of thredUP's Call. First and you Quarter James everyone. thredUP. CEO Co-Founder afternoon, Good Earnings XXXX I'm Thank Reinhart, for joining
highlights business quarter. and to financial excited thredUP's share from We our results key are first
and thread will the our customer Will an on the pursuing challenging and remix. we'll faring and how key we're and our is an addition to company-specific initiatives environment. for update we stubbornly financial provide on enable results, profits of growth, update sustainable macro In discuss then a provide Resale-as-a-Service resale current business conditions to in
I of hand XXXX call will quarter financials over Sobers, it Officer, with talk for Sean and outlook XXXX. Chief session. through detail out close provide then more Financial We'll today's first second a to quarter our in the to our our question-and-answer
results. high X% strong We XXXX that increasing QX, our exceeded and $XX.X a million, year-over-year. $XX.X of year-over-year achieved guidance. million, revenue increasing revenue Let's begin off kicked our of with X% QX profit delivering the with end gross of We
continued more consolidated this We the the down a promotional Our from ago. to year of was environment in attribute Europe. in challenging Remix gross XX.X% margin XX.X%, growth
However, we're of proud to report record XX.X%. U.S. gross margins
orders remained million steady QX slightly $X.X $X.X year-over-year. declining and Buyers million, respectively, Active in both and with quarter-over-quarter at
the Importantly, expect positive improve rest in QX this of growth buyer buyer we seen each throughout of have to turn month we and year, active year-over-year XXXX. trends and
leverage. We're QX a put of And was point minus EBITDA to XXX our proud over fine which of on points year-over-year. to $X share adjusted improving X.X%, our million or an basis operating improvement
our to landscape. Our seeing apparel the we're to operations, on typically product and X%. calls, share by revenue these technology moment while perspective And take costs grew what a on were X% like year-over-year, down our I'd in
inventory. same purchases rid based of at retailers combination the For promotions budget time back over several apparel with of get leaning pulling quarters on now, into we performing have discretionary been excess a that and shoppers to
in that exceptional that marketplace. across been the these weakened near under We've clothing. been not But new business control Resale's proposition bargain As value being assumption running this variables abate our the backdrop, the for we managing has are a term. by the our result, the headwinds despite offered did
data-driven insights unit growth technology believe evolving like books and leveraging our drive spend investments speaking focusing in are margin few product and We specifically. budget I'd play areas to drive economics. shopper acquisition optimize our also to We're customer moments and our retention to the we a consumer expansion. to
midpoint point A pulling own on year, update today. of ago, out. in we've from like seen clear large, point midpoint and we've observed back big that buying by we've we the the of at the basis thredUP With to behavior. budget to and our compared us bifurcation on number on seeing QX, into during same seen the I'd of provide budget that increase the We're last more the sidelines a purchasing of see in leaning a more few quarters discretionary premium provided on we're in a value fit leaning has After Comparatively, XXX period. an also shoppers shopper decline on time number of insights basis what spend data, shoppers to continuing upscale shoppers the shopper XXX continued thredUP. shoppers to customer last year, with
deep customers declined Year-over-year, and the subsegment our average of order XX% while thredUP order average value discount increased of upscale our X%. value shoppers'
also out. the shoppers So budget are trading while benefiting sitting some We're headwinds we from shoppers, facing down. of
term value been they the are as near segment excellent offers to market. adjusting more the still in shoppers, to have non-budget budget our we apparel the strategies target currently in thredUP While engaged
nice to normalize, marketplace anticipate growth. shoppers When our will improve, promotion we retailer macro provide budget the a and conditions tailwind for return
noted of year. this momentum this at top of improvements sequential to I the call, month each shoots of shopper we our green are with beginning As see budget the
monetization optimize our our turn the improve economics. unit we're implementing specific initiatives marketplace to Now in and let to to me
levers inventory Initial in of [acting] with that better supply new Clean has increased in the a Out Clean our We're we're changed. selecting improve us We've quality recently bag that First, for to our for indicate an service marketplace. a around resellable the experimenting testing Service Out variety high-margin received since sellers. started acceptance. to results yield our our items have and of of fees we fee items sell-through also a invest both of enable
our no better in Clean reduction for better this small And is no demand seen Better service. yield, we've Importantly, fees. sell-through, supply, higher feat. Out
with want. Second, clothing aggressively desirable fees, in the type when we're we're of that more supply more online. distribution through And sculpting we around incentives inbound being shaping a at messaging seller supply centers, assortment the these and inventory conjunction our to list is processed
X as our services. selective VIP Third, of as merchandising, our down, paid our cleanout backlog acceptance kits, X sitting of processing week this more as now for has while we becoming low average bag you in at weeks if an and come branch
backlog the pandemic. the incentivize tighter the and seller storage, a lowest and customer satisfaction. lower we mix This goods and our trended flex of has in long to service accelerate terms backlog, of the is sellers, before since overall tax payouts of right fees the right backlogs our With better can managing
automated shop. unhappy likely back they we're thredUP. Fourth, thredUP, with a new intercepting highest envision and we achieve a them customer most called customer journey returns on customer customers thrift when are The boldly satisfaction them enables levels data immediate to this shaping to their thrift offering resolutions with aims our retention guarantee. experience and that be vision easy, reduction And guarantee to using It's it, for us by drive platform. of the that on
