TDUP - Earnings call transcript Q4 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Lauren Frasch

Good afternoon, and thank you for joining us on today's conference call to discuss ThredUp's Fourth Quarter and Full Year 2023 financial results. With me are James Reinhart, ThredUp CEO and Co-Founder; and Sean Sobers, CFO. We posted our press release and supplemental financial information on our Investor Relations website at ir.ThredUp.com. This call is being webcast on our IR website, and a replay of this call will be available shortly.

Before we begin, I'd like to remind you that we will make forward-looking statements during the course of this call, including, but not limited to, statements regarding our earnings guidance for the first fiscal quarter and full year of 2024, future financial performance, including our goal of reaching adjusted EBITDA breakeven on a consolidated annual basis, our expectations for capital expenditures and other developments in our business in the US and Europe; market demand, growth prospects, business strategies and plans and our ability to cost effectively attract new buyers. Words such as anticipate, believe, estimate and expect as well as similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, involve known and unknown risks and uncertainties, including our ability to effectively deploy new and evolving technologies, such as artificial intelligence and machine learning in our offerings and the effects of inflation, increased interest rates, changing consumer habits, climate change and general global economic uncertainty.

differ expressed any forward-looking or could performance of statements. results results or implied actual materially projections from future Our by such

other of IR filings, earnings You risks, release and our information more posted press results factors on information and our operating SEC can no statements new affect Any as of today, that our about in as that on based assumptions statements events. future we supplemental forward-looking or could these we information make obligation website. find uncertainties undertake are a update on result this these call to and

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

non-GAAP and posted supplemental in reconciliations regarding find comparable of disclosures measures information release You can website. our additional press IR measures, including earnings our these on GAAP

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

James Reinhart

Thank Co-Founder everyone. I'm XXXX afternoon, Good and fiscal quarter earnings ThredUp. James joining year call. CEO and ThredUp's fourth XXXX of you Reinhart, for

to head pleased fiscal fourth into new financial business ThredUp's from year, a quarter. and we're our we highlights results As key share

AI I'm and our quarter reflect We'll to to excited for on Chief question-and-answer that Financial XXXX, results, we are financial addition close also XXXX. will our call talk the a our advancements detail. particularly financials how to will it positioned technology. I Sobers, year and drive an benefit fourth fiscal of our session. and outlook across over provide we expect leveraging in XXXX through in fiscal in uniquely will more then hand today's first to year out business He this expansion we the In we XXXX. progress to with XXXX key from quarter margin XXXX made will Officer, as Sean also in provide the as how initiatives well we on update strategic and we're believe growth share

Let financial XXXX We QX with leverage. growth closed of quarter strong demonstrating me performance, top line our line out start bottom results. healthy with another and

Our at million, gross had XXXX. representing of and same a of onetime of in year-over-year in a million basis compared our this record year. million, X.X This to Orders revenue But early margins. at our reached $X.X million QX, write-off XX%. in exceeded our to margins increase. In up guidance QX, midpoint XX%, the had increase acquired range. unproductive in high note, buyers a reached quarter impact of active high the action of the $XX.X aged includes X% to XX% end a decision last consolidated of We we year-over-year a that XXX inventory came Europe gross do our $X.X point

guidance of exceeded gross EBITDA QX, representing growth profit onetime impact, our at also gross which this write-off margin $X.X our negative XX%. The Excluding or consolidated minus our in in million totaled X.X%. adjusted Europe onetime XX%, impacted

progress positive of highly clear active growth Despite indicates we and margins full of XXX discretionary compounded more business breakeven about inventory I'm report while in talk year growth adjusted write-off, earnings bit. Sean XXXX particularly back, this sight $XXX,XXX. EBITDA for basis adjusted breakeven US adjusted improvement a over a to net of significant despite that scale model. was year proud our well buyer that the expanded a year our consolidated gross how which the towards posted of second represents year resell we basis business delivered of to US we're extremely points. line an elevated expanding XXXX, We're by in and will last point a opportunity business. margin to caused growth while QX, managed consecutive Excluding with made EBITDA XX%, believe competitive generating just loss and the X%, EBITDA for inflation EBITDA adjusted XXXX onetime of This continues XXX our has a deliver proud toward in business pleased and environment demonstrated very challenging interest a revenue quarter. Stepping XX%, strong rates, the

