On this page of StockholderLetter.com we present the 4/5/2024 shareholder letter from ThredUp Inc. — ticker symbol TDUP. Reading current and past TDUP letters to shareholders can bring important insights into the investment thesis.

 •  4/5/2024 Letter Continued (Full PDF)
 •  4/7/2023 TDUP Stockholder Letter
 •  4/7/2025 TDUP Stockholder Letter
 •  4/7/2026 TDUP Stockholder Letter
 •  More "Apparel Stores" Category Stockholder Letters
 •  TDUP Benford's Law Stock Score = 53

TDUP 4/5/2024 Shareholder/Stockholder Letter Transcript:

Inspiring the world to think secondhand first.
To our stockholders:
In 2023, we set ambitious goals. These goals were driven by the belief that despite the
economic volatility experienced in 2022, there were ample opportunities for
aggressive growth. While our performance throughout the year greatly validates this
optimism (active buyer growth of 9%, net revenue growth of 12%, and a gross margin
growth of 11%), we also met a few bumps in the road along the way (challenges in
gross margin and contribution margin for our Europe business that led us to not quite
break even as a company).
Our anticipation of the macroeconomic environment played a critical role in our
strategic planning for 2023. We expected retailer discounting to subside, and retail
prices to stabilize at higher levels, presenting an opportunity for us to showcase the
value of secondhand products. Additionally, we anticipated consumer behavior to lean
towards value shopping due to a combination of higher borrowing costs and a mild
recession, a prediction that largely materialized.
Internally, our mantra of focusing on micro-level changes while navigating macro
challenges proved pivotal. We introduced strategic adjustments to our business
operations, such as charging for bags and refining our supply selection, which not only
improved our operational efficiency but also significantly enhanced our marketplace's
value proposition.
ThredUp   s Strategy
If you   re a long-time shareholder, you may recall the ThredUp    Do Good    flywheel first
shared in 2021. This hand drawn sketch illustrated the 3 axes the company operated
on: supply, demand, and platform as well as how they each helped to drive our

competitive advantage and to create the conditions for ThredUp   s long-term growth.
At the end of 2023, we built upon this foundational flywheel to refine ThredUp's
strategy for the future. In doing so, we took a deep dive into understanding our unique
value proposition, who our core customers are, and the distinct needs they have. This
introspective process has allowed us to recalibrate our approach, ensuring that every
facet of our operation aligns with the specific jobs our customers "hire" ThredUp to
accomplish. Our revamped strategy is built on a profound understanding of our
customers and the unique needs and expectations they have for our marketplace,
helping enable them to think secondhand first.
Our strategic adjustments are designed to enhance ThredUp's value chain, making our
operations more tailored to our core customers' jobs to be done. We're honing in on
specific areas such as improving our sculpting and pricing algorithms to better match
the brands and prices our customers desire, refining our merchandising and search
capabilities to streamline the shopping experience, and optimizing our clean-out
process to ensure it remains the backbone of our content-rich site. By focusing on
these strategic pillars, we're not only reinforcing our competitive advantages but also
setting the stage for sustained growth and innovation in the resale market.
What   s Next
As we move into 2024, our focus remains on leveraging the lessons from the past year
to refine our strategies and continue our growth momentum. Our plans include
addressing the challenges in Europe, optimizing our supply chain, and continuing to
innovate in our service offerings.
In closing, I want to express my sincere gratitude to our team, our customers, and you,
our stockholders, for your continued support. The achievements of 2023 are a
testament to the strength of our business model and the dedication of our team. We
are excited about the future and remain committed to delivering sustainable growth
and value for our shareholders.

Onward.
James Reinhart
Co-Founder and Chief Executive Officer
ThredUp Inc.

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4/5/2024 Letter Continued (Full PDF)

 

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