A big jump in revenue and customer engagement didn’t help ThredUp’s bottom line in the first quarter.
The online resale platform posted mixed results, with sales above expectations but losses wider than Wall Street estimated.
ThredUp lost $20.7 million, or $0.21 per share, in the quarter ended March 31, compared with a loss of $16.2 million, or $0.86 ca share, in the year-ago period. Analysts had expected a loss of $0.16 a share.
Revenue rose 31% to $72.7 million, topping estimates of $71 million. FactSet consensus called for a loss of 16 cents a share on sales of $71 million.
ThredUp said it had 1.7 million active buyers in the quarter, representing growth of 33% year-over-year. Orders, which totaled 1.6 million, were up 45%.
"We kicked off 2022 with another quarter of strong financial performance, demonstrating the ongoing competitive advantages we've developed in our supply chain," stated CEO and co-founder James Reinhart. "We're thrilled about the progress we're making in the European market as well as the growing roster of brands and retailers we're supporting through our RaaS offering. By continuing to invest in our global infrastructure, we're confident that we're strengthening our position in the growing resale market and making progress towards building a generation-defining company.”
[Read More: Pacsun launches resale program with ThredUp]
ThredUp’s infrastructure investments include four new facilities coming online across the business in 2022, including a flagship distribution center in Dallas, scheduled to open this summer. Upon completion, the processing center will bring thredUP’s total network-wide capacity to 16.5 million items, a 150% increase from its current capacity.
In addition, the company opened two new processing centers, in Grapevine, Texas, and Lebanon, Tenn., in January. The centers focus exclusively on processing and serve as feeders to larger facilities in Dallas and Atlanta.
International investment includes a new larger processing facility in Sofia, Bulgaria to grow ThredUp’s European opportunity.