilities	(894)	(8,627)
Other noncurrent liabilities	24	(70)
Net cash used in operating activities	(30,433)	(49,354)
Cash flow from investing activities:
Capitalized proprietary software development costs	(4,214)	(3,304)
Purchases of property and equipment	(11,706)	(5,143)
Net cash used in investing activities	(15,920)	(8,447)
Cash flow from financing activities:
Proceeds from exercise of stock options	0	637
Taxes paid related to restricted stock vesting	(295)	0
Net cash (used in) provided by financing activities	(295)	637
Net decrease in cash and cash equivalents	(46,648)	(57,164)
Cash and cash equivalents
Beginning of period	293,793	418,171
End of period	247,145	361,007
Supplemental disclosures of cash flow information
Cash paid for interest	1,458	1,448
Cash paid for income taxes	4	3
Supplemental disclosures of non-cash investing and financing activities
Property and equipment additions not yet paid in cash	1,906	718
Capitalized proprietary software development costs additions not yet paid in cash	1,279	1,838
Stock-based compensation capitalized to proprietary software development costs	$ 290	$ 450

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Organization and Description of Business The RealReal, Inc. (the “Company”) is an online marketplace for authenticated, consigned luxury goods across multiple categories, including women’s fashion, men’s fashion, and jewelry and watches. The Company was incorporated in the state of Delaware on March 29, 2011 and is headquartered in San Francisco, California. Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. The Company’s functional and reporting currency is the U.S. dollar. The condensed balance sheet as of December 31, 2022 included herein was derived from the audited financial statements as of that date. The accompanying unaudited condensed financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position, results of operations, stockholders’ equity (deficit), and cash flows for the periods presented. For the three months ended March 31, 2023 and 2022, comprehensive loss is equal to net loss as the Company has no other comprehensive income (loss) item in the periods presented. The Company had a change in accounting policy from those disclosed in the unaudited condensed financial statements and related notes for the three months ended March 31, 2022 related to shipping services revenue, as described in Note 2 “Change in Accounting Principle” below. The Company has made a presentation change to reclassify provision for inventory write-downs and shrinkage from inventory, net within operating cash flows in the Condensed Statements of Cash Flows. Changes to reclassify amounts in the prior periods have been made to conform to the current period presentation. These unaudited condensed financial statements should be read in conjunction with the Company’s financial statements and notes included in our Annual Report on Form 10-K filed with the SEC on February 28, 2023.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of expenses during the reporting period. Significant items subject to such estimates and assumptions include those related to revenue recognition, including the returns reserve, standalone selling price related to revenue transactions, valuation of inventory, software development costs, stock-based compensation, incremental borrowing rates related to lease liability, valuation of deferred taxes, and other contingencies. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ from those estimates. The disclosures provided herein should be read in conjunction with the audited financial statements and notes thereto included in our 2022 Form 10-K. See “Part II - Item 8. Financial Statements and Supplementary Data - Note 2” in our 2022 Form 10-K for a complete summary of our significant accounting policies. Net Loss per Share Attributable to Common Stockholders The Company follows the two-class method when computing net loss per common share when shares are issued that meet the definition of participating securities. The two-class method determines net loss per common share for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income (loss) available or attributable to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company’s convertible senior notes are participating securities as they give the holders the right to receive dividends if dividends or distributions declared to the common stockholders is equal to or greater than the last reported sale price of the Company’s common stock on the trading day immediately preceding the ex-dividend date for such dividend or distribution as if the instruments had been converted into shares of common stock. No undistributed earnings were allocated to the participating securities as the contingent event is not satisfied as of the reporting date. For periods in which the Company reports net losses, diluted net loss per common share attributable to common stockholders is the same as basic net loss per common share attributable to common stockholders, because potentially dilutive common shares and assumed conversion of the convertible senior notes are not assumed to have been issued within the calculation, if their effect is anti-dilutive. Revenue Recognition The Company generates revenue from the sale of pre-owned luxury goods through its online marketplace and retail stores. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that include products and services that are capable of being distinct and accounted for as separate performance obligations as described below. The transaction price requires an allocation across consignment services, sales of Company-owned inventory, and shipping services. Estimation is required in the determination of the services' stand-alone selling price ("SSP"). Consignment Revenue The Company provides a service to sell pre-owned luxury goods on behalf of consignors to buyers through its online marketplace and retail stores. The Company retains a percentage of the proceeds received as payment for its consignment service, which the Company refers to as its take rate. SSP is estimated using observable stand-alone consignment sales which are conducted without shipping services. The Company reports consignment revenue on a net basis as an agent and not the gross amount collected from the buyer. Title to the consigned goods remains with the consignor until transferred to the buyer upon purchase of the consigned goods and expiration of the allotted return period. The Company does not take title of consigned goods at any time except in certain cases where returned goods become Company-owned inventory. The Company recognizes consignment revenue upon purchase of the consigned good by the buyer as its performance obligation of providing consignment services to the consignor is satisfied at that point. Consignment revenue is recognized net of estimated returns, cancellations, buyer incentives and adjustments. The Company recognizes a returns reserve based on historical experience, which is recorded in other accrued and current liabilities on the condensed balance sheets (see Note 5). Sales tax assessed by governmental authorities is excluded from revenue. Certain transactions provide consignors with a material right resulting from the tiered consignor commission plan. Under this plan, the amount an individual consignor receives for future sales of consigned goods may be dependent on previous consignment sales for that consignor within his/her consignment period. Accordingly, in certain consignment transactions, a small portion of the Company’s consignment revenue is allocated to such material right using the portfolio method and recorded as deferred revenue, which is recorded in other accrued and current liabilities on the condensed balance sheets. The impact of the deferral has not been material to the financial statements. The Company also generates subscription revenue from monthly memberships allowing buyers early access to shop for luxury goods. The buyers receive the early access and other benefits over the term of the subscription period, which represents a single stand-ready performance obligation. Therefore, the subscription fees paid by the buyer are recognized over the monthly subscription period. Subscription revenue was not material in the three months ended March 31, 2023 and 2022. Direct Revenue The Company generates direct revenue from the sale of Company-owned inventory. The Company recognizes direct revenue on a gross basis upon shipment of the purchased good to the buyer as the Company acts as the principal in the transaction. SSP is estimated using observable stand-alone sales of Company-owned inventory which are conducted without shipping services, when available, or a market assessment approach. Direct revenue is recognized net of estimated returns, buyer incentives and adjustments. Sales tax assessed by governmental authorities is excluded from revenue. Cost of direct revenue is also recognized upon shipment to the buyer in an amount equal to that paid to the consignor from the original consignment sale, an amount equal to that paid as a direct purchase from a third party, or the lower of cost of the inventory purchased and its net realizable value. Shipping Services Revenue The Company provides a service to ship purchased items to buyers and a service to ship items from buyers back to the Company. The Company determines itself to be the principal in this arrangement. The Company charges a fee to buyers for this service and has elected to treat shipping and handling activities performed as a separate performance obligation. For shipping services revenue, the Company's SSP is estimated using a market approach considering external and internal data points on the stand-alone sales price of the shipping service. All outbound shipping and handling costs for buyers are accounted for as cost of shipping services and recognized as the shipping activity occurs. The Company also generates shipping services revenue from the shipping fees for consigned products returned by buyers to the Company within policy . The Company recognizes shipping revenue and associated costs over time as the shipping activity occurs, which is generally one to three days after shipment. Incentives Incentives, which include platform-wide discounts and buyer incentives, may periodically be offered to buyers. Platform-wide discounts are made available to all buyers on the online marketplace. Buyer incentives apply to specific buyers and consist of coupons or promotions that offer credits in connection with purchases on the Company’s platform, and do not impact the commissions paid to consignors. These are treated as a reduction of consignment revenue and direct revenue. Additionally, the Company periodically offers commission exceptions to the standard consignment rates to consignors to optimize its supply. These are treated as a reduction of consignment revenue at the time of sale. The Company may offer a certain type of buyer incentive in the form of site credits to buyers on current transactions to be applied towards future transactions, which are included in other accrued and current liabilities on the condensed balance sheets. Contract Liabilities The Company’s contractual liabilities primarily consist of deferred revenue for material rights primarily related to the tiered consignor commission plan, which are recognized as revenue using a portfolio approach based on the pattern of exercise, and certain buyer incentives, which were immaterial as of March 31, 2023 and December 31, 2022. Contract liabilities are recorded in other accrued and current liabilities on the balance sheets and are generally expected to be recognized within one year. Contract liabilities were immaterial as of March 31, 2023 and December 31, 2022. Cost of Revenue Cost of consignment revenue consist of credit card fees, packaging, customer service personnel-related costs, website hosting services, and consignor inventory adjustments relating to lost or damaged products. Cost of direct revenue consists of the cost of goods sold, credit card fees, packaging, customer service personnel-related costs, website hosting services, and inventory adjustments. Cost of shipping services revenue consists of the outbound shipping and handling costs to deliver purchased items to buyers, the shipping costs for consigned products returned by buyers to the Company within policy, and an allocation of the credit card fees associated with the shipping fee charged. Stock-based Compensation The Company incurs stock-based compensation expense from stock options, restricted stock units (“RSUs”), performance based restricted stock units (“PSUs”) subject to performance or market conditions, and employee stock purchase plan (“ESPP”) purchase rights. Stock-based compensation expense related to employees and nonemployees is measured based on the grant-date fair value of the awards. The Company estimates the fair value of stock options granted and the purchase rights issued under the ESPP using the Black-Scholes option pricing model. The fair value of RSUs is estimated based on the fair market value of the Company’s common stock on the date of grant, which is determined based on the closing price of the Company’s common stock. Compensation expense is recognized in the statements of operations over the period during which the employee is required to perform services in exchange for the award (the vesting period of the applicable award) using the straight-line method for awards with only a service condition. To determine the grant-date fair value of the Company's stock-based payment awards for PSUs subject to performance conditions, the quoted stock price on the date of grant is used. The stock-based compensation expense for PSUs with performance conditions is recognized based on the estimated number of shares that the Company expects will vest and is adjusted on a quarterly basis using the estimated achievement of financial performance targets. For PSUs subject to market conditions, the grant-date fair value is determined using the Monte Carlo simulation model which utilizes multiple input variables to estimate the probability that market conditions will be achieved. These variables include the Company's expected stock price volatility over the expected term of the award, the risk-free interest rate for the expected term of the award, and expected dividends. For PSUs with market conditions, the stock-based compensation expense is recognized on a tranche by tranche basis over the requisite service period using the fair value derived from the Monte Carlo simulation model. For all awards, the Company accounts for forfeitures as they occur. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents primarily consist of investments in short-term money market funds. Inventory, Net Inventory consists of finished goods arising from goods returned after the title has transferred from the buyer to the Company as well as finished goods from direct purchases from vendors and consignors. The cost of inventory is an amount equal to that paid to the consignor or vendors. Inventory is valued at the lower of cost and net realizable value using the specific identification method and the Company records provisions, as appropriate, to write down obsolete and excess inventory to estimated net realizable value. After the inventory value is reduced, adjustments are not made to increase it from the estimated net realizable value. Additionally, inventory is recorded net of an allowance for shrinkage which represents the risk of physical loss of inventory. Provisions for inventory shrinkage are estimated based on historical experience and are adjusted based upon physical inventory counts. Provisions to write down inventory to net realizable value and provisions for inventory shrinkage were $3.4 million and $1.8 million during the three months ended March 31, 2023 and 2022, respectively. Return reserves, which reduce revenue and cost of sales, are estimated using historical experience. Liabilities for return allowances are included in other accrued and current liabilities on the condensed balance sheets and were $18.8 million and $22.2 million as of March 31, 2023 and December 31, 2022, respectively. Included in inventory on the Company’s condensed balance sheets are assets totaling $4.6 million and $6.1 million as of March 31, 2023 and December 31, 2022, respectively, for the rights to recover products from customers associated with its liabilities for return reserves. Software Development Costs Proprietary software includes the costs of developing the Company’s internal proprietary business platform and automation projects. The Company capitalizes qualifying proprietary software development costs that are incurred during the application development stage. Capitalization of costs begins when two criteria are met: (1) the preliminary project stage is completed and (2) it is probable that the software will be completed and used for its intended function. Such costs are capitalized in the period incurred. Capitalization ceases and amortization begins when the software is substantially complete and ready for its intended use, including the completion of all significant testing. Costs related to preliminary project activities and post-implementation operating activities are expensed as incurred. Impairment of Long-lived Assets The carrying amounts of long-lived assets, including right-of-use assets, property and equipment, net and capitalized proprietary software, are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of assets to be held and used is measured by comparing the carrying amount of assets to future undiscounted net cash flows the assets are expected to generate over their remaining life. If the assets are considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired assets. If the useful life is shorter than originally estimated, the Company amortizes the remaining carrying value over the revised shorter useful life. Leases Contracts that have been determined to convey the right to use an identified asset are evaluated for classification as an operating or finance lease. For the Company’s operating leases, the Company records a lease liability based on the present value of the lease payments at lease inception, using the applicable incremental borrowing rate. The Company estimates the incremental borrowing rate by developing its own synthetic credit rating, corresponding yield curve, and the terms of each lease at the lease commencement date. The corresponding right-of-use asset is recorded based on the corresponding lease liability at lease inception, adjusted for payments made to the lessor at or before the commencement date, initial direct costs incurred and any tenant incentives allowed for under the lease. The Company does not include optional renewal terms or early termination provisions unless the Company is reasonably certain such options would be exercised at the inception of the lease. Operating lease right-of-use assets, current portion of operating lease liabilities, and operating lease liabilities, net of current portion are included on the Company’s condensed balance sheets. The Company has elected the practical expedients that allows for the combination of lease components and non-lease components and to record short-term leases as lease expense on a straight-line basis on the condensed statements of operations. Variable lease payments are recorded as expense as they are incurred. The Company has finance leases for vehicles and equipment, and the amounts of finance lease right-of-use assets and finance lease liabilities have been immaterial to date. Convertible Senior Notes, Net Prior to the adoption of ASU 2020-06 on January 1, 2022, convertible debt instruments that may be settled in cash or other assets, or partially in cash, upon conversion, were separately accounted for as long-term debt and equity components (or conversion feature). The debt component represented the Company’s contractual obligation to pay principal and interest and the equity component represented the Company’s option to convert the debt security into equity of the Company or the equivalent amount of cash. Upon issuance, the Company allocated the debt component on the basis of the estimated fair value of a similar liability that does not have an associated convertible feature and the remaining proceeds are allocated to the equity component. The bifurcation of the debt and equity components resulted in a debt discount for the aforementioned notes. The Company uses the effective interest method to amortize the debt discount to interest expense over the amortization period which is the expected life of the debt. Following the adoption of ASU 2020-06, there is no bifurcation of the liability and equity components of the 3.00% Convertible Senior Notes due 2025 (the "2025 Notes") and the 1.00% Convertible Senior Notes due 2028 (the "2028 Notes" and, together with the 2025 Notes, the "Notes"), and the entire principal of the Notes are accounted for as long-term debt. Capped Call Transactions In June 2020 and March 2021, in connection with the issuance of its convertible senior notes, the Company entered into Capped Call Transactions (see Note 7). The Capped Call Transactions are expected generally to reduce the potential dilution to the holders of the Company’s common stock upon any conversion of the convertible senior notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted convertible senior notes, with such reduction and/or offset subject to a cap based on the cap price. The capped calls are classified in stockholders’ equity as a reduction to additional paid-in capital and are not subsequently remeasured as long as the conditions for equity classification continue to be met. The Company monitors the conditions for equity classification, which continue to be met. Debt Issuance Costs Debt issuance costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the anticipated debt offering, are amortized to interest expense over the estimated life of the related debt based on the effective interest method. The Company presents debt issuance costs on the condensed balance sheets as a direct deduction from the associated debt. The Company adopted ASU 2020-06 as of January 1, 2022 using the modified retrospective method. Prior to the adoption of ASU 2020-06 on January 1, 2022, a portion of debt issuance costs incurred in connection with the convertible senior notes issued in June 2020 and March 2021 was allocated to the equity component and was recorded as a reduction to additional paid in capital and was not amortized to interest expense over the estimated life of the related debt. Following the adoption of ASU 2020-06, the debt issuance costs previously allocated to the equity component of both the Notes were reclassified to debt. As such, all of the debt issuance costs are recorded as a direct deduction from the related principal debt amounts on the balance sheet, and are all amortized to interest expense over the estimated remaining life of the related debt. Concentrations of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, and accounts receivable. At times, such amount may exceed federally-insured limits. The Company is closely monitoring ongoing events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions or other companies in the financial services industry or the financial services industry generally. The Company reduces credit risk by placing its cash and cash equivalents, and investments with major financial institutions with high credit ratings within the United States. The Company has not experienced any realized losses on cash and cash equivalents to date; however, no assurances can be provided. As of March 31, 2023 and December 31, 2022, there were no customers that represented 10% or more of the Company’s accounts receivable balance and there were no customers that individually exceeded 10% of the Company’s total revenue for each of the three months ended March 31, 2023 and 2022. Change in Accounting Principle During the three months ended June 30, 2022, the Company changed its method of accounting for shipping and handling activities from applying the policy election to account for shipping services as fulfillment activities to recognizing shipping services as a promised service to customers which the Company determined to be a separate performance obligation to its customers. The Company believes that this change in accounting method is preferable, as it results in a disaggregation of revenue and related costs that provides more transparency to users of its financial statements and is more consistent with the nature of the Company's promises made in arrangements with its customers. The effects of this change to the disaggregation and presentation of revenue and costs of revenue have been retroactively applied to all periods presented. This change had an immaterial impact to the Company's loss from operations and as such the Company did not retroactively adjust prior periods for these immaterial effects. Certain financial statement line items included in the Statement of Operations for the three months ended March 31, 2022, respectively were adjusted as follows (in thousands): Three Months Ended March 31, 2022 As Computed Under Previous Method Effect of Change As Reported Under Preferable Method Revenue: Consignment revenue $ 97,877 $ (13,888) $ 83,989 Shipping services revenue — 13,888 13,888 Cost of revenue: Cost of consignment revenue 28,049 (14,316) 13,733 Cost of shipping services revenue — 14,316 14,316 Recently Adopted Accounting Pronouncements There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s condensed financial statements and footnote disclosures, from those disclosed in the 2022 Annual Report on Form 10-K.

