TDUP - Earnings call transcript Q2 2021

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Operator

Good day, and welcome to the thredUP Q2 2021 Earnings Conference Call. Today’s call is being recorded. At this time, I’d like to turn the conference over to Lana Adair, Investor Relations. Please go ahead.

Lana Adair

Good afternoon, and thank you for joining us on today’s conference call to discuss thredUP’s second quarter 2021 financial results. Reinhart, the Executive company’s James and and are Sobers, Sean Chief us thredUP’s Officer Chief Co-Founder; With Financial Officer. press website our our posted release financial supplemental We information Investor Relations at ir.thredup.com. and on replay also being available our and will This call of website webcast call shortly. is this the IR on website, a on be

and plans. and involve Words known could risks identify as guidance unknown during such our performance, limited like and statements. are this as materially. expect call, of and demand, actual I’d These begin, forward-looking that to, we business expressions differ course estimate statements regarding remind you and to strategies financial we similar but the uncertainties, believe, not and will well growth as anticipate, prospects, Before to intended results make market forward-looking statements our forward-looking future statements including,

information risks, You and release results our about SEC uncertainties filings, our Relations other factors supplemental on can information press operating find could affect website. in posted more earnings our Investor these that and

In non-GAAP GAAP financial financial will considered substitute, measures. present as or from addition, measures. certain in in a non-GAAP should be isolation measures we These the during to, addition not call,

measures non-GAAP find regarding disclosures can comparable earnings including our these You with reconciliations GAAP additional in release. measures,

over to like turn James I’d Now, the to call Reinhart.

James Reinhart

Chief provide James XXXX. entry excited also market. earnings Impact quarter business creating turn including detail thredUP’s our section we’re in With with company, world. quarter, call. more third through two Good European positive Section. financial our of into commentary to thredUP. This the Financial us and quarter XXXX a from for is the resale then share I’m how CEO our on details Officer, fiscal who annual public highlights outlook walk afternoon, Thank ninth Report and for everyone. second in us results our over Co-Founder quarters Sobers, Reinhart, will second provide anticipated year I’ll first you for I’ll our thredUP’s joining financials the and to Sean change as our thredUP it and ever Resale thredUP behind

we For the second record gross quarter revenue, orders. record active a record margins, and buyers in record profits, gross achieved record row,

that slowdown, we rebound continues metrics believe clear to we’re a our and business sustainable path growth. its pandemic indicate on from growth Our to

Given we’re we’re a seeing. marketplace, in supply turn the and managed trends let both comment me demand on

On side to to rates. usual, states most a went the the vaccination quarter, in And enabling their as some we everyday expanded. benefited to degree restrictions lifted outside this country, spring, business normalcy, back homes. given late demand consumers from guidelines return were across increased of In of all activities reengage

saw a the while fall. new back to compared increase this still on created dressier women’s the are period. end While of Delta working work some preparing the some many the thredUP same XX% return such, And sales country, to and this resilient expect we projections. edging the wariness to July month-over-month as variant Kids’ for items the consumer Purchasing spending pants year, trajectory. in-person were to of in by sales for parts supports of has up XX% June, prepandemic like levels school during in-person be us in through behavior

formal addition, growth. dresses for XX%, month-over-month sales both dresses midi for and heels sales XX% In experienced grew and by

consumer with we wallet to consumer saying, enthusiasm fierce. "back" variant apparel entered that as competition into share for linger be we are also demand the half is many for of the Delta anticipate and from challenges while So second year the

resale the side, market. sellers On to are to entering selection levels build continuing to on of growing the the in supply we marketplace historic our number capitalize

reduction as we weeks of XXXX though area bag we as overall across in the times have last where one were year, did much expected, to capacity Even than hoped financial regular since our XX time not more by distribution While this make increased times. bag processing results have our average processing than we on progress second accelerated processing is XX% network. quarter better had

provide are focused service who expedited most for money. continue to on We those VIP earning

have incredible Kit this and Clean of seemingly selection. in and to to a interest continue We endless resulting service, We in continued our processing amount capacity item see our expand automation for backlog to invest supply. plan Out reduce to

