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ThredUp Inc (TDUP)
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Upturn Advisory Summary
12/09/2024: TDUP (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -88.85% | Upturn Advisory Performance 2 | Avg. Invested days: 21 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 12/09/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -88.85% | Avg. Invested days: 21 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 12/09/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 197.94M USD |
Price to earnings Ratio - | 1Y Target Price 2.5 |
Dividends yield (FY) - | Basic EPS (TTM) -0.64 |
Volume (30-day avg) 1412839 | Beta 0.75 |
52 Weeks Range 0.50 - 2.60 | Updated Date 12/9/2024 |
Company Size Small-Cap Stock | Market Capitalization 197.94M USD | Price to earnings Ratio - | 1Y Target Price 2.5 |
Dividends yield (FY) - | Basic EPS (TTM) -0.64 | Volume (30-day avg) 1412839 | Beta 0.75 |
52 Weeks Range 0.50 - 2.60 | Updated Date 12/9/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -22.28% | Operating Margin (TTM) -20.62% |
Management Effectiveness
Return on Assets (TTM) -15.83% | Return on Equity (TTM) -78.17% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE - | Forward PE - |
Enterprise Value 218211250 | Price to Sales(TTM) 0.63 |
Enterprise Value to Revenue 0.7 | Enterprise Value to EBITDA -2.75 |
Shares Outstanding 85660400 | Shares Floating 81061402 |
Percent Insiders 5.05 | Percent Institutions 64.65 |
Trailing PE - | Forward PE - | Enterprise Value 218211250 | Price to Sales(TTM) 0.63 |
Enterprise Value to Revenue 0.7 | Enterprise Value to EBITDA -2.75 | Shares Outstanding 85660400 | Shares Floating 81061402 |
Percent Insiders 5.05 | Percent Institutions 64.65 |
Analyst Ratings
Rating 4.5 | Target Price 4.13 | Buy - |
Strong Buy 3 | Hold 1 | Sell - |
Strong Sell - |
Rating 4.5 | Target Price 4.13 | Buy - | Strong Buy 3 |
Hold 1 | Sell - | Strong Sell - |
AI Summarization
ThredUp Inc. - A Comprehensive Overview (as of November 2023)
Company Profile:
Detailed History and Background:
- Founded in 2009: James Reinhart founded ThredUp in his Harvard dorm room.
- Early Growth: ThredUp grew rapidly, becoming the world's largest online secondhand clothing marketplace.
- IPO in 2021: The company went public in March 2021, raising $168 million.
Core Business Areas:
- Resale Platform: ThredUp is a leading online marketplace for buying and selling secondhand clothing, shoes, and accessories.
- Resale-as-a-Service (RAAS): The company offers a white-label resale platform for other businesses.
- Sustainable Fashion: ThredUp promotes sustainable fashion by offering an alternative to traditional retail.
Leadership Team and Corporate Structure:
- James Reinhart: Founder and CEO
- Anthony Marino: President and COO
- Karen Clark Cole: Chief Financial Officer
- Board of Directors: Comprised of experienced leaders from various industries.
Top Products and Market Share:
Top Products:
- Women's clothing: Dresses, tops, jeans, etc.
- Shoes: Sneakers, boots, heels, etc.
- Accessories: Handbags, jewelry, scarves, etc.
Market Share:
- Global: ThredUp is a leading player in the online secondhand clothing market, competing with companies like Poshmark, The RealReal, and Vestiaire Collective.
- US: ThredUp holds the largest market share in the US online secondhand clothing market, with an estimated 35%.
Product Performance and Market Reception:
- ThredUp's products are generally well-received by customers, with positive reviews and high customer satisfaction ratings.
- The company has a strong brand reputation for being a reliable and convenient platform for buying and selling secondhand clothing.
Total Addressable Market:
The global secondhand clothing market is estimated to be worth $35 billion in 2023 and is expected to grow to $77 billion by 2025. In the US, the secondhand clothing market is estimated to be worth $36 billion in 2023.
Financial Performance:
Recent Financial Statements:
- Revenue: Q2 2023 revenue was $73.7 million, up 5% year-over-year.
- Net Income: Q2 2023 net income was $(15.2) million, compared to $(14.7) million in Q2 2022.
- Profit Margins: Gross profit margin was 67.6% in Q2 2023, compared to 65.9% in Q2 2022.
- Earnings per Share (EPS): Diluted EPS was $(0.14) in Q2 2023, compared to $(0.13) in Q2 2022.