Cash and Cash Equivalents

Cash and Cash Equivalents	3 Months Ended
	Mar. 31, 2023
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents The following tables summarize the estimated value of the Company’s cash and cash equivalents (in thousands): March 31, 2023 Amortized Unrealized Unrealized Fair Cash and cash equivalents: Cash $ 29,413 $ — $ — $ 29,413 Money market funds 217,732 — — 217,732 Total cash and cash equivalents $ 247,145 $ — $ — $ 247,145 December 31, 2022 Amortized Unrealized Unrealized Fair Cash and cash equivalents: Cash $ 275,742 $ — $ — $ 275,742 Money market funds 18,051 — — 18,051 Total cash and cash equivalents $ 293,793 $ — $ — $ 293,793

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement Assets and liabilities recorded at fair value on a recurring basis on the condensed balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. There were no transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy during the periods presented. Assets and Liabilities Measured at Fair Value on a Recurring Basis As of March 31, 2023 and December 31, 2022, the Company’s cash equivalents solely consisted of money market funds, which amounted to $217.7 million and $18.1 million, respectively. Money market funds are measured at net asset value per share and are excluded from the fair value hierarchy. Fair Value Measurements of Other Financial Instruments The following table presents the carrying amounts and estimated fair values of the financial instruments that are not recorded at fair value on the condensed balance sheets (in millions): March 31, 2023 Net Carrying Amount Estimated Fair Value 2025 Convertible senior notes $ 169.6 $ 157.4 2028 Convertible senior notes $ 280.9 $ 231.4 The principal amounts of the 2025 Notes and the 2028 Notes are $172.5 million and $287.5 million, respectively. The difference between the principal amounts of the convertible senior notes and their respective net carrying amounts are the unamortized debt issuance costs.

Condensed Balance Sheet Compone

Condensed Balance Sheet Components	3 Months Ended
	Mar. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Condensed Balance Sheet Components	Condensed Balance Sheet Components Property and Equipment, Net Property and equipment, net is recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the respective assets. Property and equipment, net consists of the following (in thousands): March 31, December 31, Proprietary software $ 41,464 $ 39,017 Furniture and equipment 47,607 47,692 Automobiles 2,515 2,119 Leasehold improvements 69,741 86,986 Property and equipment, gross 161,327 175,814 Less: accumulated depreciation and amortization (59,451) (63,135) Property and equipment, net $ 101,876 $ 112,679 Depreciation and amortization expense on property and equipment was $7.5 million and $6.4 million for the three months ended March 31, 2023 and 2022, respectively. During the three months ended March 31, 2023, the Company recorded $7.2 million of impairment of leasehold improvements and disposal of fixed assets related to the closures of several of its office and retail locations as part of the savings plan the Company implemented. Other Accrued and Current Liabilities Other accrued and current liabilities consist of the following (in thousands): March 31, December 31, Returns reserve $ 18,839 $ 22,233 Accrued compensation 16,606 15,111 Accrued legal 2,110 484 Accrued sales tax and other taxes 7,469 8,531 Site credit liability 14,366 11,813 Accrued marketing and outside services 8,053 8,729 Accrued shipping 3,350 5,715 Accrued property and equipment 1,446 11,417 Deferred revenue 3,528 3,549 Accrued interest 1,741 1,166 Other 4,763 4,544 Other accrued and current liabilities $ 82,271 $ 93,292

Debt

Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt	Debt In April 2021, the Company entered into a loan and security agreement ("Revolving Credit Agreement") with a lender, to provide a revolving line of credit of up to $50 million. Advances on the line of credit bear interest payable monthly at a variable annual rate equal to the greater of the prime rate plus 0.50% or 4.25%. The credit facility was set to expire in April 2023. In April 2023 the Company signed an amendment with the lender to extend the credit facility through June 2023. The Revolving Credit Agreement contains affirmative, negative and financial covenants, including covenants that require maintaining minimum cash and investment balances over specified periods of time and covenants that restrict, among other things, the Company’s ability to change its name, business, management, ownership or business locations, enter into mergers or acquisitions or incur additional indebtedness. As of March 31, 2023 (unaudited), the Company was in compliance with all covenants. As of March 31, 2023, $0 had been drawn on the Revolving Credit Agreement.