including clients, customized Electronics debuted the turn Fabletics. LG robust life resale me XXX Of to to let experience. and note, thredUP’s We white-label four recently XXX new our RaaS first resell deliver to Resale-As-A-Service launched Now FARFETCH, bringing enabled platform, program. a capabilities by RaaS Madewell fully Madewell, shop, a

to will months. RaaS out the partners more continue coming for our in We roll features

well our revenue-sharing fees. world. These addition, usage RaaS deals not service, deal any their that leverage as with consumer In platform signals to include fees to the Electronics and/or do resell integration can just ongoing empower to thredUP’s LG fashion retailers, primarily good as customers business, in upfront structured are

resold in conducted next market in of data in the an June, double, this of it, broader to meaning XXX million putting are is driven people and we retail Data, open clothing by sellers predicted Resale annual Report, who U.S. record have its nearly that, same current sellers to trying trends. future during ninth the the U.S. clothing secondhand expected the that there XX% structure who sector new This stages the time the continue faster on We of grow the resale resale are secondhand never of future. capitalize projected to as is assess platform, Within provider consumer independent online. our renewals, the years. as client well becomes front According continue the are period. than our implementing XX amount This anticipated opportunity invest is part confirms market. will times we to as is that product sell billion us in to into the us. to report for but we client agreements growth infrastructure, growth five nascent clothes science data $XX in drive for it exciting easier new the industry of data believe published ongoing only to Global which must market late technology, measures In our by to

they still displacing early secondhand XXXX wearing financial fashion the did section are both is this signals suggesting the participate retail. as before time pandemic transformation also big that will that more for In than and At eco waste. by environmental impact clothing. sustainable well particular, of only fast amplify people with impact. twice and and doing thrift. growing stages traditional say year’s as report secondhand is emerging apparel retail, we Also in disdain is thredUP’s this replace to impact behavioral included are of is we as about for purchases fast changes good. they by Consumers in there fashion Although be as care thrifters resale on in more thredUP, The a do first a significant, have these the in expected

by date, buy billion When are footprint the transforming consumers, clothes, and resell this XX%, by item We steps fashion a environmental secondhand creating new enabling and reduce ushering We its items estimated more part retailers brands believe unique XXX we towards millions pounds XX%. displaced cost By by industry sustainability. at X.X of do of a take you for processed financial you that life positive and helping in we’re will fashion. carbon way an new of are To offsetting a instead of change million change. positive thredUP giving new more being The carbon has scale, proud the secondhand committed to consume. And we fashion that future waves beginning. and the better. and is of I’m shop in circular of one, to can than used emissions. thredUP is just

view full report can You at www.thredup.com/resale. our

fashion to experienced initial was its companies. Much international in Finally, that expansion to unique Remix, quarter. to efficiently. allows month, thredUP our of size to its market the RaaS we future process adds already platform, has power one thredUP $XX to resell U.S., Europe’s customized secondhand like team the with plan number a by $XX in close billion springboard built agreement growth. thredUP’s operating plans With product acquire an and own last The to SKU is XXXX. Remix rely world’s strategy millions acquisition, The to by RaaS management of platform where doors accelerate leading the acquisition customers thredUP’s extend strategy processing to be Europe. deliver in billion to announced Remix We Remix engine brands to international single garments will to infrastructure acquisition thredUP’s growth the enabling of in logistics the leading channel Europe. and potential and to the their resell their international offerings, in expansion beyond platform Europe, deal fourth phase the resale operational A also Data marketplace growth. The expected the brands complementary and custom this proprietary XXXX, retailers Global growing can estimated retailers expansion invest in of its go-to-market on potential opens to experiences accelerate

are leading of given time young aggressive. such part thrilled closing, more Sean, generation and we upon must processing must big, ongoing future, shifting strategy like of in we’re the We’re as our over be our chance financials. resell expertise. acquisition the pay in that, over build walk investments distribution the the to now in bullish to this capture of Remix’s the about our will to our Remix, fast to In material unit With believe to opportunity shopping inspire We company consumers about invest especially that dividends market and turn we go the we Consumer resell secondhand. it economics and world. to confident are to massive these in and people RaaS, is the is behavior, build of time strong we’re the and our who to technology ways, technology among European now through of I’d all scaling operational new in the go continuing network, this investments

