ThredUp (NASDAQ:TDUP) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• ThredUp beat quarterly expectations: It reported a loss of $0.04 per share, $0.01 better than forecast, and revenue of $88.23 million versus the $88.05 million consensus estimate.
• The company remained unprofitable, with a negative net margin of 6.65% and negative return on equity of 37.30%. Shares rose $0.19 to $2.19 on Wednesday.
• Analysts’ average rating was Moderate Buy, with an average price target of $6.55. Two executives sold shares to cover tax withholding on vested equity awards.

ThredUp (NASDAQ:TDUP - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported ($0.04) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.01, FiscalAI reports. ThredUp had a negative net margin of 6.65% and a negative return on equity of 37.30%. The business had revenue of $88.23 million during the quarter, compared to the consensus estimate of $88.05 million.

ThredUp Stock Performance

Shares of TDUP stock traded up $0.19 on Wednesday, hitting $2.19. The company had a trading volume of 2,913,969 shares, compared to its average volume of 2,266,238. The firm has a market cap of $287.61 million, a P/E ratio of -12.88 and a beta of 2.18. The company has a 50-day moving average price of $2.37 and a 200-day moving average price of $4.13. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.29. ThredUp has a twelve month low of $1.91 and a twelve month high of $8.76.

Insider Transactions at ThredUp

In related news, COO Christopher Homer sold 60,230 shares of ThredUp stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $2.58, for a total transaction of $155,393.40. Following the completion of the transaction, the chief operating officer directly owned 1,363,358 shares in the company, valued at approximately $3,517,463.64. This trade represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Sean Sobers sold 44,559 shares of the business's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $2.58, for a total value of $114,962.22. Following the completion of the transaction, the chief financial officer directly owned 613,503 shares of the company's stock, valued at $1,582,837.74. The trade was a 6.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 23.10% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

TDUP has been the subject of a number of research analyst reports. Telsey Advisory Group reduced their target price on ThredUp from $7.00 to $6.00 and set an "outperform" rating for the company in a research note on Thursday, August 6th. TD Cowen assumed coverage on ThredUp in a research note on Friday, October 30th. They set a "strong-buy" rating on the stock. Weiss Ratings upgraded ThredUp from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday. Finally, Roth Capital reissued a "buy" rating and issued a $6.50 price objective on shares of ThredUp in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $6.55.

About ThredUp

ThredUp Inc operates an online resale platform for secondhand apparel, shoes and accessories. Through its marketplace, consumers can shop for pre-owned women's and children's clothing and related products, while individuals can send in unwanted items for resale through the company's “Clean Out” service.

ThredUp manages much of the resale process, including receiving, inspecting, photographing, pricing, listing and fulfilling merchandise. The company also provides resale-as-a-service solutions that enable brands and retailers to offer or support secondhand programs, helping them participate in the growing circular fashion market.

Founded in 2009, ThredUp initially focused on children's clothing before expanding into women's apparel and broader fashion categories.

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