Convertible Senior Notes, Net

Convertible Senior Notes, Net	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Convertible Senior Notes, Net	Convertible Senior Notes, NetIn June 2020, the Company issued an aggregate principal of $172.5 million of its 3.00% Convertible Senior Notes due 2025 (the "2025 Notes"), pursuant to an indenture between the Company and U.S. Bank National Association, as trustee, in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The 2025 Notes include $22.5 million in aggregate principal amount of the 2025 Notes sold to the initial purchasers resulting from the exercise in full of their option to purchase additional Notes. The 2025 Notes will mature on June 15, 2025, unless earlier redeemed or repurchased by the Company or converted. The Company received net proceeds from the 2025 Notes offering of approximately $165.8 million, after deducting the initial purchasers’ discount and commission and offering expenses. The Company used approximately $22.5 million of the net proceeds from the 2025 Notes offering to fund the net cost of entering into the capped call transactions described below. The Company intends to use the remainder of the net proceeds for general corporate purposes. In March 2021, the Company issued an aggregate principal of $287.5 million of its 1.00% Convertible Senior Notes due 2028 (the “2028 Notes,” and together with the 2025 Notes, the “Notes”), pursuant to an indenture between the Company and U.S. Bank National Association, as trustee, in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2028 Notes include $37.5 million in aggregate principal amount of the 2028 Notes sold to the initial purchasers resulting from the exercise in full of their option to purchase additional Notes. The 2028 Notes will mature on March 1, 2028, unless earlier redeemed or repurchased by the Company or converted. The Company received net proceeds from the 2028 Notes offering of approximately $278.1 million, after deducting the initial purchasers’ discount and commission and offering expenses. The Company used approximately $33.7 million of the net proceeds from the 2028 Notes offering to fund the net cost of entering into the capped call transactions described below. The Company intends to use the remainder of the net proceeds for general corporate purposes. The 2025 Notes accrue interest at a rate of 3.00% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2020. The initial conversion rate applicable to the 2025 Notes is 56.2635 shares of common stock per $1,000 principal amount of 2025 Notes (which is equivalent to an initial conversion price of approximately $17.77 per share of the Company’s common stock). The 2028 Notes accrue interest at a rate of 1.00% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2021. The initial conversion rate applicable to the 2028 Notes is 31.4465 shares of common stock per $1,000 principal amount of 2028 Notes (which is equivalent to an initial conversion price of approximately $31.80 per share of the Company’s common stock). The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. In addition, upon the occurrence of a corporate event, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its Notes in connection with such corporate event. The 2025 Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after June 20, 2023, and the 2028 Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after March 5, 2025, in each case if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately before the date the Company sends the related redemption notice. In addition, calling any Note for redemption will constitute a make-whole fundamental change with respect to that Note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption. Prior to March 15, 2025, in the case of the 2025 Notes, and December 1, 2027, in the case of the 2028 Notes, the applicable Notes will be convertible only under the following circumstances: • During any calendar quarter (and only during such calendar quarter), if the last reported sale price per share of the Company’s common stock exceeds 130% of the applicable conversion price on each applicable trading day for at least 20 trading days (whether or not consecutive) in the period of the 30 consecutive trading day period ending on, and including, the last trading day of the immediately preceding calendar quarter; • During the five business day period after any five consecutive trading day period in which, for each day of that period, the trading price per $1,000 principal amount of Notes for such trading day was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on such trading day; • Upon the occurrence of specified corporate transactions; or • If the Company calls any notes for redemption. On and after March 15, 2025, in the case of the 2025 Notes, and December 1, 2027, in the case of the 2028 Notes, until the close of business on the scheduled trading day immediately preceding the maturity date, holders may convert all or a portion of their Notes, in multiples of $1,000 principal amount, at any time, regardless of the foregoing circumstances. Upon conversion, the Notes will be settled, at the Company’s election, in cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. It is the Company’s current intent to settle conversions of the 2025 Notes and the 2028 Notes through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of its common stock. The conditions allowing holders of either the 2025 Notes or the 2028 Notes to convert were not met as of March 31, 2023. The Notes are unsecured and unsubordinated obligations of the Company and will rank senior in right of payment to any of future indebtedness of the Company that is expressly subordinated in right of payment to the Notes; rank equal in right of payment to any existing and future unsecured indebtedness of the Company that is not so subordinated; be effectively subordinated in right of payment to any secured indebtedness of the Company to the extent of the value of the assets securing such indebtedness; and be structurally subordinated to all existing and future indebtedness and other liabilities and obligations incurred by future subsidiaries of the Company. If bankruptcy, insolvency, or reorganization occurs with respect to the Company (and not solely with respect to a significant subsidiary of the Company), then the principal amount of, and all accrued and unpaid interest on, all of the 2025 Notes then outstanding will immediately become due and payable without any further action or notice by any person. If an event of default (other than bankruptcy, insolvency, or reorganization with respect to the Company and not solely with respect to a significant subsidiary of the Company) occurs and is continuing, then, with the exception of certain reporting events of default, the trustee, by notice to the Company, or noteholders of at least 25% of the aggregate principal amount of 2025 Notes or 2028 Notes, as applicable, then outstanding, by notice to us and the trustee, may declare the principal amount of, and all accrued and unpaid interest on, all of such 2025 Notes or 2028 Notes, as applicable, then outstanding to become due and payable immediately. Prior to the adoption of ASU 2020-06 on January 1, 2022 and in accounting for the issuance of the 2025 Notes and the 2028 Notes, the Company separately accounted for the liability and equity components of the 2025 Notes and the 2028 Notes by allocating the proceeds between the liability component and the embedded conversion options, or equity component, due to Company’s ability to settle the applicable series of Notes in cash, its common stock, or a combination of cash and common stock at Company’s option. The allocation was done by first estimating the fair value of the liability component and the residual value was assigned to the equity component. The value of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The allocation was performed in a manner that reflected the Company's non-convertible debt borrowing rate for similar debt. For the 2025 Notes, the interest rate of 5.67% was used to compute the initial fair value of the liability component of $152.7 million, with a corresponding amount recorded as a discount on the initial issuance of the 2025 Notes of approximately $19.8 million. For the 2028 Notes, the interest rate of 7.18% was used to compute the initial fair value of the liability component of $191.3 million, with a corresponding amount recorded as a discount on the initial issuance of the 2028 Notes of approximately $96.2 million. For the 2025 Notes and the 2028 Notes, the debt discount was recorded to equity and was amortized to the debt liability over the life of the Notes using the effective interest method. For the 2025 Notes and the 2028 Notes, the equity component was not remeasured as long as it continued to meet the conditions for equity classification. In connection with the issuance of the 2025 Notes, the Company incurred approximately $6.7 million of debt issuance costs, which primarily consisted of initial purchasers’ discounts and legal and other professional fees. Prior to the adoption of ASU 2020-06 on January 1, 2022, the Company allocated these costs to the liability and equity components based on the allocation of the proceeds. The portion of these costs allocated to the equity component totaling approximately $0.8 million was recorded as a reduction to additional paid-in capital. The portion of these costs initially allocated to the liability component totaling approximately $5.9 million was recorded as a reduction in the carrying value of the debt on the condensed balance sheets and was amortized to interest expense using the effective interest method over the expected life of the 2025 Notes or approximately its five-year term. The effective interest rate on the liability component of the 2025 Notes for the period from the date of issuance through December 31, 2021 was 6.4%. In connection with the issuance of the 2028 Notes, the Company incurred approximately $9.4 million of debt issuance costs, which primarily consisted of initial purchasers’ discounts and legal and other professional fees. The Company allocated these costs to the liability and equity components based on the allocation of the proceeds. The portion of these costs allocated to the equity component totaling approximately $3.1 million was recorded as a reduction to additional paid-in capital. The portion of these costs allocated to the liability component totaling approximately $6.3 million was recorded as a reduction in the carrying value of the debt on the condensed balance sheets and was amortized to interest expense using the effective interest method over the expected life of the 2028 Notes or approximately its seven-year term. The effective interest rate on the liability component of the 2028 Notes for the period from the date of issuance through December 31, 2021 was 7.5%. On January 1, 2022, the Company adopted ASU 2020-06 based on a modified retrospective transition method. Under such transition, prior period information for both the 2025 and 2028 Notes has not been retrospectively adjusted. In accounting for the 2025 Notes after the adoption of ASU 2020-06, the 2025 Notes are accounted for as a single liability, and the carrying amount of the Notes is $169.6 million as of March 31, 2023 , with principal of $172.5 million, net of unamortized issuance costs of $2.9 million. The 2025 Notes were classified as long term liabilities as of March 31, 2023 . The issuance costs related to the 2025 Notes are being amortized to interest expense over the expected life of the 2025 Notes or approximately its five-year term at an effective interest rate of 3.74%. In accounting for the 2028 Notes after the adoption of ASU 2020-06, the 2028 Notes are accounted for as a single liability, and the carrying amount of the Notes is $280.9 million as of March 31, 2023 , with principal of $287.5 million, net of unamortized issuance costs of $6.6 million. The 2028 Notes were classified as long term liabilities as of March 31, 2023 . The issuance costs related to the 2028 Notes are being amortized to interest expense over the expected life of the 2028 Notes or approximately its seven-year term at an effective interest rate of 1.45%. The following tables present the outstanding principal amount, unamortized debt issuance costs, and net carrying amount of the 2025 Notes and 2028 Notes as of the dates indicated (in thousands): March 31, 2023 2025 Notes 2028 Notes Principal $ 172,500 $ 287,500 Unamortized debt issuance costs (2,896) (6,623) Net carrying amount $ 169,604 $ 280,877 December 31, 2022 2025 Notes 2028 Notes Principal $ 172,500 $ 287,500 Unamortized debt issuance costs (3,204) (6,948) Net carrying amount $ 169,296 $ 280,552 The following tables set forth the amounts recorded in interest expense related to the 2025 Notes and 2028 Notes as of the dates indicated (in thousands): Three Months Ended March 31, 2023 2025 Notes 2028 Notes Contractual interest expense $ 1,294 $ 719 Amortization of debt issuance costs 308 325 Total interest and amortization expense $ 1,602 $ 1,044 Three Months Ended March 31, 2022 2025 Notes 2028 Notes Contractual interest expense $ 1,294 $ 719 Amortization of debt issuance costs 320 320 Total interest and amortization expense $ 1,614 $ 1,039 Future minimum payments under the 2025 Notes and the 2028 Notes as of March 31, 2023, are as follows (in thousands): Amount Fiscal Year 2025 Notes 2028 Notes Remainder of 2023 $ 5,175 $ 1,438 2024 5,175 2,875 2025 175,088 2,875 2026 — 2,875 2027 — 2,875 2028 — 288,937 Total future payments 185,438 301,875 Less amounts representing interest (12,938) (14,375) Total principal amount $ 172,500 $ 287,500 Capped Call Transactions with Respect to the 2025 Notes and 2028 Notes In connection with the issuance of the 2025 Notes and 2028 Notes, including the initial purchasers’ exercise of the option to purchase additional Notes, the Company entered into capped call transactions with respect to its common stock with certain financial institutions (collectively, the “Counterparties”). The Company paid an aggregate amount of approximately $22.5 million to the Counterparties in connection with the 2025 capped call transactions (the "2025 Capped Calls") and $33.7 million to the Counterparties in connection with the 2028 capped call transactions and (the "2028 Capped Calls" and, together with the 2025 Capped Calls, the "Capped Calls"). The 2025 Capped Calls and 2028 Capped Calls cover approximately 9,705,454 shares and 9,040,869 shares of the Company’s common stock at a strike price that corresponds to the initial conversion price of the 2025 Notes and the 2028 Notes, respectively. The 2025 Capped Calls and the 2028 Capped Calls are subject to anti-dilution adjustments that are intended to be substantially identical to those in the 2025 Notes and the 2028 Notes, as applicable, and are exercisable upon conversion of the 2025 Notes or the 2028 Notes, as applicable. The Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting the Company, including merger events, tender offer and announcement events. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. The 2025 Capped Calls settle in components commencing on April 16, 2025 with the last component scheduled to expire on June 12, 2025. The 2028 Capped Calls settle in components commencing on December 31, 2027 with the last component scheduled to expire on February 28, 2028. The cap price of the 2025 Capped Call is initially $27.88 per share, which represents a premium of 100.0% over the closing price of the Company’s common stock of $13.94 per share on June 10, 2020, and is subject to certain adjustments under the terms of the capped call transactions. The cap price of the 2028 Capped Call is initially $48.00 per share, which represents a premium of 100.0% over the closing price of the Company’s common stock of $24.00 per share on March 3, 2021, and is subject to certain adjustments under the terms of the capped call transactions. The Company expects to receive from the Counterparties a number of shares of the Company’s common stock or, at the Company’s election (subject to certain conditions), cash, with an aggregate market value (or, in the case of cash settlement, in an amount) approximately equal to the product of such excess times the number of shares of the Company’s common stock relating to the 2025 and 2028 Capped Calls being exercised. These Capped Call instruments meet the conditions outlined in ASC 815-40 to be classified in stockholders’ equity, are not accounted for as derivatives, and are not subsequently remeasured as long as the conditions for equity classification continue to be met. The Company recorded a reduction to additional paid-in capital of approximately $22.5 million and $33.7 million related to the premium payments for the 2025 Capped Call and 2028 Capped Call transactions.