Sean Sobers

earnings thanks guidance will on non-GAAP third I us overview of throughout full James. and second Thanks, again, with our remarks. of XXXX. joining our quarter quarter my discuss and the everyone begin year results And with second follow quarter I’ll an to the call. results for for

release, GAAP supplemental Our XX-Q. and GAAP in earnings financials our our found non-GAAP financials a between reconciliation and are and

second quarter As shared, XXXX exceeded our revenue James expectations.

revenue represented increase second year-over-year. of million $XX a XX% quarter Our

revenue transition we to revenue, consignment the revenue consignment same to last from our report that pleased for period we total year. from As are product continue XX% our comprised up XX% of direct revenue

of a given reminder, growth best think consignment revenue, profit indicator we our underlying the is As to ongoing gross the transition growth.

Active results. XX.X% totaled of key were financial orders highs Second million purchases. for our to buyers growth and make both performance a year-over-year. for highlights $XX.X representing return in as and second quarter us who gross buyers indicator our attracting and buyers All-time active profit success repeat key quarter new

XX trailing the same another million. last to buyers rose XXXX. in provide active the our in orders months Compared Orders XX% Keep and KPI that X% to million. X.XX mind QX For to active X.XX marketplace. into are grew increased insight of buyers XX% period year, important

mentioned, XXXX. Gross the quarter. the this our a I margin. closure to XX.X% gross As gross second sequential our increase grew DC XX.X%, revenue last record year-over-year, drive exceeded profits and in points basis XX.X% and over of for margin improvement across basis of over is point quarter a XXXX increased same margin last helped the a total improvement automation XXX QX expanded manual year plus this quarter and in XXX DCs, gross the growth Scaling

items included million operating gross GAAP $XX.X Total increase were to coupled QX based $XX expenses an addition, and compensation. with $X.X ASP’s improve help shipment In million per stock of margin. higher year-over-year higher million,

While at we investing approach are operating we relentless long-term to are in driving our in this time, business. our actively leverage,

processing automation our capabilities, bag capacity and grow We’re investing new customers. extend our to our increase

related related we combination operations Approximately three over technology these our believe enable increase processing. expansion growth in an As increase to product activities us is overall the to DC half the OpEx the time. and bag and was of network of of compound will total the

is expected as will online X.X hold As our million we have soon last noted to Atlanta our coming DC on items. call, the and capacity

period DC out to a our accounted expenses remind of are direction. We will continue exist in invest to processed point inbound in did and want that operating then over to Items for it that believe take we expenses our will the across expenses in sales further automation you P&L. generate future result and moment quarter and revenue and opportunities periods. how I these expected, in the network in processing, is

expenses items operating a Depending growth. As in the more our DC the we time more network, year, revenue vice through may versa. increase quarter of process than we will items and anticipated we in process sell advance of on

a creates DC in in example, ebbs move expense inbound into and our seasonal to clothing an we flex secondhand For associates QX. sales operating headwind favorable We an demand expected December. for can QX tailwind processing, which as

our to Turning for attention moment. marketing a spend

to We cohorts in over feel confident to our believe that this ensures while our remain spend predictable time, even while target payback target. and XX-month scale continue the spend our growth We our marketing ability us. capture stable repeatedly in meeting expanding opportunity to front of payback

increase last COVID payroll. reduction in year’s furlough related quarter’s SG&A and against in our compares This employee XX%

company costs have new we approximately addition, public QX. In in of million $X

XXXX triggered options compensation to March conjunction million, stock-based $X.X to XX% our rose that Finally, stock recognition due primarily IPO. with our the performance-based of in year-over-year

adjusted million year, loss quarter and X.X% revenue. EBITDA was million XX.X% quarter $X.X EBITDA $X was In the of revenue. of our same of second Our loss last

the severely COVID-XX the impacts pandemic, in reminder of that due were corporate DCs. of our QX a As salaries XX% back in to XXXX expenses, and employee cut unable to uncertainty furlough reduced bags growth process implemented with by the we program

and not included and were offering issued Second included. late shares recent of the are follow-on million average in XX.X us weighted offering our our initial quarter July basic by shares March. in public Shares