demonstrated and becoming Our accelerated to its marketplace European resale transformation a business in strong Europe. growth leading

from Finally, few we until move XXXX. the operations expect phases network EBITDA. line years, with our in of cash build-out maintenance adjusted last we over finished limited and the expect CapEx needs next minimal With least distribution CapEx our our at flows to

to Now turn ahead. year the let's

in our is We Let bottom our me believe the in unit which there makes delivered are and demonstrated line our adjusted news strength that QX economics up with start The already of good XX% the having basis. in discipline, we've QX US EBITDA profitability both US, we XXXX. positive consolidated of business. the on a of overall and

to business to gross adjusted We we continue continue generate expect that expand EBITDA automate our will leverage as and US the expenses. grow, margins this year, and positive

above Europe expect the normalized And large be we proven gross EBITDA profit to the revenue indicator in adjusted do we on for We've task profit in its business, nearly Rule track, how To confident is to progress in adjusted continue of Our the Europe XXXX doubled I'm the the market. in that EBITDA year towards best when of evaluate a playbook our European you this to business give believe the growth that that in the of acquisition in sense our rate. positive well US. opportunity ahead. since and next to Europe. XX EU's XX% consignment are right we and we gross with the tackling We from transition. growth, apply a is

see continued core X each improvement Europe driven by initiatives. to in expect quarter We

you followed since these us familiar IPO. of if may Some sound our

consignment. in to be we First, revenue the This XXXX. approximately and in are transition to expect accelerating we Europe XX% mid-'XX began consignment process

will yield previous to levers margin provide and shared flex the it with calls, that short-term the business a superior but and to us growth I've change with we due presents margins to a As on more this believe investments. headwind treatment, accounting profile revenue

segmenting And data of to types desirable to faster listed quickly fastest we are items recently sell, US to buyers EU our history adjusted inventory, items work margin from to at some This apply we the XXXX. And migrating year-to-date model gross margins. is better identify of yields dynamic expands basis tactics I are and XXXX. the US profit. Europe's maximize pricing assortment our maximize starting with we more inventory we more selling sell-throughs rates. which to goal third, on aged and better similar an leveraging Second, we any is which marketplace given in as inventory a an margins as has Europe US off, are and to in acceptance items time. in achieve sell-through the we adjusted By already gross item that's the improve continue what to EBITDA the overall gross seeing a positive system of our we're in marketplace our Using system a profile. To quarters to strategies prices introducing to guide, in sculpting. sell posted EBITDA. as already The summarize, to science, US which minimize data-driven positive determine pay average are in and the we expect implemented consolidated annual improve X consecutive Europe market, that The

an to are business share of Next, I'd in that growth drive overview XXXX. to strategic designed like initiatives

deploying with me the to Let and start reduce network. the in artificial experience cost intelligence ways customer we're distribution improve our

on secondhand and First, item to it makes an ThredUp. AI-powered easy search we find intuitive recently debuted any experience that

popular it Academy can a use, descriptive what whether buyers, vast secondhand or that marketplace as like stress it's Our motion seek, buyers of cocktail X is like personal to biggest selection shoppers it with search language or by Award of our million has ThredUp shop of style or that challenges a magic phrase inspirations they curate up It's to the enabling help satin time. This dress but find but new inventory experience trend items unique evokes by in to any combining want. not assets, a secondhand creates style, item a it. to also only effortlessly, shopping enhances brunch fun they one like by significantly for at our searching functionality Sunday sense also look visual given a exactly for

delivering advice conversion higher can't pages. good higher Sometimes technology how just indicators a the and items product click-through search believe Early results. show precession, at from relevant is you of in searches increase individual for an

love we have to create give Second, text begun description. a will AI just customers that using ability technology soon the they outputs leverage to Generative

