thredUP (TDUP) Stock Forecast & Price Target

ThredUp Inc. has demonstrated robust financial performance, with total revenue growth of 33.6% year-over-year, reaching $82.2 million, significantly surpassing company guidance and market expectations. The company has also reported substantial increases in orders and active buyers, rising by 37.2% and 25.6% year-over-year, which contributed to a record month for new customer acquisition in October, up 81%. Looking ahead, ThredUp anticipates an upward revision in FY25 revenue projections to between $307 million and $309 million, indicating continued confidence in its growth trajectory amidst a streamlined operational model and enhanced customer experience through AI-driven tools.

ThredUp Inc has narrowed its full-year gross margin outlook to 79.0%-79.2%, indicating a decrease from the 79.7% rate observed in FY24, despite slightly exceeding market expectations. The company's sales growth is projected to slow significantly in Q4, with an expected increase of approximately 10% year-over-year compared to a mid-point guidance of 25% growth in Q3. Additionally, operating expenses have risen to 84.7% of sales, diverging from market forecasts and reflecting a challenging consumer environment characterized by uncertain macroeconomic factors and heightened competition during the upcoming holiday season.