The Turning the million the in $XXX.X offering cash July and of balance the we second cash, not net X short-term the of follow-on cash ended equivalents, balance include cash restricted ending began and with $XXX.X our proceeds does to million shares. from million $XX.X quarter million. investments with sheet, XX quarter QX

acquire agreement we Remix to in for that recent exciting provides This believe us a Our is European development opportunity acquisition expansion. an headstart a thredUP. gives our unique

to Remix to European process scratch. We near for about a We’ll a closing acquisition from an share The conditions. customary Similar millions the a guidance expect expected transaction platform and the during without of with establishing items. starting deal unique fourth as the XXXX close is more logistics to provide closes. Remix financial contribution term us, the single the us that Remix information ability operates SKU and of and in by advantage is will after quarter footprint to subject the specific acquisition

opportunities in XX-month plan to marketing As as payback we mentioned, actively QX of more business. staying We we to customers and ahead acquire while James look are the to target new our investing spend QX XXXX, the have that and see we within increase outlined.

online Atlanta, final goal capacity will and With continue a ever will meaningfully, believe supply sale into online before. We items the this in we phase head processing the for invest of have as our fresh most automated seemingly XXXX. than with to coming available selection more and facility, we improve endless to

as in end of up the of XXXX, our beginning our of the was DC capacity XXXX. than As more XX% QX network to compared

to and the impact EBITDA in like, businesses, likely is back DC our of seeing that on, inflation gross year. drags both half are pandemic the the As many for near-term staff wage we margins

third Remix to like the of not I’d our XXXX. year our outlook financial and include does quarter acquisition. share the guidance Now that full Note planned for

shares. of weighted $XX of the outstanding million. XXXX, approximately basic adjusted to XX%, expect in of range of we XX% For million XX to million margin of revenue XX.X%, Gross average loss and third $XX and the EBITDA quarter shares to XX.X%

to buyers year of are orders. full of $XXX and expansion, meaningful record time XX.X% XX quarter the basic million. margin the to gross with shares revenue $XXX For XX.X%, second and loss outstanding sales, pleased expect million. of closing, all and adjusted average and XX.X% range approximately We to XXXX, margin high revenue, we EBITDA performance. in of of very In we weighted XX% million active had Gross our of

as We continued emerging for our growth, deliberate accelerating as investment position both in infrastructure marketplace, in us to core RaaS our our business. well

acquisition plans closes. we open growth once acquisition, Operator, about for with line. about questions. and our please the share I international your the excited the Finally, our are are now trajectory and more Remix James ready we’ll

Operator

take you. our today And Ike Thank [Operator with Fargo. Instructions] Boruchow we’ll from Wells question first

Ike Boruchow

questions. the on Two Congrats quarter. guys. Hey,

bit you other you curious Sean, and a more kind investments? wages mentioned near-term the some For talk of can – about about Just little things.

reinvest. on in that to you’re to then now processing, So the doing eight I think what top of And kind but understand part wanted the of the quarter, at were equation. line’s I Obviously, interested last great, James, XX. you weeks

there? on end through I back table? think by year. three exactly kind last the still you two Is kind of to is of of that walk were quarter, us get leading back step targeting then to And can what to you to that the the

James Reinhart

handle Great. mean, related. actually because Yes. Ike. Thanks, I they’re Yes, those. can of I both

I like meet clean appears just do out in we It’s think what be out how to have incredible big with the service. a line scale investments we our think restaurant are door. processing for demand to a the

scalpers concert a where have scalping We are tickets.

our out capacity. scale just us such have it’s clean continue we We service to feel processing like on incumbent demand our to that for