Share-based Compensation Plans

Share-based Compensation Plans	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-based Compensation Plans	Share-based Compensation Plans 2011 Equity Incentive Plan In 2011, the Company adopted the Equity Incentive Plan (the "2011 Plan") authorizing the granting of incentive stock options ("ISOs") and non-statutory stock options ("NSOs") to eligible participants for up to 12,987,255 shares of common stock. Under the 2011 Plan, ISOs and non-statutory stock options are to be granted at an exercise price that is no less than 100% of the fair value of the stock at the date of grant. Options generally vest over 4 years and are exercisable for up to 10 years after the date of grant. Incentive stock options granted to stockholders who own more than 10% of the outstanding stock of the Company at the time of grant must be issued at an exercise price no less than 110% of the fair value of the stock on the date of grant. The 2011 Plan has been replaced by the Company’s 2019 Plan as defined below with respect to future equity awards. 2019 Equity Incentive Plan In connection with the Company’s initial public offering, the Company adopted the 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan allows the Company to grant stock options, stock appreciation rights, restricted stock, restricted stock units and performance awards to participants. Subject to the terms and conditions of the 2019 Plan, the initial number of shares authorized for grants under the 2019 Plan is 8,000,000. These available shares increase annually by an amount equal to the lesser of 8,000,000 shares, 5% of the number of shares of the Company’s common stock outstanding on the immediately preceding December 31, or the number of shares determined by the Company’s board of directors. On August 4, 2020, the Company’s board of directors approved an increase of shares available for grant under the 2019 Plan by 4,293,616 shares. On May 5, 2021, the Company’s board of directors approved an increase of shares available for grant under the 2019 Plan by 4,465,083 shares. On February 23, 2022, the Company’s board of directors approved an increase of shares available for grant under the 2019 Plan by 4,648,003 shares. On February 13, 2023, the Company's board of directors approved an increase of shares available for grant under the 2019 Plan by 4,954,409 shares. In February 2022, the Company granted PSUs with financial performance targets to certain employees of the Company. The number of units issued will depend on the achievement of financial metrics relative to the approved performance targets, and can range from 0% to 150% of the target amount. The PSUs are subject to continuous service with the Company and will vest after approximately three years. The PSUs are measured using the fair value at the date of grant. The compensation expense associated with PSUs is recognized based on the estimated number of shares that the Company expects will vest and may be adjusted based on interim estimates of performance against the performance condition. During the three months ended March 31, 2023, the Company recorded stock-based compensation expense for the number of PSUs considered probable of vesting based on the attainment of the performance targets. In March 2023, the Company granted PSUs under the 2019 Plan subject to the achievement of both market and service conditions to certain employees of the Company . The number of units vested will depend on the achievement of approved market conditions and continuous service with the Company. The PSUs are eligible to vest in three tranches over a five-year performance period. The PSUs are measured using the Monte Carlo simulation to obtain the fair value at the date of grant based on the probability that the market conditions will be met. The compensation expense associated with the PSUs is based on the fair value and is recognized over the requisite service period. The compensation expense will be recognized regardless of whether the market condition is ever satisfied, provided the requisite service period is satisfied. As of March 31, 2023, total unrecognized compensation expense of approximately $0.1 million related to options and $76.1 million related to RSUs and PSUs, which are expected to be recognized over weighted-average periods of 0.3 years and 2.8 years, respectively. Inducement Grants The Company granted stock-based awards outside of the 2019 Plan to the Company’s new Chief Executive Officer and the Chief Technology and Product Officer. These awards were granted as inducements material to their commencement of employment and entry into offer letters with the Company, in accordance with Nasdaq Listing Rule 5635(c)(4). The inducement pool consisted of a total of 3,075,000 shares of the Company's common stock, which includes (a) 1,500,000 shares of PSUs that are eligible to vest based on market and service conditions in four tranches over a five-year performance period and (b) 1,575,000 shares of RSUs generally subject to the same terms and conditions as grants that are made under the 2019 Plan. As of March 31, 2023, the unrecognized expense for the PSUs is $1.7 million and the unrecognized expense for RSUs is $2.5 million. Employee Stock Purchase Plan In connection with the Company’s initial public offering, the Company adopted the Employee Stock Purchase Plan (the "ESPP"). The Employee Stock Purchase Plan permits employees to purchase shares of common stock during six-month offering periods at a purchase price equal to the lesser of (1) 85% of the fair market value of a share of common stock on the first business day of such offering period and (2) 85% of the fair market value of a share of common stock on the last business day of such offering period. The initial number of shares of common stock that could be issued under the employee stock purchase plan was 1,750,000 shares. These available shares increase by an amount equal to the lesser of 1,750,000 shares, 1% of the number of shares of common stock outstanding on the immediately preceding December 31, or the number of shares determined by the Company’s board of directors. On August 4, 2020, the Company’s board of directors approved an increase in the shares available for grant under the ESPP by 858,723 shares. On May 5, 2021, the Company's board of directors approved an increase in the shares available for grant under the ESPP by 893,016 shares. On February 23, 2022, the Company’s board of directors approved an increase of shares available for grant under the ESPP by 929,601 shares. On February 13, 2023, the Company's board of directors approved an increase of shares available for grant under the ESPP by 990,882 shares. There were no shares purchased by employees under the ESPP during the three months ended March 31, 2023 and 2022. As of March 31, 2023, total unrecognized compensation costs related to the ESPP was immaterial. Stock-based Compensation Total stock-based compensation expense by function was as follows (in thousands): Three Months Ended March 31, 2023 2022 Marketing $ 450 $ 593 Operations and technology 3,691 5,249 Selling, general and administrative 4,850 6,672 Total $ 8,991 $ 12,514

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	Leases The Company leases its corporate offices, retail spaces and authentication centers under various noncancelable operating leases with terms ranging from one year to fifteen years. The Company recorded operating lease costs of $7.1 million and $7.2 million for the three months ended March 31, 2023 and 2022, respectively. The Company also incurred $1.3 million and $1.5 million of variable lease costs for the three months ended March 31, 2023 and 2022, respectively. The variable lease costs are comprised primarily of the Company’s proportionate share of operating expenses, property taxes and insurance. Due to the office and store closures in the three months ended March 31, 2023, the Company reviewed its right-of-use assets for impairment. Impairment losses are measured and recorded for the excess of carrying value over its fair value, estimated based on expected future cash flows using discount rate and other quantitative and qualitative factors. As a result, the Company recorded $25.7 million related to the impairment of certain office and store right-of-use assets. The impairment charges are included in restructuring charges in the condensed statements of operations. Maturities of operating lease liabilities by fiscal year for the Company’s operating leases are as follows (in thousands): Fiscal Year Amount Remainder of 2023 $ 21,350 2024 28,073 2025 28,213 2026 27,772 2027 21,410 Thereafter 38,033 Total future minimum payments $ 164,851 Less: Imputed interest (26,607) Present value of operating lease liabilities $ 138,244 Supplemental cash flow information related to the Company’s operating leases are as follows (in thousands): Three Months Ended March 31, 2023 2022 Operating cash flows used for operating leases $ 8,231 $ 6,101 Operating lease assets obtained in exchange for operating lease liabilities (including remeasurement of right-of-use assets and lease liabilities due to lease modifications) $ (1,493) $ 25 The weighted average remaining lease term and discount rate for the Company’s operating leases are as follows: March 31, 2023 Weighted average remaining lease term 6.0 years Weighted average discount rate 6.2 % The Company has leases for certain vehicles and equipment that are classified as finance leases. The finance lease right-of-use asset and finance lease liabilities for these vehicle and equipment leases are immaterial as of March 31, 2023 and December 31, 2022.