beautiful millions touch is Generative of top, style The the style For soon. I in that the example, prompts on be regularly an year of paired can an imagination [indiscernible] an on can is ahead be to of motion with to foot, that from outfit composed to and a trip emphasize throughout bringing language leap side secondhand trends. a or experience a using to influencers us only outfits outfit restricted an happen might We and list inspiration We journeys want product shopping XX% of for runway wear AI consumer look shoppable Hawaii, a forward a while is more crop to a the this tool, for pay created magazines enough to delivering maxi through these natural sharing that white forward upcoming the new. popular slowly fancy floral AI ThredUp. points endless, when generated to embellish We'll skirt are to looking tool leading a our do by over easily want with off enormous up buyers. or product highly that unique create storytelling sandals. now friend

limitation technology breadth to on in experience, compared benefit the having peer-to-peer like our believe and photography of we ThredUp our marketplace Generative to product core other the or apparel AI offering marketplaces. not Given manage model disproportionately of

implementing efficiency operations our the Now, expansion. to AI customer database, more characteristics This more photography, potential we garment item experience Once our on to to opportunities and having you photography. Eventually, listings, visual initiatives continuous accuracy can Generative only near-term and our AI innovation for better not the but to to us role where These the content AI-driven and throughput new improve has advanced processing standards improve efficiency us manual merchandising our network cat items. We're and from productivity. AI for wide and enhance marketplace. the journey has its and replaces and a margin and to way model shopping AI add not without let see AI organization me in detailed also it. resulting range also center This to set a accuracy improved across of streamlines employ extract use of capability enabled and engaging the for of enriches supplement paving product distribution photographed, imagine are the only have operations. the operational turn image. of been We technologies personalization in and inventory but expensive search in

what of available, over software could now engineering and own much we years we become few cheaper it's our achieve next the through development So believe, imagined. than readily and faster has we industrial and

across seeing number a of improvements AI, Beyond continued areas. we're

delivery to every than order progress. continue our in date. aim example, less XXX% in do which For this to thrift increased doorstep promise within the purchase and to to deliver days make or have more delivered promise with right shipping by frame Orders quarter and the time X year-over-year initiatives, customer

to with in like compared Our way focus reduce return all a as show on encourage quarter last fun also continued and orders customers and in signals QX promotions, points basis retention customer today. we our and attractive rewards, XXX by more loop rewards. year. We've renewed easy same shop in expect the a broad-based our believe we we double-digit loyalty a rewards rate as will program, efforts put benefits, loyalty best to decreased see do a customers increase creating to Early invest with to

and to a we retailers Service we as brands XX-plus fastest that listings continues nationwide. now the to of and resale resell brand shops Resell RaaS, cleanout brand that XX sold customers. their more XX% of online experiences to the way with Our and provide power estimate customers, X and business, XXX co-branded you kit total a than easiest threat branded can power scalable online, up deliver customizable pick are than our resale or largest in Across more stores

supply and on and reminder, our our ThredUp expand amplifies increases drives As awareness assets, our a metrics. RaaS profitability marketplace by long-term sell-through leveraging return brand infrastructure, advantage,

remind to As steadfast I'd often these do you to moment profit. I purpose balancing calls, like on and a commitment ThredUp of take to

fuel keeping XXX of remains close more Our to in of than to in secondhand which while that recognize of and our approach ThredUp of brand-line, the Housekeeping's a recently success million business our were mission inextricably Awards, Good have At and profits our environmental, our inspiring us processed now customers. sustainability. and we in which named strategy, strategy. every governance a people, helps out of world is guides decision millions purpose think founding, the and our of and we've the center to pieces embraced first incredible linked. We circulation XXXX Innovation products unique social are purpose and planned clothing, landfills, services Since cornerstone value delivering Sustainable and winner make

we I'm As financial make I our head our globally over more it excited people, another our will to communities the now through path results we'll the turn go and forward guidance and detail. into planet. With to year, our about in on impact and that, Sean

Sean Sobers

guidance the of with and will non-GAAP discuss quarter our an results first follow throughout I with for year. full up begin I'll my Thanks, James. remarks. results the and overview