And going of distribution to bigger, in to continuing invest the so lot faster to up continuing make continue items better, technology helps think centers, investments process staff build faster. our on I associate a us the we’re that to is accounts,

that our this of You margin saw gross quarter. expansion some in

a do to think to is, I it how go trying our it that. that with They of the service. nerve American want think we fact consumer. mind here capture But that to so convenient I love really aggressively like share speaks more we’ll and the that They some opportunity. love hit after we and have

never has been are that’s that our resale than capture to is our and bigger where heads more of sort ever, I the it So market think really at, opportunity exciting.

by like Realistically, I don’t we hope get to end year. about see end those of as two the how weeks And getting So far the the the we times, us as to three there by to investments. the that’s of year. processing think

our we interest manifesting clean our think it out the is is into service. that’s in organic our in we’re demand there. having as business RaaS move itself out And it in I our lot goal Part is for all a partners, our the and clean part momentum of RaaS of XXXX. just then of

those So by that means three of two to end I the year. the we’re things unlikely of combination to weeks think two the hit

Ike Boruchow

it. much. Got so you Thank

James Reinhart

Thanks.

Operator

Sandler hear we’ll from Ross Next Barclays. with

Ross Sandler

Hey, guys.

Just a on the question Europe business.

will into the we of frame just getting and than you I what business rev? them on profit But are overall off in to help then, gross size attracted could here. master maybe revenue So you us Sean, terms guess And specifically? XXXX hold the their lot orders. plan of faster a the growing And

profit forward? So is your help What’s Or items that gross bunch order a up lot. Thanks on that quarter. that? that this Is Is metric? rev more for a order, AOV? driving any

James Reinhart

I’ll now impressed the the team, Remix I’ve Yes, on is team start known have side. We the years for been and and of about operations Ross. quality the this – five that a incredibly with they the has Eastern and think which European processing but and the is think that I the an of think, fact exciting, been really Europe. market Central in, operate I area is I overlooked that

did And for to revenue. revenue to made started great, than acquire think Europe. less X in and able times a feel mean, the business great basis. on so trailing were ops the I business get opportunity really like of this I We a in us million combination $XX team the the about the was

but only Eastern moving at it Central we we as and So about we attractive invest springboard think really a feel and price. great do in to we we and opportunity, very into Europe. as a a a And then get great then got not both can Europe, that like Western team

about once to bit a that’s little as investments and deal a we able level. bit high but So more think XXXX, about be closes a the of little talk those

Sean Sobers

Ike, grow profits on gross yours or grew growing XX%. on then, revenue Orders profit. XX%. And Revenues – XX%. Gross

I improvement if order you growth is see So some you profit. of think on is that, that helping economics it, overall mean there. about some there in gross that the the

grow significantly gross into our pretty move You automated we saw our DCs. DC margin profit from quarter this manual away the as

coming from seeing you’re overall beyond order that’s think the remainder that above and economics. I order So growth

Operator

Erinn you. Piper from Thank Murphy hear with We’ll Sandler.

Erinn Murphy

of it’s seeing from Great, right couple Good from you of Delta can in back the impact Sean, about the that, say, active pace you’re afternoon. now in variant guess, of I’d thanks. A on half, you’ve then, bit demand given first, or you. if category more thinking me. kind any growth what a seen James, changing any any if talk you’re about I little composition? for And help how year-to-date? On the the customer

James Reinhart

the Yes. is my that half back off But of kind least of sort of the antenna Thanks, a I seen variant, sense it’s our to was haven’t back how people relative that’s school, thinking at the office, is, Sure. on the where certainly at immediate about mean from changing year. we think something ago. kids think Erinn. Delta anything going up or the going I I kids back consumer I clouding we’re it to where month dropped to yesterday. But our school

restrictive. California, be most to So which in tends

other. do momentum little change we – that might the to like about talk I let going going watch I’ll what see but we’re a So think to bit consumer, certain Sean closely, in there’s like impact regions. might and Erinn, feel the how in or be still we’re

Sean Sobers

on active Then buyers. Yes.

added were You – we X% saw we quarter, up for the year-over-year.