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring	Note 10. Restructuring In February 2023, the Company announced a savings plan to reduce its real estate presence and operating expenses through closure of certain retail and office locations (referred to as the "Real Estate Reduction Plan") and workforce reduction. During the three months ended March 31, 2023, the Company closed two flagship stores (San Francisco, California and Chicago, Illinois), two neighborhood stores (Atlanta, Georgia and Austin, Texas), and two luxury consignment offices (Miami, Florida and Washington, D.C.), including any co-located logistics hubs, and reduced its office spaces in San Francisco, California. For the three months ended March 31, 2023, the Company recognized $36.4 million in restructuring charges which consisted of right-of-use asset impairment charge of $25.7 million, leasehold improvements impairment charge of $7.2 million, employee severance of $1.7 million and other related charges of $1.8 million. The restructuring related charges were recorded on a separate line item in the Company's condensed statement of operations.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Noncancelable Purchase Commitments The Company has commitments for cloud services and other services in the ordinary course of business with varying expiration terms through 2025. As of March 31, 2023, there were no material changes to the Company’s noncancelable purchase commitments disclosed in the financial statements in the Annual Report on Form 10-K. Contingencies From time to time, the Company is subject to, and it is presently involved in, litigation and other legal proceedings and from time to time, the Company receives inquiries from government agencies. Accounting for contingencies requires the Company to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. The Company records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company discloses material contingencies when a loss is not probable but reasonably possible. On November 14, 2018, Chanel, Inc. sued the Company in the U.S. District Court for the Southern District of New York. The Complaint alleged federal and state law claims of trademark infringement, unfair competition, and false advertising. On February 1, 2019, Chanel, Inc. filed its First Amended Complaint that included substantially similar claims against the Company. On March 4, 2019, the Company filed a Motion to Dismiss the First Amended Complaint, which was granted in part and dismissed in part on March 30, 2020. The surviving claims against the Company include trademark infringement under 15 U.S.C. § 1114, false advertising under 15 U.S.C. § 1125, and unfair competition under New York common law. On May 29, 2020, the Company filed its Answer to the Amended Complaint. On October 30, 2020, the Company sought leave to amend its Answer to assert counterclaims against Chanel, Inc. for violations of the Sherman Act, 15 U.S.C. §§ 1 & 2, the Donnelly Act, N.Y. Gen. Bus. Law. § 340, and New York common law. The motion for leave to amend was granted on February 24, 2021. Chanel, Inc. moved to dismiss the Company’s counterclaims; the motion to dismiss remains pending. The parties agreed to a stay in April 2021 to engage in settlement discussions. After several mediation sessions, the parties were unable to reach a resolution, and the stay was lifted in November 2021. Chanel then sought a partial stay of discovery on the Company's counterclaims and unclean hands defense while Chanel's motion to dismiss and strike those claims are pending, and on March 10, 2022, the Court granted Chanel's request. The parties continue to engage in fact discovery regarding Chanel's counterfeiting and false advertising claims against the Company. Fact discovery is currently scheduled to be completed by August 15, 2023, and all depositions of fact witnesses will be completed by no later than July 15, 2023. The final outcome of this litigation, including our liability, if any, with respect to Chanel’s claims, is uncertain. An unfavorable outcome in this or similar litigation could adversely affect the Company’s business and could lead to other similar lawsuits. The Company is not able to predict or reasonably estimate the ultimate outcome or possible losses relating to this claim. On September 10, 2019, a purported shareholder class action complaint was filed against the Company, its officers and directors and the underwriters of its IPO in the Superior Court of the State of California in the County of San Mateo. Three additional purported class actions, also alleging claims arising from the IPO were subsequently filed in Marin County and San Francisco County Superior Courts. The San Mateo case was voluntarily dismissed, refiled in Marin County Superior Court and consolidated with the cases there. On January 10, 2020, the Marin County plaintiffs filed a consolidated amended complaint. The plaintiffs in the San Francisco Superior Court case have filed a request for dismissal. Separately an additional purported class action was filed in the United States District Court for the Northern District of California on November 25, 2019. On February 12, 2020, a lead plaintiff was appointed in the federal action and an Amended Consolidated Complaint was filed on March 31, 2020. Defendants filed a demurrer and motion to strike in the state court action on March 13, 2020 and filed a motion to stay the proceedings in favor of the federal action on May 1, 2020. On August 4, 2020, the court granted defendants’ motion to stay the state court action and deferred ruling on the demurrer and motion to strike pending the outcome of the federal court action. A motion to dismiss the federal court action was filed on May 15, 2020. On March 31, 2021, the court entered an order on the motion to dismiss, dismissing the Securities Exchange Act of 1934 (the “Exchange Act”) claims and some of the claims alleged under the Securities Act of 1933 (the “Securities Act”). The court provided plaintiffs with an opportunity to amend the complaint and, on April 30, 2021, plaintiffs filed a Second Amended Complaint in federal court. The state court complaint, and the Second Amended Complaint in federal court each allege claims under the Securities Act on behalf of a purported class of shareholders who acquired the Company’s stock pursuant to or traceable to the registration statement for the Company’s IPO. The federal complaint also alleges claims under the Exchange Act on behalf of a purported class of shareholders who purchased the Company’s stock from June 27, 2019 through November 20, 2019. The complaints seek, among other things, damages and interest, rescission, and attorneys’ fees and costs. On July 27, 2021, the Company reached an agreement in principle to settle this shareholder class action. On November 5, 2021, plaintiff filed the executed stipulation of settlement and motion for preliminary approval of the settlement with the federal court. On March 24, 2022, the court entered an order preliminarily approving the settlement. On July 28, 2022, the court entered an order finally approving the settlement and dismissing the case. The financial terms of the stipulation of settlement provide that the Company will pay $11.0 million within thirty (30) days of the later of preliminary approval of the settlement or plaintiff’s counsel providing payment instructions. The Company paid the settlement amount on March 29, 2022 with available resources and recorded approximately $11.0 million for the year ended December 31, 2021 under our Operating expenses as a Legal settlement. One of the plaintiffs in the state court action opted out of the settlement. The stay of the state court case has been lifted, and the opt out plaintiff filed an amended complaint on October 31, 2022 alleging putative class claims under the Securities Act on behalf of the two shareholders who opted out of the settlement and those who purchased stock from November 21, 2019 through March 9, 2020. On December 22, 2022, the Company filed a motion to dismiss and a motion to strike class allegations. On May 2, 2023, the Court orally ruled on the motions, granting the motion to dismiss the Section 12 claim, denying the motion to dismiss the Section 11 and 15 claims, and denying the motion to strike the class allegations. On September 10, 2020 and December 7, 2020, purported shareholders filed putative derivative actions in the United States District Court for the District of Delaware. The derivative complaints allege factual allegations largely tracking the above referenced purported shareholder class actions. The two derivative cases have been consolidated. On September 13, 2021, the parties reached a settlement in principle of the derivative case. The settlement in principle provides for certain corporate governance reforms in exchange for a release and dismissal of the lawsuit. On October 21, 2021, the parties reached agreement to pay up to $0.5 million in attorneys’ fees and costs to plaintiffs’ counsel in the derivative case. On November 5, 2021, the parties entered into a stipulation of settlement, and on February 11, 2022, the court entered an order and final judgment approving the settlement. In connection with the derivative settlement, the Company recorded approximately $0.5 million for the year ended December 31, 2021 under our Operating expenses as a Legal settlement. The stipulation of settlement was preliminarily approved on December 8, 2021, and the $0.5 million was paid within thirty (30) days of the preliminary approval, or on January 7, 2022, with available resources. Indemnifications In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to vendors, directors, officers and other parties with respect to certain matters including, but not limited to, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties and other liabilities relating to or arising

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company's provision for income taxes were immaterial for the three months ended March 31, 2023 and 2022. The Company does not update its deferred tax assets during interim periods. Although the Company does not update its deferred tax assets during interim periods, the Company adjusted deferred tax assets and corresponding valuation allowance for the impact of the true up of the US return filing in the second quarter of 2023 upon further evaluation of deductions related to stock compensation. The Company maintained a full valuation allowance against its deferred tax assets which were $258.2 million as of March 31, 2023. The deferred tax assets were primarily comprised of federal and state tax net operating loss carryforwards. Utilization of the net operating loss carryforwards may be subject to annual limitation due to historical or future ownership percentage change rules provided by the Internal Revenue Code of 1986, and similar state provisions. The annual limitation may result in the expiration of certain net operating loss carryforwards before their utilization. As of March 31, 2023, the Company had unrecognized tax benefits under ASC 740 Income Taxes of $2.4 million, and no applicable interest. There were no unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate as of March 31, 2023. The Company's policy is to account for interest and penalties related to uncertain tax positions as a component of income tax provision. The Company does not anticipate that the amount of unrecognized tax benefits will significantly increase or decrease within the next twelve months. Due to historical losses, all years are open to examination and adjustment by the taxing authorities.