our with been project credit. has feature for thrift to to a Keep-for-credit we're centered like called with keep would returns items, offering reshaping first Keep-for-credit, customers return exchange the experience around those shopping items Our low-priced in options guarantee who for
price and customer seen keep-to-credit of cost. positive approach, we've satisfaction don't on points return With a repurchase items, the impact as whose and cost fewer for justify the as well rates reprocessing returns
[thrift business. improve Early have margin [keep-for-credit,] our customers, been signals delight of effective accomplishing our goals. our Across to guarantee] is show overarching these and attention profile very in drive and these the goal strategies
experiments, over cleanout growth. So and execution creation through retain value for while supply ways are our new summarize, fees, believe better and sustainable economics and guarantee of We initiatives enterprise to unit result the that to acquire customers these we unlocking will business time. simultaneously to and of positioning bolstering our shaping our implementation continued thrift
continue It's me with the to business has in offering War of Remix. thredUP, grow resilient and active turn how provide inflation, impressed in became Remix that They been energy on and a Ukraine. making consign increasing Remix to Remix, to of high buyers European to consignment is since for the our also net Let progress nearly portion revenue year-over-year. QX business years resale our it's update we're over and costs and part was strong a high goal shift been the an their we're the quarter business. an launches QX with time. officially X and
remain profit gross that Remix improve by flow. to a free all, generate to All in secondhand strategic to about marks the This that billion which positioning to market long-term further margins, for start of Remix market Remix excited long-term expects contribute in the in we $XX a GlobalData we cash XXXX. grow Europe, gross expect to take share shift
lead Now and carried through more we brands the I'd and H&M, business to models RaaS, to launched look retain closed Resale recently brand out to Resale-as-a-Service and also end-to-end XX as like SoulCycle thrilled your ecosystem. RaaS, XXXX to more apparel as Resale is to TOMS programs seeing as turn brands known Eagle, enable momentum customers. across we're entering providers, retailers we're and adopt with global our circular business, the track the attention clients American of serving more into Notably, We for new ecosystem. strong Resale XXXX one
from exciting the reaching work thredUP retail and by destination hope roster swath of be client strategic to get We more container the to with country. Store, outside to exciting also It's for one. Kit this retailer across where Resale venture with shoppers recently fashion more stores, Out as to to and like our we further sustainable. able of industry partnerships the announced nontraditional RaaS of apparel, extend an looking the any a Container XX This be our will cements a with locations expand broader consumers impact Clean the a thredUP American partnership go-to
resale RaaS by of the high-margin reminder, sources our their our by profitability amplifies a enables and supply on sell-through marketplace customers adding brands offer experiences retailers recurring to advantage, return our thredUP's revenue. metrics leading As infrastructure, leveraging and long-term RaaS to increases expand world's and assets scalable
like an I'd adjusted on update Next, reaching our EBITDA provide of breakeven. goal to
only we QX The since reiterate free to this performance intention, made seeing what QX announced of confirms increases significant plan on importantly, we're breakeven quarter achieving we've QX in achieving We and flow each specifically and thereafter. in confidence cash and XXXX. confidence shortly breakeven progress EBITDA our our quarterly our basis want I to in a our achieve and in had milestone have in
flow us of emphasize to to grow I management more attention the invest year we played as more free We've future. growth to We the that playbook defense the a time. quarters With of in in year, mind, want to and our that this a believe the turned over team, we of come. past we improved customers look that see sharing offensive in dynamics to in front and to more forward our good cash faster to number ways in over delight opportunities have of create
not long-term dual progress impact of on mission, in pride the profitability, we by steadfast we We purpose While business balancing in to we align a the listing reaffirm exchange take our commitment on strong and the that our thredUP towards of planet. brand and evident Today, ESG the encompass making a is purpose also strategy. that sense the industry remain or profit has LTSE. we're recognize in do our company is profits stock entirety which fashion in alone
designed conscience. LTSE environmental social ours align a to long-term businesses who value support with investors The and like creation governance and good with was
the Given impact. generational growth we thredUP lie an an secondhand and are the will We the forefront. intersection to excited believe purpose next of be and make enterprises phase we products at the at opportunity of outsized for the see market, to of
our run to marketplace turn has mix a results business strength highlight But everything QX flex fact is the So despite out let wrap from marketplace choppy us to I me the the particular, we monetization. customer of our close up. allowed there. supply a and In I the and restating our the that to over to strength want it model. mix flexibility of want environment before precisely It to by that Sean, to I react
for we applaud aren't commitment to immensely months, year incredible grace. Second, to challenge their I'm continue opportunity product balance for past scrutiny long-term this of I X meeting progress. as a to we value to grit are this the from and ago, the earnings I near-term done we thredUP commitment. delivering in our with yet, proud for every team on take said whole the And work want believe I demand while will with our And our investing creation. over
of to I invent profit a for next, future want a and the am we will you of creativity, high forward sustainable to pursuit adaptability to each for relentless your purpose. fashion. be give more five looking your what in offshore for I the resilience,
a I'm up that, ahead. turn to an exciting more fired be in with about right our It's over results And time now, to I our financial through and detail. the go road it to Sean and thredUP will guidance
