On this page of StockholderLetter.com we present the 4/7/2025 shareholder letter from ThredUp Inc. — ticker symbol TDUP. Reading current and past TDUP letters to shareholders can bring important insights into the investment thesis.
2024 ANNUAL REPORT
Inspiring the world to think secondhand first. To our stockholders: Building a business that redefines a category and reinvents itself as consumer behavior and technology change requires a relentless commitment to first principles thinking. This year, I thought it worth highlighting some of the first principles that have guided us over the years and specifically ones we came back to in 2024 as we navigated a volatile consumer environment. First, customers always want more for less and they always want it to happen yesterday instead of tomorrow. They are endlessly unsatisfied. Our job is to anticipate, delight and optimize towards a future that is unpredictable. In 2024, we took risks to reinvent our acquisition engine and rebuild the fundamental infrastructure of how our product worked. The former didn t go as planned and it put us on our heels for many months in the middle of the year. But we did not waiver on the latter, we continued to build and innovate and the product in market today is the best it has ever been. You can see the impact of these efforts in the acceleration of new buyers as we ended the year, the best customer retention in our history, and the highest conversion rate on record for us. Delivering a great product experience is central to everything we do. Second, 100-year businesses relentlessly invest in deepening competitive advantages - not just when things are going well, but especially in difficult times. Despite the volatility in 2024, we continued to invest in R&D and operations innovations that have improved the customer experience, reduced our variable costs for inbound and outbound processing, and extended the time table before we need to add capacity to our network. You can see this clearly in the expansion of our contribution margins as we ended the year. We have extended our unique and defensible competitive advantage in 2024 and we believe distanced ourselves further from competitors big and small.
Third, we are a technology company at our core and believe the greatest long-term returns on our capital come from investing in technology solutions to customer problems. Thus, we have made substantial investments in AI that are driving outsized conversion rates while also improving accuracy and scale in our distribution centers. We did not ease into AI adoption rather, we burned the boats in March of 2024 and have not looked back. Fourth, our mission is our moat. The exceptional people at ThredUp remain our greatest asset and our leadership team and VP-layer of talent are as strong as they have ever been. The average tenure now of our leadership team is eight years - we ve been through it all together. At the same time, we ve added fresh leadership talent across marketing, merchandising, product and engineering that we believe can scale to be the next generation of leaders at ThredUp. And beyond the leadership team, we are humbly scaling the next generation of directors and managers to take ThredUp far beyond what we can even imagine today. As we look ahead to 2025, we remain focused on building a resale experience that very soon will feel virtually indistinguishable from shopping new, an operations experience that is responsive to the emerging, unmet, needs of customers and a culture at ThredUp that is hungry to separate itself as one of the greatest places to work in the world. I couldn t be happier with how our team closed out 2024 and set the ambition we have for 2025 and beyond. Onward. James Reinhart Co-Founder and Chief Executive Officer ThredUp Inc.
 • shareholder letter icon 4/7/2025 Letter Continued (Full PDF)
 • stockholder letter icon 4/7/2023 TDUP Stockholder Letter
 • stockholder letter icon 4/5/2024 TDUP Stockholder Letter
 • stockholder letter icon 4/7/2026 TDUP Stockholder Letter
 • stockholder letter icon More "Apparel Stores" Category Stockholder Letters
 • Benford's Law Stocks icon TDUP Benford's Law Stock Score = 53


TDUP 4/7/2025 Shareholder/Stockholder Letter Transcript:

2024 ANNUAL
REPORT

Inspiring the world to think secondhand first.

To our stockholders:
Building a business that redefines a category and reinvents itself as consumer
behavior and technology change requires a relentless commitment to first principles
thinking. This year, I thought it worth highlighting some of the first principles that have
guided us over the years and specifically ones we came back to in 2024 as we
navigated a volatile consumer environment.
First, customers always want more for less and they always want it to happen
yesterday instead of tomorrow. They are endlessly unsatisfied. Our job is to
anticipate, delight and optimize towards a future that is unpredictable. In 2024, we
took risks to reinvent our acquisition engine and rebuild the fundamental
infrastructure of how our product worked. The former didn   t go as planned and it put
us on our heels for many months in the middle of the year. But we did not waiver on
the latter, we continued to build and innovate and the product in market today is the
best it has ever been. You can see the impact of these efforts in the acceleration of
new buyers as we ended the year, the best customer retention in our history, and the
highest conversion rate on record for us. Delivering a great product experience is
central to everything we do.
Second, 100-year businesses relentlessly invest in deepening competitive advantages
- not just when things are going well, but especially in difficult times. Despite the
volatility in 2024, we continued to invest in R&D and operations innovations that have
improved the customer experience, reduced our variable costs for inbound and
outbound processing, and extended the time table before we need to add capacity to
our network. You can see this clearly in the expansion of our contribution margins as
we ended the year. We have extended our unique and defensible competitive
advantage in 2024 and we believe distanced ourselves further from competitors big
and small.

Third, we are a technology company at our core and believe the greatest long-term
returns on our capital come from investing in technology solutions to customer
problems. Thus, we have made substantial investments in AI that are driving outsized
conversion rates while also improving accuracy and scale in our distribution centers.
We did not ease into AI adoption     rather, we burned the boats in March of 2024 and
have not looked back.
Fourth, our mission is our moat. The exceptional people at ThredUp remain our
greatest asset and our leadership team and VP-layer of talent are as strong as they
have ever been. The average tenure now of our leadership team is eight years - we   ve
been through it all together. At the same time, we   ve added fresh leadership talent
across marketing, merchandising, product and engineering that we believe can scale
to be the next generation of leaders at ThredUp. And beyond the leadership team, we
are humbly scaling the next generation of directors and managers to take ThredUp far
beyond what we can even imagine today.
As we look ahead to 2025, we remain focused on building a resale experience that very
soon will feel virtually indistinguishable from shopping new, an operations experience
that is responsive to the emerging, unmet, needs of customers and a culture at
ThredUp that is hungry to separate itself as one of the greatest places to work in the
world. I couldn   t be happier with how our team closed out 2024 and set the ambition
we have for 2025 and beyond.
Onward.
James Reinhart
Co-Founder and Chief Executive Officer
ThredUp Inc.


shareholder letter icon 4/7/2025 Letter Continued (Full PDF)
 

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