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

We of QX results. are very our proud

quarter For grew an while by revenue XX% fourth XXXX, year-over-year, Consignment XX%. shrank product revenue the year-over-year. totaled of of revenue XX% $XX.X increase million,

RaaS in growth product and to of the revenue, outsized growth by transition throughout the to consignment our in our European with model. We consignment business in driven and consignment expect see revenue clients pleased are would We to XXXX. declines continue the

treatment. businesses While revenue to over these the the we meet consignment gross transition to be of simply it a expect due tailwind to time, accounting growth margins to should

As revenue. a reduced net reminder, consignment payoffs

part throughout payouts business XXXX. Owned of revenue consignment gross and COGS be our larger will reduced are in an increasingly expect margin. We

a smaller We of expect be revenue business. part to owned our

$X.X $X.X our to and record consecutive profit buyers active year-over-year report We're second X% of evaluate As XX% our growth to gross look a we growth to of quarter, a business. year-over-year. active measure the achieved result, that relevant most up we the as also million, to the buyer reaching growth for happy accelerated to Orders underlying number accelerated rate million.

XXXX, For gross million to strategic QX, write-off gross we quarter in the decision take resale a margin. point XXX of the Europe, our fourth basis playbook as made XX.X%, inventory $X.X onetime was margin reported to we in implement impact a

is for success enable EU coming easily believe improved consignment. accelerating up customer better our that more inventory that this allowing expect clearing supporting an this inventory, We profile fresh will our and margin a We experience, access shoppers year. while to to action the setting shift business in

XX.X%, impact, Excluding last XXX grew our gross year, ahead margin in gross basis points while of at this came profit our by XX%.

gross our Our and pricing, we by returns, and of improvements continued marketplace, US how in expectations, consolidated results driven our XX%. exceeded fees. gross margins This payouts growth promotions, of was of optimize profit expansion including year-over-year result XX.X% a

of $X.X quarter million loss For Adjusted X.X% of million loss $XX.X the fourth negative same a the loss revenue for quarter was compared of XXXX. $XX.X of net to quarter net in the last XXXX, year. fourth or was a EBITDA million

work report our investments we X% this To XX% in just our on powerful our as reduced XXX by than QX just was revenue write-off, point of a EBITDA our manage approximate increase we higher are leverage We revenue. to inventory drove loss and $XXX,XXX. representing point, expenses versus operating basis increase model. that last marketplace expenses, more proud leverage year, half EBITDA an improvement, the adjusted on Excluding adjusted illustrating year-over-year a tightly hard in loss

cash the in and to $XX.X in quarter used the the Turning million balance marketable with million began ended $XX.X million. sheet. QX. cash quarter with fourth $XX.X We and We in securities

largely our timing in just $X.X payable. accounts of levels While to spend within the maintenance usage we step-up our cash CapEx million, was continue seasonal due to of

We reach loss annual in of the levels scale usage margin we cash, last have adjusted Europe's In will over in as only we significantly are in in positive reminder, achieved every QX in XXXX, to used breakeven we on we consolidated the and maintenance XXXX. In quarter, basis versus enormous business quarterly profile. spend we quarters. adjusted flow continue and US a X CapEx. year, cash EBITDA improve consolidated to illustrating last of XXXX, XXXX, made expect a US progress we've our reduced $XX.X As million the EBITDA decline our believe proud to

in to keep we XXXX, As mind look please following. the

pressure improve customer a are the described. to of to First, compounded feel inflation continues experience, though we implementing number James interest and rates, the of as our tactics higher customer

strategic our towards Europe, roll initiatives half. US As both the improve out and to revenue in sequentially our the second throughout we weighted expect the year,

revenue half. annual second we that in a reminder, buyers whose to tend the as dollars a yield in percentage more first of spend half also the multiple As revenue of the to consider purchases year marketing drive

driven second the time. due primarily to margin transition Though in gross to consignment. mute be improvement first half expect the Europe in as progresses. would XX% will gross expect see to XXXX, revenue increase margins that and and be over We from will we will approximately drive consolidated and Second, improvement gross consignment half the the profit our transition our to work treatment, the accounting the consignment, by revenues margin better In in revenue came of ongoing US percentage consignment growth XX% transition than XXXX. to in

