Strong Customer Acquisition and Retention
Customer acquisition remained very strong in Q4, with new customer volume up 32% year over year. Q1 is shaping up to be one of the strongest acquisition quarters in ThredUp's history.
AI and Technology Investments
ThredUp's AI search functionality has led to an 85% higher conversion rate for sessions with image searches. High-performing AI-generated pivots have click-through rates above 15%, and 360-degree photos have increased 30-day sell-through rates by up to 12%.
Financial Performance and Growth
For Q4, revenue totaled $67.3 million, an increase of 9.5% year over year. Gross margin was 80.4%, a 290 basis point increase over the same quarter last year. Adjusted EBITDA was $5 million or 7.4% of revenue.
Positive Outlook for 2025
ThredUp expects to reach positive free cash flow on an annual basis in 2025 and plans for revenue growth of 6% at the midpoint for the full year.