ThredUp ( NASDAQ: TDUP ) shares ticked higher in Monday’s extended session after posting strong margins and user growth for the second quarter.
The Oakland-based eCommerce player posted a wider than expected loss , alongside a narrow beat on revenue estimates. However, a 68.9% gross margin, including record gross margins of 74.2% in the US business, drew attention after hours. Additionally, active buyers on the platform rose 29% from the prior year to 1.7M, aiding in a 40% jump in orders.
“As our consumer is faced with an uncertain economic environment and rising costs, we are focused on the variables within our control,” CEO and co-founder James Reinhart said. "We believe our model is uniquely positioned to weather macroeconomic volatility, and are confident that as we re-evaluate our cost base, we can make progress towards profitability and continue to strengthen our position in the growing resale market."
Gross margins are forecast to remain resilient at a range of 67% to 69% for the full year. Still, revenue estimates for the full year came up short of expectations, with the company forecasting $283 million to $287 million against an analyst expectation of $318.52M.
Shares rose 6.23% in after hours trading shortly after the earnings announcement .
For further details see:
ThredUp touts user growth, resilient margin in Q2 earnings result