Yahoo Lifestyle ThredUp Dual Lists on Long-term Stock Exchange Ahead of Earnings
Online resale platform ThredUp announced Tuesday its dual listing on the Long-Term Stock Exchange (LTSE), a subsidiary of LTSE Group, ahead of its first-quarter earnings. Dual listings allow companies to be listed on multiple stock exchanges.
ThredUp is the first consumer company to list on the LTSE, and the company said it wanted to pursue a higher commitment to ESG factors, or reframing financial growth with sustainability in mind.
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A U.S. national securities exchange with a long-term mission, LTSE is owned by LTSE Group Inc., with investors like The Space Between, Founders Fund, Collaborative Fund, Andreessen Horowitz, Obvious Ventures and Initialized. The exchange requires listed companies to outline and publish policies on their websites detailing stakeholder insight into how the company builds its business for the long term.
“It is time for decisive action,” James Reinhart, founder and chief executive officer of ThredUp, said in a press statement. “Companies have punted too many promises to their stakeholders on the environment, social causes and who they are building for. By dual listing on LTSE, we are codifying the critical relationship between ThredUp and our long-term stakeholders and ensuring our success is their success.”
The news preceded the company’s first-quarter earnings, where ThredUp exceeded guidance and reported revenue of $75.9 million for the first quarter ending March 31, or a 4 percent year-over-year increase (up from $72.6 million in 2022).
ThredUp’s net loss narrowed slightly, to $19.8 million, compared to $20.7 million for the first quarter of 2022.
ThredUp’s plan is to reach an adjusted earnings before interest, taxes, depreciation and amortization loss breakeven in Q4 2023. To do so, the company looks to lower technology costs, evolve its customer acquisition, improve its clean-out service and lean into its “thrift guarantee,” or reshaped returns that favor credits for low-cost items, Reinhart said during an earnings call Tuesday. Its European business Remix, too, will play a key role in growth.
Though budget shoppers are pulling back on discretionary purchases in the first quarter, upscale shoppers are, however, increasing their spend as Reinhart said. ThredUp hopes to adjust its strategy accordingly, as he noted in the call. He anticipates budget shopper momentum will show “sequential improvement” each month in 2023.
For the full fiscal year ending Dec. 31, the company reported total revenues of $288.4 million, an increase of 15 percent year-over-year with an adjusted EBITDA loss of $43.4 million (or 15 percent) in 2022.
For the second quarter 2023, ThredUp expects revenue in the range of $80 million to $82 million and an adjusted EBITDA loss margin in the range of 9.5 percent to 7.5 percent. For 2023, the company expects revenue in the range of $320 million to $330 million and EBITDA loss in the range of 7.5 percent to 5.5 percent.
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