is I keep XXXX mind was that QX think to XX%. growth in

lot stopped low. doing COVID is hit, of Customer as marketing. really Marketing got a people acquisition cheaper. So

We basically there. continue invest to

prices. than Same so different goes thing And we’re for normally QX would at more able XXXX. customers capture of we to

a customer obviously, do low. half we the think think year, So the so But was unique do ways. one But in was acquiring things many XXXX we the cost pick year. of pretty in up back it of was the will a of

have quite as half. first we in a half the customers in as well early few added the second So

Erinn Murphy

think, just your if industry. little LG then the maybe extension RaaS a add talk of the is, And I Can one partnership. it. you outside could first more softlines Electronic Got more on this bit I about

how of open are categories you extending apparel, so space? Thank much. relationship other And work? traditional into footwear how the that outside you So does specific into

James Reinhart

found it expanding traditional But our their wouldn’t think things I good, say it’s ways want to LG we of – – more inspire Yes. categories. to customers I where think was Erinn, do that that the in to with the of was apparel outside conversations sustainably. we’re they one

so who plug anybody, And do it that wants the the right right, shows is do do supply partnership powerful again, this longer think, into the machine and to right it’s platform thredUP really I is can that. help it in And does our what that about wearing all I with think again, their thing, into they’re supply. And to our customers thing clothes it just advantage about no what’s the compounds industry.

Airbnb If it’s marketplaces, it’s by matter they’re All all supply. doesn’t right? supply, you driven about of ultimately or it’s capturing these whether Uber, are all think DoorDash marketplaces about or

so example And of and time. how LG think incredible shows indicator supply the I that another advantage thredUP’s just over compounds

Erinn Murphy

you. Thank

Operator

Next we’ll hear KeyBanc. from Ed Yruma with

Ed Yruma

staff? the for back that in I work I you anticipated seeing maybe terms of think you’re a shift about school, for far? quickly? something And it needing there of more as you you question. perspective do through a term, the add is guess, the strongly, return from just more time, to process the to to then in kind get bags have return some thanks processing the looking you sales guess in of Thanks. Hey, short half function I seen Is thus to taking of can products were think to

James Reinhart

I’ll Ed. start. Thanks,

seeing even service. demand, just scaling on clean we’re we’re Ed, processing incredible planned, we’re seeing though processing as side, think the out I for what is our

So to XX% even scale the beginning end be than of the is year, of though year. processing capacity since XX% up we going the by more the

to same the the at scale at out all higher but clean and time, to is higher processing, coming doing We’re service the things consumer rates. thredUP’s

And because to us so I don’t advantage. year. keep our Ike’s to question, think end get to I not But that stuff. scaling stop to It’s back capacity. of the we’d as double I as down going people here our hoped think, that’s said the incumbent sort on on we for times – processing to scaled responding of don’t by it’s we us, think to haven’t get and sending can’t I But we’re I said, processing to those

And a so term. think that’s I be the in position good near to

As some definitely I heels, things for in things month-over-month noted, return-to-office think what increase categories, mix, we the would seeing like say dresses. as I shifts the we’re in like

our are those think nice for business, tailwinds our persist. school, of and the Probably last remains year. seen it happens I to those June so in kids strong half back a going I back would the quite to to trends the And I month-over-month saw was July. But whether the us we say all is growth, thing XX% is which promising. Delta kids, things think In of be Kids’ it variant what up with month-over-month,

so how And feeling about year. the out good QX will shake in the rest of

Ed Yruma

guys. Thanks,

James Reinhart

Thanks, Ed.