we to to the in capital or them. With XX.X% securities markets before that quarter, margin going range reiterate of do and for in reach us until to million expect we all positive, of until mind, below million debt CapEx of before turn we our million, Third, gross our in that business confidence range of existing the first to maintenance with $X continue down of anticipate our of flow we profit X% of levels the represents can cash million which revenue existing cash that $XX the loss cash free X% average draw do $XX flow weighted and million want dollar At expect shares. $XX per positive. high approximately we expect turn year-over-year, quarter of reaching to EBITDA XXX to revenue a XX.X% adjusted We to outstanding basic revenue. XXXX, the we midpoint, not level marketable provides cash approximately growth of X% of gross of shares the this nor

the full XXX of EBITDA gross $XXX questions. XX% in adjusted closing, Positive progress extremely range margin revenue. are as For a EBITDA represents weighted ready adjusted approximately to At gross XXXX, the proud X.X% are revenue in basic of have XX.X% profitability the XX.X% the basis. James of the delivering to million we million of revenue year of we to approximately line. for range and the I million; of consolidated positive Operator, a on and goals achieved shares expect growth towards growth your average in shares. In this $XXX forward and dollar we of of midpoint, growth outstanding open profit approximately now year-over-year. of to in please we steady XXXX, continued leverage and made now look X.X% and XXXX

Operator

[Operator Boruchow Fargo. Instructions] from Ike from Your question first Wells is

Irwin Boruchow

I maybe one guess for Sean. X James, me, for one for

On active of have of value asset James, reinflect kind buyer to the growth, guys see. good growth, you so

So expect a from place? the you can be Is and or good on QX bit it just little a taking expect of just good more percent second as you big there? the Sean just mix exactly is detail we what guys guide, of just impact sign get as back bit of to what revenue? in through James. more consignment you build us then the But in shape you margins way be kind year what having based a on specific kind it's for QX maybe that transition is kind the to on you guys on just, QX follow-up And give you can a Can a of model. the little of done have fiscal

James Reinhart

customer the growth. first starting pay on last think of has we over one, thought and strategy real of quarters, customer, acquisition Yes, into XXXX slightly continue that refocus premium for the reoriented see to to Sure. -- inventory who you're focus mix really sort had active loyalty And I just driven we a couple on the on more the to we a customer buyer focus the right driven think that's the strategy retention and on expect off, I and upside. that to we the customer

that a we that how through so to consignment feel and talk XXXX. the really Sean return as little bit growth very about And move we about I'll piece. good compound

Sean Sobers

about be Yes, that grow on and consignment think of the for about year. revenue, year as percentage bit mid-XXs total to a throughout QX, I the will full XX% a for

Operator

Company. is Your next from question & Anna Needham Andreeva from

Anna Andreeva

Two quick ones us. from

XX%, you remember in expected just what So also, side revenue sluggishness can consignment? product the secondly, talked what about you're the to you Europe? quarter shift that the about unfolded. quarter, down things, on And given talk the for guys demand you I had the of seeing with as underlying was

if curious Just you're got anything quarter-to-date? if seeing differently trend Thanks, the and guys. better

Sean Sobers

product a we is From expected. we revenue what what perspective, and Yes. forecasted that

or on So, us nothing new that side. surprising for

James Reinhart

Yes.

seen I that's think areas the the On that the I results. doing demand the so the of curve. Europe on mix consignment we've demand inflation helping. mix, Certainly, that side, to mean has been US, product think in and we're I in work some is Europe in year-to-date relative definitely elevated affected we serve better But the

selection are is And that I the and think so we customers seeing we have that. better, in think Europe

guidance the curve in feel is the the about demand good for we year Europe and pretty where So, that. reflects

