S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Ian Friedman, a director at ThredUp Inc. (NASDAQ:TDUP), recently acquired a significant number of shares in the company. According to a filing with the Securities and Exchange Commission, Friedman purchased 50,000 shares of ThredUp's Class A Common Stock on November 27, 2024. The shares were bought at a weighted average price of $1.5163, with individual transaction prices ranging from $1.465 to $1.54 per share. This acquisition amounted to a total investment of $75,815 in the $196.8 million market cap company. According to InvestingPro analysis, the stock appears undervalued at current levels and has shown strong momentum with an 8% gain in the past week. Following this transaction, Friedman's direct ownership in the company increased to 360,748 shares. The company maintains impressive gross profit margins of 68%, though InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report for deeper analysis of TDUP's financial health and growth prospects.
In other recent news, ThredUp has announced strong financial results for the third quarter of 2024, exceeding expectations and revising its forecasts upward for the fourth quarter and the full year. The company's Gross Merchandise Value (GMV) saw a 7% year-over-year increase, reaching $457 million, backed by gains in new buyer acquisition and retention. Despite a dip in consolidated revenue and active U.S. buyers, ThredUp's gross margin improved, and the introduction of innovative AI features are anticipated to boost customer engagement and sales growth.
The company is shifting its focus to the U.S. market, transitioning to a consignment model that now accounts for over 90% of its revenue. ThredUp is also divesting its European business, with a management buyout targeted by year-end. The company's adjusted EBITDA has been positive for five consecutive quarters, with U.S. cash flow positivity expected for the full year.
New AI features, including enhanced search, Style Chat, and Image Search, are expected to improve customer engagement. Despite a decrease in third-quarter consolidated revenue to $73 million, the U.S. gross margin improved to 79.3%. The fourth-quarter U.S. revenue outlook has been raised to between $58 million and $60 million, with full-year projections of $250.8 million to $252.8 million. These are among the recent developments at ThredUp.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.