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Common Stockholders	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Loss Per Share Attributable to Common Stockholders	Net Loss Per Share Attributable to Common Stockholders A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net loss per share attributable to common stockholders is as follows (in thousands, except share and per share data): Three Months Ended March 31, 2023 2022 Numerator Net loss attributable to common stockholders $ (82,500) $ (57,412) Denominator Weighted-average common shares outstanding used to calculate net loss per share attributable to common stockholders, basic and diluted 99,608,071 93,476,106 Net loss per share attributable to common stockholders, basic and diluted $ (0.83) $ (0.61) The following securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive (on an as-converted basis): March 31, 2023 2022 Options to purchase common stock 1,723,850 3,598,261 Restricted stock units 18,261,493 9,092,713 Estimated shares issuable under the Employee Stock Purchase Plan 260,261 99,936 Assumed conversion of the Convertible Senior Notes 18,746,323 18,746,323 Total 38,991,927 31,537,233 The Convertible Senior Notes issued in June 2020 and in March 2021 are convertible, based on the applicable conversion rate, into cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. The impact of the assumed conversion to diluted net loss per share is computed on an as-converted basis.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of expenses during the reporting period. Significant items subject to such estimates and assumptions include those related to revenue recognition, including the returns reserve, standalone selling price related to revenue transactions, valuation of inventory, software development costs, stock-based compensation, incremental borrowing rates related to lease liability, valuation of deferred taxes, and other contingencies. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ from those estimates. The disclosures provided herein should be read in conjunction with the audited financial statements and notes thereto included in our 2022 Form 10-K. See “Part II - Item 8. Financial Statements and Supplementary Data - Note 2” in our 2022 Form 10-K for a complete summary of our significant accounting policies.
Net Loss per Share Attributable to Common Stockholders	Net Loss per Share Attributable to Common Stockholders The Company follows the two-class method when computing net loss per common share when shares are issued that meet the definition of participating securities. The two-class method determines net loss per common share for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income (loss) available or attributable to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company’s convertible senior notes are participating securities as they give the holders the right to receive dividends if dividends or distributions declared to the common stockholders is equal to or greater than the last reported sale price of the Company’s common stock on the trading day immediately preceding the ex-dividend date for such dividend or distribution as if the instruments had been converted into shares of common stock. No undistributed earnings were allocated to the participating securities as the contingent event is not satisfied as of the reporting date. For periods in which the Company reports net losses, diluted net loss per common share attributable to common stockholders is the same as basic net loss per common share attributable to common stockholders, because potentially dilutive common shares and assumed conversion of the convertible senior notes are not assumed to have been issued within the calculation, if their effect is anti-dilutive.
Revenue Recognition	Revenue Recognition The Company generates revenue from the sale of pre-owned luxury goods through its online marketplace and retail stores. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that include products and services that are capable of being distinct and accounted for as separate performance obligations as described below. The transaction price requires an allocation across consignment services, sales of Company-owned inventory, and shipping services. Estimation is required in the determination of the services' stand-alone selling price ("SSP"). Consignment Revenue The Company provides a service to sell pre-owned luxury goods on behalf of consignors to buyers through its online marketplace and retail stores. The Company retains a percentage of the proceeds received as payment for its consignment service, which the Company refers to as its take rate. SSP is estimated using observable stand-alone consignment sales which are conducted without shipping services. The Company reports consignment revenue on a net basis as an agent and not the gross amount collected from the buyer. Title to the consigned goods remains with the consignor until transferred to the buyer upon purchase of the consigned goods and expiration of the allotted return period. The Company does not take title of consigned goods at any time except in certain cases where returned goods become Company-owned inventory. The Company recognizes consignment revenue upon purchase of the consigned good by the buyer as its performance obligation of providing consignment services to the consignor is satisfied at that point. Consignment revenue is recognized net of estimated returns, cancellations, buyer incentives and adjustments. The Company recognizes a returns reserve based on historical experience, which is recorded in other accrued and current liabilities on the condensed balance sheets (see Note 5). Sales tax assessed by governmental authorities is excluded from revenue. Certain transactions provide consignors with a material right resulting from the tiered consignor commission plan. Under this plan, the amount an individual consignor receives for future sales of consigned goods may be dependent on previous consignment sales for that consignor within his/her consignment period. Accordingly, in certain consignment transactions, a small portion of the Company’s consignment revenue is allocated to such material right using the portfolio method and recorded as deferred revenue, which is recorded in other accrued and current liabilities on the condensed balance sheets. The impact of the deferral has not been material to the financial statements. The Company also generates subscription revenue from monthly memberships allowing buyers early access to shop for luxury goods. The buyers receive the early access and other benefits over the term of the subscription period, which represents a single stand-ready performance obligation. Therefore, the subscription fees paid by the buyer are recognized over the monthly subscription period. Subscription revenue was not material in the three months ended March 31, 2023 and 2022. Direct Revenue The Company generates direct revenue from the sale of Company-owned inventory. The Company recognizes direct revenue on a gross basis upon shipment of the purchased good to the buyer as the Company acts as the principal in the transaction. SSP is estimated using observable stand-alone sales of Company-owned inventory which are conducted without shipping services, when available, or a market assessment approach. Direct revenue is recognized net of estimated returns, buyer incentives and adjustments. Sales tax assessed by governmental authorities is excluded from revenue. Cost of direct revenue is also recognized upon shipment to the buyer in an amount equal to that paid to the consignor from the original consignment sale, an amount equal to that paid as a direct purchase from a third party, or the lower of cost of the inventory purchased and its net realizable value. Shipping Services Revenue The Company provides a service to ship purchased items to buyers and a service to ship items from buyers back to the Company. The Company determines itself to be the principal in this arrangement. The Company charges a fee to buyers for this service and has elected to treat shipping and handling activities performed as a separate performance obligation. For shipping services revenue, the Company's SSP is estimated using a market approach considering external and internal data points on the stand-alone sales price of the shipping service. All outbound shipping and handling costs for buyers are accounted for as cost of shipping services and recognized as the shipping activity occurs. The Company also generates shipping services revenue from the shipping fees for consigned products returned by buyers to the Company within policy . The Company recognizes shipping revenue and associated costs over time as the shipping activity occurs, which is generally one to three days after shipment. Incentives Incentives, which include platform-wide discounts and buyer incentives, may periodically be offered to buyers. Platform-wide discounts are made available to all buyers on the online marketplace. Buyer incentives apply to specific buyers and consist of coupons or promotions that offer credits in connection with purchases on the Company’s platform, and do not impact the commissions paid to consignors. These are treated as a reduction of consignment revenue and direct revenue. Additionally, the Company periodically offers commission exceptions to the standard consignment rates to consignors to optimize its supply. These are treated as a reduction of consignment revenue at the time of sale. The Company may offer a certain type of buyer incentive in the form of site credits to buyers on current transactions to be applied towards future transactions, which are included in other accrued and current liabilities on the condensed balance sheets. Contract Liabilities The Company’s contractual liabilities primarily consist of deferred revenue for material rights primarily related to the tiered consignor commission plan, which are recognized as revenue using a portfolio approach based on the pattern of exercise, and certain buyer incentives, which were immaterial as of March 31, 2023 and December 31, 2022. Contract liabilities are recorded in other accrued and current liabilities on the balance sheets and are generally expected to be recognized within one year. Contract liabilities were immaterial as of March 31, 2023 and December 31, 2022.
Cost of Revenue	Cost of Revenue Cost of consignment revenue consist of credit card fees, packaging, customer service personnel-related costs, website hosting services, and consignor inventory adjustments relating to lost or damaged products. Cost of direct revenue consists of the cost of goods sold, credit card fees, packaging, customer service personnel-related costs, website hosting services, and inventory adjustments. Cost of shipping services revenue consists of the outbound shipping and handling costs to deliver purchased items to buyers, the shipping costs for consigned products returned by buyers to the Company within policy, and an allocation of the credit card fees associated with the shipping fee charged.
Stock-based Compensation	Stock-based Compensation The Company incurs stock-based compensation expense from stock options, restricted stock units (“RSUs”), performance based restricted stock units (“PSUs”) subject to performance or market conditions, and employee stock purchase plan (“ESPP”) purchase rights. Stock-based compensation expense related to employees and nonemployees is measured based on the grant-date fair value of the awards. The Company estimates the fair value of stock options granted and the purchase rights issued under the ESPP using the Black-Scholes option pricing model. The fair value of RSUs is estimated based on the fair market value of the Company’s common stock on the date of grant, which is determined based on the closing price of the Company’s common stock. Compensation expense is recognized in the statements of operations over the period during which the employee is required to perform services in exchange for the award (the vesting period of the applicable award) using the straight-line method for awards with only a service condition. To determine the grant-date fair value of the Company's stock-based payment awards for PSUs subject to performance conditions, the quoted stock price on the date of grant is used. The stock-based compensation expense for PSUs with performance conditions is recognized based on the estimated number of shares that the Company expects will vest and is adjusted on a quarterly basis using the estimated achievement of financial performance targets. For PSUs subject to market conditions, the grant-date fair value is determined using the Monte Carlo simulation model which utilizes multiple input variables to estimate the probability that market conditions will be achieved. These variables include the Company's expected stock price volatility over the expected term of the award, the risk-free interest rate for the expected term of the award, and expected dividends. For PSUs with market conditions, the stock-based compensation expense is recognized on a tranche by
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents primarily consist of investments in short-term money market funds.
Inventory, Net	Inventory, Net Inventory consists of finished goods arising from goods returned after the title has transferred from the buyer to the Company as well as finished goods from direct purchases from vendors and consignors. The cost of inventory is an amount equal to that paid to the consignor or vendors. Inventory is valued at the lower of cost and net realizable value using the specific identification method and the Company records provisions, as appropriate, to write down obsolete and excess inventory to estimated net realizable value. After the inventory value is reduced, adjustments are not made to increase it from the estimated net realizable value. Additionally, inventory is recorded net of an allowance for shrinkage which represents the risk of physical loss of inventory. Provisions for inventory shrinkage are estimated based on historical experience and are adjusted based upon physical inventory counts. Provisions to write down inventory to net realizable value and provisions for inventory shrinkage were $3.4 million and $1.8 million during the three months ended March 31, 2023 and 2022, respectively. Return reserves, which reduce revenue and cost of sales, are estimated using historical experience. Liabilities for return allowances are included in other accrued and current liabilities on the condensed balance sheets and were $18.8 million and $22.2 million as of March 31, 2023 and December 31, 2022, respectively. Included in inventory on the Company’s condensed balance sheets are assets totaling $4.6 million and $6.1 million as of March 31, 2023 and December 31, 2022, respectively, for the rights to recover products from customers associated with its liabilities for return reserves.
Software Development Costs	Software Development Costs Proprietary software includes the costs of developing the Company’s internal proprietary business platform and automation projects. The Company capitalizes qualifying proprietary software development costs that are incurred during the application development stage. Capitalization of costs begins when two criteria are met: (1) the preliminary project stage is completed and (2) it is probable that the software will be completed and used for its intended function. Such costs are capitalized in the period incurred. Capitalization ceases and amortization begins when the software is substantially complete and ready for its intended use, including the completion of all significant testing. Costs related to preliminary project activities and post-implementation operating activities are expensed as incurred.
Impairment of Long-lived Assets	Impairment of Long-lived Assets The carrying amounts of long-lived assets, including right-of-use assets, property and equipment, net and capitalized proprietary software, are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of assets to be held and used is measured by comparing the carrying amount of assets to future undiscounted net cash flows the assets are expected to generate over their remaining life.
Leases	Leases Contracts that have been determined to convey the right to use an identified asset are evaluated for classification as an operating or finance lease. For the Company’s operating leases, the Company records a lease liability based on the present value of the lease payments at lease inception, using the applicable incremental borrowing rate. The Company estimates the incremental borrowing rate by developing its own synthetic credit rating, corresponding yield curve, and the terms of each lease at the lease commencement date. The corresponding right-of-use asset is recorded based on the corresponding lease liability at lease inception, adjusted for payments made to the lessor at or before the commencement date, initial direct costs incurred and any tenant incentives allowed for under the lease. The Company does not include optional renewal terms or early termination provisions unless the Company is reasonably certain such options would be exercised at the inception of the lease. Operating lease right-of-use assets, current portion of operating lease liabilities, and operating lease liabilities, net of current portion are included on the Company’s condensed balance sheets. The Company has elected the practical expedients that allows for the combination of lease components and non-lease components and to record short-term leases as lease expense on a straight-line basis on the condensed statements of operations. Variable lease payments are recorded as expense as they are incurred. The Company has finance leases for vehicles and equipment, and the amounts of finance lease right-of-use assets and finance lease liabilities have been immaterial to date.
Convertible Senior Notes, Net and Debt Issuance Costs	Convertible Senior Notes, Net Prior to the adoption of ASU 2020-06 on January 1, 2022, convertible debt instruments that may be settled in cash or other assets, or partially in cash, upon conversion, were separately accounted for as long-term debt and equity components (or conversion feature). The debt component represented the Company’s contractual obligation to pay principal and interest and the equity component represented the Company’s option to convert the debt security into equity of the Company or the equivalent amount of cash. Upon issuance, the Company allocated the debt component on the basis of the estimated fair value of a similar liability that does not have an associated convertible feature and the remaining proceeds are allocated to the equity component. The bifurcation of the debt and equity components resulted in a debt discount for the aforementioned notes. The Company uses the effective interest method to amortize the debt discount to interest expense over the amortization period which is the expected life of the debt. Following the adoption of ASU 2020-06, there is no bifurcation of the liability and equity components of the 3.00% Convertible Senior Notes due 2025 (the "2025 Notes") and the 1.00% Convertible Senior Notes due 2028 (the "2028 Notes" and, together with the 2025 Notes, the "Notes"), and the entire principal of the Notes are accounted for as long-term debt. Debt Issuance Costs Debt issuance costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the anticipated debt offering, are amortized to interest expense over the estimated life of the related debt based on the effective interest method. The Company presents debt issuance costs on the condensed balance sheets as a direct deduction from the associated debt. The Company adopted ASU 2020-06 as of January 1, 2022 using the modified retrospective method. Prior to the adoption of ASU 2020-06 on January 1, 2022, a portion of debt issuance costs incurred in connection with the convertible senior notes issued in June 2020 and March 2021 was allocated to the equity component and was recorded as a reduction to additional paid in capital and was not amortized to interest expense over the estimated life of the related debt. Following the adoption of ASU 2020-06, the debt issuance costs previously allocated to the equity component of both the Notes were reclassified to debt. As such, all of the debt issuance costs are recorded as a direct deduction from the related principal debt amounts on the balance sheet, and are all amortized to interest expense over the estimated remaining life of the related debt.
Capped Call Transactions	Capped Call TransactionsIn June 2020 and March 2021, in connection with the issuance of its convertible senior notes, the Company entered into Capped Call Transactions (see Note 7). The Capped Call Transactions are expected generally to reduce the potential dilution to the holders of the Company’s common stock upon any conversion of the convertible senior notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted convertible senior notes, with such reduction and/or offset subject to a cap based on the cap price. The capped calls are classified in stockholders’ equity as a reduction to additional paid-in capital and are not subsequently remeasured as long as the conditions for equity classification continue to be met. The Company monitors the conditions for equity classification, which continue to be met.
Concentrations of Credit Risks	Concentrations of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, and accounts receivable. At times, such amount may exceed federally-insured limits. The Company is closely monitoring ongoing events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions or other companies in the financial services industry or the financial services industry generally. The Company reduces credit risk by placing its cash and cash equivalents, and investments with major financial institutions with high credit ratings within the United States. The Company has not experienced any realized losses on cash and cash equivalents to date; however, no assurances can be provided.
Change in Accounting Principle and Recently Adopted and Issued Accounting Pronouncements	During the three months ended June 30, 2022, the Company changed its method of accounting for shipping and handling activities from applying the policy election to account for shipping services as fulfillment activities to recognizing shipping services as a promised service to customers which the Company determined to be a separate performance obligation to its customers. The Company believes that this change in accounting method is preferable, as it results in a disaggregation of revenue and related costs that provides more transparency to users of its financial statements and is more consistent with the nature of the Company's promises made in arrangements with its customers. The effects of this change to the disaggregation and presentation of revenue and costs of revenue have been retroactively applied to all periods presented. This change had an immaterial impact to the Company's loss from operations and as such the Company did not retroactively adjust prior periods for these immaterial effects. Recently Adopted Accounting Pronouncements There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s condensed financial statements and footnote disclosures, from those disclosed in the 2022 Annual Report on Form 10-K.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Schedule of Change in Accounting Estimate	Certain financial statement line items included in the Statement of Operations for the three months ended March 31, 2022, respectively were adjusted as follows (in thousands): Three Months Ended March 31, 2022 As Computed Under Previous Method Effect of Change As Reported Under Preferable Method Revenue: Consignment revenue $ 97,877 $ (13,888) $ 83,989 Shipping services revenue — 13,888 13,888 Cost of revenue: Cost of consignment revenue 28,049 (14,316) 13,733 Cost of shipping services revenue — 14,316 14,316

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	3 Months Ended
	Mar. 31, 2023
Cash and Cash Equivalents [Abstract]
Summary of Estimated Value of Cash and Cash Equivalents	The following tables summarize the estimated value of the Company’s cash and cash equivalents (in thousands): March 31, 2023 Amortized Unrealized Unrealized Fair Cash and cash equivalents: Cash $ 29,413 $ — $ — $ 29,413 Money market funds 217,732 — — 217,732 Total cash and cash equivalents $ 247,145 $ — $ — $ 247,145 December 31, 2022 Amortized Unrealized Unrealized Fair Cash and cash equivalents: Cash $ 275,742 $ — $ — $ 275,742 Money market funds 18,051 — — 18,051 Total cash and cash equivalents $ 293,793 $ — $ — $ 293,793