Operator

from next Nikic Tom Your is Wedbush. from question

Tom Nikic

of in of about changes of made of to quality higher any in like of again? higher I to wanted see so But take way bringing that don't avoid to situation to mix Europe guess that's just you kind in speaking. do. in of kind write-off and obviously, ensure Europe. any of have go this generally the like like quality trying I ask that kind kind you in products, something guess, a besides that product the changes sort inventory that are you you to the kind shift you'd inventory consignment I you're

Sean Sobers

in looks wrote of year changed. the that had consignment. we Hi down foundations what right? like, Yes, we was lot I product were But I Tom, laying a yes, the over improvements for last stuff market we mean ago, been buy to has through where product mix the making well that a negotiations that all to year, think And

Our the to has approach changed. business

And a best so, experience. that, customer we the the was year some found of in basis. And it browsing best to a old serve stuff about ultimately, product that crowding on frankly, the way was what's the go-forward over out,

so for hey, us, good And not transition. speed that sort on us of -- to any like having it in get let's done. ahead experience was, of full whether very the that about legacy back, feel We we're And have products place strategy the move consignment holding around. of just that's and browsing kind to in even the it our in search facility, or

the so, thing something was again, thought we move anticipate we we but not doing forward. the customer it as And it's for definitely best

Tom Nikic

wanted ask more. Understood. about I And just ask I to if could one marketing.

It and line, in obviously going the in I level of marketing reinvestment guess, kind guess, performance really to about, kind was of we how So, top its et was marketing kind since QX. the Europe, drive forward of lowest helping down think cetera. I their do grab XXXX. in

Sean Sobers

I I the QX. think, mean, Yes. in marketing lower always is Tom,

that's playbook. our And so, typically

it even think a in be holiday QX, I season. we competitive this particular, expected to

squeezed dollars. discretionary We consumers expect around spend how to to those the feel

it would where And I spend I we're to think that's what thought even some it was more we in push into thought so QX productive. QX, of And be we think smarter that seeing.

marketing same we think IPO, towards about But XXXX. but to on slowly expectation at the the drive to -- our I is it path and out set through moving time, seasonal at long-term pattern continue line that sort our so, And targets think spend. our that of and we're top we glide as fits

Tom Nikic

luck best this for for and much my questions, very Thanks Great. taking of year.

Sean Sobers

Thanks.

James Reinhart

Thanks.

Operator

Edward Yruma Sandler. Your question Piper is from next from

Edward Yruma

first, guys I some starting that of And kind the you about gaps has very got it's think Are in been of constructive for the complained you have you. And the better me. situation price. thus I quarter. see some to then your little Obviously, the kind industry what you far? that of kind price in bit uptake what looks cost Gen normalized? for second, a some show? better guess around of first and like inventory allowing Curious comments AI. of Two fourth results structure Thank to know, do inventory

James Reinhart

Yes. definitely mean, the me Hey set the Yes. our second levels seeing competitive hit first. just sort we're of one across Ed, let I inventory normalize.

to I discretionary that think perform that, get XXXX. right? that well would into as is I sets only up proposition is, say so to still have a mentioned the you There really we the actually talked on as value counterpoint dollar. And about, our squeeze Sean

so maybe combined Threat think very But eases I the leaner for that our for competitive with year, inventories, think certainly product. And positioned better well I as environment a throughout that. is we see

to On remarks, the our Gen bullish, AI ability its improve stuff, remain disproportionately others. similar business to very prepared my I on really compared to

the of technology rely Given be the dynamic algorithms. inferior of of would a lot the work to done long tail really on of by do we product, the constantly changing nature product, nature of otherwise sort that our

change that working think that very a the I'm consumers I on think the shop bullish things on number So delight to front on how year really materialize resale. will end. will customer to And this we're I start its ability of

ultimately can for how can function like. technology And months, what in I'm of been XX about think we've margin profile do. think part be. look in employing the what operations real our can in operations the the excited DCs so AI has And last you've be would last productive that. And But ways implications very And side then the I seen for I on years. just is, change in step a the the number our it

I think we're positioned So it. to you can probably it. from quite uniquely tell on from I'm bullish my benefit voice, And

