Shares of ThredUp Inc. (NASDAQ: TDUP) surged 18.24% in pre-market trading on Tuesday, following the company's impressive first-quarter earnings report and raised full-year guidance. The online fashion resale marketplace demonstrated significant improvements in financial performance and operational metrics, surpassing analysts' expectations.
ThredUp reported Q1 revenue of $71.29 million, marking a 10.5% year-over-year growth and beating Wall Street estimates of $68.32 million. The company's loss narrowed considerably, with earnings per share (EPS) coming in at -$0.04, outperforming the expected -$0.07. Notably, ThredUp achieved a record quarter for new buyer acquisition, indicating strong market traction and potential for future growth.
Investors were particularly encouraged by ThredUp's improved profitability metrics and optimistic outlook. The company's operating margin improved to -7.6% from -19.2% in the same quarter last year, while its adjusted EBITDA of $3.81 million significantly exceeded analyst estimates. Furthermore, ThredUp raised its full-year revenue guidance to $286 million at the midpoint, up 4% from its previous forecast of $275 million. This combination of better-than-expected results and increased guidance has fueled investor optimism, driving the substantial pre-market stock price surge.
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