ThredUp Gears Up for IPO

ThredUp has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were mentioned in the filing. Although the offering is valued up to $100 million, this number typically is just a placeholder. The company intends to list its shares on the Nasdaq under the symbol TDUP.

The underwriters for the offering are Goldman Sachs, Morgan Stanley, Barclays, William Blair, Wells Fargo, KeyBanc Capital Markets, Needham, Piper Sandler and Telsey Advisory Group.

ThredUp is one of the world’s largest online resale platforms for women’s and kids’ apparel, shoes and accessories. Its custom-built operating platform is powering the rapidly emerging resale economy, the fastest growing sector in retail, according to the GlobalData Market Survey.

As of December 2020, the company had 1.24 million active buyers and 428,000 active sellers. ThredUp’s platform consists of distributed processing infrastructure, proprietary software and systems and data science expertise.

Since its founding in 2009, the firm has processed over 100 million unique secondhand items from 35,000 brands across 100 categories, saving its buyers an estimated $3.3 billion off estimated retail prices. Management estimates that it has positively affected the environment by saving 1.0 billion pounds of CO2 emissions, 2.0 billion kWh of energy and 4.4 billion gallons of water simply by empowering consumers to buy and sell secondhand.

The firm described its finances as follows:

  • As of December 31, 2020, we had 1.24 million Active Buyers, up 24% over December 31, 2019, and 428,000 Active Sellers, down 4% from December 31, 2019.
  • As of December 31, 2020, our distribution centers could hold 5.5 million items.
  • Our revenue was $186.0 million in 2020, up 14% over 2019. Our consignment revenue was $138.1 million in 2020, up 41% over 2019.
  • Our gross profit was $128.1 million in 2020, up 14% over 2019. Our overall gross margin was 69% in 2020 and 2019. Our consignment gross margin was 75% in 2020, as compared to 77% in 2019.
  • Our net loss was $47.9 million in 2020 and $38.2 million in 2019. Our net loss margin was 26% in 2020 and 23% in 2019.

The company intends to use the net proceeds it receives from this offering for working capital other general corporate purposes, as well as to fund its growth strategies.

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