Operator

Telsey with Telsey Dana Advisory from hear we’ll Group. Next,

Dana Telsey

on congratulations everyone, the quarter. afternoon, Good

rate? what the How of that gross thoughts you And As of the – you strength algos sales in pricing margin, in some are and of on gains? are changing? the terms seeing strength about AUR take any updated think the the

Sean Sobers

Yes.

and Dana, can this So Sean. is in. fill James I’ll start,

how we much use algorithm. the business, know guys interesting about data our on I our you think part

opportunity up, something start as the seeing time, we sell on pandemic was rates waning. the pricing that when we So QX, there. In pick pick there’s point at up, through sell dresses And we know like sell-through basically, rates rates. saw in pick

start So little the take higher. bit over to algorithms and a price

see starting as well helps as margin to revenue. climb, ASP gross So which net overall we’re obviously that

through slower the were the as that we’ve we we saw of kind that’s the think pandemic, I one the of So periods and entities. seen of things moving that through basically

James Reinhart

Yes.

your as much and unit each every the gives economic item was snowflake. ability back leverage driving we earlier, that question data like as our can gets everything Dana, is And the to expansion on of thredUP, extract treat think Ross, from around to we unique power. really us I also can I’d some to a Because what’s pricing item.

they think send really to the sellers ability And how and on part prices to we is us, time, iterate the we down your I arbitrage payouts data. balancing the at second so on the the same to to question, buyers. it rate to our for that great But do continue take sellers compensate of clothing Dana, side, comes

payouts opportunity And so also of prices puts incredible of clean over service, And out to long-term. lower we or incredible the those that advantage in I have the continue think if term, to and as delight and the opportunities. but raise supply a think we’re near still going demand real for I position our we us in strength see to customer, take

Dana Telsey

that just what the in many And you there one off you’ve are to the any what of is Is terms and limit RaaS On quarter, it. had your this Got looking could program? add quick you how follow-up. additions platform RaaS seeing how payment you’re with for?

James Reinhart

added, we this partners of Fabletics, quarter, Yes, we FARFETCH, Madewell. a said, number LG, good as

We number brands. have a conversations to with world-class of continue

Dana, how retailers platform. so of our the for part don’t I isn’t where And think it really shows just value that there cap, time. is be could brands And think just create LG I brands a extension and on many over apparel can we

sure really this Sellers in participate is our and gets ecosystem, I to really it’s think to maintain make area. exciting, we continue I back driving in in to need that and infrastructure that to think invest opportunity because want sellers, right. we to continue market wanting it industry to what’s so we leadership this the capture And why to our

We end in for continue no, think to sight. there’s see I opportunity and any brands lots delight to us don’t So of retailers.

Dana Telsey

you. Thank

Operator

We’ll from with now Andreeva hear Needham. Anna

Anna Andreeva

the so to Two ones for quick question on And KPIs. congrats, I a James, me. Thanks guys. guess Great. some of much.

talked buyers the guys times think, You previously. X a shopping, month I about active

of frequency? to opens with anything secondly, of what supply on you I seeing any the call as those platform, kind changed? regarding are metrics the And Just up? to out sellers trends number And of curious especially if And have Sean. guess

a so maybe about on up? an of Can brand supply the so this Just how Remix. much. is for year follow-up you Thanks beneficiary talk in Should we far the think plus brand as XXXX? business this opened trending opening

James Reinhart

active the active engagement. strong and we Yes. I Anna, I the mean I think think to continue sessions, see buyers on buyer shopping

year-over-year. being I think the fed that’s what’s really they orders way up are

is that conversion see selection. engagement, high see do drives you So What you rates.

so put really magic the I the that buyer process more selection again, as think goods marketplace thredUP of drives more we and online, appetite. And is

leads to that increased higher average increased so it conversion And sessions, leads values. to order leads it to rate,

how continue in it scale. of the everything we it So don’t the expect metric as I kind to on our fact We track other sellers buy comes XX% than our that the that actively the bag, to strong services our to overtime think we flywheel on similar disclose repeat to KPIs of is that and our we for roughly sellers of numbers to a the because supply marketplace folks clean show that work and working, isn’t side. and sticking XX% out from demand

that’s So is – Sean marketplace let how about a which bit talk say say Remix, I’ll the is little out. breaking about to nothing.