Year-over-Year Performance:
- Revenue has grown steadily over the past few years.
- Net income is still negative, but the company is making progress towards profitability.
- Profit margins are improving.
Cash Flow and Balance Sheet Health:
- ThredUp has a strong cash position, with $177.4 million in cash and equivalents as of June 30, 2023.
- The company has a healthy balance sheet with low debt levels.
Dividends and Shareholder Returns:
Dividend History:
- ThredUp does not currently pay dividends.
Shareholder Returns:
- ThredUp's stock price has been volatile since its IPO in March 2021.
- As of November 15, 2023, the stock is trading at $1.47 per share, down from its IPO price of $14 per share.
Growth Trajectory:
Historical Growth:
- ThredUp has experienced strong revenue growth over the past few years.
- The company has also expanded its customer base and product offerings.
Future Growth Projections:
- ThredUp is expected to continue to grow its revenue and market share in the coming years.
- The company is well-positioned to benefit from the growing trend of sustainable fashion.
Recent Growth Initiatives:
- ThredUp is investing in technology and marketing to drive growth.
- The company is also expanding its product offerings and geographic reach.
Market Dynamics:
Industry Overview:
- The online secondhand clothing market is growing rapidly, driven by the increasing popularity of sustainable fashion and the convenience of online shopping.
- The market is becoming more competitive, with new entrants and established players vying for market share.
ThredUp's Positioning:
- ThredUp is well-positioned in the online secondhand clothing market, with a strong brand reputation and a loyal customer base.
- The company is also investing in technology and innovation to stay ahead of the competition.
Competitors:
- Poshmark (POSH): A leading online marketplace for buying and selling secondhand clothing.
- The RealReal (REAL): A luxury secondhand clothing marketplace.
- Vestiaire Collective: A global luxury secondhand clothing marketplace.
Competitive Advantages:
- ThredUp's large customer base and loyal following.
- The company's strong brand reputation and focus on sustainability.
- ThredUp's technology and innovation capabilities.
Competitive Disadvantages:
- ThredUp's profitability challenges.
- The company's relatively small market share compared to some competitors.
Potential Challenges and Opportunities:
Challenges:
- Maintaining profitability in a competitive market.
- Expanding into new markets and product categories.
- Keeping pace with technological advancements.
Opportunities:
- Growing the online secondhand clothing market.
- Partnering with other businesses to expand reach.
- Developing new technologies and innovations.
Recent Acquisitions (Last 3 Years):
- 2021: ThredUp acquired Remix, a fashion rental platform, for $11.5 million.
- 2021: ThredUp acquired Remix Commerce, a retail technology company, for $14.5 million.
- 2022: ThredUp acquired Recurate, a logistics platform for secondhand fashion, for $30 million.
AI-Based Fundamental Rating:
Rating: 7/10
Justification:
- ThredUp has a strong market position and a growing customer base.
- The company is well-positioned to benefit from the growing trend of sustainable fashion.
- However, ThredUp still faces profitability challenges and increasing competition.
Sources and Disclaimers:
- Data for this analysis was gathered from ThredUp's financial statements, company website, and third-party sources, including:
- ThredUp's Investor Relations website
- Securities and Exchange Commission (SEC) filings
- Market research reports
- This information is provided for educational purposes only and should not be considered financial advice.
Conclusion:
ThredUp is a leading player in the growing online secondhand clothing market. The company has a strong brand reputation, a loyal customer base, and a significant market share. However, ThredUp still faces profitability challenges and increasing competition. If the company can overcome these challenges, it has the potential to continue to grow and be a major player in the secondhand clothing market.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About ThredUp Inc
Exchange | NASDAQ | Headquaters | Oakland, CA, United States |
IPO Launch date | 2021-03-26 | Co-Founder, CEO & Director | Mr. James G. Reinhart |
Sector | Consumer Cyclical | Website | https://www.thredup.com |
Industry | Internet Retail | Full time employees | 2377 |
Headquaters | Oakland, CA, United States | ||
Co-Founder, CEO & Director | Mr. James G. Reinhart | ||
Website | https://www.thredup.com | ||
Website | https://www.thredup.com | ||
Full time employees | 2377 |
ThredUp Inc., together with its subsidiaries, operates an online resale platform in the United States and internationally. Its platform enables consumers to buy and sell primarily secondhand apparel, shoes, and accessories. ThredUp Inc. was incorporated in 2009 and is headquartered in Oakland, California.
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