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Daniel J. Nova, a director at ThredUp Inc. (NASDAQ:TDUP), recently increased his holdings in the company through open market purchases. On November 14 and 15, Nova acquired a total of 69,324 shares of ThredUp's Class A common stock. The transactions were executed at prices ranging from $0.9237 to $0.966 per share, amounting to a total purchase value of $65,946. These shares are held indirectly by the Daniel J. Nova 2000 Trust. Following these transactions, Nova holds a total of 188,173 shares directly and 78,245 shares indirectly.
In other recent news, ThredUp, the online consignment and thrift store, reported strong financial results for the third quarter of 2024. The company's Gross Merchandise Value (GMV) saw a 7% year-over-year increase, reaching $457 million, with significant gains in new buyer acquisition and retention. ThredUp is now focusing on the U.S. market, transitioning to a consignment model which accounts for over 90% of its revenue. Despite a decrease in consolidated revenue and active U.S. buyers, the company's gross margin improved, and new AI features are expected to drive sales growth.
ThredUp's transition to a consignment model is projected to constitute mid-90s percentage of revenue by 2025. The company is also divesting its European business, with a management buyout targeted by year-end. Adjusted EBITDA has been positive for five consecutive quarters, with U.S. cash flow positivity anticipated for the full year. The company has raised its fourth-quarter U.S. revenue outlook to between $58 million and $60 million, with full-year projections of $250.8 million to $252.8 million. These are the recent developments within ThredUp.
InvestingPro Insights
Daniel J. Nova's recent purchases of ThredUp Inc. (NASDAQ:TDUP) shares come at a time when the company's stock has shown strong performance in the short term, despite facing challenges in the longer run. According to InvestingPro data, ThredUp has experienced a robust 43.01% price return over the last three months, indicating a potential shift in investor sentiment.
However, it's important to note that the company's financial health presents a mixed picture. InvestingPro Tips highlight that ThredUp is "quickly burning through cash" and is "not profitable over the last twelve months." This aligns with the company's reported operating income of -$60.81 million for the last twelve months as of Q3 2023.
On a positive note, ThredUp boasts "impressive gross profit margins," with a gross profit margin of 68.14% for the same period. This suggests that despite profitability challenges, the company maintains strong pricing power in its core business of online secondhand clothing sales.
Investors considering ThredUp should be aware that analysts do not anticipate the company to be profitable this year, according to another InvestingPro Tip. This insight, along with 10 additional tips, is available on InvestingPro, offering a more comprehensive analysis of ThredUp's financial position and market performance.
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