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Carrying Values and Estimated Fair Values	The following table presents the carrying amounts and estimated fair values of the financial instruments that are not recorded at fair value on the condensed balance sheets (in millions): March 31, 2023 Net Carrying Amount Estimated Fair Value 2025 Convertible senior notes $ 169.6 $ 157.4 2028 Convertible senior notes $ 280.9 $ 231.4

Condensed Balance Sheet Compo_2

Condensed Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consists of the following (in thousands): March 31, December 31, Proprietary software $ 41,464 $ 39,017 Furniture and equipment 47,607 47,692 Automobiles 2,515 2,119 Leasehold improvements 69,741 86,986 Property and equipment, gross 161,327 175,814 Less: accumulated depreciation and amortization (59,451) (63,135) Property and equipment, net $ 101,876 $ 112,679
Schedule of Other Accrued and Current Liabilities	Other accrued and current liabilities consist of the following (in thousands): March 31, December 31, Returns reserve $ 18,839 $ 22,233 Accrued compensation 16,606 15,111 Accrued legal 2,110 484 Accrued sales tax and other taxes 7,469 8,531 Site credit liability 14,366 11,813 Accrued marketing and outside services 8,053 8,729 Accrued shipping 3,350 5,715 Accrued property and equipment 1,446 11,417 Deferred revenue 3,528 3,549 Accrued interest 1,741 1,166 Other 4,763 4,544 Other accrued and current liabilities $ 82,271 $ 93,292

Convertible Senior Notes, Net (

Convertible Senior Notes, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Net Carrying Amount of Notes	The following tables present the outstanding principal amount, unamortized debt issuance costs, and net carrying amount of the 2025 Notes and 2028 Notes as of the dates indicated (in thousands): March 31, 2023 2025 Notes 2028 Notes Principal $ 172,500 $ 287,500 Unamortized debt issuance costs (2,896) (6,623) Net carrying amount $ 169,604 $ 280,877 December 31, 2022 2025 Notes 2028 Notes Principal $ 172,500 $ 287,500 Unamortized debt issuance costs (3,204) (6,948) Net carrying amount $ 169,296 $ 280,552
Schedule of Amounts Recorded in Interest Expense Related to Notes	The following tables set forth the amounts recorded in interest expense related to the 2025 Notes and 2028 Notes as of the dates indicated (in thousands): Three Months Ended March 31, 2023 2025 Notes 2028 Notes Contractual interest expense $ 1,294 $ 719 Amortization of debt issuance costs 308 325 Total interest and amortization expense $ 1,602 $ 1,044 Three Months Ended March 31, 2022 2025 Notes 2028 Notes Contractual interest expense $ 1,294 $ 719 Amortization of debt issuance costs 320 320 Total interest and amortization expense $ 1,614 $ 1,039
Schedule of Future Minimum Payments Under Notes	Future minimum payments under the 2025 Notes and the 2028 Notes as of March 31, 2023, are as follows (in thousands): Amount Fiscal Year 2025 Notes 2028 Notes Remainder of 2023 $ 5,175 $ 1,438 2024 5,175 2,875 2025 175,088 2,875 2026 — 2,875 2027 — 2,875 2028 — 288,937 Total future payments 185,438 301,875 Less amounts representing interest (12,938) (14,375) Total principal amount $ 172,500 $ 287,500

Share-based Compensation Plans

Share-based Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Total Stock-based Compensation Expense, by Function	Total stock-based compensation expense by function was as follows (in thousands): Three Months Ended March 31, 2023 2022 Marketing $ 450 $ 593 Operations and technology 3,691 5,249 Selling, general and administrative 4,850 6,672 Total $ 8,991 $ 12,514

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Schedule of Maturities of Operating Lease Liabilities	Maturities of operating lease liabilities by fiscal year for the Company’s operating leases are as follows (in thousands): Fiscal Year Amount Remainder of 2023 $ 21,350 2024 28,073 2025 28,213 2026 27,772 2027 21,410 Thereafter 38,033 Total future minimum payments $ 164,851 Less: Imputed interest (26,607) Present value of operating lease liabilities $ 138,244
Schedule of Supplemental Cash Flow Information Related to Operating Leases	Supplemental cash flow information related to the Company’s operating leases are as follows (in thousands): Three Months Ended March 31, 2023 2022 Operating cash flows used for operating leases $ 8,231 $ 6,101 Operating lease assets obtained in exchange for operating lease liabilities (including remeasurement of right-of-use assets and lease liabilities due to lease modifications) $ (1,493) $ 25
Schedule of Weighted Average Remaining Lease Term and Discount Rate for Operating Leases	The weighted average remaining lease term and discount rate for the Company’s operating leases are as follows: March 31, 2023 Weighted average remaining lease term 6.0 years Weighted average discount rate 6.2 %

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable to Common Stockholders (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Loss Per Share	A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net loss per share attributable to common stockholders is as follows (in thousands, except share and per share data): Three Months Ended March 31, 2023 2022 Numerator Net loss attributable to common stockholders $ (82,500) $ (57,412) Denominator Weighted-average common shares outstanding used to calculate net loss per share attributable to common stockholders, basic and diluted 99,608,071 93,476,106 Net loss per share attributable to common stockholders, basic and diluted $ (0.83) $ (0.61)
Schedule of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss Per Share	The following securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive (on an as-converted basis): March 31, 2023 2022 Options to purchase common stock 1,723,850 3,598,261 Restricted stock units 18,261,493 9,092,713 Estimated shares issuable under the Employee Stock Purchase Plan 260,261 99,936 Assumed conversion of the Convertible Senior Notes 18,746,323 18,746,323 Total 38,991,927 31,537,233

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Mar. 31, 2021	Jun. 30, 2020
Summary Of Significant Accounting Policies [Line Items]
Provision for inventory write-downs and shrinkage	$ 3,400,000	$ 1,800,000
Rights to recover products from customers	$ 4,600,000		$ 6,100,000
2025 Convertible senior notes
Summary Of Significant Accounting Policies [Line Items]
Notes interest rate	3%				3%
2028 Convertible senior notes
Summary Of Significant Accounting Policies [Line Items]
Notes interest rate	1%			1%
Common Stock
Summary Of Significant Accounting Policies [Line Items]
Dividend or distribution declared	$ 0
Other Accrued and Current Liabilities
Summary Of Significant Accounting Policies [Line Items]
Inventory return reserves allowances	$ 18,800,000		$ 22,200,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Summary Of Significant Accounting Policies [Line Items]
Total revenue	$ 141,904	$ 146,700
Total cost of revenue	51,921	68,083
Consignment revenue
Summary Of Significant Accounting Policies [Line Items]
Total revenue	102,643	83,989
Total cost of revenue	15,529	13,733
Consignment revenue | Pro Forma
Summary Of Significant Accounting Policies [Line Items]
Total revenue		97,877
Total cost of revenue		28,049
Consignment revenue | Scenario, Adjustment
Summary Of Significant Accounting Policies [Line Items]
Total revenue		(13,888)
Total cost of revenue		(14,316)
Shipping services revenue
Summary Of Significant Accounting Policies [Line Items]
Total revenue	14,308	13,888
Total cost of revenue	$ 11,362	14,316
Shipping services revenue | Pro Forma
Summary Of Significant Accounting Policies [Line Items]
Total revenue		0
Total cost of revenue		0
Shipping services revenue | Scenario, Adjustment
Summary Of Significant Accounting Policies [Line Items]
Total revenue		13,888
Total cost of revenue		$ 14,316

Cash and Cash Equivalents - Sum

Cash and Cash Equivalents - Summary of Estimated Value of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents, at carrying value	$ 247,145	$ 293,793
Cash and cash equivalents, fair value	247,145	293,793
Cash
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents, at carrying value	29,413	275,742
Cash and cash equivalents, fair value	29,413	275,742
Money market funds
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents, at carrying value	217,732	18,051
Cash and cash equivalents, fair value	$ 217,732	$ 18,051

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	$ 247,145	$ 293,793
2025 Convertible senior notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate principal amount	172,500
2028 Convertible senior notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate principal amount	287,500
Recurring | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	$ 217,700	$ 18,100

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Carrying Amounts and Estimated Fair Values (Details) $ in Millions	Mar. 31, 2023 USD ($)
Net Carrying Amount | 2025 Convertible senior notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net Carrying Amount	$ 169.6
Net Carrying Amount | 2028 Convertible senior notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net Carrying Amount	280.9
Estimated Fair Value | 2025 Convertible senior notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value	157.4
Estimated Fair Value | 2028 Convertible senior notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value	$ 231.4

Condensed Balance Sheet Compo_3

Condensed Balance Sheet Components - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 161,327	$ 175,814
Less: accumulated depreciation and amortization	(59,451)	(63,135)
Property and equipment, net	101,876	112,679
Proprietary software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	41,464	39,017
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	47,607	47,692
Automobiles
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,515	2,119
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 69,741	$ 86,986

Condensed Balance Sheet Compo_4

Condensed Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Financial Position [Abstract]
Depreciation and amortization expense on property and equipment	$ 7.5	$ 6.4
Leasehold improvements impairment charge	$ 7.2

Condensed Balance Sheet Compo_5

Condensed Balance Sheet Components - Schedule of Other Accrued and Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Returns reserve	$ 18,839	$ 22,233
Accrued compensation	16,606	15,111
Accrued legal	2,110	484
Accrued sales tax and other taxes	7,469	8,531
Site credit liability	14,366	11,813
Accrued marketing and outside services	8,053	8,729
Accrued shipping	3,350	5,715
Accrued property and equipment	1,446	11,417
Deferred revenue	3,528	3,549
Accrued interest	1,741	1,166
Other	4,763	4,544
Other accrued and current liabilities	$ 82,271	$ 93,292

Debt (Details)

Debt (Details) - Revolving Credit - USD ($)	1 Months Ended
	Apr. 30, 2021	Mar. 31, 2023
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 50,000,000
Line of credit facility, variable annual rate	0.50%
Notes interest rate	4.25%
Balance drawn on line of credit		$ 0