Operator

Steiger Goldman Sachs. Your from next from question is Alexandra

Alexandra Kasper Steiger

of number year. a a have we So out very companies, this weak eCommerce, consumer January calling

month-over-month comment bit recovery And just like your your just year in seeing the your question a contribution little for Can give a follow-up you you in contribution business? customer the environment? or maybe that on what leverage dynamics on the potential you I'm you. wondering, initiatives confidence you're the growth talk seeing your base consumer guidance, AI. can Thank and assumption versus QX like one So you would in expect are among the this spending broader you business about around then,

James Reinhart

we drive an way inflection anything Alexandra, do expecting some think in of Hey outsized year I Yes, Yes. on in later sort the the environment. AI we big in don't are to expect results consumer the nor

our best just that to is this and week estimates of new the guidance of I we've perform in business reflects how last search work going out our year. is the some -- say think the finally rolled the will I or AI X.

entire the experience the And benefits to it. of so we're starting using customer see only

think And better update so we'll numbers. as get information, we sort of those I

QX and for think As tends mean Giving. noticeably other the think have receive said, Holiday what weaker QX QX our I New I Gift business expected. Year's, than we Christmas, was from hangover I companies Period, don't to

see we wouldn't an but January. of think And I as sort that consumer draconian. been it's characterize I I So it don't in think normally some exceptional of darker environment,

think we the So to -- expect consumer this but challenged I be year.

environment and profit one And feel while about an growth positive we gross active this so to that's growth buyer in EBITDA. our we like I think good where drive our

Operator

Telsey Your Instructions] next [Operator from Group. question is Dana Telsey from

Dana Telsey

thinking changed also, promotional behavior you're cohort buyer then -- XXXX, environment or fourth spending promotional the or environment the and how thinking thinking there? about competitive about you and you're in as And you're by seeing lately? what the you are As demographics the has buyer about as environment, quarter

James Reinhart

very mean buyer I XXXX. to we strong. expect in strong per continue revenue were them on the be continue all-time buyer highs see Dana, Hey, mean we And to to spend, metrics. they I

So drive ability think per wallet I revenue buyer share growth. of our to

about. -- be think good I to we it very continues feel

to don't dealing that effects in the given place the as any of side, I with like may headed really sector higher and it's inflation from immune in XXXbps teens a you're underlying more do of I for again, you I promotional I well think consumer dealing still in earlier think we're growth borrowing said discretionary everyone. And environment. a positive there's food live I a of XXXX we about the consumer world sort headwind great of of a good hitting think why still interest as the consumer grow better, part as in inflation, environment sort the Ed, expansion, as to who's costs think or I I on in of business has our that the kind be far despite environment, to with rates, margin of able as consumer compounded the And tailwind a wealthier that's environment mean, think the environment it budget bit think promotional where feel that's I a rate being XXXX, but have to like with the with consumer the feels in nuance gotten whether work. is the

And net it, other so I think of probably, each cancel outlook. that's

Dana Telsey

that to in Europe? consignment is be it away Got taking what be originally it. in slower the And make would expected? that shift differences accelerate Any have or insights noticing or then than Europe, you're or you faster may

James Reinhart

scaled a has in some I think consumer, that for been the looking for I we countries operate mean, seller the the like I think, this convenient time. solution Europe, in that

so more really browsing the customer consumers think And and sell-through are reception orders. been think business But products has year. earlier product, number said, I the their have rates differentiated business of are strong, liking owned a the in that we to far, that as But is of of so been fresh and and transformation that it how we items shoppers the in had they're I positive. buying the

Operator

closing no the remarks. to will There are questions now the call James further hand I this for at back time. Reinhart

James Reinhart

ahead, for you, of our that same, the for the the of expect we margins. head earnings more joining we the XXXX thank for proud us we Very in And XXXX. drive Well, expand did to as year guidance year. into everyone, growth work and about and incredibly excited call

next So time. we'll you see Thanks.

Operator

you. Ladies Thank and now you conference gentlemen, all has Thank the for joining. ended.

You may all disconnect.

ThredUp (TDUP) 4 Mar 242023 Q4 Earnings call transcript