Sean Sobers

more And to talk Remix. about love Yes. we

to we wait we’ve more think closes, give until I got So and it insight. a little

EBITDA. on margin in the and headwind I revenue, there’ll things think the that the million some of gross of we $XX a that tailwind on bit told and you, XXXX be little

be are probably So I the information will to the where what’s you close think on like and can think to things want where what’s give up and kind there. then I that’s able opportunity, company. color able the growth, that. we generic But we to open be investing, James we about give talk of

Anna Andreeva

Thanks Okay, much, so that’s guys. fair.

James Reinhart

you. Thank

Operator

final with will Our Dylan from question Blair. Carden William comes

Dylan Carden

curious, later book also delay. of revenue takes Clean sort in just you on And I and through Out Thank you if Report. some of the puts that to amount revenue, you Sean, inventory of Awesome. went in you. when book also levels actually you the the But if Kits, when processed? curious then curious Or can’t versus on over periods Yes. the on expense of periods? higher I’m of sales upside the get certain it time staleness certain a a pent-up period Resale if was of there’s demand certain just portend

the you interest you’re report to curious of mean, clearly, you demand seeing points coming of in it. can things I business. of it out couple and in work done pandemic. kind the things pandemic? or large resale of your might if do seeing that now in to that better pre, incremental post it be that there’s Any You’ve see as kind during understand that data a you’re you point But of

Sean Sobers

start. Dylan. Thanks, I’ll Okay.

take Report. I Resale the think James probably

data everything I think great thredUP that thing drives we the how is the works about do.

an going the it But winter there’s of may drives we to sell-through understand market heading we is acceptance in how So there. pricing you’re in going pretty how summer are when obvious we is, is is as jackets, versus what always item North if and really the That’s less be for middle comes do in it. That of certain season. regardless always be much a coats you’re it a year to April time November. There there be accepted. what maybe market for the in, pricing. just how do the of that into or summer, Face things are

that’s process, and to how the access how drive how we to So price. decision

still of the regardless is in what it overall season getting. want the like and marketplace spending we of we’re So the flywheel inventory of regardless particular, always

James Reinhart

we’ve And processing we Like I end continue in more thing opportunities faster just out the – scale we us to add invest only provides be Atlanta it built to will to added continued because processing. capacity, which the by that year. we as the facility, Yes. our Dylan, just would our of fully capacity, is scale

lot will to capacity excited it, opening in think the of can you about continue I the that I – have facilities, is come And confidence think we’re bigger that the give with supply. And to these that’s so it. what curve have right? a expand And we right coming supply we along right really feel behind bags so that’s confident very and we we’re as

we in we up near-term, time. again, revenue and processing And deliver – the ramp expenses incur but those as those over so

the seeing Resale data that is there As exciting. out again, in that why what us were stood think Report, I were industry I really for X to think like this points we speak to so

was some secondhand XXX in bought had sort consumers some apparel, one of just million secondhand XXXX, the sort of think product. product but you not I

I is secondhand evolving so consumers data open apparel, around right. that’s interesting second mind share of and the think mind or right, is that XX% in debt, shopping And point are the to the secondhand really powerful. have then And

you the idea sidelines what today are are have that who what of on is means people of shopping sitting me tens open to And of that so millions is that secondhand. the to

with And will into number the the XX the so new industry the to sellers for when years, are you along few next XX, of think ingredients coming XX, that years. market, have combine for continue not I pretty that next but you the rapidly, that over like grow over an – an

structural the back. at our I think are so And those tailwinds

Dylan Carden

Really Thank work Nice you. Awesome. appreciate. guys.

James Reinhart

Thanks, Dylan.

Operator

today’s That turn and James to will conclude conference will additional question-and-answer session. CEO over now Co-Founder, remarks. I any the for Reinhart, closing

James Reinhart

about how the Hopefully, appreciate everyone, questions. thanks, to we it’s and Well, good about I you call. think think opportunity over time. our know how the joining clear we for investments the

want And – thank thank work. all keep thredUP thank for the hard to our And you, hard so on continue deliver to I to working we’re going mission. the team to

thanks very all So Appreciate it. much.

Operator

will your conference. today’s conclude That participation. Thank for you

You may now disconnect.

ThredUp (TDUP) 11 Aug 212021 Q2 Earnings call transcript