Convertible Senior Notes, Net -

Convertible Senior Notes, Net - Additional Information (Details)	1 Months Ended		3 Months Ended	10 Months Ended	19 Months Ended
	Mar. 31, 2021 USD ($) $ / shares	Jun. 30, 2020 USD ($) $ / shares	Mar. 31, 2023 USD ($) day shares	Dec. 31, 2021 USD ($)	Dec. 31, 2021	Dec. 31, 2022 USD ($)	Mar. 03, 2021 $ / shares	Jun. 10, 2020 $ / shares
2025 Convertible senior notes
Debt Instrument [Line Items]
Aggregate principal amount		$ 172,500,000
Notes interest rate		3%	3%
Proceeds from issuance of convertible senior notes		$ 165,800,000
Purchase of capped call transactions		$ 22,500,000
Initial conversion rate		5.62635%
Initial conversion price (in dollars per share) | $ / shares		$ 17.77
Notes, threshold percentage of stock price trigger			130%
Notes, threshold trading days | day			20
Notes, threshold consecutive trading days | day			30
Percentage on aggregate principal amount of notes to be payable upon the event of default			25%
Interest rate used to compute initial fair value of liability		5.67%
Fair value of liability		$ 152,700,000
Discount on initial issuance		19,800,000
Debt issuance costs		6,700,000
Equity component of convertible senior notes, net of issuance costs		800,000
Liability component recorded as a reduction in carrying value of debt		$ 5,900,000
Amortization period		5 years
Effective interest rate			3.74%		6.40%
Long-term debt			$ 172,500,000
Principal			$ 172,500,000
Debt instrument, term			5 years
2025 Convertible senior notes | Capped Call Transactions
Debt Instrument [Line Items]
Payment to counterparties for purchased calls		$ 22,500,000
Common stock subject to adjustment and exercisable upon conversion of initial notes (in shares) | shares			9,705,454
Cap price of capped transactions (in dollars per share) | $ / shares								$ 27.88
Cap price as percentage on common stock price per share								100%
Closing price of common stock (in dollars per share) | $ / shares								$ 13.94
Reduction to additional paid premium payments for capped call transactions		22,500,000
2025 Convertible senior notes | Conversion Option One
Debt Instrument [Line Items]
Notes, threshold percentage of stock price trigger			130%
Notes, threshold trading days | day			20
Notes, threshold consecutive trading days | day			30
2025 Convertible senior notes | Conversion Option Two
Debt Instrument [Line Items]
Notes, threshold percentage of stock price trigger			98%
Notes, threshold trading days | day			5
Notes, threshold consecutive trading days | day			5
2025 Convertible senior notes | Initial Purchasers
Debt Instrument [Line Items]
Aggregate principal amount		$ 22,500,000
2028 Convertible senior notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 287,500,000
Notes interest rate	1%		1%
Proceeds from issuance of convertible senior notes	$ 278,100,000
Purchase of capped call transactions	$ 33,700,000
Initial conversion rate	3.14465%
Initial conversion price (in dollars per share) | $ / shares	$ 31.80
Interest rate used to compute initial fair value of liability	7.18%
Fair value of liability	$ 191,300,000
Discount on initial issuance	96,200,000
Debt issuance costs	9,400,000
Equity component of convertible senior notes, net of issuance costs				$ 3,100,000
Liability component recorded as a reduction in carrying value of debt	$ 6,300,000
Amortization period	7 years
Effective interest rate			1.45%
Long-term debt			$ 287,500,000
Debt instrument, term			7 years
2028 Convertible senior notes | Capped Call Transactions
Debt Instrument [Line Items]
Payment to counterparties for purchased calls	$ 33,700,000
Common stock subject to adjustment and exercisable upon conversion of initial notes (in shares) | shares			9,040,869
Cap price of capped transactions (in dollars per share) | $ / shares							$ 48
Cap price as percentage on common stock price per share							100%
Closing price of common stock (in dollars per share) | $ / shares							$ 24
Reduction to additional paid premium payments for capped call transactions	33,700,000
2028 Convertible senior notes | Initial Purchasers
Debt Instrument [Line Items]
Aggregate principal amount	$ 37,500,000
2025 Notes
Debt Instrument [Line Items]
Liability component recorded as a reduction in carrying value of debt			$ 2,896,000			$ 3,204,000
Long-term debt			169,604,000			169,296,000
Principal			172,500,000			172,500,000
2028 Notes
Debt Instrument [Line Items]
Liability component recorded as a reduction in carrying value of debt			6,623,000			6,948,000
Effective interest rate				7.50%
Long-term debt			280,877,000			280,552,000
Principal			$ 287,500,000			$ 287,500,000

Convertible Senior Notes, Net_2

Convertible Senior Notes, Net - Schedule of Net Carrying Amount of Liability Component of Notes (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
2025 Notes
Debt Disclosure [Line Items]
Principal	$ 172,500	$ 172,500
Unamortized debt issuance costs	(2,896)	(3,204)
Total principal amount	169,604	169,296
2028 Notes
Debt Disclosure [Line Items]
Principal	287,500	287,500
Unamortized debt issuance costs	(6,623)	(6,948)
Total principal amount	$ 280,877	$ 280,552

Convertible Senior Notes, Net_3

Convertible Senior Notes, Net - Amounts Recorded in Interest Expense Related to Notes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
2025 Convertible senior notes
Debt Disclosure [Line Items]
Contractual interest expense	$ 1,294	$ 1,294
Amortization of debt issuance costs	308	320
Total interest and amortization expense	1,602	1,614
2028 Convertible senior notes
Debt Disclosure [Line Items]
Contractual interest expense	719	719
Amortization of debt issuance costs	325	320
Total interest and amortization expense	$ 1,044	$ 1,039

Convertible Senior Notes, Net_4

Convertible Senior Notes, Net - Schedule of Future Minimum Payments Under Notes (Details) $ in Thousands	Mar. 31, 2023 USD ($)
2025 Convertible senior notes
Debt Disclosure [Line Items]
Remainder of 2023	$ 5,175
2024	5,175
2025	175,088
2026	0
2027	0
2028	0
Total future payments	185,438
Less amounts representing interest	(12,938)
Total principal amount	172,500
2028 Convertible senior notes
Debt Disclosure [Line Items]
Remainder of 2023	1,438
2024	2,875
2025	2,875
2026	2,875
2027	2,875
2028	288,937
Total future payments	301,875
Less amounts representing interest	(14,375)
Total principal amount	$ 287,500

Share-based Compensation Plan_2

Share-based Compensation Plans - Additional Information (Details)	1 Months Ended		3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) tranche shares	Feb. 28, 2022	Mar. 31, 2023 USD ($) tranche shares	Mar. 31, 2022 USD ($) shares	Dec. 31, 2011 shares	Feb. 13, 2023 shares	Feb. 23, 2022 shares	May 05, 2021 shares	Aug. 04, 2020 shares	Dec. 31, 2019 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs | $	$ 0		$ 0
Stock-based compensation capitalized to proprietary software development costs | $			$ 290,000	$ 450,000
Estimated shares issuable under the Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	1,750,000		1,750,000
Options granted as percentage on fair value of stock			85%
Annual increase in number of shares, percentage of shares of outstanding common stock	1%		1%
Increase in shares available for grant (in shares)						990,882	929,601	893,016	858,723
Number of shares purchased (in shares)			0	0
Maximum | Estimated shares issuable under the Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual increase in available number of authorized shares (in shares)	1,750,000		1,750,000
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years	3 years
PSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance target, percentage		0%
PSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance target, percentage		150%
Share-Based Payment Arrangement, Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs | $	$ 100,000		$ 100,000
Weighted average period expect to recognized			3 months 18 days
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs | $	$ 76,100,000		$ 76,100,000
Weighted average period expect to recognized			2 years 9 months 18 days
2011 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					4 years
Percentage of maximum incentive stock options granted to stockholders					10%
2011 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable period					10 years
2011 Plan | Incentive and Non-statutory Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)					12,987,255
2011 Plan | Incentive and Non-statutory Stock Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted as percentage on fair value of stock					100%
2011 Plan | Incentive Stock Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted as percentage on fair value of stock					110%
2019 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual increase in available number of authorized shares (in shares)										8,000,000
Annual increase in number of shares, percentage of shares of outstanding common stock										5%
Increase in shares available for grant (in shares)						4,954,409	4,648,003	4,465,083	4,293,616
2019 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)										8,000,000
Inducement Grants | Share-Based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested, number of shares (in shares)	3,075,000		3,075,000
Inducement Grants | PSUs | Share-Based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			5 years
Unrecognized compensation costs | $	$ 1,700,000		$ 1,700,000
Nonvested, number of shares (in shares)	1,500,000		1,500,000
Number of tranche | tranche	4		4
Inducement Grants | Restricted stock units | Share-Based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs | $	$ 2,500,000		$ 2,500,000
Nonvested, number of shares (in shares)	1,575,000		1,575,000

Share-based Compensation Plan_3

Share-based Compensation Plans - Schedule of Total Stock-based Compensation Expense by Function (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 8,991	$ 12,514
Marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	450	593
Operations and technology
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	3,691	5,249
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 4,850	$ 6,672

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Line Items]
Operating lease costs	$ 7.1	$ 7.2
Variable lease costs	1.3	$ 1.5
Right-of-use asset impairment charge	$ 25.7
Minimum
Leases [Line Items]
Operating lease term	1 year
Maximum
Leases [Line Items]
Operating lease term	15 years

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
Remainder of 2023	$ 21,350
2024	28,073
2025	28,213
2026	27,772
2027	21,410
Thereafter	38,033
Total future minimum payments	164,851
Less: Imputed interest	(26,607)
Present value of operating lease liabilities	$ 138,244

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating cash flows used for operating leases	$ 8,231	$ 6,101
Operating lease assets obtained in exchange for operating lease liabilities (including remeasurement of right-of-use assets and lease liabilities due to lease modifications)	$ (1,493)	$ 25

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate For Operating Leases (Details)	Mar. 31, 2023
Leases [Abstract]
Weighted average remaining lease term	6 years
Weighted average discount rate	6.20%

Restructuring (Details)

Restructuring (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2023 flagship_store	Mar. 31, 2023 neighborhood_store	Mar. 31, 2023 consignment_office	Mar. 31, 2022 USD ($)
Restructuring and Related Activities [Abstract]
Restructuring and related cost, number of positions eliminated		2	2	2
Restructuring charges	$ 36,388				$ 0
Right-of-use asset impairment charge	25,700
Leasehold improvements impairment charge	7,200
Employee severance	1,700
Other related charges	$ 1,800

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Millions					1 Months Ended	3 Months Ended	4 Months Ended	12 Months Ended
	Oct. 31, 2022 plaintiff	Jul. 28, 2022 USD ($) plaintiff	Dec. 08, 2021	Oct. 21, 2021 USD ($)	Jan. 07, 2022 USD ($)	Dec. 07, 2020 lawsuit	Jan. 10, 2020 lawsuit	Dec. 31, 2021 USD ($)
Class Actions Complaint Filed In San Mateo County, California
Other Commitments [Line Items]
Number of lawsuits filed | lawsuit							3
Litigation settlement, amount awarded to other party		$ 11
Payment period for amount awarded to other party		30 days
Litigation settlement								$ 11
Loss Contingency, Number Of Plaintiffs Opting Out | plaintiff		1
Loss Contingency, Number Of Plaintiffs Opting Out Or Purchased Stock | plaintiff	2
Derivative Actions Filed In The US District Court, Delaware
Other Commitments [Line Items]
Litigation settlement, amount awarded to other party				$ 0.5
Payment period for amount awarded to other party			30 days
Litigation settlement								$ 0.5
Number of lawsuits consolidated | lawsuit						2
Payments for Legal Settlements					$ 0.5

Income Taxes (Details).

Income Taxes (Details). $ in Millions	Mar. 31, 2023 USD ($)
Income Tax Disclosure [Abstract]
Net deferred tax assets	$ 258.2
Unrecognized tax benefits	2.4
Unrecognized tax benefits, interest	0
Unrecognized tax benefits that would impact effective tax rate	$ 0

Net Loss Per Share Attributab_3

Net Loss Per Share Attributable to Common Stockholders - Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator
Net loss attributable to common stockholders, basic	$ (82,500)	$ (57,412)
Net loss attributable to common stockholders, diluted	$ (82,500)	$ (57,412)
Denominator
Weighted-average common shares outstanding used to calculate net loss per share attributable to common stockholders, basic (in shares)	99,608,071	93,476,106
Weighted-average common shares outstanding used to calculate net loss per share attributable to common stockholders, diluted (in shares)	99,608,071	93,476,106
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.83)	$ (0.61)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.83)	$ (0.61)

Net Loss Per Share Attributab_4

Net Loss Per Share Attributable to Common Stockholders - Schedule of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	38,991,927	31,537,233
Share-Based Payment Arrangement, Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	1,723,850	3,598,261
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	18,261,493	9,092,713
Estimated shares issuable under the Employee Stock Purchase Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	260,261	99,936
Assumed conversion of the Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	18,746,323	18,746,323

Uncategorized Items - real-2023

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2020-06 [Member]